Individual - Foreign tax relief and tax treaties

Last reviewed - 16 December 2020

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 double tax treaty (DTT):

Albania Ireland Romania
Argentina (Limited Agreement)* Italy Russian Federation
Australia Japan San Marino
Austria Jordan Saudi Arabia***
Bahrain Kazakhstan Senegal**
Bangladesh Korea Republic Seychelles Republic
Belgium Kyrgyz Republic Singapore
Bosnia & Herzegovina Kuwait Slovak Republic
Brunei Laos South Africa
Cambodia** Lebanese Republic Spain
Canada Luxembourg Sri Lanka
China, People's Republic Malta Sudan
Chile Mauritius Sweden
Croatia Morocco Switzerland
Czech Republic Mongolia Syria
Denmark Myanmar Thailand
Egypt Namibia Turkey
Fiji Netherlands Turkmenistan
Finland New Zealand United Arab Emirates
France Norway United Kingdom
Germany Pakistan United States (Limited Agreement)*
Hong Kong Papua New Guinea Uzbekistan
Hungary Philippines Venezuela
India Poland** Vietnam
Indonesia Qatar Zimbabwe

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

** Pending ratification.

*** Malaysia also has an Air Transport Agreement with Saudi Arabia.