Escolar Documentos
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SECTION
4A (i)
SECTION
4A (ii)
SECTION
4A (iii)
ithholding Tax Rate: The gross amount paid for the three types of special classes of
income is said to be derived from Malaysia if the payment was made by the
Government, State Government, local authority or person who is resident in
Malaysia. Other than that, it is also income derived from Malaysia if the company
treated the payment as expenses in their accounts. The income received by non-resident under
paragraphs 4A(i) and 4A(ii) is consider derived from Malaysia if the services are carried out in
Malaysia. The amount of withholding tax imposed to the types of payment made by resident to nonresident can be summarized as below.
INSTALLATI
ON
FEES
10%
WHT
TECHNICAL
SERVICE
FEES
10%
WHT
MANAGEME
NT
FEES
10%
WHT
RENTAL
PAYMENT
10%
WHT
ther Incomes Subject to Withholding Tax: Besides special classes of income under
Section 4A of Income Tax Act 1967, there are other incomes that subject to withholding
tax. These include the contract payments, interest, remuneration and royalties made by
resident person to non-resident.
CONTRACT
PAYMENT
10%
Contractor
3%
Employees
INTEREST
15%
PUBLIC
ENTERTAINER
/SPORTSPERSO
N
15%
ROYALTIES
10%
onsequences: The tax authorities in Malaysia will impose several punishments if the payer
does not comply with the regulation of withholding tax. The consequences on the payer are
including all the three below.
REFERENCES
Choong Kwai Fatt (2010), Malaysian Taxation Principle and Practices, 16th edition. Published by Info
World Malaysia.
Inland Revenue Board Malaysia (2014, January). Withholding Taxes On Special Classes of Income.
Public Ruling No. 1/2014.
Income Tax Act 1967