Exemption from Withholding Tax for Services rendered and performed outside Malaysia

Effective 6 September 2017, the Government through the Income Tax (Exemption) (No.9) Order 2017 (P.U. (A) 323) dated 23 October 2017, exempts non-resident person from payment of income tax in respect of income from services which are rendered and performed by the person outside Malaysia.

 

The exemption from income is in respect of:

• Services referred to in paragraph 4A(i) of the Income Tax Act, 1967
• Technical advice, assistance or services referred to in paragraph 4A (ii) of the Income Tax Act, 1967

Withholding tax under Section 109B of the Income Tax Act, 1967 shall not apply to this exemption.

Payers are advised to keep documentation for declaration of place in which the service is performed. Contract value shall be reasonably apportioned if parts of services are rendered in Malaysia.