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Withholding Tax

Introduction

Withholding tax is an amount withheld by the party making payment (payer) on income earned by a non-resident (payee) and paid to the Inland Revenue Board of Malaysia.
 
'Payer' refers to an individual/body other than individual carrying on a business in Malaysia. He is required to withhold tax on payments for services rendered/technical advice/rental or other payments made under any agreement for the use of any moveable property and paid to a -resident payee.
 
'Payee' refers to a non-resident individual/body other than individual in Malaysia who receives the above payments.
 
The Income Tax Act, 1967 provides that where a person (referred herein as "payer") is liable to make payment as listed below (other than income of non-resident public entertainers) to a non-resident person (NR payee), he shall deduct withholding tax at the prescribed rate from such payment and (whether such tax has been deducted or not) pay that tax to the Director General of Inland Revenue within one month after such payment has been paid or credited to the NR payee.
 
 
 
 

Payments Liable To Withholding Tax

Payment Liable to withholding tax are:
  • Contract Payment
  • Interest
  • Royalti
  • Special classes of income: Technical fees, payment for services, rent/payment for use of moveable property
  • Interest (except exampt interest) paid by approved financial institutions
  • Income of non-resident public entertainers
  • Real Estate Investment Trust (REIT)
 
  1. Other than a resident company
  2. Non Resident company.
  3. Foreign investment institution
  • Family Fund/Takaful Family Fund/Dana Am
 
  1. Individual and other
  2. Non Resident Company
  • Income under Section 4(f) ITA 1967
 
 
 
 

What We Can Help You?

We are licensed Tax Agent registered with Inland Revenue Board (IRB) under Section 153(3) of Income Tax Act 1967. As a professional tax consultant, we can advise and assist you in your company or individual income tax compliance and submission according to Income Tax Act 1967, IRB's public ruling, Tax audit & investigation frameworks, Tax technical guideline and etc. We can also advice you on income tax incentives which are available and best suited for you.
 
We are also GST agent registered with Royal Malaysian Customs Department. We can help you comply with and conform to the GST standards and requirements. Start from registration to preparation and submission of GST return, we can solve all GST technical issues faced by you. We will also advice you on rules and regulation related to your business or company GST affairs.
 
We are advising our clients on:
  • which incentives are available and best suited for them;
  • transactions which will affect their chargeable incomes;
  • transfer pricing legislation which affect their inter-company transaction;
  • tax incentive application procedures.
 
 

L & Co Plt.

18A & 20, Jalan Sasa 2, Taman Gaya,
81800 Ulu Tiram, Johor, Malaysia.
Tel +607-859 0410
Fax +607-863 1003
Email liew@liew.my
 
     

What Our Client Say

     
L & Co always carry their services in professional way – well planning, in time, precise, friendly and professional. While we are stuck with problems, they can always advice us with industrial best practices and their views.
 
YM Tan
ICT Automation (M) Sdn Bhd
www.ict.com.my
 
  External Audit   Income Tax Submission   GST Consultancy   Tax Incentive Application   Corporate Advisory   Income Tax Audit   GST Submission  
                             
  External
Audit
  Income Tax
Submission
  GST
Consultancy
  Tax Incentive
Application
  Corporate
Advisory
  Income Tax
Audit
  GST
Submission
 
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