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this is tax, please do it in detail thank you Part B Power Energy Sdn. Bhd. (PESB), which is a Malaysian tax resident company, had
this is tax, please do it in detail thank you
Part B Power Energy Sdn. Bhd. (PESB), which is a Malaysian tax resident company, had bought a power plant for RM980,000 from Paragon Ltd., a company resident in Japan. The purchase transaction took place on 15 April 2020 and the power plant must be installed by Paragon Ltd. For this purpose, Paragon Ltd. sent three of its engineers to Malaysia to install and supervise the operation of the plant from 21 April 2020 to 18 May 2020. PESB paid RM185,000 to Paragon Ltd. for its services on 25 May 2020. Besides, PESB had also entered into a franchise agreement with Xcellent Ltd., a company resident in India. The term of the agreement required PESB to pay a royalty of RM120,000 to Xcellent Ltd. on 12 December 2020. Required: i. Determine whether or not the above payments made by PESB are subject to withholding tax. Justify your answers. (4 marks) ii. Determine the due date and the amount of withholding tax to be remitted to the Inland Revenue Board of Malaysia (IRBM) for the payment(s) subject to withholding tax. (3 marks) iii. Determine TWO (2) tax consequences for PESB if there is a non-compliance with the withholding tax requirements. (3 marks) Part B Power Energy Sdn. Bhd. (PESB), which is a Malaysian tax resident company, had bought a power plant for RM980,000 from Paragon Ltd., a company resident in Japan. The purchase transaction took place on 15 April 2020 and the power plant must be installed by Paragon Ltd. For this purpose, Paragon Ltd. sent three of its engineers to Malaysia to install and supervise the operation of the plant from 21 April 2020 to 18 May 2020. PESB paid RM185,000 to Paragon Ltd. for its services on 25 May 2020. Besides, PESB had also entered into a franchise agreement with Xcellent Ltd., a company resident in India. The term of the agreement required PESB to pay a royalty of RM120,000 to Xcellent Ltd. on 12 December 2020. Required: i. Determine whether or not the above payments made by PESB are subject to withholding tax. Justify your answers. (4 marks) ii. Determine the due date and the amount of withholding tax to be remitted to the Inland Revenue Board of Malaysia (IRBM) for the payment(s) subject to withholding tax. (3 marks) iii. Determine TWO (2) tax consequences for PESB if there is a non-compliance with the withholding tax requirements Step by Step Solution
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