Explain whether the interest that Anthony pay to Cee Pte

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Question - Anthony and Betty agreed to buy the fixed assets and goodwill of a business for a lump sum consideration of RM400,000 payable in full on the transfer of the business in 2018. Not having enough money, they borrowed RM200,000 from Cee Pte. Ltd, located at Thailand, which is repayable in full after two years. In the meantime, Anthony and Betty are to pay interest every three months starting from 1 March 2019 at the rate of 10% per annum (RM5,000 per quarter). Anthony and Betty will carry on the business at its existing location in Malaysia sharing profit equally, Anthony is a Malaysian resident but betty is not.

a) Briefly explain whether the interest that Anthony pay to Cee Pte Ltd is deemed to be derived from Malaysia and should he withhold any tax on making payment.

a) Briefly explain whether the interest that Betty pay to Cee Pte Ltd is deemed to be derived from Malaysia and should she withhold any tax on making payment.

Reference no: EM132549275

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