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Malaysia Update
Below is a summary of the recent tax changes or developments
in Malaysia. The national budget for year 2012 was announced
on 7 October 2011 and a snapshot of the key budget proposals
will be included in the next issue of the Tax Alert.
Income Tax (Exchange of Information) Rules 2011
The Income Tax (Exchange of information) Rules 2011 was
issued on 20 July 2011. The Rules provide that a competent
authority may request for tax information from the Director
General of a person to whom a double tax agreement
entered into by the government of such competent authority
with the Government of Malaysia relates. The Director
General may also make a request from a bank which has
the information of such person, as requested by the
competent authority.
“Information” means any information required to be
disclosed pursuant to the article on exchange information
of a double taxation arrangement.
A “competent authority” refers to an authorised servant or
agent of a government of any territory outside Malaysia with
which the Government of Malaysia has entered into a
double tax agreement.
Double Taxation Relief (The Government of the
Republic of South Africa) (Amendment) Order 2011
The Order amends the Double Taxation Relief (The
Government of the Republic of South Africa) Order 2005 as
specified in the Schedule in accordance with the Protocol
Amending The Agreement Between The Government Of
Malaysia And The Government Of The Republic Of South
Africa For The Avoidance Of Double Taxation And The
Prevention Of Fiscal Evasion With Respect To Taxes On
Income.
The Order declares that the arrangements specified in the
Schedule have been made by the Government of Malaysia
with the Government of the Republic of South Africa with a
view to amending the previous arrangements affording relief
from double taxation in relation to Malaysian tax and South
African tax (as defined in each case in the arrangements) and
that it is expedient that those arrangements shall have effect.
Income Tax (Exemption) (No. 4) Order 2011
This Order shall have effect from the Year of Assessment
2011 and exempts any person from income tax in respect
of gains or profits received (in lieu of interest) derived from the
sukuk wakala under the concept of Al-Wakala Bil Istismar.
Income received under this Order is not subject to withholding
26 // PKF International Tax Alert All Regions
Issue 8 November 2011