Malaysia

Individual - Foreign tax relief and tax treaties

Last reviewed - 21 July 2021

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:

Albania Ireland Russian Federation
Argentina (Limited Agreement)* Italy San Marino
Australia Japan Saudi Arabia***
Austria Jordan Senegal**
Bahrain Kazakhstan Seychelles Republic
Bangladesh Korea Republic Singapore
Belgium Kyrgyz Republic Slovak Republic
Bosnia & Herzegovina Kuwait South Africa
Brunei Laos Spain
Cambodia Lebanese Republic Sri Lanka
Canada Luxembourg Sudan
China, People's Republic Malta Sweden
Chile Mauritius Switzerland
Croatia Morocco Syria
Czech Republic Mongolia Thailand
Denmark Myanmar Turkey
Egypt Namibia Turkmenistan
Fiji Netherlands Ukraine**
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
Iran Romania

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

** Pending ratification.

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