MALAYSIA, GERMANY SIGN PACT TO AVOID DOUBLE TAXATION

KUALA LUMPUR, Feb 24 (Bernama) -- Malaysia and Germany Tuesday signed an
agreement for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income (DTA).

In a statement here Tuesday, the Ministry of Finance said the agreement
would provide for the avoidance of the incidence of double taxation on income
such as business profits, dividends, interests and royalties derived in Malaysia
and remitted to Germany or vice versa.

"The other main objective of the agreement is to avoid fiscal evasion with
respect to taxes though mutual agreement procedures and exchange of information
between the two countries," it said.

The ministry said the conclusion of this agreement would strengthen
bilateral relations between the two countries in the fields of trade,
investment, social and cultural affairs.

It said with the agreement would replace the previous DTA Malaysia and
Germany signed on Apr 8, 1977.

"This is also the 13th agreement where Malaysia has included paragraphs four
and five Article 26 (Exchange of Information) of the Organisation for Economic
Co-operation and Development Model Tax Convention 2005 which enables effective
exchange of information," it said.

The agreement was signed by Deputy Minister of Finance II, Senator
Dr Awang Adek Hussin for Malaysia and the Ambassador of Germany to Malaysia, Dr
Gunter Georg Gruber on behalf of Germany.

-- BERNAMA