Explain why a foreign owned company which company should incorporate as a resident company after years of operations.( 8 marks)
-Normally, a non-resident will not be able to enjoy tax incentives.
-Certain payment to non-residents is subject to withholding taxes.
-A non-resident company is not able to enjoy benefits conferred under double taxation agreements concluded with Malaysia.
-Non-resident small and medium enterprise (SME) companies do not get to enjoy preferential tax rate of 20% for the chargeable income equal or less than RM500,000, which is enjoyed by companies with tax residence in Malaysia.
Answer: Certain payment to non-residents is subject to withholding taxes.
withholding tax is a portion of income of the non - resident which is paid to the revenue board of Malaysia.
Explain why a foreign owned company which company should incorporate as a resident company after years...
Explain why a foreign owned company which company should incorporate as a resident company after years of operations.