Invest in Malaysia

Taxation

12. Double Taxation Agreement

Double Taxation Agreement (DTA) is an agreement between two countries seeking to avoid double taxation by defining the taxing rights of each country with regard to crossborder flows of income and providing for tax credits or exemptions to eliminate double taxation.

The objectives of Malaysian DTA are as follows:

Like many other countries in the developed as well as the developing world, Malaysia too cannot absolve herself from the need to facilitate her trade and investments with the outside world through international tax treaty network with other countries. The increased pace of industrialisation coupled with increased foreign direct investment in the country necessitated tax treaty arrangements with other countries to provide investors with certainty and guarantees in the area of taxation. As at 31 January 2012, the effective DTAs are as follows:

* Limited Agreement

Qatar: Income Tax/Withholding Taxes - for year of assessment beginning on or after 1 January 2010 and Petroleum Income Tax - for year of assessment beginning on or after 1 January 2011

In the case of Taiwan (represented by Taipei Economic and Cultural Office in Malaysia) double taxation relief is given by way of the following Income Tax Exemption Order:

The withholding tax for Interest, Royalties and Fees for Technical Services are reduced to 10%, 10% and 7.5% respectively.

For more information, please visit http://www.hasil.gov.my or email to lhdn_int@hasil.gov.my

Department of International Tax
Inland Revenue Board of Malaysia
3rd Floor, Block 9
Government Office Complex
Jalan Duta
50600 Kuala Lumpur
Malaysia
Tel: (603) 6209 1000, or (603) 6203 2330/2540 (for outside Malaysia)
Fax: (603) 6201 9884