Accountancy in Malaysia

>> Withholding Taxes in Malaysia

The general requirement is that where payments (interest, royalty, contract payments, management fees, technical fees, rental of moveable properties, other gains or profits) are made by a Malaysian tax resident to a non-tax resident, the payer is required to:

  1. withhold tax at prevailing rate of tax (unless specifically exempt or to be withheld at reduced rate of withholding tax as provided under the relevant tax treaty);
  2. give notice of deduction to the taxation

authorities in writing in the relevant prescribed form; and

  1. pay the amount withheld to the income tax authorities.

The tax withheld must be paid within  1 month from date of payment or crediting, otherwise penalties will  be imposed.


Latest version updated 1st November 2017

Country Breakdown

31.2

Million

Population

RM

Malaysian Ringgit

Currency

$ 296.4

Trillion

GDP

330,803

km2