On 24 May 2023, the Governments of Malaysia and the Republic of Maldives signed a Double Taxation Avoidance Agreement. The primary objectives of the Double Taxation Avoidance Agreement are as follows:

• Eliminating double taxation on the same income in both Malaysia and the Maldives.
• Preventing tax evasion and avoidance.
• Reducing withholding tax rates on certain incomes such as dividends, interest, royalties, and fees for technical services based on reciprocity for cross-border economic activities.
• Facilitating trade and investment between the countries.

The Double Taxation Avoidance Agreement will enter into force once the ratification procedures are completed by the Governments of Malaysia and the Republic of Maldives.

This marks the third time the Maldives has signed a full-fledged Bilateral Double Taxation Avoidance Agreement. Prior to the Agreement with Malaysia, the Maldives had signed:

• A Double Taxation Avoidance Agreement with the People’s Republic of Bangladesh on 23 December 2021. This Agreement is yet to be enforced and can be viewed from here.
• A Double Taxation Avoidance Agreement with the Government of the United Arab Emirates on 17 October 2017. This Agreement is in force and can be viewed from here.

These Agreements demonstrate the commitment of the countries to foster international economic cooperation.