COURSE: ADVANCE TAXATION

NOTES: Withholding tax is to be remitted by the payer to the Inland Revenue Board of Malaysia within one month of the amount being paid or credited to the non-resident person (meaning within one month after the date of paying or crediting the payment). The calculation as in the Public Ruling examples are 30 days = 1 month. However, days in a month is remained as 30 or 31 . The day is counted one day after the date of payment or credited. In practice if the due date falls on weekend or public holiday, then the due date is the following working day. i.e. if 13 June 2022 , so the due date is 13 July 2022 if 13 July 2022 , so the due date is 12 August 2022 QUESTION 1: The following are the transactions that may be subjected to withholding tax and vice-versa: A. Haryanto Inc is a general commission agency in Indonesia which promoted sales in Singapore on behalf of HS Sdn Bhd, a resident company in Malaysia. HS Sdn Bhd pays the commission of RM120,000 to Haryanto Inc based on the sales transactions secured in Singapore on 1 July 2022. HS Sdn Bhd obtained a copy of Haryanto Inc's audited accounts and business registration form as proof that Haryanto Inc is a general commission agent. B. Arniza Sdn Bhd (ASB), a Malaysian resident company, entered into an agreement with Janna Ltd (JL), a non-resident company from Thailand. The agreement was for the use of copyright patents during the year of assessment 2022 . Apart from that, JL sent one personnel to ASB for consultation services in relation to the use of the copyright patents and to sign the agreement with ASB. ASB received an invoice dated 10 June 2022 from JL amounting of RM70,000 for the use of the copyright patents and RM90,000 which include reimbursement of hotel accommodation of RM15,000 for the consultation services. ASB credited the funds to JL on 16 June 2022. C. MunJab Pharmaceutical Sdn Bhd (MGM) had been using the service of a ship owned by NZSea Ltd. (NZL), a New Zealand company, for exported goods. On 1 January 2022, MGM paid RM500,000 freight charges to NZL. On 1 June 2022, NZL agreed to rent the ship to MGM with a payment of RM800,000 each year for seven years. The first payment to NZL was made on 31July 2022. NZL had never become a tax resident in Malaysia. D. Lisa Rose, a non-resident, exercised employment in Malaysia as a musician for Best Sound Entertainment Sdn Bhd, a Malaysian tax resident company, from 1 March 2022 to 25 April 2022. She arrived in Malaysia on 20 February 2022 and left Malaysia on 20 June 2022, after a two-month holiday in Malaysia. She does not intend to visit Malaysia any time in the remaining of 2022. During the employment, Lisa Rose also involved in series of mini concerts which opened to the public and she received another RM45,000 on top of the remuneration payments of RM120,000. Lisa Rose was paid for the entire period as a lump sum on the last day of her employment. REQUIRED: State whether each of the following payment is subject to withholding tax. If your answer is 'Yes', state the type of income, calculate the amount of withholding tax and the due date to remit the withholding tax to the Inland Revenue Board of Malaysia (IRBM). If 'No', give reason