6 October 2013
Kuala Lumpur, Malaysia
The Government of Canada is committed to reducing tax barriers and encouraging increased bilateral trade and investment in order to generate the right conditions for job creation and long-term growth. To this end, on October 6, 2013, Prime Minister Stephen Harper announced the signing of a declaration of intent to conclude a new tax agreement between Canada and Malaysia, which will help promote trade and investment between the two countries.
The current Canada-Malaysia Tax Agreement was signed in 1976. Since then, Canada’s tax conventions and domestic tax policies, as well as internationally accepted tax convention standards, have evolved.
The new tax agreement will include modernized provisions that conform to current Canadian and international tax treaty policies, which are based on the Model Tax Convention on Income and on Capital developed by the Organisation for Economic Co-operation and Development (OECD).
Once concluded, the new tax agreement, which will replace the 1976 Tax Agreement, will come into force after it has been ratified by both countries.
Canada has a wide network of tax conventions and agreements in force with 90 countries. The Government of Canada is committed to keeping its tax conventions updated and to negotiating new tax conventions, where warranted, to support the competitiveness of Canadian businesses abroad as well as to attract investment to Canada.
