QUESTION 2 (20 MARKS: 40 MINUTES) State whether each of the following payment is subject to...

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QUESTION 2 (20 MARKS: 40 MINUTES) State whether each of the following payment is subject to withholding tax. If your answer is 'Yes', state the type of income, calculate the amount of withholding tax and the due date to remit the withholding tax to the Inland Revenue Board of Malaysia (IRBM). If 'No', give reason. A. B. C. D. E. Derma Inc is a general commission agency in Singapore which promoted sales in Singapore on behalf of Ikhlas Sdn Bhd, a resident company in Malaysia. Ikhlas Sdn Bhd pays commission of RM120,000 to Derma Inc based on the sales transactions secured in Singapore on 1 July 2021.Ikhlas Sdn Bhd obtained a copy of Derma Inc's audited accounts and business registration form as proof that Derma Inc is a general commission agent. Maklom Sdn Bhd (MSB), a Malaysian resident company, entered into an agreement with Honney Ltd (HL), a non-resident company from Thailand. The agreement was for the use of copyright patent during the year of assessment 2021. MSB received an invoice from HL for RM70,000 on 10 June 2021 and credited the funds to HL on 16 June 2021. So Good Manufacturing Sdn Bhd (SGM) had been using the service of a ship owned by NZSea Ltd. (NZL), a New Zealand company, for exported goods. On 1 January 2021, SGM paid RM500,000 freight charges to NZL. On 1 June 2021, NZL agreed to rent the ship to SGM with a payment of RM800,000 each year for seven years. The first payment to NZL was made on 30 July 2021. NZL had never become a tax resident in Malaysia. In July 2021, Paollo Ltd (PL), a non-resident company, provided personnel to supervise the installation and operation of a plant sold to Merah Sdn Bhd (MSB), a Malaysian company. The service was performed at MSB branch in Kedah. On 20 August 2021, MSB issued an invoice to PL for the value of RM90,000 which include reimbursement of travelling fares of RM15,000. Analene, a non-resident, exercised employment in Malaysia as a musician for BoomBoom Entertainment Sdn Bhd, a Malaysian tax resident company, from 1 March 2021 to 15 May 2021. She arrived in Malaysia on 20 February 2021 and left Malaysia on 15 July 2021, after a two-month holiday in Malaysia. She does not intend to visit Malaysia any time in the remaining of 2021. Analene expects to be paid RM120,000 for the entire period as a lump sum on the commencement of the employment on 1 March 2021. QUESTION 2 (20 MARKS: 40 MINUTES) State whether each of the following payment is subject to withholding tax. If your answer is 'Yes', state the type of income, calculate the amount of withholding tax and the due date to remit the withholding tax to the Inland Revenue Board of Malaysia (IRBM). If 'No', give reason. A. B. C. D. E. Derma Inc is a general commission agency in Singapore which promoted sales in Singapore on behalf of Ikhlas Sdn Bhd, a resident company in Malaysia. Ikhlas Sdn Bhd pays commission of RM120,000 to Derma Inc based on the sales transactions secured in Singapore on 1 July 2021.Ikhlas Sdn Bhd obtained a copy of Derma Inc's audited accounts and business registration form as proof that Derma Inc is a general commission agent. Maklom Sdn Bhd (MSB), a Malaysian resident company, entered into an agreement with Honney Ltd (HL), a non-resident company from Thailand. The agreement was for the use of copyright patent during the year of assessment 2021. MSB received an invoice from HL for RM70,000 on 10 June 2021 and credited the funds to HL on 16 June 2021. So Good Manufacturing Sdn Bhd (SGM) had been using the service of a ship owned by NZSea Ltd. (NZL), a New Zealand company, for exported goods. On 1 January 2021, SGM paid RM500,000 freight charges to NZL. On 1 June 2021, NZL agreed to rent the ship to SGM with a payment of RM800,000 each year for seven years. The first payment to NZL was made on 30 July 2021. NZL had never become a tax resident in Malaysia. In July 2021, Paollo Ltd (PL), a non-resident company, provided personnel to supervise the installation and operation of a plant sold to Merah Sdn Bhd (MSB), a Malaysian company. The service was performed at MSB branch in Kedah. On 20 August 2021, MSB issued an invoice to PL for the value of RM90,000 which include reimbursement of travelling fares of RM15,000. Analene, a non-resident, exercised employment in Malaysia as a musician for BoomBoom Entertainment Sdn Bhd, a Malaysian tax resident company, from 1 March 2021 to 15 May 2021. She arrived in Malaysia on 20 February 2021 and left Malaysia on 15 July 2021, after a two-month holiday in Malaysia. She does not intend to visit Malaysia any time in the remaining of 2021. Analene expects to be paid RM120,000 for the entire period as a lump sum on the commencement of the employment on 1 March 2021.

Answer rating: 100% (QA)

Withholding Tax Analysis for Each Scenario A Derma Inc Commission Payment Subject to Withholding Tax Yes Type of Income Commission Withholding Tax Rat... View the full answer