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WITHHOLDING TAX: THE HIDDEN COST OF GETTING IT WRONG

23 Nov, 2026, Concorde Hotel Kuala Lumpur

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Ms. YONG MEI SIM has over 35 years in Inland Revenue Board of Malaysia (“IRB”) and last held the position as Principal Assistant Director of Penang. She had served with the Payroll Taxes Unit, Field Audit and Desk Audit Unit and actively assisted IRBM’s Federal Councils in handling tax litigation cases.

 

Ms. Yong holds a Master’s Degree in Taxation from the Golden Gate University, U.S.A.

 

Ms. Yong speaks extensively nationwide, sharing her valuable experience and ex

 

Venue Details

Concorde Hotel Kuala Lumpur
2 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia,

https://kualalumpur.concorde hotelsresorts.com/


Phone : 03 2144 2200

Contact us

FOR COURSE DETAILS

Juliany,

Office: 03 2283 6109

Mobile: +60 122281247

juliany@ipa.com.my

Phoebe,

Office: 03 2283 6100

Mobile: +60 193637822

phoebe@ipa.com.my

Bee Teng,

Office: 03 2282 6112

Mobile: +60 172566121

beeteng@ipa.com.my

FOR CUSTOMISED IN-HOUSE TRAINING

Jane,

Office: 03 2283 6101

Mobile: +60 129418251

jane@ipa.com.my

Keith,

Office: 03 2283 0000

Mobile: +60 162272735

keith@ipa.com.my

ADDRESS

A-28-5, 28th Floor, Menara UOA Bangsar,
No.5, Jalan Bangsar Utama 1,
59000 Kuala Lumpur

FOCUSING ON
  • Understanding Withholding Tax and Service Tax
  • Non-Resident Contractors and Special Classes of Income
  • Overseas Services and Bundled Contracts
  • Royalties, Software and Digital Payments
  • Interest and Other Income Paid to Non-Residents
  • Non-Resident Public Entertainers, Speakers and Trainers
  • Payments to Resident Agents, Dealers and Distributors Section 107D
  • Payment Timing, Treaties and Commercial Challenges
  • Consequences, Audit Risks and Practical Controls
OBJECTIVES

Equipping participants with the practical knowledge to identify payments subject to Malaysian Withholding Tax, distinguishing the relevant provisions and applying the appropriate treatment after considering exemptions and tax treaties.

 

Through practical examples and case discussions, participants will learn to manage payment obligations, avoid costly errors and strengthen documentation and controls for IRB audits.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. Spotting Withholding Tax Obligations before payment is made and identifying which rules may apply to Contractors, Service Providers, Licensors, Lenders, Speakers, and other recipients.
  2. Handling Overseas and Digital Payments with greater confidence, including software subscriptions, cloud services, online advertising, technical services, and contracts that combine goods and services.
  3. Distinguishing Withholding Tax from Service Tax and understanding when both need to be considered for the same transaction.
  4. Reviewing Contracts and Invoices more effectively to identify where services are performed, what rights are being paid for, and whether charges need to be allocated.
  5. Managing payment deadlines and treaty claims with a clearer understanding of “paid or credited,” supporting documents, and Certificates of Residence.
  6. Addressing difficult commercial situations, such as suppliers who refuse deductions, automatic card payments, and contracts where your organisation bears the tax.
  7. Reducing avoidable costs and audit exposure by recognising potential late payment increases, expense disallowance, and documentation gaps.
  8. Putting practical checks in place so your finance, tax, and procurement teams can flag Withholding Tax issues before contracts are signed or payments released.
  9. Gaining the confidence to ask the right questions before paying—and avoiding discovering a Withholding Tax issue only after the cost has arisen.
WHO SHOULD ATTEND
Chief Financial Officers, Financial Controllers, Finance Managers, Accountants, Tax Consultants, Company Secretaries, Tax Practitioners/Advisors.
METHODOLOGY
A highly interactive learning session with trainer/speaker-led facilitation, live Q&As, quick polls/surveys, self-assessment quizzes and participant’s feedback on learning outcome achievement.
COURSE CONTENT
9:00

UNDERSTANDING WITHHOLDING TAX AND SERVICE TAX

How the two taxes differ, why both may apply to the same transaction, and who is responsible for deduction, collection and payment to IRB or Customs.

 

NON-RESIDENT CONTRACTORS AND SPECIAL CLASSES OF INCOME

Distinguishing section 107A from section 109B; installation and commissioning, management and technical services, and rental of movable property under sections 4A(i), 4A(ii) and 4A(iii).

10.45

OVERSEAS SERVICES AND BUNDLED CONTRACTS

Services performed inside and outside Malaysia; machinery supplied with installation; allocation of contract prices; reimbursements, disbursements and supporting evidence.

 

ROYALTIES, SOFTWARE AND DIGITAL PAYMENTS

Software licences and subscriptions, cloud services, online advertising and platform payments; examining contractual rights, IRB guidance and relevant judicial decisions.

12.00

INTEREST AND OTHER INCOME PAID TO NON- RESIDENTS

Interest on overseas and intra-group financing under section 109; introduction fees and other qualifying income under section 109F; distinguishing casual income from business income.

 

NON-RESIDENT PUBLIC ENTERTAINERS, SPEAKERS AND TRAINERS

Section 109A treatment of performance and speaking fees, endorsement income, benefits in kind and expenses borne by organisers; reviewing exemptions and payments through intermediaries.

1:00 Lunch
2:00

PAYMENTS TO RESIDENT AGENTS, DEALERS AND DISTRIBUTORS SECTION 107D

scope and the 2% deduction; qualifying recipients and payments; understanding the separate roles of withholding tax, Form CP58, CP500 and self-billed e-Invoices.

 

PAYMENT TIMING, TREATIES AND COMMERCIAL CHALLENGES

“Paid or credited,” accruals, current-account entries and set-offs; remittance requirements, Certificates of Residence and treaty relief; handling recipients who refuse deductions and payments collected automatically in full.

3:45

CONSEQUENCES, AUDIT RISKS AND PRACTICAL CONTROLS

Late-payment increases, expense disallowance and penalty exposure; gross-up calculations and tax borne by the payer; how IRB detects payments through banking, accounting, immigration and operational records; practical checks before committing to a payment.

5:00 End of Course