Section 109B. Deduction of tax from special classes of income in certain cases derived from Malaysia.

(1) Where any person (in this section referred to as "the payer") is liable to make payments to a non-resident-

[Am. Act 309: s.14; Am. Act 328: s.12; Am. Act 557: s.19]

which is deemed to be derived from Malaysia, he shall, upon paying or crediting the payments, deduct therefrom tax at the rate applicable to such payments, and (whether or not that tax is so deducted) shall within one month after paying or crediting such payment, render an account and pay the amount of that tax to the Director General:

Provided that the Director General may-

(2) Where the payer fails to pay any amount due from him under subsection (1), the amount which he fails to pay shall be increased by an amount equal to ten per cent of the payments liable to deduction of tax under paragraph (1)(a), (b) or (c) and the total sum shall be a debt due from him to the Government and shall be payable forthwith to the Director General.

[Subs. Act 557: s.19]

(3) Where in pursuance of this section any amount is paid to the Director General by the payer or recovered by the Director General from the payer-

(a) the Director General shall, in the manner provided by section 110, apply that amount towards payment of the tax charged on the person to whom the payer was liable to pay the payments to which the amount relates; and

(b) if the payer has not deducted that amount in paying the payment under subsection (1) with respect to which the amount relates, he may recover that amount from that person as a debt due to the payer.

(4) In this section "person" includes a partnership.

[Ins. Act 293: s.19]

Related reading:
[Act 293: s.19; Act 309: s.14; Act 328: s.12; Act 557: s.19]

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