United States - Malaysia — Orbitax Withholding Tax Rates
Capital Gains
- Best Rates0%
- Domestic Rates 0%
- Treaty Rates-
- EU Rates-
Domestic
Capital gains from the sale of shares in a private resident company by non residents are tax exempt. Proceeds from the sale of shares of a US real property holding company are subject to withholding tax at the rate of 15% (10% for dispositions before 17 February 2016). If the seller’s ultimate tax liability is lower than the required tax withholding (since the tax due is actually calculated as effectively connected income subject to regular federal income tax), withholding may be reduced or eliminated. To qualify for this exception, the seller must obtain a certificate from the IRS excusing them from or reducing the withholding. This certificate is requested by filing Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests, with the IRS on or before the actual date the property is sold.
Dividend
- Best Rates30%
- Domestic Rates 30%
- Treaty Rates-
- EU Rates-
Domestic
Tax is withheld at the rate of 30% from gross dividends distributed to non-residents.
Interest
- Best Rates30%
- Domestic Rates 30%
- Treaty Rates-
- EU Rates-
Domestic
Tax is withheld at the rate of 30% from gross interest paid to non-residents. No withholding tax is applied to US-source interest payments in the following cases: - Interest on "portfolio debt obligations" of US issuers, defined as corporate and partnership debt issued in registered form and held by persons who own less than 10% of the equity of the issuing corporation (or less than 10% of the capital or profits if the issuing entity is a partnership). Bearer instruments may also qualify if applicable guidelines are met. The portfolio exemption does not apply to contingent interest, i.e. interest calculated by reference to the receipts, sales, income, profits, assets, or dividends of the debtor or a related party. - Interest on deposits in US banks, or on deposits or withdrawable accounts with US savings and loans. Interest derived from foreign branches of US banks is considered foreign-source by definition, and thus not subject to US withholding tax. - Interest on bonds issued by US states and municipalities that qualify for tax exemption under domestic law. - Payments on original issue discount (OID) obligations that are payable in 183 days or less from the date of original issue. This generally includes 3-month and 6-month Treasury Bills and short-term corporate commercial papers.
Royalty - Copyright
- Best Rates30%
- Domestic Rates 30%
- Treaty Rates-
- EU Rates-
Domestic
Tax is withheld at the rate of 30% from gross royalties paid to non-residents.
Royalty - Patent
- Best Rates30%
- Domestic Rates 30%
- Treaty Rates-
- EU Rates-
Domestic
Tax is withheld at the rate of 30% from gross royalties paid to non-residents.
Royalty - Trademark
- Best Rates30%
- Domestic Rates 30%
- Treaty Rates-
- EU Rates-
Domestic
Tax is withheld at the rate of 30% from gross royalties paid to non-residents.
Sales
- Best Rates0%
- Domestic Rates 0%
- Treaty Rates-
- EU Rates-
Service - Management
- Best Rates0%
- Domestic Rates 0%
- Treaty Rates-
- EU Rates-
Domestic
No withholding tax under domestic law on payments made by a United States resident for management services performed outside of United States by a non resident without a United States permanent establishment.
Service - Technical
- Best Rates0%
- Domestic Rates 0%
- Treaty Rates-
- EU Rates-
Domestic
No withholding tax under domestic law on payments made by a United States resident for technical services performed outside of United States by a non resident without a United States permanent establishment.
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AuthorOrbitax
- CountryUnited States - Malaysia
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