Maldives and Malaysia have signed a double tax avoidance agreement, for the avoidance of double taxation and fiscal evasion with respect to taxes on income.
The agreement was signed by the Maldivian Finance Minister Ibrahim Ameer and Malaysian Deputy Finance Minister Datuk Seri Ahmad Maslan in a ceremony held at the Malaysian Parliament Building on Wednesday.
The signing was also witnessed by Maldives Inland Revenue Authority (MIRA)’s Chairperson Ahmed Saruvash Adam.
According to the Maldivian Finance Ministry, the purpose of the agreement is to eliminate the risk of double taxation and clarify taxing rights of each state, which will contribute towards enhancing taxpayer certainty.
Potential benefits of the agreement also include avoidance of double international juridical taxation and the prevention of fiscal evasion with anti-avoidance provisions.
Finance Ministry said the agreement will strengthen economic relations between Maldives and Malaysia, and contribute to the overall growth and prosperity of the two nations.
Wednesday’s agreement is the third double tax avoidance agreement signed by Maldives.
Finance Ministry said the signing of the agreement demonstrates the commitment of Maldives to international cooperation and the facilitation of cross-border trade and investment.
Going forward, the government will continue to take strategic measures to enhance economic competitiveness, facilitate international trade, prevent tax evasion, and strengthen diplomatic ties of the Maldives, said the ministry.