Malaysia And Maldives Ink Agreement On The Elimination Of Double Taxation On Income Tax And The Prevention Of Tax Evasion And Avoidance (DTAA)

Malaysia And Maldives Ink Agreement On The Elimination Of Double Taxation On Income Tax And The Prevention Of Tax Evasion And Avoidance (DTAA)

The Governments of Malaysia and the Republic of Maldives today signed the Agreement on the Elimination of Double Taxation on Income Tax and the Prevention of Tax Evasion and Avoidance (DTAA) at the Parliament Building in Kuala Lumpur.

The DTAA was jointly signed by YB Datuk Seri Ahmad Maslan, Deputy Minister of Finance I, on behalf of the Government of Malaysia and His Excellency Mr Ibrahim Ameer, Minister of Finance of the Maldives, on behalf of the Government of the Republic of Maldives.

The agreement aims to avoid double taxation on the same income in Malaysia and the Maldives, providing tax certainty to taxpayers in both countries. The DTAA also covers the right to determine taxation and the reduction of withholding tax rates on certain incomes such as dividends, interest, royalties and fees for technical services based on reciprocity for cross-border economic activities. The agreement will enter into force after the ratification procedures by both parties is completed.

The signing of the DTAA is expected to further facilitate trade and investment between the two countries. Malaysia's trade volume to the Maldives has increased with bilateral trade on an upward trend. In 2022, Malaysia's total trade to the Maldives amounted to RM1,009.0 million (USD227 million), an increase of 100.2% from RM504 million (USD122 million) in 2021. Based on this positive trend, bilateral trade between Malaysia and the Maldives is expected to grow further. Therefore, the Malaysian Government strongly encourages companies in Malaysia and the Maldives to invest and participate in the economic development of both countries.

Ministry of Finance Malaysia
Kuala Lumpur
24 May 2023