Memory Museum Sdn Bhd is developing a Museum and Galleryin Kuala Lumpur. During the year ended 30.6.2019 the company made the various payments. In 7 January 2019, Memory Museum Sdn Bhd make a total RM2,850,000 payment to Maxim Ltd, a resident of France with a management office in Sungai Buloh. The breakdown is as follow: RM1,950,000 for contract service RM900,000 for cost of machinery In 8 February 2019, few service payments were made. A payment of RM100,000 made to Seoul Consultancy Ltd (Korean resident company) for technical advice given in Malaysia for the installation of machinery. Total of RM112,000 of engineering services fee is paid to Bestari Engineering Bhd, a Malaysia resident company. Lastly is total RM300,000 is paid to KidPlay Idea Ltd for consultation work rendered in Russia. Required: Analyse whether each of the above payment is subject to withholding tax and explain the withholding tax compliance where applicable.
Memory Museum Sdn Bhd is developing a Museum and Galleryin Kuala Lumpur. During the year ended 30.6.2019 the company made the various payments.
In 7 January 2019, Memory Museum Sdn Bhd make a total RM2,850,000 payment to Maxim Ltd, a resident of France with a management office in Sungai Buloh. The breakdown is as follow:
- RM1,950,000 for contract service
- RM900,000 for cost of machinery
In 8 February 2019, few service payments were made. A payment of RM100,000 made to Seoul Consultancy Ltd (Korean resident company) for technical advice given in Malaysia for the installation of machinery. Total of RM112,000 of engineering services fee is paid to Bestari Engineering Bhd, a Malaysia resident company. Lastly is total RM300,000 is paid to KidPlay Idea Ltd for consultation work rendered in Russia.
Required:
Analyse whether each of the above payment is subject to withholding tax and explain the withholding tax compliance where applicable.
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