Dear Members and Business Associates,
MGCC is delighted to announce the next instalment of EUMCCI’s In Conversation Series – a panel discussion entitled “Is Malaysia still an attractive destination for Foreign Direct Investment?” This event features the Secretary General from the Ministry of Finance as a panelist to provide an insight on how the current FDI situation in Malaysia will impact your businesses.
The recent rulings of the Withholding Tax became effective on 17 January 2017. Despite the new legislation having been effective for over a month, it is felt that a large number of companies may be unaware of the ruling, its scope and implications. The repercussions to the business community may be greater than what is currently perceived. Below are some examples and business sectors that may be affected by the new ruling:
- The intercompany services that a Malaysian branch have to pay to a global business centre located abroad and part of the same company require the Malaysian branch to withhold 10% of the total owed to the foreign entity. This is likely to result in the foreign entity to be forced to increase intercompany charges to the Malaysian branch, which will be effectively hit by a 10% indirect taxation increase.
- Hotel management service and marketing services charges provided by a non-resident company to a local Hotel are now subject to withholding tax.
- The bank charges charged by a foreign bank to a Malaysian bank may be subject to withholding tax and any other type of similar financial service for that matter.
- The intermediary booking charges by any web/e-commerce type of service located abroad should be subject to withholding tax this may include transactions related to hotel booking, car rental, air tickets, etc.
- Reinsurance premiums paid to non-resident companies by local insurance companies.
- Fees paid by a resident company for intercompany R&D, design and similar services.
- Seconded personnel into Malaysia invoiced by non-resident partner company.
Join us for first-hand information on the topic and have your questions answered by the distinguished line-up of panelists.
HURRY! Please register your attendance by filling up below registration form and email to firstname.lastname@example.org before Monday, 27 February 2017.
Member price: RM215 (inclusive of GST)
Non-members and member’s guests: RM320 (inclusive of GST)