Malaysia, Brunei Sign Double Taxation Agreement

by Mary Swire, Tax-News.com, Hong Kong

10 August 2009

In a joint statement issued after their 13th Annual Consultations, the leaders of Brunei and Malaysia expressed the belief that their signing of a double taxation agreement would promote even greater bilateral economic collaboration between the two countries.

Detailed terms of the double taxation agreement have yet to be released. However, it was reported that the maximum rates of withholding tax on dividends, royalties and fees will be 10%.

The two leaders also agreed that Malaysia and Brunei would undertake joint investments, particularly in hydro-electric energy projects; in hydrocarbon industries, especially the downstream sector; and in each other’s agriculture sectors and halal food industries. In this regard, they welcomed the signing of the MOU between the Sabah Tourism Board and Royal Brunei Airlines in March, as well as the recent code-share agreement between Royal Brunei Airlines and Malaysian Airlines.

In addition, the leaders also stated that the two countries would look into the possibility of forming partnerships to carry out joint investments in third countries.

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