Withholding Tax
| 1. Withholding Tax Rates (on or after 21.9.2002) |
| Type of Income | Charging Section | Withholding Tax Section | Rate of Tax | Final Tax? | Derivation of Income |
| Technical fees | 4A | 109B | 10% | Yes | Section 15A |
| Royalty | 3/4(d) | 109 | 10% | Yes | Section 15 |
| Interest | 3/4(c) | 109 | 15% | Yes | Section 15 |
| Management fees | 4A | 109B | 10% | Yes | Section 15A |
| Contract payments | 3/4(a) | 107A | 10+3% | No | Section 12 |
| Public entertainer | 3/4(a) 4(b) | 109A | 15% | Yes | Section 12, 13 |
| Rental of movable property | 4A | 109B | 10% | Yes | Section 15A |
| Commission, guarantee fees, introducer fees and other Section 4(f) income (w.e.f. 1.1.2009) | 4(f) | 109F | 10% | Yes | Section 15B |
| 2. Penalty on Non-Compliance of Withholding Tax |
| Section | Types of Income | 25.10.1996 - 1.9.2006 | 2.9.2006 Onwards |
| 107A | Contract payment | 10% x gross income | 10% x unpaid withholding tax |
| 109 | Interest, royalty | 10% x gross income | 10% x unpaid withholding tax |
| 109B | Special classes of income - technical fees - management fees - lease rental of movable property w.e.f. YA 2009, non-payment of Section 4A fees will result in non-entitlement of capital allowance claim | 10% x gross income | 10% x unpaid withholding tax |
| 109D | Dividend distribution to non-resident unit holders | 10% x gross dividend | 10% x unpaid withholding tax |
| 109F | Income under Section 4(f) | - | 10% x unpaid withholding tax |
| 3. Double Taxation Agreements Withholding Tax Rates |
Double Taxation Agreements Withholding Tax Rates (updated by IRB on 2.2.2010)
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