Malaysia: Withholding Taxes and the Implications of Double Taxation Agreements

Malaysia practises primarily a territorial system of taxation. Tax is levied on profits arising in or derived from carrying on a trade, business or profession in Malaysia. Since the territorial principle does not distinguish between residents and non-residents, a non-resident company or individual that derives income from a Malaysian source may be liable to pay tax in Malaysia. When a Malaysian-resident company or individual makes specific types of payments to a non-resident entity, a certain portion of the payment must be withheld and paid to the Inland Revenue Board of Malaysia on behalf of the non-resident.

The aim of this book is provide a working understanding of the Malaysian withholding tax system. It covers Malaysia’s withholding tax rules including the transactions and parties subject to withholding tax, payments that are subject to withholding tax, withholding tax rates and the consequences of non-compliance with withholding tax provisions.

Key Features & Benefits

• One-stop quick and concise resource to learn about and understand your withholding tax obligations in Malaysia and the implications of Double Taxation Agreements.
• First point of reference on Malaysian withholding tax issues. 
• Learn and understand withholding tax obligations in Malaysia and the implications of Double Taxation Agreements.

Topics Covered

• Overview of Malaysian Withholding Tax
• Malaysian Withholding Tax Rules on Various Types of Payments
• Implications of Double Taxation Agreements
• Withholding Tax – Case Law and Observations