Double Taxation Agreement (DTA) is an agreement signed between two countries to avoid double taxation on the same income or assets. Malaysia and Denmark have signed a Double Taxation Agreement to promote economic relations and remove the burden of double taxation on taxpayers of both countries.
The agreement was signed on 26th June 2012, and it came into effect on 1st January 2013. The agreement is aimed at promoting the cross-border flow of investments and businesses between Malaysia and Denmark by removing tax barriers.
The DTA between Malaysia and Denmark is based on the Organisation for Economic Co-operation and Development (OECD) Model Convention, which is a standard model convention for double taxation agreements worldwide. The agreement covers various types of income, including income from employment, dividends, royalties, and interest, among others.
The agreement has been instrumental in promoting investment and business activities between Malaysia and Denmark. It has provided a more stable investment environment for businesses and investors from both countries, and it has also reduced tax barriers.
The agreement has also established a dispute resolution mechanism, which ensures that any disputes arising from the implementation of the agreement are resolved through mutual agreement procedures. This mechanism has helped to mitigate the risk of double taxation and has provided a platform for resolving disputes between the two countries.
In conclusion, the Double Taxation Agreement between Malaysia and Denmark has been beneficial for both countries in promoting cross-border investments and businesses. The agreement has provided a more stable investment environment and has reduced tax barriers, thus promoting economic relations between the two countries. The agreement also establishes a dispute resolution mechanism that ensures the resolution of any disputes arising from its implementation. This agreement is a great example of how two countries can work together to promote their economic interests and provide benefits to taxpayers.
