CUMICUMI Computers Ltd, a major South Korea manufacturer of computers, is considering selling its hardware in Malaysia market.The company has the following options:

i.Mail order

The company intends to advertise in major Malaysian newspapers and computer magazines.Prospective purchasers will place their orders with the company's South Korea sales office and payments will be made on a cash-on-delivery basis.Payments will be banked into the company's bank account in South Korea.

ii.Malaysian showroom

The company intends to have a Malaysian showroom but orders will have to made directly to South Korea; the Malaysian showroom will NOT be allowed to take any orders.

iii.Agent

The company intends to appoint an agent to promote sales.The contract of sale will be made between the purchaser and CUMICUMI Computers Ltd and the independent agent will be paid a commission for the sale.

iv.Branch

The company operates a branch in Malaysia and undertakes the sale.

v.Subsidiary

The company incorporates a subsidiary CUMICUMI Computer Sdn Bhd in Malaysia to undertake the sale of the company's computers.

REQUIRED:

Critically evaluate and advise the company which of the above options are suitable to enable the company to avoid paying Malaysian income tax.