Introduction
In recent years, Malaysia has experienced a significant increase in foreign direct investment and service activities originating from China-based companies. This rapid growth has created more complex cross-border business arrangements, particularly involving intercompany transactions, shared services, and technology transfers. In response, the Inland Revenue Board (IRB) has intensified its oversight on the arm’s length pricing of such transactions, as well as the correct application of withholding tax (WHT) on payments made to non-residents.
Payments for management fees, technical services, interest, royalties, and software licensing are now more closely scrutinized than ever, often triggering both Transfer Pricing (TP) documentation requirements and WHT obligations under Malaysian tax laws. Non-compliance not only risks triggering tax audits but may also lead to disallowed tax deductions, reputational damage, and substantial financial penalties. Many businesses underestimate these risks until they are confronted with backdated assessments, leaving little room for corrective measures.
This training program is designed to equip tax managers, finance professionals, accountants, and business owners with the practical skills and up-to-date knowledge needed to navigate TP and WHT requirements in the China–Malaysia business context. Through real-life case studies, regulatory updates, and best-practice compliance strategies, participants will gain the confidence to manage cross-border transactions effectively, reduce tax exposure, and safeguard their organisation against costly disputes with the tax authorities.
LEARNING OBJECTIVE
BY THE END OF THIS COURSE, PARTICIPANTS WILL BE ABLE TO:
- Identify the types of intercompany transactions that fall under Malaysia’s Transfer Pricing (TP) rules and Withholding Tax (WHT) obligations.
- Understand the arm’s length pricing principles and compliance requirements set out in Malaysia’s TP regulations.
- Determine the circumstances under which WHT applies to payments made to China-related entities, including management fees, technical services, royalties, and interest.
- Interpret and apply the relevant provisions of the Malaysia–China Double Tax Agreement (DTA) to minimise tax exposure and avoid double taxation.
- Prepare and maintain TP documentation that meets IRB standards, while managing WHT obligations in a timely and compliant manner
