Malaysia And India Sign Agreement On DTAA

PUTRAJAYA (Malaysia), May 9(Bernama) -- Malaysia and India today signed the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (DTAA Malaysia-India). The Secretary General of the Treasury, Dr Wan Abdul Aziz Wan Abdullah signed for the Malaysian government and the High Commissioner of India to Malaysia, Vijay K.Gokhale for India. Second Finance Minister of Malaysia Ahmad Husni Hanadzlah witnessed the signing. The main objective of this agreement is to provide for the avoidance of the incidence of double taxation on income, by determining the taxing rights between the two countries, grant reduction in withholding tax rates on certain incomes such as dividend, interest, royalty and fee for technical services on a reciprocal basis, and provide tax certainties in connection with cross-border economic activities. "The Malaysia-India DTAA also outlines provisions to avoid fiscal evasion in respect of taxes through Mutual Agreement Procedures and exchange of information between the two countries. "In addition, this agreement will further strengthen bilateral relations between both countries in the field of trade, investment, social and cultural affairs," the Ministry of Finance said in a statement following the signing. The new agreement will replace the current DTAA Malaysia-India signed on May 14, 2001, and comes into force, after the completion of ratification procedures on both sides. --BERNAMA