В. Futsaliah Sdn Bhd is currently developing a sport complex for futsal in Jitra Kedah. During the year ended 30 September 2014 the company made the following payments: 1. RM3,500,500 to Sport Wei Ltd. (resident in Hong Kong) for work carried out for the sport complex. The breakdown of the RM3,500,500 is as follows: Nature of payment Cost of plant and machinery RM 1,200,000 Technical advice on the installation of plant and machinery rendered in Malaysia 700,000 RM Contract work on infrastructure and building carried out in Malaysia 1,600,500 2. RM998,000 being royalties paid to Sport Planet Ampang (resident company based in Ampang, Selangor) for use of patents relating to foundation work. Required: State with reasons whether the above payments made by Futsaliah Sdn Bhd are subject to withholding tax. State the rate(s) imposed, sections (if any) and the amount of withholding tax (if applicable), and the due date of payment.
В. Futsaliah Sdn Bhd is currently developing a sport complex for futsal in Jitra Kedah. During the year ended 30 September 2014 the company made the following payments: 1. RM3,500,500 to Sport Wei Ltd. (resident in Hong Kong) for work carried out for the sport complex. The breakdown of the RM3,500,500 is as follows: Nature of payment Cost of plant and machinery RM 1,200,000 Technical advice on the installation of plant and machinery rendered in Malaysia 700,000 RM Contract work on infrastructure and building carried out in Malaysia 1,600,500 2. RM998,000 being royalties paid to Sport Planet Ampang (resident company based in Ampang, Selangor) for use of patents relating to foundation work. Required: State with reasons whether the above payments made by Futsaliah Sdn Bhd are subject to withholding tax. State the rate(s) imposed, sections (if any) and the amount of withholding tax (if applicable), and the due date of payment.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:В.
Futsaliah Sdn Bhd is currently developing a sport complex for futsal in Jitra
Kedah. During the year ended 30 September 2014 the company made the
following payments:
1. RM3,500,500 to Sport Wei Ltd. (resident in Hong Kong) for work carried out
for the sport complex.
The breakdown of the RM3,500,500 is as follows:
Nature of payment
Cost of plant and machinery
RM
1,200,000
Technical advice on the installation of plant and
machinery rendered in Malaysia
700,000
RM
Contract work on infrastructure and building carried out
in Malaysia
1,600,500
RM998,000 being royalties paid to Sport Planet Ampang (resident company
based in Ampang, Selangor) for use of patents relating to foundation work.
2.
Required:
State with reasons whether the above payments made by Futsaliah Sdn Bhd are
subject to withholding tax. State the rate(s) imposed, sections (if any) and the
amount of withholding tax (if applicable), and the due date of payment.
B.
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