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Double Taxation in Malaysia

Evening all

A client of mine started a project in Malaysia and they deduct a 10% withholding tax from all foreign nationals.  My client seems to think that he can claim this back in the UK so he's not taxed twice, however, the agent he works for has added the tax to his invoice as income and then deducted it as an expense, therefore he would not be paying tax on that part in the UK anyway.  However, I'm thinking that he should perhaps complete a RES1 form for certificate of residency and claim the tax back from Malaysia.  If he does claim the tax back from Malaysia, how is this reported in his accounts?  As income and then he pays the appropriate tax in the UK once it has been received?

He is also VAT registered and his agent has applied for VAT on all of the witholding tax, is there relief for this VAT?

Thanks for your help

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10th Jan 2019 20:45

Have you read the DTA? What are the terms?

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