company for its factory in Seberang Jaya, Pulay 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 Seberạng 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.
company for its factory in Seberang Jaya, Pulay 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 Seberạng 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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. 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 Şeberang
Jaya, Pulay 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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