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Malaysian Court Holds Software Distribution Fees Not Considered Royalties Under Tax Treaty with the Netherlands

|Treaty Development|Malaysia-Netherlands
Malaysia-Netherlands

On 1 August 2018, the Malaysian High Court issued a decision on whether fees for software distribution may be considered royalties under the 1988 Malaysia-Netherlands tax treaty. The case involved a Malaysian software distributor that paid fees to a related Dutch company under a software distribution agreement. Under the agreement, the Malaysian company only has the right to distribute the soft…

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