Individual - Foreign tax relief and tax treaties

Last reviewed - 22 January 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
Canada Lebanese Republic Spain
China, People's Republic Luxembourg Sri Lanka
Chile Malta Sudan
Croatia Mauritius Sweden
Czech Republic Morocco Switzerland
Denmark Mongolia Syria
Egypt Myanmar Thailand
Fiji Namibia Turkey
Finland Netherlands Turkmenistan
France New Zealand United Arab Emirates
Germany Norway United Kingdom
Hong Kong Pakistan United States (Limited Agreement) *
Hungary Papua New Guinea Uzbekistan
India Philippines Venezuela
Indonesia Poland** Vietnam
Iran Qatar Zimbabwe

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

** Pending ratification.

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