Easy Software Sdn Bhd (ESSB), a tax resident company in Malaysia, engaged Advance Software Ltd (ASL), an IT solution company incorporated in the Canada, not tax resident company in Malaysia, to develop a comprehensive IT system for ESSB’s head office in Kuala Lumpur. The total value of the IT system is RM1.4 million, and the details of the cost breakdown are as follows:

Computer hardware and peripheral devices RM500,000
Professional services for software design and development RM250,000
On-site installation fee RM300,000
One-time software license fee RM350,000
Total 1,400,000

Based on the agreed scope of work and project milestones, 80% of the software design and development work were performed in ASL’s office in Canada and the balance in ESSB’s head office. The entire project duration is 3 months, and the project was completed on 30 June 2020. In addition to the above fees, ASL also billed ESSB for reimbursement of RM40,000 for the cost of airfare and RM30,000 for hotel accommodation in Kuala Lumpur. ESSB made the full payment to ASL (net of withholding taxes) on 14 August 2020. Assume that ASL does not have a permanent establishment in Malaysia.
Required:

(i) Discuss the withholding tax implications for all the above fees and disbursements / reimbursements paid to ASL, citing the relevant provisions of the tax legislation. (8 marks)

(ii) Compute the withholding tax payable (if any) on EACH of the above payment made to ASL.

(iii) Assuming that withholding tax is applicable, state the timeline to remit the withholding tax to the Inland Revenue Board and explain whether there will be any late payment penalty if ESSB had remitted the withholding tax on 16 September 2020. Compute the late payment penalty if applicable.