Double Tax Treaty Malaysia – Germany

Updated on Monday 20th August 2018

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German investors who want to open a company in Malaysia or who obtain any type of taxable income in this country can benefit from the provisions of the double tax agreement (DTA) signed by the local authorities with the officials of Germany. The double tax treaty was signed in 2010 and it became applicable starting with 1st of January 2011 and our team of specialists in company formation in Malaysia can provide in-depth information on the taxes available under this agreement.  
 

Main taxes covered by the Malaysia – Germany DTA  
 

The DTA signed by Malaysia and Germany cover a set of specific taxes, prescribed by the Article 2 (3) of document. As mentioned by this Article, Germany will apply the income tax, the corporation tax and the trade tax, while Malaysia will impose the income tax and the petroleum tax
 
The differences between the types of taxes applied by each jurisdiction are given by the legislation of each contracting state, but it is necessary to know that the treaty refers to identical or similar taxes. If the national tax legislation of a country is modified, the respective state is legally required to inform the other contracting state of any modification; our team of consultants in company registration in Malaysia may offer more details on the tax laws available in this country. 
 

Taxation of income deriving from immovable property in Malaysia 
 

The taxation of income obtained from immovable property in Malaysia is concluded following the provisions prescribed by the Article 6. Our team of specialists may offer advice on the legal meaning of the term, which, under the DTA refers to the below mentioned aspects: 
 
  • the income obtained by a German resident in Malaysia will be taxed in Malaysia;
  • the term immovable property also takes into consideration the income obtained from agriculture and forestry;
  • the term also refers to livestock, agriculture equipment, equipment used for forestry activities or activities related to the exploitation of natural resources; 
  • the regulations are also applicable to German companies obtaining income from immovable property in Malaysia
     
Businessmen are invited to contact our team of local consultants for more details regarding other relevant aspects prescribed by the Malaysia – Germany DTA; our representatives may offer in-depth advice on any tax regulation that can be applicable to foreigners working in this country or to those who want to set up a business here.