Wirama Bhd (Wirama) is a company resident in Malaysia. In the year 2020, Wirama purchased a machine from Jamming Ltd (Jamming), a non-resident company. Since Wirama required technical services from Jamming for the installation of the machine in Malaysia, Jamming sent an employee to Malaysia to provide the technical services to Wirama. For the technical services provided in Malaysia, Jamming was paid RM23,000. In its tax return for the year of assessment 2020, Wirama claimed the RM23,000 payment to Jamming.
 

Required:
a) In relation to the RM23,000, determine the class of income received by Jamming, and explain whether withholding tax is applicable.

b) Calculate the withholding tax (if any) on the payment for the technical services rendered by Jamming.

c) Assume withholding tax is applicable, discuss Wirama's withholding tax obligations as well as the consequences of failure to comply with the relevant withholding tax provision when Wirama had claimed a deduction of RM23,000 in its tax return for the year of assessment 2020.

 

d) Based on  compute the amount due to the government by Wirama Bhd.
 

Candidates are required to cite the relevant provisions of the tax legislation.