Malaysia (tax/treaty)

METHODS FOR ELIMINATION OF DOUBLE TAXATION 1. Double taxation shall be eliminated as follows: a. in the case of the Kingdom of Saudi Arabia: Where a resident of a the Kingdom of Saudi Arabia derives income which, in accordance with the provisions of this Agreement, may be taxed in Malaysia, the Kingdom of Saudi Arabia shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Malaysia. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Malaysia. b. c. in the case of Malaysia: Subject to the laws of Malaysia regarding the allowance as a credit against Malaysia tax of tax payable in any country other than Malaysia, the Saudi tax payable under the laws of the Kingdom of Saudi Arabia and in accordance with this Agreement by a resident of Malaysia shall be allowed as a credit against Malaysia tax payable in respect of income derived from the Kingdom of Saudi Arabia. Where such income is a dividend paid by a company which is a resident of the Kingdom of Saudi Arabia to a resident of Malaysia and which owns not less than 15 percent of the voting shares of the company paying the dividend, the credit shall also take into account Saudi tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Malaysian tax, as computed before the credit is given, which is appropriate to such income; 2. Where tax on income arising in either Contracting State is exempted or reduced under this Agreement or in accordance with the laws and regulations of either Contracting State for the promotion of economic development, such tax which has been exempted or reduced shall be deemed to have been paid for the purposes of this Article. 3. In the case of the Kingdom of Saudi Arabia, the methods for elimination of double taxation will not prejudice the provisions of the Zakat collection regime as regards Saudi nationals.