There are 2 types of costs in relation to this job. One type is subject to withholding tax, the other type is not subject to withholding tax. In my earlier e-mail, I proposed that you to issue 2 IWOs. One IWO consisting only costs that attract withholding tax, the other IWO consisting only costs that do NOT attract withholding tax. This will make it easier when we make payments to you and to the Malaysia Income Tax Department. The payment that attracts withholding tax will be reported to the Malaysian tax authorities and the other payment that doesn’t attract withholding will not be reported to the Malaysian tax authorities. However, let simplify matters. The below is how I propose your IWO to be: