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Malaysian Tax question. please complete all the question a) FMCO Sdn. Bhd., a company resident in Malaysia, signed an agreement with Vicenzo Ltd (UK resident)
Malaysian Tax question. please complete all the question
a) FMCO Sdn. Bhd., a company resident in Malaysia, signed an agreement with Vicenzo Ltd (UK resident) for constructing Tun Razak Exchange building in Kuala Lumpur. The construction is expected to complete in three years and Vicenzo Ltd has set up a project management office in Kuala Lumpur. FMCO also signed agreement with Maybank Bhd and Golden International Bank (based in Japan) for the financing of the construction project. For the purposes of construction project, Vicenzo Ltd lease specialize equipment from another UK company and paid RM350,000 for the leasing. The payments made by FMCO Sdn. Bhd. before any tax deductions, were as follows: RM Cost of materials 9,000,000 Service portions with regards to the 4,000,000 construction paid to Vicenzo Ltd Interest paid to Maybank Bhd 185,000 Interest paid to Golden International Bank 98,000 Required: i. Discuss the withholding tax obligations of FMCO Sdn. Bhd. regarding to these payments. (11 marks) ii. Advise whether the payment of leasing specialize equipment has Malaysian tax implications. (4 marks) a) FMCO Sdn. Bhd., a company resident in Malaysia, signed an agreement with Vicenzo Ltd (UK resident) for constructing Tun Razak Exchange building in Kuala Lumpur. The construction is expected to complete in three years and Vicenzo Ltd has set up a project management office in Kuala Lumpur. FMCO also signed agreement with Maybank Bhd and Golden International Bank (based in Japan) for the financing of the construction project. For the purposes of construction project, Vicenzo Ltd lease specialize equipment from another UK company and paid RM350,000 for the leasing. The payments made by FMCO Sdn. Bhd. before any tax deductions, were as follows: RM Cost of materials 9,000,000 Service portions with regards to the 4,000,000 construction paid to Vicenzo Ltd Interest paid to Maybank Bhd 185,000 Interest paid to Golden International Bank 98,000 Required: i. Discuss the withholding tax obligations of FMCO Sdn. Bhd. regarding to these payments. (11 marks) ii. Advise whether the payment of leasing specialize equipment has Malaysian tax implications. (4 marks)Step by Step Solution
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