DTA is an agreement between two countries seeking to avoid double taxation by defining the taxing rights of each country with regard to cross-border flows of income and providing for tax credits or exemptions to eliminate double taxation .

The objectives of a Malaysian DTA are as follows :

• to create a favourable climate for both inbound and outbound investments;
• to make Malaysia's special tax incentives fully effective for taxpayers of capital exporting countries;
• to obtain a more effective relief from double taxation compared to relief gained under unilateral measures; and
• to prevent evasion and avoidance of tax.

The Malaysian Double Taxation Agreements consist of 28 Articles that are divided into six chapters as follows :

Chapter I      Scope of the Agreement

Article 1 - Persons Covered
Article 2 - Taxes Covered

Chapter II      Definitions

Article 3 - General Definitions
Article 4 - Resident
Article 5 - Permanent Establishment

Chapter III     Taxation of Income

Article 6 - Income from Immovable Property
Article 7 - Business Profits
Article 8 - Shipping and Air Transport
Article 9 - Associated Enterprises
Article 10 - Dividends
Article 11 - Interest
Article 12 - Royalties
Article 13 - Fees for Technical Services
Article 14 - Independent Personal Services
Article 15 - Dependent Personal Services
Article 16 - Director's Fees
Article 17 - Artistes and Sportsmen
Article 18 - Pensions and Annuities
Article 19 - Government Service
Article 20 - Students and Trainees
Article 21 - Other Income

Chapter IV     Methods For Elimination of Double Taxation

                        Article 22 - Elimination of Double Taxation

Chapter V      Special Provisions

Article 23 - Non - Discrimination
Article 24 - Mutual Agreement Procedure
Article 25 - Exchange of Information
Article 26 - Members of Diplomatic Missions & Consular Posts

Chapter VI      Final Provisions

Article 27- Entry Into Force
Article 28 - Termination

Please download the pdf file below to view DTA Model

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 01 June 2009 , the status of Malaysian DTAs are as follows:

Note: Latest DTA's that entered into force

(i) Qatar: Effective date for Income Tax / Withholding Taxes – Year of Assessment beginning on or after 1 January 2010 and Petroleum Income Tax - Year of Assessment beginning on or after 1 January 2011.





Gazetted DTAs :

Concluded DTAs (Initialed) :

DTA's Under Negotiation :

The complete texts of the following DTAs are available in Adobe PDF format:

	Albania		Argentina
	Australia Protocol		Austria
	Bahrain		Bangladesh
	Belgium		Canada
	China		Chile
	Crotia		Czech Republic
	Denmark Protocol		Egypt
	Fiji		Finland
	France		Germany
	Hungary		India
	Indonesia		Ireland
	Italy		Japan
	Jordan		Korea
	Kuwait		Kyrgyz
	Lebanon		Luxembourg
	Malta		Mauritius
	Mongolia		Morocco
	Myanmar		Namibia
	Netherlands		New Zealand
	Norway		Pakistan
	Papua New Guinea		Philippines
	Poland		Qatar
	Romania		Russia
	Saudi Arabia New Agreement		Seychelles
	Singapore		South Africa
	Spain		Sri Lanka
	Sudan		Sweden Notes of Exchange
	Switzerland		Syria
	Thailand		Turkey
	United Arab Emirates		United Kingdom
	United States of America		Uzbekistan
	Vietnam

DOUBLE TAXATION AGREEMENTS WITHHOLDING TAX RATES

NO	COUNTRY	DIVIDENDS %	INTEREST %	ROYALTIES %	FEES FOR TECHNICAL SERVICES %
1	Albania	NIL	10	10	10
2	Argentina*	NIL	15	10	10
3	Australia	NIL	15	10	NIL
4	Austria	NIL	15	10	10
5	Bahrain	NIL	5	8	10
6	Bangladesh	NIL	15	10	10
7	Belgium	NIL	10	10	10
8	Bosnia and Herzegovina**	NIL	10	8	10
9	Canada	NIL	15	10	10
10	Chile	NIL	15	10	5
11	China	NIL	10	10	10
12	Croatia	NIL	10	10	10
13	Czech Republic	NIL	12	10	10
14	Denmark	NIL	15	10	10
15	Egypt	NIL	15	10	10
16	Fiji	NIL	15	10	10
17	Finland	NIL	15	10	10
18	France	NIL	15	10	10
19	Germany	NIL	15	10	NIL
20	Hungary	NIL	15	10	10
21	India	NIL	10	10	10
22	Indonesia	NIL	15	10	10
23	Iran**	NIL	15	10	10
24	Ireland	NIL	10	8	10
25	Italy	NIL	15	10	10
26	Japan	NIL	10	10	10
27	Jordan	NIL	15	10	10
28	Kazakhstan**	NIL	10	10	10
29	Kyrgyz	NIL	10	10	10
30	Kuwait	NIL	10	10	10
31	Lebanon	NIL	10	8	10
32	Luxembourg	NIL	10	8	8
33	Malta	NIL	15	10	10
34	Mauritius	NIL	15	10	10
35	Mongolia	NIL	10	10	10
36	Morocco	NIL	10	10	10
37	Myanmar	NIL	10	10	10
38	Namibia	NIL	10	5	5
39	Netherlands	NIL	10	8	8
40	New Zealand	NIL	15	10	10
41	Norway	NIL	15	10	10
42	Pakistan	NIL	15	10	10
43	Papua New Guinea	NIL	15	10	10
44	Philippines	NIL	15	10	10
45	Poland	NIL	15	10	10
46	Qatar	NIL	5	8	8
47	Romania	NIL	15	10	10
48	Russia	NIL	15	10	10
49	Saudi Arabia	NIL	5	8	8
50	Seychelles	NIL	10	10	10
51	Singapore	NIL	10	8	5
52	South Africa	NIL	10	5	5
53	South Korea	NIL	15	10	10
54	Spain	NIL	10	7	5
55	Sri Lanka	NIL	10	10	10
56	Sudan	NIL	10	10	10
57	Syria	NIL	10	10	10
58	Sweden	NIL	10	8	8
59	Switzerland	NIL	10	10	10
60	Thailand	NIL	15	10	10
61	Turkey	NIL	15	10	10
62	United Arab Emirates	NIL	5	10	10
63	United Kingdom	NIL	10	8	8
64	United States of America*	NIL	15	10	10
65	Uzbekistan	NIL	10	10	10
66	Venezuela**	NIL	15	10	10
67	Vietnam	NIL	10	10	10
68	Zimbabwe**	NIL	10	10	10

Notes:

1. There is no withholding tax on dividends paid by Malaysian companies.

2. Where the rate of tax is not specifically stated in the respective DTA, the applicable rate of tax as stated in the ITA 1967 shall apply.

3. Where the rate of tax provided in the ITA 1967 is lower than the maximum rate of tax mentioned in the respective DTA, the lower rate of tax shall apply.

4. 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:

(i) P.U.(A) 201 (1998)
(ii) P.U.(A) 202 (1998)
The withholding tax for Interest, Royalties and Fees for Technical Services are reduced to 10%, 10% and 7.5% respectively.

* Limited DTA
** Not effective
*** Effective date for Withholding Taxes - Year of Assessment beginning on or after 1 January 2010

For more information, please contact us:

Department of International Tax
Inland Revenue Board of Malaysia
3rd Floor , Block 9
Government Office Complex
Jalan Duta , 50600 Kuala Lumpur
MALAYSIA .

Telephone :
(03) 6209 - 1000 / outside Malaysia (603) - 6203 - 2330 / (603)- 6203-2540

Fax : (03) 6201 - 9884 / outside Malaysia (603) - 6201 - 9884

E-mail : lhdn_int@hasil.gov.my