The Maldives has signed a Double Tax Avoidance Agreement with Malaysia.
The agreement was signed during a ceremony held at the Parliament Building of Malaysia, on Wednesday.
Minister of Finance Ibrahim Ameer signed the agreement on behalf of the Government of the Republic of Maldives and the Deputy Finance Minister 1 of Malaysia, Datuk Seri Ahmad Maslan signed the agreement on behalf of the Government of Malaysia.
The ceremony held to sign the agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, was attended by the Chairperson of Maldives Inland Revenue Authority, Ahmed Saruvash Adam.
Ministry of Finance notes that the aim of this 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 this agreement includes avoidance of double international juridical taxation and the prevention of fiscal evasion with anti-avoidance provisions.
Additionally, the agreement will strengthen economic relations between Maldives and Malaysia and contribute to the overall growth and prosperity of respective nations.
This is the third Double Tax Avoidance Agreement signed by the Maldives.
Finance Ministry highlights that the signing of this Agreement demonstrates the commitment of Maldives to international cooperation and the facilitation of cross-border trade and investment. The Ministry went onto note that 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.