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WHT, if NR :red_cross:bear the WHT on disbursement
WHT :red_cross:ded, …
WHT
S109B 10%
- S4A(i) Installation fee
- S4A(ii) Technical services
- S4A(iii) Rent of movable property
S4A(i)
- use of property / rights
- installation in Msia
payment on pr P&M, :red_cross:WHT
S4A(ii)
- advice, assistance, service carry out in Msia
- share of O/H exp with NR head office
- reimbursement & disbursement in connection of service rendered, treated as part of contract value
disbursement on hotel accommodation :red_cross:included
:red_cross:WHT
- refundable deposit & advance payment
- guarantee fees on loan
- commission for general commission agent (deals transacted overseas)
:check:WHT
- non-refundable deposit & advance payment
- testing services required by std
S4A(iii)
- hire / leasing
- exclude freight charge
Derived from Msia
- G, SG, LA
- pay by R
- charged as exp against inc accruing in / derived from Msia
:red_cross:attributable to PE, :red_cross:WHT
attributable to PE, :check:WHT
- to NR
- performing service in Msia, contract project carried out in Msia
- WHT applicable on service portion
Advance tax
- 10%: to cover tax on NR contractor
- 3%: to cover tax on NR's em'ees
Tax implication
10% WHT
- NR contractor file his return, compute final tax liability
- final tax liability > 10% WHT = shortfall of tax pd to DG
- final tax liability < 10% WHT = refund pd to NR
3% WHT
- refunded to NR contractor
- :red_cross:reduce tax liability of NR contractor, :red_cross:shown in tax comp
S109F 10%
- Guarantee fee
- Introductory fee
- Commission
- s4(f) inc
- to NR
- derived from Msia
S4(f) inc
- REVEX
- miscellaneous inc, recd outside ordinary course of trade / vocation
- isolated transaction
- :red_cross:repetition
Derivation from Msia
- G, SG, LA
- pay by R
- charged as exp against inc accruing in / derived from Msia
-
Derived from Msia
Royalty
- G, SG, LA
- pay by R
- charged as exp against inc accruing in / derived from Msia
Interest
- G, SG, LA
- pay by R
- payable in borrowing
- for production of gross inc derived from Msia
- laid out on asset
- secure by any property situated in Msia
- charged as exp against inc accruing in / derived from Msia
- only pay net amt to NR
- remit to DGIR within 1 mth after paying / crediting recipient
- NR :red_cross:report in return
Tax implication of non-compliance
- gross fee :red_cross:ded
- installation fee :red_cross:qualify as QPE for CA
- late payment penalty 10%
- WHT + penalty = debt due to G
- under self assessment system
- if ded claim, 100% penalty for incorrect returns
- if pd
- :check:ded, penalty :red_cross:ded
- revise return within 1 yr after end of yr payment is made
- remun / other inc
- services rendered in Msia
-
if NR :red_cross:bear the WHT on disbursement
- WHT :red_cross:ded, :red_cross:wholly & exclusively incurred in prod of payer's inc
-
-
supervisory service in respect of construction project >6 mths, WHT applicable under S107A
service portion = gross contract fee - cost of P&M, lab, raw mat