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 24 March 2008 , the status of Malaysian DTAs are as follows:

Note: Latest DTA's that entered into force
Spain: Income Tax / Withholding Taxes - for Year Assessment beginning on or after 1 January 2008 and Petroleum Income Tax - for Year of Assessment beginning on or after 1 January 2009.



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		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		Namibia
	Netherlands		New Zealand
	Norway		Pakistan
	Papua New Guinea		Philippines
	Poland		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</