Canada and Malaysia to reduce tax barriers
The new agreement that will reduce tax barriers and encourage increased trade and investment between the two countries.
"Canada is committed to enhancing its relationship with Malaysia by creating an environment that encourages growth and long-term prosperity for both countries. This declaration is an important milestone, as the updated tax agreement will help reduce tax barriers and support increased bilateral trade and investment," said Mr. Harper.
Once in place, the new tax agreement will replace the 1976 Tax Agreement between Canada and Malaysia, which will better reflect current Canadian and international tax convention policies.
Consistent with the Government of Canada's policy announced in Budget 2007 to combat international tax evasion, the updated tax agreement will also include provisions to reflect the standard developed by the Organisation for Economic Co-operation and Development (OECD) for the effective exchange of tax information.
Canada currently has tax conventions and agreements in force with 90 countries. The updating of the tax agreement with Malaysia reflects the Government of Canada's efforts to update its tax convention network. ■