Subject : International Taxation

MULTIPLE CHOICE : Give a reason for each answer chosen to get a point.

Cola Cola is a famous brand in the food and beverage industry in Singapore owned by Cola Cola Pte Ltd. Knowing this, Boy William, an entrepreneur based in Jakarta, decided to buy a license to sell that drink in a major shopping mall in Jakarta. For this, he paid a license fee which is basically calculated as 10% of monthly sales to Cola Cola. As a good citizen, Boy Willliam seeks an advice from you on the tax implications of these payments. Your advice would be: a. Boy William should withhold 20% as income tax (section 26 of the income tax legislation) b. Boy William should only withhold 15% as income tax (section 26 of the income tax legislation) c. Boy William should only withhold 15% as income tax (section 23 of the income tax legislation) d. This income was derived from outside Singapore and as a result, is exempt under the Singaporean income tax legislation