Malaysia, Russia income tax treaty entered into force on 3 September 2025 and will apply from 1 January 2026.
The new income tax treaty between Malaysia and Russia entered into force on 3 September 2025.
The agreement covers Malaysian income tax and petroleum income tax, as well as Russian corporate profit and individual income taxes.
Withholding tax rates are set at:
- Dividends: 10% withholding tax if a company owns at least 25% of the payer for 365 days; 0% for certain government or state-owned recipients; otherwise 15%.
- Interest: 10%, exempt for certain government or state-owned recipients.
- Royalties: 10% withholding tax.
- Technical service fees: 10% withholding tax for managerial, technical, or consultancy services.
The treaty will apply from 1 January 2026.
Earlier, Malaysia completed ratification of the 2024 Malaysia, Russia Income Tax Treaty on 2 May 2025, published in the Official Gazette on 28 March 2025.
