(This note is not part of the Order)
The Schedule to this Order contains a Protocol (“the Protocol”) which amends an agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Malaysia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (“the Agreement”), which was scheduled to the Double Taxation Relief (Taxes on Income) (Malaysia) Order 1997 (S.I. 1997/2987). This Order brings the Protocol into effect.
The Agreement aims to eliminate the double taxation of income arising in one country and paid to residents of the other country. It does this by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. It also has specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.
The Protocol continues that approach by updating the exchange of information article in the Agreement to bring it into line with the new international standard for exchange of information as set out in the Model Tax Convention on Income and on Capital published by the Organisation for Economic Cooperation and Development (“OECD”) and to cover taxes of every kind and description imposed by the two countries.
Article 1 provides for citation.
Article 2 makes a declaration as to the effect and content of the arrangements set out in the Protocol.
The Protocol will enter into force on the later of the notifications by each country of the completion of its legislative procedures. It shall have effect for tax years beginning on or after 1st January of the calendar year next following the date of entry into force.
The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.
A full and final Impact Assessment has not been produced for this Order as a negligible impact on the private or voluntary sectors is foreseen.