3. Installation fees - amounts paid in consideration of services rendered in Malaysia by the person or his employee in connection with the installation or operation of any plant machinery or other apparatus purchased from such person. The withholding tax rate is 10% and it is a final tax.
4. Management fees - fees paid to non-resident for services rendered in Malaysia in connection with the management of any business in Malaysia are deemed to have a Malaysian source and are thus subject to Malaysian tax. The withholding tax rate is 10%.
5. Technical service fees - amount paid in consideration of technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme. The withholding tax is at the rate of 10% if the services are performed in Malaysia.
6. Gains or profits under s 4(f) MITA 1967 - effective 1 January 2009 income in respect of gains or profits falling under s 4(f) derived by a nonresident from Malaysia, is subject to withholding tax. This will include introducer's fee, bank guarantees and commissions. The withholding tax rate is 10%.
7. Payments to non-resident contractors - payments made by Malaysian residents to non-resident contractors for services under a contract carried out and performed in Malaysia, are subject to withholding tax of 13% (10% tax in respect of the contractor and 3% in respect of the employees of the contractors) on the service portion of the contract. This provision was included to allow the collection at source of tax due by non-resident contractors and professional firms engaged in services under a contract. This tax is not a final tax and will be refunded to the contractor upon finalisation by the tax authorities.