WITHOLDING
TAX
Non-resident individuals are subject to a final withholding tax of:
- 10% on special classes of income such as the use of moveable
property; technical advice, assistance or services; installation
services on the supply of plant, machinery, etc.; and personal
services associated with the use of intangible property. Effective
from 21 September 2002, payments to non-residents for services
rendered abroad will not be liable to the withholding tax of 10%
- 10% on royalties
- 15% on interest
- 15% on the services of a public entertainer
An employee on a short-term visit to Malaysia enjoys tax exemption in
respect of his income from an employment exercised in Malaysia when
his presence does not exceed 60 days in a calendar year. However, the
income of a non-resident individual who performs independent
services such as consultancy services is not exempted from tax.
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