The following scenario relates to question 4 and 5. TN Sdn Bhd is a Malaysian resident company involves in telecommunication services. On 14 June 2019, the company made RM10 million payment to Kim Inc., a Korean Company in respect of the followings: RM6 million for the provision of technical services performed in Malaysia relating to the programming of audio-visual media distribution to all respective states. RM1 million for the reimbursement made to the management staff of Kim Inc. which comprised of RM0.7 million for the air fares and RM0.3 million for the hotel accommodation in Malaysia. RM3 million for the management services conducted by Kim Inc.'s office in Korea. 4. Analyze the correct withholding tax treatment from the following statements in respect of the RM10 million payment made to Kim Inc. А. The RM10 million payment made to Kim Inc. will be subject to 10% withholding tax as per sec 109B of Income Tax Act 1967. В. Only reimbursement payment made to Kim Inc. on the hotel accommodation will be subject to 10% withħolding tax as per sec 109B of Income Tax Act 1967. С. RM3 million payment will be subject to higher rate of 20% withholding tax as the service was conducted outside Malaysia. D. 10% withholding tax shall be deducted from RM6 million payment made to Kim Inc. since it falls under special classes of income [sec 4A(ii)] and the service was carried out in Malaysia. Calculate the total amount of withholding tax levied on the payment made to Kim Inc. by TN Sdn Bhd 5. A. RM1,000,000 В. RM1,300,000 С. RM670,000 D. RM930,000
The following scenario relates to question 4 and 5. TN Sdn Bhd is a Malaysian resident company involves in telecommunication services. On 14 June 2019, the company made RM10 million payment to Kim Inc., a Korean Company in respect of the followings: RM6 million for the provision of technical services performed in Malaysia relating to the programming of audio-visual media distribution to all respective states. RM1 million for the reimbursement made to the management staff of Kim Inc. which comprised of RM0.7 million for the air fares and RM0.3 million for the hotel accommodation in Malaysia. RM3 million for the management services conducted by Kim Inc.'s office in Korea. 4. Analyze the correct withholding tax treatment from the following statements in respect of the RM10 million payment made to Kim Inc. А. The RM10 million payment made to Kim Inc. will be subject to 10% withholding tax as per sec 109B of Income Tax Act 1967. В. Only reimbursement payment made to Kim Inc. on the hotel accommodation will be subject to 10% withħolding tax as per sec 109B of Income Tax Act 1967. С. RM3 million payment will be subject to higher rate of 20% withholding tax as the service was conducted outside Malaysia. D. 10% withholding tax shall be deducted from RM6 million payment made to Kim Inc. since it falls under special classes of income [sec 4A(ii)] and the service was carried out in Malaysia. Calculate the total amount of withholding tax levied on the payment made to Kim Inc. by TN Sdn Bhd 5. A. RM1,000,000 В. RM1,300,000 С. RM670,000 D. RM930,000
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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![The following scenario relates to question 4 and 5.
TN Sdn Bhd is a Malaysian resident company involves in telecommunication services. On 14
June 2019, the company made RM10 million payment to Kim Inc., a Korean Company
in respect of the followings:
RM6 million for the provision of technical services performed in Malaysia relating to
the programming of audio-visual media distribution to all respective states.
RM1 million for the reimbursement made to the management staff of Kim Inc. which
comprised of RM0.7 million for the air fares and RM0.3 million for the
hotel accommodation in Malaysia.
RM3 million for the management services conducted by Kim Inc.'s office in Korea.
Analyze the correct withholding tax treatment from the following statements in respect
of the RM10 million payment made to Kim Inc.
4.
A.
The RM10 million payment made to Kim Inc. will be subject to 10% withholding
tax as per sec 109B of Income Tax Act 1967.
В.
Only reimbursement payment made to Kim Inc. on the
accommodation will
be subject to 10% withholding tax as per sec 109B of Income Tax Act 1967.
С.
RM3 million payment will be subject to higher rate of 20% withholding tax as
the service was conducted outside Malaysia.
D. 10% withholding tax shall be deducted from RM6 million payment made to Kim
Inc. since it falls under special classes of income [sec 4A(ii)] and the service was
carried out in Malaysia.
Calculate the total amount of withholding tax levied on the payment made to Kim Inc.
by TN Sdn Bhd
5.
А.
RM1,000,000
В.
RM1,300,000
С.
RM670,000
D.
RM930,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3de9082e-db81-4cad-a6f1-5cc3a53f3fe1%2F08545f6c-2bd3-409a-b88e-866106003ad8%2F4vb494p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following scenario relates to question 4 and 5.
TN Sdn Bhd is a Malaysian resident company involves in telecommunication services. On 14
June 2019, the company made RM10 million payment to Kim Inc., a Korean Company
in respect of the followings:
RM6 million for the provision of technical services performed in Malaysia relating to
the programming of audio-visual media distribution to all respective states.
RM1 million for the reimbursement made to the management staff of Kim Inc. which
comprised of RM0.7 million for the air fares and RM0.3 million for the
hotel accommodation in Malaysia.
RM3 million for the management services conducted by Kim Inc.'s office in Korea.
Analyze the correct withholding tax treatment from the following statements in respect
of the RM10 million payment made to Kim Inc.
4.
A.
The RM10 million payment made to Kim Inc. will be subject to 10% withholding
tax as per sec 109B of Income Tax Act 1967.
В.
Only reimbursement payment made to Kim Inc. on the
accommodation will
be subject to 10% withholding tax as per sec 109B of Income Tax Act 1967.
С.
RM3 million payment will be subject to higher rate of 20% withholding tax as
the service was conducted outside Malaysia.
D. 10% withholding tax shall be deducted from RM6 million payment made to Kim
Inc. since it falls under special classes of income [sec 4A(ii)] and the service was
carried out in Malaysia.
Calculate the total amount of withholding tax levied on the payment made to Kim Inc.
by TN Sdn Bhd
5.
А.
RM1,000,000
В.
RM1,300,000
С.
RM670,000
D.
RM930,000
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