Problem
Permata Sdn Bhd is seeking technical supervisory support services from Global Blitz Pte Ltd (Global Blitz), an Australian tax resident company. Global Blitz will send its employees to Malaysia to perform part of the supervisory services for a period of eight months. The following payments will be made by Permata Sdn Bhd to G1oba1 Blitz.
Supervisory services in Malaysia RM 200000
Supply of parts RM 160000
Training in Malaysia RM 50000
Reimbursement of airfare to Malaysia 20000
Task
Explain, with reasons, whether withholding tax is applicable to each of the above payments, and if so, state the withholding tax rate.
• Elaborate on the accounting of:
o Sales tax; and Service tax.