Malaysia is part of the DBA, which brings together countries on every continent of the world. It has also limited agreements with some other countries. There are also some countries for which ratification of a DBA with Malaysia has not yet taken place. Double taxation is an event that every taxpayer in the world wants to avoid. It occurs when the same income or income is taxed twice; once by another tax authority. It occurs when a tax is taxed in the taxpayer`s country of residence and in the country where the profits are made. Malaysia and Hong Kong entered into a double taxation agreement („DBA“) on April 25, 2012. The agreement will enter into force as soon as it is ratified by Malaysia and Hong Kong. A double taxation agreement (DBA) is a contract signed by two countries to minimize or eliminate double taxation of the same income. It is also known as the Double Taxation Convention and is classified as part of international taxation.

In general, it crushes national tax legislation in cases where national tax legislation and the DBA are in conflict. In any case, if you want any support on all tax-related issues in Malaysia, we will respond to Paul Hype Page and Co to meet your needs in such areas. Our tax experts have a great knowledge of Malaysia`s tax system and will be able to meet your tax requirements according to your wishes. As with all double taxation agreements, the DBA`s main objectives are to reduce withholding tax and to prevent double taxation by distributing tax duties between the two countries. In the absence of a CDTA, the profits of Hong Kong companies operating in Malaysia through a stable establishment, for example. B a point of sale, can be taxed in both places if the revenues come from Hong Kong. Under the new agreement, double taxation is avoided by generally granting each Malaysian tax paid by corporations a credit to the income tax payable in Hong Kong. Prior to the DBA, the profits of a Malaysian company operating in Hong Kong through a stable facility in Hong Kong could be taxed in both countries.