TAX QUESTIONS? YOU ASK LAH!

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Q: If I import a machine from overseas and the purchase price includes installation service, would the installation service be subjected to withholding tax?

A: If the installation service is not charged separately, i.e. the service is free of charge due to purchase of the machine, the installation service is not subject to withholding tax. However, do note that the purchase price may be subject to other taxes such as sales tax, import duty, etc. 


Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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