The Double Taxation Agreement (DTA) between Malaysia and Korea is an agreement that aims to prevent double taxation of income earned in both countries. This agreement was signed on July 13, 1977, and has been in force since January 1, 1979.
Under this agreement, individuals and businesses are protected from being taxed twice on the same income. For example, if a Malaysian resident works in Korea, their income will only be taxed in Korea, and not in Malaysia. This agreement also covers income from dividends, interest, and royalties, among others.
The DTA also includes provisions on the exchange of information between the two countries. This information can be used to prevent tax evasion and enforce tax laws. It also provides a framework for resolving disputes between the two countries regarding tax issues.
The DTA has had a positive impact on the bilateral relationship between Malaysia and Korea. It has provided a stable and predictable tax environment for businesses and individuals, which has encouraged investment and trade between the two countries.
One of the benefits of the DTA is that it provides certainty for businesses operating in Malaysia and Korea. This certainty helps businesses to plan and budget for their operations, which in turn can lead to increased investment and growth.
Another benefit of the DTA is that it promotes transparency and fairness in taxation. By providing a framework for the exchange of information between the two countries, it helps to prevent tax evasion and ensure that taxpayers are complying with the law.
Overall, the Double Taxation Agreement between Malaysia and Korea is an important agreement that has helped to promote investment and trade between the two countries. It has provided a stable and predictable tax environment for businesses and individuals, and has helped to promote transparency and fairness in taxation.