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:

Notes

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 an Air Transport Agreement with Saudi Arabia.