A tax resident is entitled to claim foreign tax credits against Malaysian tax. Where a treaty exists, the credit available is the whole of the foreign tax paid or the Malaysian tax levied, whichever is lower. In the absence of a tax treaty, the credit available is restricted to half of the foreign tax paid.
Below is the list of countries with which Malaysia has a double tax treaty (DTT):
* Restricted to taxation of air and sea transport operations in international traffic.
** Pending ratification.
Last Reviewed - 06 February 2019