a. Identify whether each of the above payments by PSB to APL are subjected to withholding tax. Give your reasons. b. State the due dates for PSB to remit the withholding tax to the Inland Revenue Board. c. Compute the amount of withholding tax payable by PSB to the Inland Revenue Board including penalties (if any).
Please solve.
Perwaja Sdn. Bhd. (PSB) purchased a plant a machinery for RM3,000,000 from Alcano Pte Ltd (APL), a non-resident company for its factory in Seberang Jaya, Pulau Pinang on 1 April 2020. The agreement provides for non-resident employees of APL to carry out the installation of the plant and machinery and giving technical services to PSB in Seberang Jaya, Pulau Pinang. The fees charged by APL for the installation and technical services were RM100,000 and RM500,000 respectively. The installation fees of RM100,000 was paid to APL on 1 May 2015. RM500,000 on technical services were paid to APL on 1 June 2020. PSB remitted all the withholding tax on with to Inland Revenue Board on 15 June 2020.
Required:
a. Identify whether each of the above payments by PSB to APL are subjected to withholding tax. Give your reasons.
b. State the due dates for PSB to remit the withholding tax to the Inland Revenue Board.
c. Compute the amount of withholding tax payable by PSB to the Inland Revenue Board including penalties (if any).
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