The Inland Revenue Board of Malaysia has issued Practice Note 1/2018, which provides guidance regarding withholding tax on income from digital advertising provided by a nonresident. The practice note includes that the tax treatment depends on whether or not the nonresident has a permanent establishment (PE) or business presence in Malaysia. If the nonresident does not have a PE or business presence, payments for digital advertising will be subject to withholding tax under: Section 109, Income Tax Act 1967 (the Act), if the payment received is royalty income under the Act, which includes cases where the payment is for the...