PROTOCOL - Protocol - Malaysia

PROTOCOL At the time of signing the Agreement between the Government of the Republic of India and the Government of Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed that the following provisions shall form an integral part of the Agreement: 1. With reference to paragraph 1 of Article 4, it is understood that the second sentence of this paragraph is not to exclude residents of countries adopting a territorial principle in their taxation law. 2. It is understood that the persons who are entitled to tax benefits according to the Labuan Business Activity Tax Act, 1990 are not entitled to benefits of this Agreement. However, the provisions of this Agreement shall apply to such Labuan companies that have made an irrevocable election to be charged to tax in accordance with the Income Tax Act, 1967 of Malaysia. 3. It is understood that the term may be taxed in the other State wherever appearing in the Agreement should not be construed as preventing the country of residence from taxing the income. 4. It is understood that both the Contracting States shall review the provisions of Article 24 (Methods for Elimination of Double Taxation) in order to consider the extension of benefits in paragraphs 3 and 5 of that Article after the period of 10 years from the date on which this Agreement enters into force. 5. Notwithstanding the provisions of paragraph 2 of this Protocol, the competent authority of Malaysia will provide information under Article 27(Exchange of Information) regarding the persons who are entitled to the benefits of the Labuan Business Activity Tax Act, 1990. 6. With reference to Article 27(Exchange of Information), it is understood that the term 'information' includes any documents or certified copies of the documents. 7. With reference to Assistance in Collection of Taxes, it is understood that if Malaysia amends its domestic laws for this purpose, then, the two Contracting States shall consult each other for the purpose of inserting Article on Assistance in Collection of Taxes in this Agreement. 8. With reference to Tax Examination Abroad, it is understood that if Malaysia amends its domestic laws for this purpose, then, the two Contracting States shall consult each other for the purpose of inserting Article on Tax Examination Abroad in this Agreement. IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol. DONE in duplicate at Putrajaya this 9th day of May 2012, each in the Hindi, Malay and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.