Tax Incentives: Other Financial Assistance Schemes

Double taxation agreements are signed to avoid double taxation on international income, such as business profits, dividends, interests and royalties that are derived in one country and remitted to another country. It removes the "tax barrier" to international trade and investment. Under double taxation agreements, business profits are taxed only in the country in which the enterprise is situated. Where the enterprise carries on business through a permanent establishment situated in the other contracting country, tax is levied in the other country on the profits as is attributable to or derived by the permanent establishment in the country where the permanent establishment is situated

The main objectives of the Bilateral Payments Arrangement(BPA) are to promote trade in the context of diversifying Malaysia’s trade to include non-traditional markets and also to foster closer economic and banking relationships between Malaysia and the participating countries. The two types of BPA signed by Bank Negara Malaysia are Iranian Model & ALADI Model.

The Export-Import Bank of Malaysia Berhad (EXIM Bank) merged with Malaysia Export Credit Insurance Berhad (MECIB) on the 30th of December 2005 retaining the name EXIM Bank. EXIM Bank’s objective is to drive the development of Malaysian exports and foreign investments abroad by providing a range of export financing, guarantees and export credit insurance facility. Find out more about Export credit insurance, financing guarantees and facilities offered by EXIM Bank.