Individual - Foreign tax relief and tax treatiesLast reviewed - 09 December 2022
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.
Below is the list of countries with which Malaysia has a DTT:
|Argentina (Limited Agreement) (1)||Italy||San Marino|
|Australia||Japan||Saudi Arabia (4)|
|Belgium||Kyrgyz Republic||South Africa|
|Bosnia & Herzegovina||Kuwait||Spain|
|China, People's Republic||Malta||Sweden|
|Fiji||Netherlands||United Arab Emirates|
|Germany||Pakistan||United States (Limited Agreement) (1)|
|Hong Kong||Papua New Guinea||Uzbekistan|
- Restricted to taxation of air and sea transport operations in international traffic.
- New treaty pending ratification.
- Pending ratification.
- Malaysia also has an Air Transport Agreement with Saudi Arabia.