Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023

Malaysia

Recent developments relating to MAP in Malaysia prior to 15 August 2023

Developments relating to MAP in the tax treaty network

• Signing of a tax treaty with Maldives in May 2023 that is in line with the Action 14 Minimum Standard.

Other developments relating to MAP

• Publication of a FAQ on MAP in January 2023.

• Final phase of the 2017 Map Guidelines update.

Latest Action 14 Peer Review report

Malaysia is yet to be peer reviewed under Action 14.

Tax treaty network of Malaysia

• 75 treaties, applicable to 75 jurisdictions (covering all treaties signed, although not necessarily in force)

• status of MLI: in force.

Table 1. State of play of Malaysia's tax treaty network

Treaties in line with the Action 14 Minimum Standard following MLI impact	Treaties where actions are ongoing to make them in line with the Action 14 Minimum Standard	Following impact/actions, remaining treaties that are not in line with Action 14 Minimum Standard
62	5	8

Source: OECD

Malaysia's MAP programme

Organisation of competent authority function

• six persons:

  • one head of unit

  • five persons working on MAP cases (among which three persons work on other tasks as well)

• contact persons for MAP requests:

  • The Competent Authority, Tax Division , Ministry of Finance 6th Floor, Centre Block , Precinct 2, Federal Administration Centre, 62592 Putrajaya, Malaysia

  • A copy of the request should be sent to: The Competent Authority, Department of International Taxation, Inland Revenue Board of Malaysia Headquarters Level 12, Menara Hasil, Persiaran Rimba Permai, Cyber 8, 63600 Cyberjaya, Selangor, Malaysia Tel: [phone] / Fax: [phone] or [phone].

Figure 1. Competent Authority Organisational Structure

Source: OECD

Table 2. Guidance on the MAP process

MAP guidance	Mutual Agreement Procedure Guidelines, 19 December 2017	https://www.hasil.gov.my/pdf/pdfam/MAP_Guidelines_2017.pdf (Section 8 to be referred to for form and content of a MAP request, including information requirements)
MAP profile	18 April 2017	https://www.oecd.org/tax/dispute/Malaysia-Dispute-Resolution-Profile.pdf

Overview of Malaysia's MAP Statistics for 2022

Please refer to https://www.oecd.org/tax/dispute/map-statistics-malaysia.pdf for details with respect to Malaysia's MAP Statistics.

Figure 2. Cases closed in 2022

Source: OECD

Figure 3. Evolution of Malaysia's MAP caseload (2017-22)

Source: OECD

Table 3. Overview of Malaysia’s MAP caseload for 2022

Inventory for year 2022	Opening Inventory 1/1/2022	Cases started	Cases Closed	End Inventory 31/12/2022
Attribution/allocation cases	12	3	5	10
Other cases	16	3	0	19
Total	28	6	5	29

Source: OECD

Table 4. Malaysia’s average time to resolve MAP cases in 2022

Cases resolved in year 2022	Pre-2016 cases		Post-2015 cases		All
	Number of cases	Average time	Number of cases	Average time	Number of cases	Average time
				Start to End
Attribution / Allocation cases	0	N/A	5	49.16	5	49.16
Other cases	0	N/A	0	N/A	0	N/A
All cases	0	N/A	5	N/A	5	N/A

Source: OECD