– Importance of deducting correct withholding taxes on payments to non-residents

  • 📰 theSundaily
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

WHENEVER there are payments being made to non-residents, the paying enterprise, whether it is a company or otherwise, should be mindful of the need to...

there are payments being made to non-residents, the paying enterprise, whether it is a company or otherwise, should be mindful of the need to deduct withholding taxes.

The answer lies in the fact that if the services are provided in Malaysia over a period of time, and there is business activity in Malaysia, it will trigger a business presence in Malaysia or a permanent establishment under the double taxation treaties. From a payer’s perspective, if you deduct the 10% withholding tax as opposed to the 13% withholding tax, the Inland Revenue Board can disallow the total payment and apply the relevant penalties on the grounds you have misdirected yourself.If the payments are caught within the royalty definition such as payments for use of or right to use copyrights, patents, software, trademarks, designs, models, secret processes, knowhow, etc.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 25. in BUSİNESS

Business Business Latest News, Business Business Headlines