Double Tax Treaties and Withholding Tax Rates
2022/2023 Malaysia Tax Booklet
Withholding tax applies to certain types of payments made by tax residents to non-residents in Malaysia, and the rates for each category are as follows:
Interest: 15%
Royalties: 10%
Dividends: Nil
Contract payments (for services rendered in Malaysia):
– Contractor’s liability: 10%
– Employees’ liability: 3%
Special classes of income:
– Advice, assistance, or services rendered in Malaysia: 10%
– Rental of movable properties: 10%
Other gains or profits: 10%
It’s worth noting that a reduced rate may be available under a double tax agreement with certain treaty partners.
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