Question 1

What are the Malaysian withholding tax rates?

Accepted Answer

Common rates are 10% on royalties, 15% on interest, 10% on technical fees and special classes of income under Section 4A, and 10% + 3% on non-resident contract payments. Tax treaties may reduce these.

Question 2

When must withholding tax be paid?

Accepted Answer

The payer must remit the withheld tax to LHDN within one month of paying or crediting the non-resident. Late payment attracts a 10% penalty and may disallow the expense.

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