The income tax treaty between Malaysia and Slovakia was signed 25 May 2015, and is the first of its kind between the two countries.
The treaty covers Malaysian income tax and petroleum income tax, and covers Slovak income tax.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
Provisions are also included for a tax sparing credit whereby Slovakia will treat as Malaysian tax paid any tax that would have been payable but was reduced or exempted through special incentives under Malaysia law for the promotion of economic development of Malaysia. Eligible incentives resulting in the credit includes those that were in force on the date of signature of the treaty and similar incentives subsequently introduced if agreed by the competent authorities of the Contracting States.
The treaty will enter into force 60 days after the ratification instruments are exchanged, and will apply from 1 January of the year following its entry into force.
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