Question
A Bhd signed a contract agreement with B Ltd, a Korean company, for the construction building in KL. B Bhd set up a project management
A Bhd signed a contract agreement with B Ltd, a Korean company, for the construction building in KL. B Bhd set up a project management office in KL. The total value of the contract is RM7 million of which RM3 million is the service portion and RM4 million is the cost of materials
Required
- Explain the tax obligation for A Bhd with regards to the payments and determine the value to be withheld
- Calculate the tax liability for B Ltd assuming the chargeable income is RM1.8 million. Tax Rate=24%
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
