One of the new features of the agreement is that it provides for an appropriate adjustment of transfer prices in the other country, said Amit Maheshwari, partner, Ashok Maheshwary – Associates, an accounting firm. In accordance with international practice, the new agreement also introduced a new article on the taxation of capital gains related to the disposal of property. The new agreement, signed in May, will enter into force on April 1 in India. In the case of Malaysia, it came into force on 1 January. Previously, this facility did not exist, which led to double taxation. This is what the new agreement on the prevention of double taxation between India and Malaysia (DBAA) provides for, which came into force on 26 December. The new agreement not only provides a mechanism for exchanging banking information to the tax authorities, but also includes a limitation of the performance clause, a provision relating to the fight against abuses. With regard to the abolition of double taxation, India applies a deduction, while Malaysia would use a credit method. Both countries also offer a tax-saving credit . . . . On April 1, dividends distributed by Indian companies to Malaysian investors or companies will increase a 5 per cent lower withholding tax compared to 10 per cent earlier .
. . . Simply put, when an Indian transfer pricing officer adjusts transfer prices to an Indian subsidiary of a Malaysian company, the Malaysian authorities may make an adjustment in the Malaysian company`s accounts. ACCORD FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH ALBANIA THE GOVERNMENT OF INDIA WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL The concept of a stable establishment was also introduced with a 90-day threshold over a 12-month period. . – Details of the agreement and income tax protocol (India and Malaysia) signed on 9 May 2012 are available. The contract was concluded in Hindi, Malay and English, all texts authentic. However, in the event of a discrepancy, the English text is necessary. The treaty generally follows the OECD model. AGREEMENT TO FINANCE DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH AFGHANISTAN AS THE INDIAN GOVERNMENT AND THE AFGHAN GOVERNMENT HAVE CONCLUDED A SUMMARY TEXT OF THE MULTILATERAL CONVENTION ON THE IMPLEMENTATION OF THE MULTILATERAL CONVENTION ON MEASURES RELATED TO BASE EROSION AND PROFIT (MLI) AND THE AGREEMENT BETWEEN THE GOVERNMENT.
