New DTT with Malaysia

Slovakia
UniCredit Bank Czech Republic and Slovakia, a.s., pobočka zahraničnej banky
Summary: 
A new Double Tax Treaty has been signed between Malaysia and Slovakia
Mon, 11/01/2016

Malaysia and Slovakia have entered into a new DTT, which also includes provisions on the exchange of information following international standards. The DTT regime between the two countries is described in what follows.

Article 10 / Dividends - Treaty Dividend Tax Rate:

  • 5%
  • 0%, if the beneficial owner is a company (other than a partnership) that has held directly at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least 12 months

Article 11 / Interest - Treaty Interest Tax Rate:

  • 10%
  • 0%, applicable to the following recipients:
    • for Slovakia
      • the Government, its political subdivision, local authority or central bank
      • institutions wholly owned by the Government and as agreed upon by the contracting states by the exchange of diplomatic notes, i.e. Eximbanka SR, Slovak Guarantee and Development Bank.
    • for Malaysia  
      • the Government, its political subdivision, local authority or central bank
      • institutions wholly owned by the Government and as agreed upon by the contracting states by the exchange of diplomatic notes, i.e. the Bank Negara Malaysia , the Export-Import Bank of Malaysia Berhad (EXIM Bank)

The agreement will enter into force after the ratification processes are completed by both countries.

Impact on investors: Once in force, the new DTT between Malaysia and Slovakia will create a more favorable tax environment for eligible investors from both countries.