Malaysia Issues Practice Note on Withholding Tax on Income from Digital Advertising Provided by a Nonresident

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, Inco…