- Updated
- May 2025
- Sections
- 15
- Questions
- 37
Key Facts
Core Framework
Income Tax Act 1967, Section 140A(2) Income Tax (Transfer Pricing) Rules 2023, Rule 2 Income Tax (Transfer Pricing) Rules 2012, Rule 2
The main provision governing transfer pricing in Malaysia is subsection 140A(2) of the Income Tax Act (ITA) 1967. This provision indicates that: “(2) Subject to subsection (3), where a person in the basis period for a year of assessment enters into a transaction with an associated person for that year for the acquisition or supply of property or services, then, for all purposes of this Act, that person shall determine and apply the arm’s length price for such acquisition or supply.” Besides the main provision, taxpayers in Malaysia also need to adhere to the subsidiary legislation as follows: 1. Income Tax (Transfer Pricing) Rules 2023 – for any controlled transactions entered into from year of assessment (YA) 2023. 2. Income Tax (Transfer Pricing) Rules 2012 – for any controlled transactions entered into prior to YA 2023. For the purposes of transfer pricing in Malaysia, the reference for the acquisition or supply of properties or services shall include financial assistance received or provided.
Malaysia Transfer Pricing Guidelines 2024, Chapter Introduction and Objective Income Tax (Transfer Pricing) Rules 2012, Rule 2
The Malaysia Transfer Pricing Guidelines (MTPGL) 2012 and 2024 have been prepared largely based on the OECD Transfer Pricing Guidelines. The information is indicated in the following chapters: 1. Malaysia Transfer Pricing Guidelines 2012 – Chapter 1 Preliminary 2. Malaysia Transfer Pricing Guidelines 2024 – Chapter Introduction and Objective. With effect from 1 January 2024, any guidelines pertaining to tax treatment issued by the Director General of Inland Revenue (DG) under Section 134A of the Income Tax Act 1967 will be legally binding on both the taxpayers and the Inland Revenue Board of Malaysia (IRBM) officers. This regulatory change aims to provide clarity and ensure consistency in the application of tax laws, thereby enhancing compliance and reducing disputes.
Malaysia Transfer Pricing Guidelines 2024, Chapter 4
Reference can be made to Chapter 4 Comparability Analysis of the Malaysia Transfer Pricing Guidelines 2024.
Frequently Asked Questions (FAQ) on Matters Pertaining to Transfer Pricing (TP) 2.0
The Inland Revenue Board of Malaysia (IRBM) prefers Malaysian local comparables for benchmarking analysis purposes to accurately reflect the economic and commercial realities of market conditions in Malaysia. However, the usage of foreign comparables may be accepted provided that the information on the foreign comparables is able to be furnished to the IRBM upon request. Taxpayers must ensure that the foreign comparables used are accurate, sufficient, and verifiable. Reasonable justification on the use of the foreign comparables should also be included in the Transfer Pricing Documentation (CTPD) to ensure contemporaneousness and compliance with Malaysia's regulatory framework.
Malaysia does not allow the use of any secret comparables for transfer pricing purposes.
Income Tax (Transfer Pricing) Rules 2023, Rule 13 Malaysia Transfer Pricing Guidelines 2024, Chapter 2
Effective from YA 2023, Malaysia has introduced its arm’s length range, which refers to a range of figures or a single figure falling between the value of the 37.5 percentile and 62.5 percentile of the data set and acceptable by the DG. If a controlled price is found to be within this arm’s length range, the controlled price may be regarded as the arm’s length price. However, if the controlled price falls outside this arm’s length range, then the arm’s length price shall be the midpoint of the arm's length range. The DG may adjust the controlled price even if the controlled price falls within the arm's length range if there is evidence of comparability defects that are not quantified, identified, or adjusted, or the usage of comparables with a lesser degree of comparability.
Documentation
Income Tax (Transfer Pricing) Rules 2023, Rule 14 Income Tax (transfer Pricing) Rules 2012, Rule 4 Malaysia Transfer Pricing Guidelines 2024, Chapter 11 Tax Return Form for companies Return Form (RF) Sample Return Form for Companies, Item F9, Information on Controlled Transaction
Details on the controlled transactions are required to be declared in income tax returns on annual basis.
Income Tax (Transfer Pricing) Rules 2023, Rule 14 Income Tax (transfer Pricing) Rules 2012, Rule 4 Malaysia Transfer Pricing Guidelines 2024, Chapter 11 Tax Return Form for companies Return Form (RF) Sample Return Form for Companies, Item F9, Information on Controlled Transaction
Details on the controlled transactions are required to be declared in income tax returns on annual basis.
Income Tax (Transfer Pricing) Rules 2023, Rule 14 Income Tax (transfer Pricing) Rules 2012, Rule 4 Malaysia Transfer Pricing Guidelines 2024, Chapter 11 Tax Return Form for companies Return Form (RF) Sample Return Form for Companies, Item F9, Information on Controlled Transaction
Details on the controlled transactions are required to be declared in income tax returns on annual basis.
Income Tax Act 1967, Section 113B
Section 113B of the ITA 1967 has been introduced on 1 January 2021 to cater for failure to furnish contemporaneous transfer pricing documentation within the stipulated timeframe. Section 113B indicates that any taxpayer who fails to furnish the contemporaneous transfer pricing documentation within fourteen days (14) from the date of written notice being served by the IRBM has committed a criminal offence under subsection 113B(1) of the ITA and can be prosecuted for that offence. Upon conviction, the taxpayer is liable to a fine not less than RM20,000 and not more than RM100,000, or to imprisonment for a term not exceeding six months, or to both, for each failure year of assessment. In the event where no prosecution was instituted, Subsection 113B(4) of the ITA allows the DG to impose administrative monetary penalties ranging from RM20,000 to RM100,000 for each year of failure if no prosecution was instituted for the offence of not providing contemporaneous transfer pricing documentation. Section 113B is effective for YA 2023 and subsequent YAs.
TP Methods
- CUP
- Resale Price
- Cost Plus
- TNMM
- Profit Split
- Other
Selection: Most appropriate method
Dispute Resolution
Malaysia MAP Profile Tax Corporate Governance Framework – IRBM (11.04.2022)
A dispute resolution process is an initiative by the IRBM to give taxpayers the opportunity to resolve an appeal or application for relief without the need for it to be forwarded to the Special Commissioners of Income Tax (SCIT) for a decision. In the context of the IRBM, this process is a platform for an alternative means of dispute resolution whereby the Dispute Resolution Department, IRBM or State Director’s Office, IRBM acts as a neutral party during a discussion or proceeding held with a taxpayer in an effort to reach an out of court settlement.
Malaysia MAP Profile Tax Corporate Governance Framework – IRBM (11.04.2022)
A dispute resolution process is an initiative by the IRBM to give taxpayers the opportunity to resolve an appeal or application for relief without the need for it to be forwarded to the Special Commissioners of Income Tax (SCIT) for a decision. In the context of the IRBM, this process is a platform for an alternative means of dispute resolution whereby the Dispute Resolution Department, IRBM or State Director’s Office, IRBM acts as a neutral party during a discussion or proceeding held with a taxpayer in an effort to reach an out of court settlement.
Simplifications
Currently, Malaysia only offers simplification measures for low-value intra-group services.
We have yet to decide the adoption of Amount B to resident companies engage in baseline marketing and distribution activities. We are currently conducting the impact assessment analysis on the adoption of Amount B in Malaysia.
Special Topics
Income Tax (Transfer Pricing) Rules 2023, Rule 11 Income Tax (transfer Pricing) Rules 2012, Rule 11 Malaysia Transfer Pricing Guidelines 2024, Chapter 8
References on guidance involving intangibles can be found in the following documents: 1) Income Tax (Transfer Pricing) Rules 2023, Rule 11; 2) Income Tax (Transfer Pricing) Rules 2012, Rule 11; 3) Malaysia Transfer Pricing Guidelines 2024, Chapter 8; 4) Malaysia Transfer Pricing Guidelines 2012, Chapter 8.
Currently, Malaysia does not have any specific guidance on the hard-to-value intangibles (HTVI). Based on audit activities carried out so far, there has not been any issues of HTVI recorded. If there are such cases, the guidance described in Chapter VI of the OECD Guidelines may be applicable.
Income Tax (Transfer Pricing) Rules 2023, Rule 9 Income Tax (transfer Pricing) Rules 2012, Rule 9 Malaysia Transfer Pricing Guidelines 2024, Chapter 6
Malaysia does provide specific guidance on intra-group services transactions as follows: 1) Income Tax (Transfer Pricing) Rules 2023, Rule 9; 2) Income Tax (Transfer Pricing) Rules 2012, Rule 9; 3) Malaysia Transfer Pricing Guidelines 2024, Chapter 6; 4) Malaysia Transfer Pricing Guidelines 2012, Chapter 6.
Income Tax (Transfer Pricing) Rules 2023, Rule 12 Malaysia Transfer Pricing Guidelines 2024, Chapter 9
A brief discussion on the intra-group financial transactions is provided in Chapter 9 of the Malaysia Transfer Pricing Guidelines 2024. We are in the midst of preparing specific guidance on intra-group financial transactions, which will largely be based on Chapter X of the OECD TP Guidelines.
Full OECD Questionnaire
Legal ReferenceIncome Tax Act 1967, Section 140A(2) Income Tax (Transfer Pricing) Rules 2023, Rule 2 Income Tax (Transfer Pricing) Rules 2012, Rule 2
The main provision governing transfer pricing in Malaysia is subsection 140A(2) of the Income Tax Act (ITA) 1967. This provision indicates that: “(2) Subject to subsection (3), where a person in the basis period for a year of assessment enters into a transaction with an associated person for that year for the acquisition or supply of property or services, then, for all purposes of this Act, that person shall determine and apply the arm’s length price for such acquisition or supply.” Besides the main provision, taxpayers in Malaysia also need to adhere to the subsidiary legislation as follows: 1. Income Tax (Transfer Pricing) Rules 2023 – for any controlled transactions entered into from year of assessment (YA) 2023. 2. Income Tax (Transfer Pricing) Rules 2012 – for any controlled transactions entered into prior to YA 2023. For the purposes of transfer pricing in Malaysia, the reference for the acquisition or supply of properties or services shall include financial assistance received or provided.
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter Introduction and Objective Income Tax (Transfer Pricing) Rules 2012, Rule 2
The Malaysia Transfer Pricing Guidelines (MTPGL) 2012 and 2024 have been prepared largely based on the OECD Transfer Pricing Guidelines. The information is indicated in the following chapters: 1. Malaysia Transfer Pricing Guidelines 2012 – Chapter 1 Preliminary 2. Malaysia Transfer Pricing Guidelines 2024 – Chapter Introduction and Objective. With effect from 1 January 2024, any guidelines pertaining to tax treatment issued by the Director General of Inland Revenue (DG) under Section 134A of the Income Tax Act 1967 will be legally binding on both the taxpayers and the Inland Revenue Board of Malaysia (IRBM) officers. This regulatory change aims to provide clarity and ensure consistency in the application of tax laws, thereby enhancing compliance and reducing disputes.
Legal ReferenceIncome Tax Act 1967, Subsection 139 Income Tax Act 1967, Subsection 140A(5) Income Tax Act 1967, Subsection 140A(5A) Companies Act 2016, Section 7 Note: Section 6 of Companies Act 1965 has been amended as Section 7 of Companies Act 2016.
For the purposes of transfer pricing in Malaysia, related parties refer to associated persons. Therefore, any person that engages in a transaction with associated persons will be regarded as a controlled transaction and should comply with the arm’s length principle. Section 139, subsection 140A(5) and (5A) of ITA 1967 is applicable in determining whether a person is an associated person or not, while subsection 2(4) of ITA 1967 is used in determining a group of companies. Reference was also made to Section 7 of the Companies Act 2016.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 6 Malaysia Transfer Pricing Guidelines 2024, Chapter 3, paragraph 3.9 to 3.67
In determining the arm's length price of a controlled transaction, taxpayers may choose a transfer pricing method from the traditional and transactional transfer pricing methods. Other methods should only be used if it can be proven that they can provide the highest degree of comparability between controlled and uncontrolled transactions as compared to those traditional and transactional methods. Please refer to Rule 6 of the Income Tax (Transfer Pricing) Rules (TPR) 2023 and paragraphs 3.9 – 3.67 of the Malaysia Transfer Pricing Guidelines 2024.
- CUP (provided)
- Resale Price (provided)
- Cost Plus (provided)
- TNMM (provided)
- Profit Split (provided)
- Other (provided)
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 6
Taxpayers should use the most appropriate transfer pricing method in determining the arm's length price of a controlled transaction. They can choose from traditional or transactional methods or other methods that may be allowed if the other method is proven to provide the highest degree of comparability between controlled and uncontrolled transactions. However, the DG may substitute the taxpayer's transfer pricing method if, in his review, he believes that the transfer pricing method chosen is not the most appropriate transfer pricing method to determine the arm's length price. In such cases, the DG will provide justification for the substitution.
- Hierarchy of methods (not selected)
- Most appropriate method (selected)
- Other (if so, please explain) (not selected)
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter 10
For controlled transactions involving commodities, the guidance contained in paragraphs 2.18-2.22 of the TPG is followed. Reference can be made to Chapter 10 Commodity Transactions of the Malaysia Transfer Pricing Guidelines 2024.
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter 4
Reference can be made to Chapter 4 Comparability Analysis of the Malaysia Transfer Pricing Guidelines 2024.
Legal ReferenceFrequently Asked Questions (FAQ) on Matters Pertaining to Transfer Pricing (TP) 2.0
The Inland Revenue Board of Malaysia (IRBM) prefers Malaysian local comparables for benchmarking analysis purposes to accurately reflect the economic and commercial realities of market conditions in Malaysia. However, the usage of foreign comparables may be accepted provided that the information on the foreign comparables is able to be furnished to the IRBM upon request. Taxpayers must ensure that the foreign comparables used are accurate, sufficient, and verifiable. Reasonable justification on the use of the foreign comparables should also be included in the Transfer Pricing Documentation (CTPD) to ensure contemporaneousness and compliance with Malaysia's regulatory framework.
Malaysia does not allow the use of any secret comparables for transfer pricing purposes.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 13 Malaysia Transfer Pricing Guidelines 2024, Chapter 2
Effective from YA 2023, Malaysia has introduced its arm’s length range, which refers to a range of figures or a single figure falling between the value of the 37.5 percentile and 62.5 percentile of the data set and acceptable by the DG. If a controlled price is found to be within this arm’s length range, the controlled price may be regarded as the arm’s length price. However, if the controlled price falls outside this arm’s length range, then the arm’s length price shall be the midpoint of the arm's length range. The DG may adjust the controlled price even if the controlled price falls within the arm's length range if there is evidence of comparability defects that are not quantified, identified, or adjusted, or the usage of comparables with a lesser degree of comparability.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 7 Malaysia Transfer Pricing Guidelines 2024, Chapter 4, paragraph 4.23
For the purposes of transfer pricing in Malaysia, a comparability adjustment is warranted in a situation where the economically relevant characteristics of the uncontrolled and controlled transactions are not similar and the differences have a material impact on the price. Therefore, a comparability adjustment should be undertaken before proceeding to the next course of action.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 11 Income Tax (transfer Pricing) Rules 2012, Rule 11 Malaysia Transfer Pricing Guidelines 2024, Chapter 8
References on guidance involving intangibles can be found in the following documents: 1) Income Tax (Transfer Pricing) Rules 2023, Rule 11; 2) Income Tax (Transfer Pricing) Rules 2012, Rule 11; 3) Malaysia Transfer Pricing Guidelines 2024, Chapter 8; 4) Malaysia Transfer Pricing Guidelines 2012, Chapter 8.
As far as our knowledge, only the transfer pricing framework is applicable in pricing the controlled transactions involving intangibles in Malaysia.
Currently, Malaysia does not have any specific guidance on the hard-to-value intangibles (HTVI). Based on audit activities carried out so far, there has not been any issues of HTVI recorded. If there are such cases, the guidance described in Chapter VI of the OECD Guidelines may be applicable.
Even though Malaysia does not have specific guidance on HVTI, taxpayers may request bilateral or multilateral APA for all transfer pricing transactions including intangible property.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 9 Income Tax (transfer Pricing) Rules 2012, Rule 9 Malaysia Transfer Pricing Guidelines 2024, Chapter 6
Malaysia does provide specific guidance on intra-group services transactions as follows: 1) Income Tax (Transfer Pricing) Rules 2023, Rule 9; 2) Income Tax (Transfer Pricing) Rules 2012, Rule 9; 3) Malaysia Transfer Pricing Guidelines 2024, Chapter 6; 4) Malaysia Transfer Pricing Guidelines 2012, Chapter 6.
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter 6, paragraph 6.19
The application of a simplified approach for low value-adding intra-group services has been incorporated in Chapter 6 of the Malaysia Transfer Pricing Guidelines 2024.
As far as our knowledge, only the transfer pricing framework is applicable in pricing the intra-group services.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 12 Malaysia Transfer Pricing Guidelines 2024, Chapter 9
A brief discussion on the intra-group financial transactions is provided in Chapter 9 of the Malaysia Transfer Pricing Guidelines 2024. We are in the midst of preparing specific guidance on intra-group financial transactions, which will largely be based on Chapter X of the OECD TP Guidelines.
Legal ReferenceIncome Tax Act 1967, Section 15A Income Tax Act 1967, Section 109 Income Tax (Restriction on Deductibility of Interest) Rules 2019 Income Tax (Restriction on Deductibility of Interest) (Amendment) Rules 2022 Restriction on Deductibility of Interest Guidelines 2022
Besides the transfer pricing framework, Malaysia does have other rules or income tax provisions that specify tax treatment for financial transactions. Those rules: Income Tax Act 1967 (Section 15, 109, 109C, 140B, 140C) and Specific Rules (Income Tax (Restriction on Deductibility of Interest) Rules 2019 and Amendment Rules 2022).
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 10 Income Tax (transfer Pricing) Rules 2012, Rule 10 Malaysia Transfer Pricing Guidelines 2024, Chapter 7
References can be made to the following documents: 1) Income Tax (Transfer Pricing) Rules 2023, Rule 10; 2) Income Tax (Transfer Pricing) Rules 2012, Rule 10; 3) Malaysia Transfer Pricing Guidelines 2024, Chapter 7; 4) Malaysia Transfer Pricing Guidelines 2012, Chapter 7.
Legal ReferenceIncome Tax (Transfer Pricing) Rules 2023, Rule 14 Income Tax (transfer Pricing) Rules 2012, Rule 4 Malaysia Transfer Pricing Guidelines 2024, Chapter 11 Tax Return Form for companies Return Form (RF) Sample Return Form for Companies, Item F9, Information on Controlled Transaction
Details on the controlled transactions are required to be declared in income tax returns on annual basis.
- Master file consistent with Annex I to Chapter V of the TPG (selected)
- Local file consistent with Annex II to Chapter V of the TPG (selected)
- Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
- Specific transfer pricing returns (separate or annexed to the tax return) (not selected)
- Other (specify) (selected)
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter 11
Timing for preparation: A person who enters into a controlled transaction shall prepare and complete contemporaneous transfer pricing documentation prior to the due date for furnishing a return in the basis period for a year of assessment in which a controlled transaction is entered into. Language: The contemporaneous transfer pricing documentation should be prepared either in Bahasa Malaysia or in English only. If the supporting documents are in other language apart from Bahasa Malaysia or English, a translation should be provided upon submission. Record Retention Period: Apart from the records of transactions that need to be kept up to seven (7) years, contemporaneous transfer pricing documentation should also be maintained for the same period. Location of document: All contemporaneous transfer pricing documentation and its supporting documents shall be kept in Malaysia.
Legal ReferenceIncome Tax Act 1967, Section 113B
Section 113B of the ITA 1967 has been introduced on 1 January 2021 to cater for failure to furnish contemporaneous transfer pricing documentation within the stipulated timeframe. Section 113B indicates that any taxpayer who fails to furnish the contemporaneous transfer pricing documentation within fourteen days (14) from the date of written notice being served by the IRBM has committed a criminal offence under subsection 113B(1) of the ITA and can be prosecuted for that offence. Upon conviction, the taxpayer is liable to a fine not less than RM20,000 and not more than RM100,000, or to imprisonment for a term not exceeding six months, or to both, for each failure year of assessment. In the event where no prosecution was instituted, Subsection 113B(4) of the ITA allows the DG to impose administrative monetary penalties ranging from RM20,000 to RM100,000 for each year of failure if no prosecution was instituted for the offence of not providing contemporaneous transfer pricing documentation. Section 113B is effective for YA 2023 and subsequent YAs.
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter 1
Currently, the following persons are not require to prepare contemporaneous transfer pricing documentation – (a) individuals not carrying on a business; (b) individuals carrying on a business (including partnerships) who only engage in domestic controlled transactions; (c) person who entered into controlled transactions with a total amounting to not more than RM1 million; or (d) person who entered solely into domestic controlled transactions with another person where both parties – (i) do not enjoy tax incentives; (ii) are taxed at the same headline tax rate; or (iii) do not suffer losses for two consecutive years prior to the controlled transactions. However, these persons are still required to comply with the arm’s length principle for all controlled transactions they entered into and must ensure to keep all relevant documents that are related to the controlled transactions, including those that can support and prove arm’s length price.
Legal ReferenceMalaysia MAP Profile Tax Corporate Governance Framework – IRBM (11.04.2022)
A dispute resolution process is an initiative by the IRBM to give taxpayers the opportunity to resolve an appeal or application for relief without the need for it to be forwarded to the Special Commissioners of Income Tax (SCIT) for a decision. In the context of the IRBM, this process is a platform for an alternative means of dispute resolution whereby the Dispute Resolution Department, IRBM or State Director’s Office, IRBM acts as a neutral party during a discussion or proceeding held with a taxpayer in an effort to reach an out of court settlement.
- Rulings (selected)
- Enhanced engagement or cooperative compliance programmes (selected)
- Advance Pricing Agreements (APA) (selected)
- Unilateral APAs (selected)
- Bilateral APAs (selected)
- Multilateral APAs (selected)
- International Compliance Assurance Programme (ICAP) (not selected)
- Mutual Agreement Procedures (selected)
- Other (please specify) (selected)
We have yet to decide the adoption of Amount B to resident companies engage in baseline marketing and distribution activities. We are currently conducting the impact assessment analysis on the adoption of Amount B in Malaysia.
N/A: As responded in Q34, Malaysia has yet to decide on the adoption of Amount B.
Currently, Malaysia only offers simplification measures for low-value intra-group services.
Legal ReferenceMalaysia Transfer Pricing Guidelines 2024, Chapter 4, paragraph 4.29 Transfer Pricing Tax Audit Framework, paragraph 7.5.4
Malaysia only allows downward corresponding adjustments that arise from audits of transfer pricing cases. The request for a corresponding adjustment should be made by the other party of the transaction in writing and submitted to the respective IRBM office. However, the corresponding adjustment will not automatically be given, and audits will be carried out as a check before any approval.
In Malaysia, taxpayers are allowed to make year-end adjustments when they revisit or update the benchmarking results based on the current year's financial data. If the revisit warrants an upward transfer pricing adjustment, then the taxpayers are advised to make voluntary disclosure to reflect the appropriate arm’s length pricing for the controlled transactions. A surcharge rate of not more than 5% may be imposed on any transfer pricing adjustment, and a reduction in the surcharge rate may only be allowed in voluntary disclosure cases. Any request for downward transfer pricing adjustment due to the updated benchmarking analysis will not be entertained since no legal provision is provided in Malaysia for such measures.
Malaysia does not permit any secondary adjustment in the transfer pricing framework.
Article 7 as it read before 2010.
- Article 7 as it read before 2010. (selected)
- Article 7 as it reads after 2010. (not selected)
- Other (please provide additional details) (not selected)
Malaysia has not adopted the AOA in its tax treaties. As stated in Malaysia’s position on Article 7 and on the Commentary in the OECD Model Tax Convention, Article 7 will be interpreted as it read before the 2010 Update in line with the relevant Commentary as it stood prior to that update.
Malaysia has yet to issue any specific guidance for the attribution of profits to permanent establishments.
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