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Tutorial 2 WHT Q

This document contains three questions regarding withholding tax in Malaysia. Question 1 asks about situations where income is deemed derived from Malaysia. Question 2 presents three cases and asks if payments are subject to withholding tax, and if so to calculate the amount. Question 3 provides three cases and asks to identify any payments subject to withholding tax, and calculate amounts. It also asks to justify cases not subject to withholding tax.

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Cheah Han Ming
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275 views2 pages

Tutorial 2 WHT Q

This document contains three questions regarding withholding tax in Malaysia. Question 1 asks about situations where income is deemed derived from Malaysia. Question 2 presents three cases and asks if payments are subject to withholding tax, and if so to calculate the amount. Question 3 provides three cases and asks to identify any payments subject to withholding tax, and calculate amounts. It also asks to justify cases not subject to withholding tax.

Uploaded by

Cheah Han Ming
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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COLLEGE OF BUSINESS SHOOL OF ACCOUNTANCY BKAT3023 ADVANCED TAXATION (SEM A131) TUTORIAL 2 WITHOLDING TAX Date of submission: 3 October

er 2013

QUESTION 1 Briefly explain two (2) situations where income is deemed to be derived from Malaysia. QUESTION 2 Is the payment made in the following cases subject to withholding tax (WHT)? If your answer is Yes, state the type of income and calculate the amount of WHT. If your answer is No, give reason. a) On 1 November 2013, Suria Sdn Bhd (a Malaysian resident) ppaid a sum of RM500,000 to Jane Robert (a non-resident) as a royalty payment for her manuscript which has been published in Malaysia. b) Excellent Voyage Ltd (a non-resident) received rental payment from Sauh Sdn Bhd (a Malaysian resident) for the use of a ship on a voyage charter from Kobe, Japan to Port Klang, Malaysia. The payment of RM650,000 was made on 20 August 2013. c) An athlete from South Africa (non-resident) was invited as a speaker at a few sport workshops in Malaysia for the period of 1 June 2013 to 20 July 2013. He received RM700,000 from the government of his country for the services provided throughout the period. QUESTION 3 For each of the following cases, state the gross payment(s) which is (are) subject to withholding tax (WHT) (if any) and the amount of WHT. For payment(s) which is (are) not subject to WHT, provide reason to justify your answer. i In June 2013, White Blue Ltd, an Australian company, provided personnel to supervise the installation and operation of a plant sold to Prosper Sdn Bhd. The service was performed in Malaysian and Vietnamese branches. On 25 July 2013, White Blue Ltd issued an invoice for the

value of RM50,000 and RM70,000 for both branches respectively. This payment excluded reimbursement of air fare cost and hotel accommodation of RM12,000 and RM15,000 for both branches respectively. The allocation of air fare cost and hotel accommodation is 60% and 40% of the reimbursement amount respectively.

ii Marini is the owner of a business in Brunei which produces coconut milk powder. She met Robert, a local tourist during a five-day visit to Langkawi, Malaysia in March 2013. Marini asked Robert whether he could find any opportunity to sell her products in Malaysia. After two months, Robert contacted Marini and provided her a contact number of a well-known food retailer in Kuala Lumpur, Malaysia. On 18 September 2013, Marini had signed an agreement to export her products to Malaysia and paid RM30,000 to Robert as a token of appreciation.

iii IC (M) Sdn Bhd (ICM), is a subsidiary of a group of companies based in Sweden. ICM always seeks assistance from the parent company (non-resident) to provide technical service. In the year of assessment 2013, ICM paid RM80,000 to parent company for the technical service provided and reimbursement of hotel accommodation of RM15,000.

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