Malaysia Tax Agency Issues Public Ruling on Bilateral, Unilateral Tax Credits

The Malaysian Inland Revenue Board May 22 issued Public Ruling No. 3/2026, on bilateral and unilateral tax credits. The ruling includes: 1) the availability of bilateral credits under DTAs where the same income is taxed in Malaysia and another country, and unilateral credits where no DTA exists; 2) eligibility requirements, generally limiting claims to Malaysian residents; 3) conditions for claiming bilateral credits, including limits based on the amount of Malaysian tax payable, a two-year claim period, and a restriction on carrying forward excess amounts; 4) computing bilateral and unilateral credits, including limits based on foreign or Malaysian tax, and limiting ...