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Tax Alert March 2nd Issue 2018

Issuance of Practice Note No. 1/2018 by the Inland Revenue Board of Malaysia

Tax Treatment on Digital Advertising Provided by a Non-Resident

The Inland Revenue Board of Malaysia has issued Practice Note No. 1/2018 to provide guidance on withholding tax on income from digital advertising provided by a non-resident.

The practice note highlighted that the tax treatment on payments to non-residents in relation to digital advertising is dependent on the facts of each particular case, i.e. in situations where the non-resident has no permanent establishment (PE) or there is no business presence in Malaysia, and in situation where the non-resident has a PE or a business presence in Malaysia.

The practice note also provided the main criteria that determine whether withholding tax under Section 109 or 109B of the Income Tax Act, 1967 applies.

Kindly click here [ 9 kb ] to read the full content of the said practice note.



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