Withholding tax is an amount withheld by the party making payment (payer) on income earned by a non-resident (payee) and paid to the Inland Revenue Board of Malaysia. It encourages voluntary compliance; It reduces cost of collection effort; It prevents delinquencies and revenue loss; and It prevents dry spell in the fiscal conditions of the government by providing revenues throughout the taxable year. Withholding tax is an important tax collection mechanism within the Malaysian income tax system. Understanding the implications of the recent Budget 2023 changes in relation to withholding tax is crucial in ensuring proper compliance with the Income Tax Act. This workshop will cover the practical aspects, penalty provisions and the relevant public rulings issued by IRB in relation to withholding tax.