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Monday, 8 June 2012 09:32
Please be informed that Malaysia and the Hong Kong Special Administrative Region ("HKSAR") have signed a comprehensive Double Taxation Agreement ("DTA") on 25th April 2012 tax to avoid double taxation by defining the taxing rights of each country with regard to cross border flows of income and providing for tax credits or exemptions to eliminate double taxation.
The DTA provides the following withholding tax rates which applicable on payments to residents of HKSAR where the relevant conditions are met:-
Type of Payment
Domestic Rate
DTA rate
Interest
15%
10%
Royalties
10%
8%
Technical Fees
10%
5%
This was the 74th DTA concluded by Malaysia with its trading partners and will come into force after the completion of the ratification procedures by both parties.
Should you have any questions, please do not hesitate to contact us at (603) 2166 2303.
