Dear Sir/Madam,
My company is set up as Partnership and recently signed a contract with a local company (thru individual name). However, the location of the assignment is to be carried out outside of Malaysia (In short, home country is Malaysia, but based country is in Indonesia for instance). In the agreement, the term in relation to tax liability is stated as Tax Equalization. As per my understanding, the income derived from oversea is not subject to tax in M'sia, would like to clarify what does tax equalization imply in this regard? What is the tax rate to be used as basis in home country for a partnership?
Appreciate your advices. Looking forward to hearing from you.
Many thanks in advance.
