Elimination of double taxation: reciprocal credit and deduction rules allocate relief for cross border income between Malaysia and India. The Agreement provides reciprocal relief for double taxation: Malaysia allows a credit against Malaysian tax for Indian tax paid on income from India, including a dividend provision where a Malaysian company holding at least ten per cent of voting shares may take into account Indian tax paid by the Indian company, subject to a cap equal to the Malaysian tax attributable to that income. India allows a deduction for tax paid in Malaysia on income taxable in Malaysia, likewise capped, and both sides' definitions of 'tax paid' include hypothetical taxes forgone under reduced rates or incentives if agreed by competent authorities.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Elimination of double taxation: reciprocal credit and deduction rules allocate relief for cross border income between Malaysia and India.
The Agreement provides reciprocal relief for double taxation: Malaysia allows a credit against Malaysian tax for Indian tax paid on income from India, including a dividend provision where a Malaysian company holding at least ten per cent of voting shares may take into account Indian tax paid by the Indian company, subject to a cap equal to the Malaysian tax attributable to that income. India allows a deduction for tax paid in Malaysia on income taxable in Malaysia, likewise capped, and both sides' definitions of "tax paid" include hypothetical taxes forgone under reduced rates or incentives if agreed by competent authorities.
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