BDCM-B-Week17-Tax: Withholding Tax

Withholding tax is a tax that is imposed to any payment by resident in Malaysia towards to non-resident in Malaysia. Below are the categories of withholding tax by LHDN:-

Payment Type	Withholding Tax Rate
Contract payment	10%, 3%
Interest	15%
Royalty	10%
Special classes of income	10%
Interest paid by approved financial institutions	5%
Income of non-resident public entertainers	15%
Real Estate Investment Trust (REIT) Other than a resident company Non-resident company Foreign investment institution	10% 25% 10%
Family Fund/Takaful Family Fund Individual and other Non-resident company	8% 25%
Income under Section 4(f) ITA 1967	10%