As Malaysia adopted territorial scope of taxation, it is important for taxpayers (i.e. resident or non-resident and whether company or individual) to understand what, when and where income arising will be subject to tax in Malaysia. The Malaysian Income Tax Act 1967 does not define “source” and consequently each activity has to be carefully examined to determine the source from which income was generated.
The articles on “The Application of Source and Permanent Establishment Concept” is a compilation from various resources pertaining to the source and permanent establishment concept and summarised to facilitate the understanding of the readers of the articles.
Download the articles to read more about the application of source and permanent establishment concept from Malaysia’s perspective.
- Part 1: The concept of source
- Part 2: The Permanent Establishment ("PE") in Malaysia's tax treaties (coming soon in September 2021)
The Application of Source and Permanent Establishment Concept from Malaysia’s Perspective (Part 1)