Malaysia and Austria signed a double tax treaty on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This agreement became effective since January 1st, 1987. The provisions of this treaty apply to taxes on income, imposed by the contracting states, irrespective of the manner in which they are levied. Individual persons and resident companies in Malaysia and Austria are subject to this agreement. Our company formation experts in Malaysia can offer you an in-depth presentation of the financial aspects of this double tax treaty.
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Taxes addressed by the double tax treaty Malaysia – Austria
All companies registered in Malaysia and Austria that conduct businesses in these countries have to pay taxes. Several taxes levied in the two countries where comprised by the stipulations of this treaty on the avoidance of double taxation. These taxes are:
• in Malaysia – the income tax and profit excess tax; the supplementary income tax (development tax) and the petroleum income tax;
• in Austria – the income tax (Einkommensteurer), the corporate tax (Korperschaftsteuer), the director`s tax and the tax on commercial and industrial enterprises, including the tax levied on the sum of wages.
The provisions of this treaty on the avoidance of double taxation between Malaysia and Austria also apply to any identical or similar taxes on income which are imposed after the date of signing this agreement. The authorities of the two contracting states share the responsibility of information exchange in regard to taxation laws. Our Malaysian company incorporation specialists can give detailed information on this matter.
The scope of the treaty
The agreement for the avoidance of double taxation and the prevention of fiscal evasion applies to persons who are resident of one or both contracting states. Resident is defined as any person liable to taxation by the reason of his/her residence, place of management or other similar criteria. A company is considered a corporate legal entity that is subject to corporate taxation. The treaty provisions cover not only personal income, but also incomes from immovable properties, business profits, profits derived from shipping and air transportation activities, dividends, interests, royalties and gains from the alienation of property.
If you want detailed information about the articles of the agreement that cover these types of income, please contact our company incorporation agents in Malaysia.