DTAA - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries - Malaysia - 7/2013 - Income Tax

Double taxation relief: treaty allocates taxing rights, limits source withholding and mandates information exchange to prevent fiscal evasion.

The Agreement allocates taxing rights between India and Malaysia, applies to residents and taxes on income, defines residency and permanent establishment rules, prescribes attribution of business profits to permanent establishments on an arm's length basis, and limits source state withholding on dividends, interest, royalties and technical fees subject to specified maximum rates and exceptions where amounts are effectively connected with a permanent establishment. It establishes mutual agreement procedures, exchange of information obligations, limitation of benefits rules, non discrimination protections and mechanisms for elimination of double taxation by tax credits.