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Malaysia Withdraws Withholding Tax Exemption on Certain Payments from MSC Status Companies

12 September 2019

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Approved Changes

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Malaysia

The Malaysia Digital Economy Corporation (MDEC), which oversees that Multimedia Super Corridor (MSC) Malaysia initiative, has announced that the withholding tax exemption on certain payments received by non-residents from MSC status companies in Malaysia is withdrawn with effect from 1 January 2020. This includes the exemption on payments of: fees for technical advice or technical services; licensing fees in relation to technology development; and interest on loans for technology development. Steps are currently being taken to withdraw the Income Tax (Exemption) (No. 13) Order 2005 [P.U.(A)102/2005], which provided the exemption.