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Malaysia Clarifies Withholding Tax on Services Performed Abroad

|Approved Changes|Malaysia
Malaysia

The Inland Revenue Board of Malaysia recently published two practice notes regarding the changes in withholding tax requirements on service payments introduced as part of the Finance Act 2017 (Act 785), which include that payments for services to non-residents are now subject to a 10% withholding tax, regardless of where the services are performed. The two practice notes clarify the application of the new rules.

Practice Note No. 1/2017

The first practice note clarifies that the change a…

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