Please solve all questions Determine the types of payment made to non-resident person which is subject towithholding tax and explain the responsibility of the payer according to theIncome Tax Act 1967. (as amended)Chanting Sdn Bhd, a tax resident company, entered into a royalty agreement withK Pop Ltd, a non-resident from Korea, for the use of a software applicationduring the year of assessment 2016. Chanting Sdn Bhd received an invoice from KPop Ltd. for RM10,000 on 12 February 2016 and credited the funds to K Pop Ltdon 18 February 2016.С.Required:State the withholding tax obligations required of Chanting Sdn Bhd under theIncome Tax Act on paying/crediting the non-resident, K Pop Ltd. Your answershould include the withholding tax rate which will apply and the due date to remitthe withholding tax to the Inland Revenue Board.Kerlipan Sdn. Bhd. closes its accounts on 30 April every year. For the year ofassessment 2015, the company recorded chargeable income of RM950,000. On 1stApril 2014, the company had submitted its estimation of tax for the year ofassessment 2015 amounting to RM250,000. The company is subjected toD.corporate tax of 25%.Required:i.Calculate the penalty charged to Kerlipan due to underestimate of incometax payable.ii.Advise Kerlipan Sdn. Bhd. on how the company can avoid paying penaltyfor underestimate of income tax payable. Your answer should include thedeadline on the revision of estimated income.B.C.

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Determine the types of payment made to non-resident person which is subject to withholding tax and explain the responsibility of the payer according to the Income Tax Act 1967. (as amended) B.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter2: Working With The Tax Law

Section: Chapter Questions

Problem 34P

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