As published by the Attorney General Chamber (AGC), Minister of Finance II has provided ministerial exemption on the recent changes to the Withholding Tax on services performed overseas. The effective the date for the relief is 6 September 2017.

The exemption provides relief for services performed overseas, effectively rolling back the status to pre 17 January 2017. The law, however, will remain on the books. This exemption is only provided for via ministerial exemption, there will be no change to the law in general.

Companies must retain specific records and documentation as it pertains to these services performed abroad. These records must be made available if and when LHDN chooses to review them in the future.

The link to the Federal Government Gazette Income Tax (Exemption) (No. 9) Order 2017 is as follows: https://www.federalgazette.agc.gov.my/outputp/pua_20171024_P.U.%20(A)%20323.pdf#actions=campaign-click&id=507:3425:053d678b-0bdf-4d90-9d3a-3fb1af09faa4