Malaysian High Court holds software distribution fee is not royalty

01 August 2018

In a recent case involving a Malaysian subsidiary (the Taxpayer) of a large technology company, the High Court (HC) delivered a judgment in favor of the Taxpayer and ruled that a software distribution fee is not a royalty. Consequently, the software distribution fee payment is not subject to Malaysian withholding tax.

A Global Tax Alert, attached below, provides additional details.

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Document ID: 2018-1544

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