Malaysia

Foreign tax relief

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.

Tax treaties

Below is the list of countries with which Malaysia has a DTT:

1 Restricted to taxation of air and sea transport operations in international traffic.

2 New treaty pending ratification.

3 Pending ratification

4 Malaysia also has Air Transport Agreement with Saudi Arabia