Double Taxation Treaties in Malaysia

Updated on Tuesday 22nd August 2017

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A foreign businessman who wants to do commerce in Malaysia and comes from a state that Malaysia has signed the double tax pact with can profit from the avoidance of the double taxation. Our Malaysian lawyers can provide you proper information and guidance to find out if your business submits with the requirements in order to benefit from the double tax treaty.

The meaning of double tax treaty in Malaysia

When residents, individuals or enterprises of any two given states trade or manage commercially with each other, it gives rise to global trade or cross-border dealings. Double taxation treaties are signed by a large number of states, including Malaysia, and they authorize an external financier to pay taxes in only one state and not in both. The main condition is that a double tax pact to be accepted and signed by the two states. The Malaysia’s double taxation treaties cover the earnings and the corporate taxes imposed in the contracting countries, as well as diverse types of the income, like:

•    capital gains;
•    income resulting from maritime and air transportation;
•    revenues from employment of residents of one country in the other state;
•    earnings from fixed property.
Our attorneys in Malaysia can offer you more information about the income taxation under the state’s double tax treaties. We invite you to watch the following video on the double tax treaties signed by Malaysia


Treaties signed by Malaysia

The double taxation treaties were signed by Malaysia and the following states: Austria, Albania, Australia, Argentina, Brunei, Bangladesh, Belgium, Bahrain, Czech Republic, Canada, China, Chile, Croatia, Denmark, Egypt, France, Finland, Fiji, Germany, Hungary, Iran, Italy, Indonesia, India, Ireland, Jordan, Japan, Kazakhstan, Kuwait, Korea Republic, Kyrgyzstan, Luxembourg, Laos, Lebanon, Mongolia, Malta, Morocco, Mauritius, Myanmar, Norway, Netherlands, Namibia, New Zealand, Poland, Papua New Guinea, Pakistan, Philippines, Qatar, Russia, Romania, Spain, San Marino, Seychelles, South Africa, Saudi Arabia, Singapore, Syria, Sri Lanka, Switzerland, Sudan, Sweden, Turkmenistan, Thailand, Taiwan, Turkey,  United States of America, Uzbekistan, United Arab Emirates, United Kingdom, Vietnam, Venezuela, Zimbabwe.

Malaysia is likely to sign double tax treaties with other states also, so if your country is not listed above you can check if a pact was approved in the meantime.
Please feel free to contact our team of lawyers in Malaysia for guidance and proper information regarding double taxation treaties and instruction about how you can benefit from the minimization of the fees you need to pay.