Withholding tax for service fee payments made to non-residents (Practice Notes from IRBM)

July 12, 2017

 

1. The Inland Revenue Board of Malaysia (IRBM) has, on 23 June 2017, issued Practice Note No. 1/2017: Amendment of Section 15A of the Income Tax Act 1967 Issues on Effective Date.


This Note is issued to provide guidance on the implementation of the amendment to Section 15A of the Income Tax Act 1967 (ITA 1967) in Budget 2017, specifically relating to contracts signed or services performed outside Malaysia prior to the coming into effect of the said amendment.

 

This Note can be downloaded from here: [Download Practice Note. 1/2017]
 

 

2. The IRBM has also, on 23 June 2017, issued Practice Note No. 2/2017: Amendment of Section 15A of the ITA 1967 Issues on Existing Double Taxation Avoidance Agreement (DTAA).  This Note is issued to clarify the impact of the amendment to Section 15A of the ITA 1967 on existing double taxation avoidance agreements.

 

This Note can be downloaded from here: [Download Practice Note. 2/2017]

 

Clients are advised to comply accordingly. Failure to comply with withholding tax requirements could entail penalty from IRBM, and the related expenses would not qualify as business deductions for tax purposes.

 

 

 

Let’s talk:  StanleyCo is a Licensed Tax Agent and GST Agent, please contact us if you need assistance with the topic above.

 

 

 

 

 

 

Disclaimer: Every effort has been made to provide accurate information. However, the information and regulations contained in this article are subject to changes and amendments by the relevant authority at any time. As such, the information in this article may not be current. 

And the information provided in this article is general commentary only and shall not be considered as advice or recommendation. As all tax situations are specific to their facts and will differ from the situations in this article - if you have specific tax questions you should consult a licensed tax agent.

 

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