The Inland Revenue Board of Malaysia (IRBM) issued Practice Note No. 3/2023 on 5 December 2023, which clarifies the tax treatment of copyright and software payments made by distributors and resellers to non-residents. Such payments are generally considered royalty payments and subject to withholding tax when made to a non-resident that does not have a permanent establishment or place of business in Malaysia, unless otherwise provide for by an applicable tax treaty.
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PRACTICE NOTE NO. 3…