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        <preface>
            <p>
                <docNumber>15-16/1986</docNumber>
                <docTitle>Agreement between the Government of Finland and the Government of Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income</docTitle>
            </p>
        </preface>
        <preamble>
            <p>
                <embeddedStructure class="mli-addition">
                    <tblock>
                        <heading>SYNTHESISED TEXT OF THE MLI AND THE AGREEMENT BETWEEN THE GOVERNMENT OF FINLAND AND THE GOVERNMENT OF MALAYSIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME</heading>
                        <p>This document presents the synthesised text for the application of the Agreement
      between the Government of Finland and the Government of Malaysia for the avoidance of double
      taxation and the prevention of fiscal evasion with respect to taxes on income signed on 28
      March 1984 (the Agreement), as modified by the Multilateral Convention to Implement Tax Treaty
      Related Measures to Prevent Base Erosion and Profit Shifting signed by the Republic of Finland
      on 7 June 2017 and by Malaysia on 24 January 2018 (the “MLI”).</p>
                        <p>This document was prepared in consultation with the competent authority of Malaysia
      and represents a shared understanding of the modifications made to the Agreement by the
      MLI.</p>
                        <p>The document was prepared on the basis of the MLI position of the Republic of Finland
      submitted to the Depositary upon acceptance on 25 February 2019 and of the MLI position of
      Malaysia submitted to the Depositary upon ratification on 18 February 2021. These MLI
      positions are subject to modifications as provided in the MLI. Modifications made to MLI
      positions could modify the effects of the MLI on the Agreement. The Republic of Finland
      modified its MLI position by withdrawing its reservation made to Article 9 and by making
      additional notifications (consolidated MLI position of the Republic of Finland on 27 June
      2023). These modifications did not modify the effects of the MLI on the Agreement.</p>
                        <p>The authentic legal texts of the Agreement and the MLI take precedence and remain the
      legal texts applicable.</p>
                        <p>The provisions of the MLI that are applicable with respect to the provisions of the
      Agreement are included in boxes throughout the text of this document in the context of the
      relevant provisions of the Agreement. The boxes containing the provisions of the MLI have
      generally been inserted in accordance with the ordering of the provisions of the 2017 OECD
      Model Tax Convention.</p>
                        <p>Changes to the text of the provisions of the MLI have been made to conform the
      terminology used in the MLI to the terminology used in the Agreement (such as “Covered Tax
      Agreement” and “Agreement”, “Contracting Jurisdictions” and “Contracting States”), to ease the
      comprehension of the provisions of the MLI. The changes in terminology are intended to
      increase the readability of the document and are not intended to change the substance of the
      provisions of the MLI. Similarly, changes have been made to parts of provisions of the MLI
      that describe existing provisions of the Agreement: descriptive language has been replaced by
      legal references of the existing provisions to ease the readability.</p>
                        <p>In all cases, references made to the provisions of the Agreement or to the Agreement
      must be understood as referring to the Agreement as modified by the provisions of the MLI,
      provided such provisions of the MLI have taken effect.</p>
                        <p>
                            <b>Entry into Effect of the MLI Provisions</b>
                        </p>
                        <p>The provisions of the MLI applicable to this Agreement do not take effect on the same
      dates as the original provisions of the Agreement. Each of provisions of the MLI could take
      effect on different dates, depending on the types of taxes involved (taxes withheld at source
      or other taxes levied) and on the choices made by the Republic of Finland and Malaysia in
      their MLI positions.</p>
                        <p>Dates of the deposit of instruments of ratification, acceptance or approval: 25
      February 2019 for the Republic of Finland and 18 February 2021 for Malaysia.</p>
                        <p>Entry into force of the MLI: 1 June 2019 for the Republic of Finland and 1 June 2021
      for Malaysia.</p>
                        <p>This document provides specific information on the dates on or after which each of the
      provisions of the MLI has effect with respect to the Agreement throughout this
      document.</p>
                        <p>
                            <b>References</b>
                        </p>
                        <p>The authentic legal texts of the MLI can be found on the MLI Depositary (OECD)
      webpage:</p>
                        <p>
                            – in English:
                            <a href="http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf">http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf</a>
                                  and
                        </p>
                        <p>
                            – in French:
                            <a href="http://www.oecd.org/fr/fiscalite/conventions/convention-multilaterale-pour-la-mise-en-oeuvre-des-mesures-relatives-aux-conventions-fiscales-pour-prevenir-le-BEPS.pdf">http://www.oecd.org/fr/fiscalite/conventions/convention-multilaterale-pour-la-mise-en-oeuvre-des-mesures-relatives-aux-conventions-fiscales-pour-prevenir-le-BEPS.pdf</a>
                        </p>
                        <p>
                            The MLI position of the Republic of Finland submitted to the Depositary upon
      acceptance on 25 February 2019, the consolidated MLI position of the Republic of Finland
      submitted to the Depositary on 27 June 2023 and the MLI position of Malaysia submitted to the
      Depositary upon ratification on 18 February 2021 can be found on the MLI Depositary (OECD)
      webpage:
                            <a href="http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf">http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf</a>
                        </p>
                        <p>
                            The MLI Matching Database is publicly available on the OECD webpage:
                            <a href="http://www.oecd.org/tax/treaties/mli-matching-database.htm">http://www.oecd.org/tax/treaties/mli-matching-database.htm</a>
                        </p>
                        <p>
                            The Act on Multilateral Convention to Implement Tax Treaty Related Measures to Prevent
      Base Erosion and Profit Shifting is published in Statute Book of Finland 231/2019. Link to
      Finnish language version
                            <a href="https://www.finlex.fi/fi/laki/alkup/2019/20190231">https://www.finlex.fi/fi/laki/alkup/2019/20190231</a>
                                  Link to Swedish language version
                            <a href="https://www.finlex.fi/sv/laki/alkup/2019/20190231">https://www.finlex.fi/sv/laki/alkup/2019/20190231</a>
                        </p>
                        <p>
                            The Government´s Statute on the entry into force of the MLI and the Act and the
      Finnish text (translation) of the MLI is published in the Treaty Series of the Statute Book of
      Finland SopS 21-22/2019. Links to Finnish language versions
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190021">https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190021</a>
                                  and
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190022">https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190022</a>
                                  Links to Swedish language versions
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190021.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190021.pdf</a>
                                  and
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190022.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190022.pdf</a>
                        </p>
                        <p>
                            The Announcement of the Ministry of Finance on withdrawal of reservation made to
      Article 9 of the MLI and on additional notifications is published in the Treaty Series of the
      Statute Book of Finland SopS 48/2023. Link to Finnish language version
                            <a href="https://finlex.fi/fi/sopimukset/sopsteksti/2023/20230048/20230048_1">https://finlex.fi/fi/sopimukset/sopsteksti/2023/20230048/20230048_1</a>
                                  Link to Swedish language version
                            <a href="https://finlex.fi/sv/sopimukset/sopimussarja/2023/fds20230048.pdf">https://finlex.fi/sv/sopimukset/sopimussarja/2023/fds20230048.pdf</a>
                        </p>
                        <p>
                            The Announcement of the Ministry of Finance on the entry into force of the MLI in
      Malaysia is published in the Treaty Series of the Statute Book of Finland SopS 21/2021. Link
      to Finnish language version
                            <a href="https://finlex.fi/fi/sopimukset/sopsteksti/2021/20210021">https://finlex.fi/fi/sopimukset/sopsteksti/2021/20210021</a>
                                  Link to Swedish language version
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2021/fds20210021.pdf">https://finlex.fi/sv/sopimukset/sopimussarja/2021/fds20210021.pdf</a>
                        </p>
                        <p>
                            The Agreement between the Government of Finland and the Government of Malaysia for the
      avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
      income signed on 28 March 1984 is published in the Treaty Series of the Statute Book of
      Finland SopS 16/1986. Link to Finnish language version:
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/1986/19860016/19860016_2">https://www.finlex.fi/fi/sopimukset/sopsteksti/1986/19860016/19860016_2</a>
                        </p>
                    </tblock>
                </embeddedStructure>
            </p>
            <p class="title">Agreement between the Government of Finland and the Government of Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income</p>
            <p>The Government of Finland and the Government of Malaysia,</p>
            <p>
                <embeddedStructure class="mli-replaced">
                    <p>
                        <authorialNote>
                            <p>[REPLACED by paragraph 1 of Article 6 of the MLI]</p>
                        </authorialNote>
                    </p>
                    <p>[Desiring to conclude an Agreement for the avoidance of double taxation and the
      prevention of fiscal evasion with respect to taxes on income,]</p>
                </embeddedStructure>
            </p>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 6 of the MLI replaces the text referring to
      an intent to eliminate double taxation in the preamble of this Agreement:
                                <authorialNote marker="1" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 6 of the MLI has effect with respect to the application of this Agreement by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraph 1 of Article 35 of the MLI, paragraph 1 of Article 6
          of the MLI has effect with respect to the application of the Agreement by
          Malaysia:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by Malaysia, for taxes levied with
          respect to taxable periods beginning on or after 1 December 2021.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 6 OF THE MLI – PURPOSE OF A COVERED TAX AGREEMENT</num>
                        <content>
                            <p>
                                Intending to eliminate double taxation with respect to the taxes covered by
          [
                                <i>this Agreement</i>
                                ] without creating opportunities for non-taxation or
        reduced taxation through tax evasion or avoidance (including through treaty-shopping
        arrangements aimed at obtaining reliefs provided in [
                                <i>the Agreement</i>
                                ]
        for the indirect benefit of residents of third jurisdictions),
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <p>Have agreed as follows:</p>
        </preamble>
        <mainBody>
            <article eId="art_1">
                <num>Article 1</num>
                <heading>Personal scope</heading>
                <content>
                    <p>This Agreement shall apply to persons who are residents of one or both of the
      Contracting States.</p>
                </content>
            </article>
            <article eId="art_2">
                <num>Article 2</num>
                <heading>Taxes covered</heading>
                <content>
                    <p>1. The existing taxes to which this Agreement shall apply are:</p>
                    <p>a) in Finland:</p>
                    <p>(i) the state income tax;</p>
                    <p>(ii) the communal tax;</p>
                    <p>(iii) the sailors' tax; and</p>
                    <p>(iv) the tax withheld at source from non-residents' income;</p>
                    <p>(hereinafter referred to as "Finnish tax");</p>
                    <p>b) in Malaysia:</p>
                    <p>(i) the income tax and the excess profit tax;</p>
                    <p>(ii) the supplementary income taxes, that is, the tin profits tax, the development tax
      and the timber profits tax; and</p>
                    <p>(iii) the petroleum income tax;</p>
                    <p>(hereinafter referred to as "Malaysian tax").</p>
                    <p>2. The Agreement shall apply also to identical or substantially similar taxes which
      any imposed after the date of signature of the Agreement in addition to, or in place of, the
      existing taxes. The competent authorities of the Contracting States shall notify each other of
      significant changes which have been made in their respective taxation laws relating to the
      taxes to which the Agreement applies.</p>
                </content>
            </article>
            <article eId="art_3">
                <num>Article 3</num>
                <heading>General definitions</heading>
                <content>
                    <p>1. For the purposes of this Agreement, unless the context otherwise
      requires:</p>
                    <p>a) the term "Finland" means the Republic of Finland and, when used in a geographical
      sense means the territory of the Republic of Finland, and any area adjacent to the territorial
      waters of the Republic of Finland within which, under the laws of Finland and in accordance
      with international law, the rights of Finland with respect to the exploration and exploitation
      of the natural resources, whether living or non-living, of the sea-bed and sub-soil and the
      superjacent waters, may be exercised;</p>
                    <p>b) the term "Malaysia" means the Federation of Malaysia and includes any area adjacent
      to the territorial waters of Malaysia which, in accordance with international law, has been or
      may hereafter be designated under the laws of Malaysia concerning the Continental Shelf as an
      area within which the rights of Malaysia with respect to the exploration and exploitation of
      natural resources, whether living or non-living, of the sea-bed and sub-soil and the
      superjacent waters, may be exercised;</p>
                    <p>c) the terms "Contracting State", "one of the Contracting States" and "other
      Contracting State" mean Finland or Malaysia, as the context requires;</p>
                    <p>d) the term "person" includes an individual, a company and any other body of persons
      which is treated as a person for tax purposes;</p>
                    <p>e) the term "company" means any body corporate or any entity which is treated as a
      body corporate or a company for tax purposes;</p>
                    <p>f) the terms "enterprise of a Contracting State" and "enterprise of the other
      Contracting State" mean respectively an enterprise carried on by a resident of a Contracting
      State and an enterprise carried on by a resident of the other Contracting State;</p>
                    <p>g) the term "tax" means Finnish tax or Malaysian tax, as the context
      requires;</p>
                    <p>h) the term "national" means:</p>
                    <p>(i) in respect of Finland, any individual possessing the nationality of Finland, and
      any legal person, partnership and association deriving its status as such from the laws in
      force m Finland;</p>
                    <p>(ii) in respect of Malaysia, all individuals who are citizens of Malaysia and all
      legal persons, associations and other entities deriving their status as such from the laws in
      force in Malaysia;</p>
                    <p>i) the term "international traffic" means any transport by a ship or aircraft operated
      by an enterprise which has its place of effective management in a Contracting State, except
      when the ship or aircraft is operated solely between places in the other Contracting
      State;</p>
                    <p>j) the term "competent authority" means:</p>
                    <p>(i) in Finland, the Ministry of Finance or its authorised representative;
      and;</p>
                    <p>(ii) in Malaysia, the Minister of Finance or his authorised representative.</p>
                    <p>2. As regards the application of the Agreement by a Contracting State any term not
      defined therein shall, unless the context otherwise requires, have the meaning which it has
      under the laws of that State concerning the taxes to which the Agreement applies.</p>
                </content>
            </article>
            <article eId="art_4">
                <num>Article 4</num>
                <heading>Residence</heading>
                <content>
                    <p>1. For the purposes of this Agreement, a person is a resident of a Contracting
      State:</p>
                    <p>a) in the case of Finland, if the person is resident in Finland for the purposes of
      Finnish tax; and</p>
                    <p>b) in the case of Malaysia, if the person is resident in Malaysia for the purposes of
      Malaysian tax.</p>
                    <p>2. Where by reason of the provisions of paragraph 1 of this Article an individual is a
      resident of both Contracting States, then his status shall be determined as
      follows:</p>
                    <p>a) he shall be deemed to be a resident of the State in which he has a permanent home
      available to him; if he has a permanent home available to him in both States, he shall be
      deemed to be a resident of the State with which his personal and economic relations are closer
      (centre of vital interests);</p>
                    <p>b) if the State in which he has his centre of vital interests cannot be determined, or
      if he has not a permanent home available to him in either State, he shall be deemed to be a
      resident of the State in which he has an habitual abode;</p>
                    <p>c) if he has an habitual abode in both States or in neither of them, he shall be
      deemed to be a resident of the State of which he is a national;</p>
                    <p>d) if he is a national of both States or of neither of them, the competent authorities
      of the Contracting States shall settle the question by mutual agreement.</p>
                    <p>3. Where by reason of the provisions of paragraph 1 of this Article a person other
      than an individual is a resident of both Contracting States, then it shall be deemed to be a
      resident of the State in which its place of effective management is situated.</p>
                </content>
            </article>
            <article eId="art_5">
                <num>Article 5</num>
                <heading>Permanent establishment</heading>
                <content>
                    <p>1. For the purposes of this Agreement, the term "permanent establishment" means a
      fixed place of business through which the business of an enterprise is wholly or partly
      carried on.</p>
                    <p>2. The term "permanent establishment" includes especially:</p>
                    <p>a) a place of management;</p>
                    <p>b) a branch;</p>
                    <p>c) an office;</p>
                    <p>d) a factory;</p>
                    <p>e) a workshop;</p>
                    <p>f) a mine, an oil or gas well, a quarry or any other place of extraction of natural
      resources including timber or other forest produce; and</p>
                    <p>g) a farm or plantation.</p>
                    <p>3. A building site or construction installation or assembly project constitutes a
      permanent establishment only if it lasts more than six months.</p>
                    <p>4. An enterprise shall not be deemed to have a permanent establishment merely by
      reason of:</p>
                    <p>a) the use of facilities solely for the purpose of storage, display or delivery of
      goods or merchandise belonging to the enterprise;</p>
                    <p>b) the maintenance of a stock of goods or merchandise belonging to the enterprise
      solely for the purpose of storage, display or delivery;</p>
                    <p>c) the maintenance of a stock of goods or merchandise belonging to the enterprise
      solely for the purpose of processing by another enterprise;</p>
                    <p>d) the maintenance of a fixed place of business solely for the purpose of purchasing
      goods or merchandise or of collecting information, for the</p>
                    <p>enterprise;</p>
                    <p>e) the maintenance of a fixed place of business solely for the purpose of activities
      which have a preparatory or auxiliary character for the enterprise, such as advertising or
      scientific research.</p>
                    <p>5. An enterprise shall be deemed to have a permanent establishment in a Contracting
      State and to carry on business through that permanent establishment if:</p>
                    <p>a) it carries on supervisory activities in that State for more than six months in
      connection with a building site, or a construction, installation or assembly project which is
      being undertaken in that State; or</p>
                    <p>b) substantial equipment is being used in that State by, for or under contract with
      the enterprise.</p>
                    <p>6. A person acting in a Contracting State on behalf of an enterprise of the other
      Contracting State (other than an agent of an independent status to whom paragraph 7 applies)
      shall be deemed to be a permanent establishment of that enterprise in the first-mentioned
      State if:</p>
                    <p>a) he has, and habitually exercises in that State, an authority to conclude contracts
      on behalf of the enterprise, unless his activities are limited to the purchase of goods or
      merchandise for the enterprise; or</p>
                    <p>b) he maintains in that State a stock of goods or merchandise belonging to the
      enterprise from which he habitually fills orders on behalf of the enterprise; or</p>
                    <p>c) he manufactures or processes in that State for the enterprise goods or merchandise
      belonging to the enterprise.</p>
                    <p>7. An enterprise shall not be deemed to have a permanent establishment in a
      Contracting State merely because it carries on business in that State through a broker,
      general commission agent or any other agent of an independent status, provided that such a
      person is acting in the ordinary course of his business as such a broker or agent.</p>
                    <p>8. The fact that a company which is a resident of a Contracting State controls or is
      controlled by a company which is a resident of the other Contracting State, or which carries
      on business in that other State (whether through a permanent establishment or otherwise),
      shall not of itself constitute either company a permanent establishment of the
      other.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_1" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1986/16#protocol">Protocol</a>
                          to this Agreement.
                </p>
            </tblock>
            <article eId="art_6">
                <num>Article 6</num>
                <heading>Income from immovable property</heading>
                <content>
                    <p>1. Income derived by a resident of a Contracting State from immovable property
      (including income from agriculture or forestry) situated in the other Contracting State may be
      taxed in that other State.</p>
                    <p>2. The term "immovable property" shall have the meaning which it has under the law of
      the Contracting State in which the property is situated. The term shall in any case include
      property accessory to immovable property, livestock and equipment used in agriculture and
      forestry, rights to which the provisions of general law respecting landed property apply,
      usufruct of immovable property and rights to variable or fixed payments as consideration for
      the working of, or the right to work, mineral deposits, oil or gas wells, quarries and other
      places of extraction of natural resources or of timber or other forest produce. Ships, boats
      and aircraft shall not be regarded as immovable property.</p>
                    <p>3. The provisions of paragraph 1 of this Article shall apply to income derived from
      the direct use, letting, or use in any other form of immovable property.</p>
                    <p>4. Where the ownership of shares or other corporate rights in a company entitles the
      owner of such shares or corporate rights to the enjoyment of immovable property held by the
      company, the income from the direct use, letting, or use in any other form of such right to
      enjoyment may be taxed in the Contracting State in which the immovable property is
      situated.</p>
                    <p>5. The provisions of paragraphs 1 and 3 of this Article shall also apply to the income
      from immovable property of an enterprise and to income from immovable property used for the
      performance of professional services.</p>
                    <p>6. The provisions of paragraph 4 of this Article shall also apply to the income from a
      right of enjoyment referred to in that paragraph of an enterprise and to income from such
      right of enjoyment used for the performance of professional services.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_2" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1986/16#protocol">Protocol</a>
                          to this Agreement.
                </p>
            </tblock>
            <article eId="art_7">
                <num>Article 7</num>
                <heading>Business income</heading>
                <content>
                    <p>1. The income of an enterprise of a Contracting State shall be taxable only in that
      State unless the enterprise carries on business in the other Contracting State through a
      permanent establishment situated therein. If the enterprise carries on business as aforesaid,
      the income of the enterprise may be taxed in the other State but only so much of it as is
      attributable to that permanent establishment.</p>
                    <p>2. Subject to the provisions of paragraph 3 of this Article, where an enterprise of a
      Contracting State carries on business in the other Contracting State through a permanent
      establishment situated therein, there shall in each Contracting State be attributed to that
      permanent establishment the income which it might be expected to make if it were a distinct
      and separate enterprise engaged in the same or similar activities under the same or similar
      conditions and dealing wholly independently with the enterprise of which it is a permanent
      establishment.</p>
                    <p>3. In determining the income of a permanent establishment, there shall be allowed as
      deductions expenses of the enterprise, being. expenses (including executive and general
      administrative expenses) which are reasonably connected with the permanent establishment and
      which would be deductible if the permanent establishment were an independent entity that
      incurred those expenses, whether incurred in the Contracting State in which the permanent
      establishment is situated or elsewhere.</p>
                    <p>4. No income shall be attributed to a permanent establishment by reason of the mere
      purchase by that permanent establishment of goods or merchandise for the
      enterprise.</p>
                    <p>5. If the information available to the competent authority of a Contracting State is
      inadequate to determine the income to be attributed to the permanent establishment of an
      enterprise, nothing in this Article shall affect the application of any law of that State
      relating to the determination of the tax liability of a person by the exercise of a discretion
      or the making of an estimate by the competent authority, provided that that law shall be
      applied, so far as the information available to the competent authority permits, in accordance
      with the principles of this Article.</p>
                    <p>6. For the purposes of the preceding paragraphs, the income to be attributed to the
      permanent establishment shall be determined by the same method year by year unless there is
      good and sufficient reason to the contrary.</p>
                    <p>7. Where income includes any item of income which is dealt with separately in another
      Article of the Agreement, the provisions of that other Article, (except where otherwise
      provided in that Article) shall not be affected by the provisions of this Article.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_3" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1986/16#protocol">Protocol</a>
                          to this Agreement.
                </p>
            </tblock>
            <article eId="art_8">
                <num>Article 8</num>
                <heading>Shipping and air transport</heading>
                <content>
                    <p>1. Income derived by an enterprise of a Contracting State from the operation of ships
      or aircraft in international traffic shall be taxable only in that State.</p>
                    <p>2. Notwithstanding the provisions of paragraph 1 of Article 7, income derived from the
      operation of ships or aircraft solely between places in a Contracting State may be taxed in
      that State.</p>
                    <p>3. The provisions of paragraphs 1 and 2 of this Article shall also apply to income
      derived by an enterprise of a Contracting State from its participation in a pool, a joint
      business or in an international operating agency.</p>
                </content>
            </article>
            <article eId="art_9">
                <num>Article 9</num>
                <heading>Associated enterprises</heading>
                <content>
                    <p>Where</p>
                    <p>a) an enterprise of a Contracting State participates directly or indirectly in the
      management, control or capital of an enterprise of the other Contracting State, or</p>
                    <p>b) the same persons participate directly or indirectly in the management, control or
      capital of an enterprise of a Contracting State and an enterprise of the other Contracting
      State,</p>
                    <p>and in either case conditions operate between the two enterprises in their commercial
      or financial relations which differ from those which would operate between independent
      enterprises, then any income which, but for those conditions, might have been expected to
      accrue to one of the enterprises, but, by reason of those conditions, have not so accrued, may
      be included in the income of that enterprise and taxed accordingly.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 17 of the MLI applies and supersedes the
      provisions of this Agreement:
                                <authorialNote marker="2" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 17 of the MLI has effect with respect to the application of this Agreement by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraph 1 of Article 35 of the MLI, paragraph 1 of Article 17
          of the MLI has effect with respect to the application of the Agreement by
          Malaysia:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by Malaysia, for taxes levied with
          respect to taxable periods beginning on or after 1 December 2021.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 17 OF THE MLI – CORRESPONDING ADJUSTMENTS</num>
                        <content>
                            <p>
                                Where a [
                                <i>Contracting State</i>
                                ] includes in the profits of an
        enterprise of that [
                                <i>Contracting State</i>
                                ] – and taxes accordingly –
        profits on which an enterprise of the other [
                                <i>Contracting State</i>
                                ] has
        been charged to tax in that other [
                                <i>Contracting State</i>
                                ] and the profits
        so included are profits which would have accrued to the enterprise of the first-mentioned
          [
                                <i>Contracting State</i>
                                ] if the conditions made between the two
        enterprises had been those which would have been made between independent enterprises, then
        that other [
                                <i>Contracting State</i>
                                ] shall make an appropriate adjustment
        to the amount of the tax charged therein on those profits. In determining such adjustment,
        due regard shall be had to the other provisions of [
                                <i>the Agreement</i>
                                ]
        and the competent authorities of the [
                                <i>Contracting States</i>
                                ] shall if
        necessary consult each other.
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <article eId="art_10">
                <num>Article 10</num>
                <heading>Dividends</heading>
                <content>
                    <p>1. Dividends paid by a company which is a resident of a Contracting State, being
      dividends to which a resident of the other Contracting State is beneficially entitled, may be
      taxed in that other State.</p>
                    <p>2. However, dividends paid by a company which is a resident of Finland, being
      dividends to which a resident of Malaysia is beneficially entitled, may also be taxed in
      Finland and according to the law of Finland, but the tax so charged shall not
      exceed:</p>
                    <p>a) 5 per cent of. the gross amount of the dividends if the recipient is a company
      (other than a partnership) which holds directly at least 10 per cent of the capital of the
      company paying the dividends;</p>
                    <p>b) 15 per cent of the gross amount of the dividends in all other cases.</p>
                    <p>3. Dividends paid by a company which is a resident of Malaysia for the purposes of
      Malaysian tax, being dividends to which a resident of Finland is beneficially entitled, shall
      be exempt from any tax in Malaysia which is chargeable on dividends in addition to the tax
      chargeable in respect of the income of the company:</p>
                    <p>Provided that nothing in this paragraph shall affect the provisions of the Malaysian
      law under which the tax in respect of a dividend paid by a company resident in Malaysia from
      which Malaysian tax has been, or has been deemed to be, deducted may be adjusted by reference
      to the rate of tax appropriate to the Malaysian year of assessment immediately following that
      in which the dividend was paid.</p>
                    <p>4. The term "dividends" as used in this Article means income from shares, or other
      rights, not being debt-claims, participating in profits, as well as income from other
      corporate rights which is subjected to the same taxation treatment as income from shares by
      the laws of the State of which the company making the distribution is a resident.</p>
                    <p>5 Nothing in the foregoing paragraphs of this Article shall affect the taxation of the
      company in respect of the profits out of which the dividends are paid.</p>
                    <p>6. The provisions of paragraphs 1, 2 and 3 of this Article shall not apply if the
      person beneficially entitled to the dividends, being a resident of a Contracting State carries
      on business in the other Contracting State, of which the company paying the dividends is a
      resident, through a permanent establishment situated therein, and the holding by virtue of
      which the dividends are paid is effectively connected with such permanent establishment. In
      such a case, the provisions of Article 7 shall apply.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_4" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1986/16#protocol">Protocol</a>
                          to this Agreement.
                </p>
            </tblock>
            <article eId="art_11">
                <num>Article 11</num>
                <heading>Interest</heading>
                <content>
                    <p>1. Interest arising in a Contracting State, being interest to which a resident of the
      other Contracting State is beneficially entitled, may be taxed in that other State.</p>
                    <p>2. However, such interest may also be taxed in the Contracting State in which it
      arises and according to the law of that State, but the tax so charged shall not exceed 15 per
      cent of the gross amount of the interest.</p>
                    <p>3. Notwithstanding the provisions of paragraph 2 of this Article</p>
                    <p>a) interest to which a resident of Finland is beneficially entitled shall be exempt
      from Malaysian tax, if the loan or other indebtedness in respect of which the interest is paid
      is an approved loan or a long-term loan as defined in section 2 (1) of the Income Tax Act 1967
      of Malaysia (as amended), or if such interest is paid to the Government of Finland, a local
      authority or a statutory body thereof, or the Finnish Export Credit Limited or the Finnish
      Fund for Industrial Co-operation Limited, or any institution wholly or mainly owned by the
      Government of Finland, a local authority or a statutory body thereof, as may be agreed from
      time to time between the competent authorities of the Contracting States;</p>
                    <p>b) interest to which a resident of Malaysia is beneficially entitled shall be exempt
      from Finnish tax, if such interest is paid to the Government of Malaysia, a government of a
      State, a local authority or a statutory body thereof, the Bank Negara Malaysia, or any
      institution the capital of which is wholly or mainly owned by the Government of Malaysia or a
      government of a State or a local authority or a statutory body thereof, as may be agreed from
      time to time between the competent authorities of the Contracting States.</p>
                    <p>4. The term "interest" in this Article means interest from government securities, or
      from bonds or debentures, whether or not secured by mortgage and whether or not carrying a
      right to participate in profits, and from debt-claims of every kind as well as other income
      assimilated to interest by the taxation law of the Contracting State in which the income
      arises.</p>
                    <p>5. The provisions of paragraphs 1, 2 and 3 of this Article shall not apply if the
      person beneficially entitled to the interest, being a resident of a Contracting State, carries
      on business in the other Contracting State in which the interest arises, through a permanent
      establishment situated therein, and the debt-claim in respect of which the interest is paid is
      effectively connected with such permanent establishment. In such a case, the provisions of
      Article 7 shall apply.</p>
                    <p>6. Interest shall be deemed to arise in a Contracting State when the payer is that
      State itself, a political sub-division, a local authority or a statutory body thereof or a
      resident of that State. Where, however, the person paying the interest, whether he is a
      resident of a Contracting State or not, has in a Contracting State a permanent establishment
      in connection with which the indebtedness on which the interest is paid was incurred, and such
      interest is borne by such permanent establishment, then such interest shall be deemed to arise
      in the State in which the permanent establishment is situated.</p>
                    <p>7. Where, by reason of a special relationship between the payer and the person
      beneficially entitled to the interest or between both of them and some other person, the
      amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds the
      amount which might be expected to have been agreed upon by the payer and the person so
      entitled in the absence of such relationship, the provisions of this Article shall apply only
      to the last-mentioned amount. In that case, the excess part of the payments shall remain
      taxable according to the law of each Contracting State, due regard being had to the other
      provisions of this Agreement.</p>
                </content>
            </article>
            <article eId="art_12">
                <num>Article 12</num>
                <heading>Royalties</heading>
                <content>
                    <p>1. Royalties arising in a Contracting State, being royalties to which a resident of
      the other Contracting State is beneficially entitled, may be taxed in that other
      State.</p>
                    <p>2. However, such royalties may also be taxed in the Contracting State in which they
      arise and according to the law of that State, but the tax so charged shall not
      exceed:</p>
                    <p>a) in the case of Finland, 5 per cent of the gross amount of the royalties;</p>
                    <p>b) in the case of Malaysia, 15 per cent of the gross amount of the
      royalties.</p>
                    <p>3. Notwithstanding the provisions of paragraph 2 of this Article, approved industrial
      royalties derived from Malaysia by a resident of Finland who is the beneficial owner thereof
      shall be exempt from Malaysian tax.</p>
                    <p>4. The term "royalties" in this Article means payments of any kind to the extent to
      which they are paid as consideration for:</p>
                    <p>a) the use of, or the right to use, any</p>
                    <p>(i) copyright, patent, design or model, plan, secret formula or process, trade mark,
      or other like property or right;</p>
                    <p>(ii) industrial, commercial or scientific equipment; or</p>
                    <p>(iii) cinematograph film or tape for radio or television broadcasting;</p>
                    <p>b) the supply of scientific, technical, industrial or commercial knowledge or
      information;</p>
                    <p>c) the supply of any assistance that is ancillary and subsidiary to, and is furnished
      as a means of enabling the application or enjoyment of, any such property or right as is
      mentioned in sub-paragraph a) (i), any such equipment as is mentioned in sub-paragraph a)
      (ii), or any such knowledge or information as is mentioned in sub-paragraph b).</p>
                    <p>5. The term "approved industrial royalties" as used in this Article means royalties as
      defined in paragraph 4 of this Article which are approved and certified by the competent
      authority of Malaysia as payable for the purpose of promoting industrial development in
      Malaysia and which are payable by an enterprise which is wholly or mainly engaged in
      activities falling within one of the following classes:</p>
                    <p>a) manufacturing, assembling or processing;</p>
                    <p>b) construction, civil engineering or shipbuilding; or</p>
                    <p>c) electricity, hydraulic power, gas or water supply.</p>
                    <p>6. The provisions of paragraphs 1, 2 and 3 of this Article shall not apply if the
      person beneficially entitled to the royalties, being a resident of a Contracting State,
      carries on business in the other Contracting State in which the royalties arise, through a
      permanent establishment situated therein, and the right or property giving rise to the
      royalties is effectively connected with such permanent establishment. In such a case, the
      provisions of Article 7 shall apply.</p>
                    <p>7. Royalties shall be deemed to arise in a Contracting State when the payer is that
      State itself, a political sub-division, a local authority or a statutory body thereof or a
      resident of that State. Where, however, the person paying the royalties, whether he is a
      resident of a Contracting State or not, has in a Contracting State a permanent establishment
      in connection with which the liability to pay the royalties was incurred, and such royalties
      are borne by such permanent establishment, then such royalties shall be deemed to arise in the
      State in which the permanent establishment is situated.</p>
                    <p>8. Where, by reason of a special relationship between the payer and the person
      beneficially entitled to the royalties or between both of them and some other person, the
      amount of the royalties paid, having regard to the use, right or information for which they
      are paid, exceeds the amount which would have been agreed upon by the payer and the person so
      entitled in the absence of such relationship, the provisions of this Article shall apply only
      to the last-mentioned amount. In that case, the excess part of the royalties paid shall remain
      taxable according to the law of each Contracting State, due regard being had to the other
      provisions of this Agreement.</p>
                    <p>9. Royalties derived by a resident of Finland being royalties that, as film rentals,
      are subject to the cinematograph film hire duty in Malaysia shall not be liable to Malaysian
      tax.</p>
                </content>
            </article>
            <article eId="art_13">
                <num>Article 13</num>
                <heading>Capital gains</heading>
                <content>
                    <p>1. Gains derived by a resident of a Contracting State from the alienation of immovable
      property referred to in paragraph 2 of Article 6 and situated in the other Contracting State
      may be taxed in that other State.</p>
                    <p>2. Gains derived by a resident of a Contracting State from the alienation of shares or
      other corporate rights referred to in paragraph 4 of Article 6 may be taxed in the Contracting
      State in which the immovable property held by the company is situated.</p>
                </content>
            </article>
            <article eId="art_14">
                <num>Article 14</num>
                <heading>Personal services</heading>
                <content>
                    <p>1. Subject to Articles 15, 16, 18, 19 and 20, remuneration (other than a pension)
      derived by an individual who is a resident of a Contracting State in respect of personal
      (including professional) services shall be taxable only in that State unless the services are
      performed in the other Contracting State. If the services are so performed, such remuneration
      as is derived in respect thereof may be taxed in that other State.</p>
                    <p>2. Notwithstanding the provisions of paragraph 1 of this Article, remuneration (other
      than a pension) derived by an individual who is a resident of a Contracting State in respect
      of personal (including professional) services performed in the other Contracting State shall
      be taxable only in the first-mentioned State if:</p>
                    <p>a) the recipient is present in that other State for a period or periods not exceeding
      in the aggregate 183 days in the basis year or taxable year, as the case may be;</p>
                    <p>b) the remuneration is paid by, or on behalf of, a person who is not a resident of
      thar other State; and</p>
                    <p>c) the remuneration is not deductible in determining taxable profits of a permanent
      establishment which that person has in that other State.</p>
                    <p>3. Notwithstanding the preceding provisions of this Article, remuneration derived in
      respect of an employment exercised aboard a ship or aircraft operated in international
      traffic, may be taxed in the Contracting State in which the place of effective management of
      the enterprise is situated.</p>
                </content>
            </article>
            <article eId="art_15">
                <num>Article 15</num>
                <heading>Directors' fees</heading>
                <content>
                    <p>Notwithstanding the provisions of Article 14, directors' fees and similar payments
      derived by a resident of a Contracting State in his capacity as a member of the board of
      directors or any other similar organ of a company which is a resident of the other Contracting
      State may be taxed in that other State.</p>
                </content>
            </article>
            <article eId="art_16">
                <num>Article 16</num>
                <heading>Artistes and athletes</heading>
                <content>
                    <p>1. Notwithstanding the provisions of Article 14, income derived by a resident of a
      Contracting State as an entertainer, such as a theatre, motion picture, radio or television
      artiste, or a musician, or as an athlete, from his personal activities as such exercised in
      the other Contracting State, may be taxed in that other State.</p>
                    <p>2. Where income in respect of personal activities exercised by an entertainer or an
      athlete in his capacity as such accrues not to the entertainer or athlete himself but to
      another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed
      in the Contracting State in which the activities of the entertainer or athlete are
      exercised.</p>
                    <p>3. The provisions of paragraphs 1 and 2 of this Article shall not apply to
      remuneration or income derived from activities exercised in a Contracting State that are
      directly connected with a visit to that State that is arranged by and is directly or
      indirectly supported wholly or substantially from the public funds of the other Contracting
      State, a political sub-division, a local authority or a statutory body thereof.</p>
                </content>
            </article>
            <article eId="art_17">
                <num>Article 17</num>
                <heading>Pensions and annuities</heading>
                <content>
                    <p>1. Any pension (other than a pension of the kind referred to in paragraph 2 of Article
      18) or other similar payment or any annuity paid to a resident of a Contracting State shall be
      taxable only in that State.</p>
                    <p>2. Notwithstanding the provisions of paragraph 1, pensions and other payments made
      under the social security legislation of a Contracting State shall be taxable only in that
      State.</p>
                    <p>3. The term "annuity" means a stated sum payable periodically at stated times, during
      life or during a specified or ascertainable period of time, under an obligation to make the
      payments in return for adequate and full consideration in money or money's worth.</p>
                </content>
            </article>
            <article eId="art_18">
                <num>Article 18</num>
                <heading>Government service</heading>
                <content>
                    <p>1 Remuneration, other than a pension or annuity, paid by a Contracting State, a
      political sub-division, a local authority or a statutory body thereof to an individual m
      respect of services rendered to that State, sub-division, authority or body shall be taxable
      only m that State. However, such remuneration shall be taxable only in the Contracting State
      of which the individual is a resident if the services are rendered in that State and the
      individual:</p>
                    <p>a) is a national of that State; or</p>
                    <p>b) did not become a resident of that State solely for the purpose of rendering the
      services.</p>
                    <p>2. Any pension paid by, or out of funds created by, a Contracting State, a pollical
      sub-division, a local authority or a statutory body thereof to an individual in respect of
      services rendered to that State, sub-division, authority or body shall be taxable only in that
      State.</p>
                    <p>3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, the
      provisions of Articles 14, 15 and 17 shall apply to remuneration and pensions in respect of
      services rendered in connection with a business carried on by a Contracting State, a political
      sub-division, a local authority or a statutory body thereof.</p>
                </content>
            </article>
            <article eId="art_19">
                <num>Article 19</num>
                <heading>Students and apprentices</heading>
                <content>
                    <p>1. An individual who is a resident of a Contracting State immediately before making a
      visit to the other Contracting State and is present in that other State solely:</p>
                    <p>(i) as a student at a recognised university, college, school or other similar
      recognised educational institution in that other State; or</p>
                    <p>(ii) as a business or technical apprentice therein for a period not exceeding 2 years
      from the date of his first arrival in that other State in connection with that
      visit,</p>
                    <p>shall be exempt from tax in that other State on:</p>
                    <p>a) all remittances from abroad for the purposes of his maintenance, education or
      training; and</p>
                    <p>b) any remuneration not exceeding two thousand five hundred United States dollars for
      personal services rendered in that other State with a view to supplementing the resources
      available to him for such purposes.</p>
                    <p>2. An individual who is a resident of a Contracting State immediately before making a
      visit to the other Contracting State and is present in the other State for the purposes of
      study, research or training solely as a recipient of a grant, allowance or award from the
      Government of either State or from a scientific, educational, religious or charitable
      organization or under a technical assistance programme entered into by the Government of
      either State for a period not exceeding 2 years from the date of his first arrival in that
      other State in connection with that visit shall be exempt from tax in that other State
      on:</p>
                    <p>a) the amount of such grant, allowance or award;</p>
                    <p>b) all remittances from abroad for the purposes of his maintenance, education or
      training; and</p>
                    <p>c) any remuneration not exceeding two thousand five hundred United States dollars in
      respect of services in that other State provided the services are performed in connection with
      his study, research or training or are incidental thereto.</p>
                    <p>3. An individual who is a resident of a Contracting State immediately before making a
      visit to the other Contracting State and is present in the other State solely as an employee
      of, or under contract with, the Government or an enterprise of the first-mentioned State
      solely for the purpose of acquiring technical, professional or business experience for a
      period not exceeding 12 months from the date of his first arrival in the other State in
      connection with that visit shall be exempt from tax in that other State on:</p>
                    <p>a) all remittances from abroad for the purposes of his maintenance, education or
      training; and</p>
                    <p>b) any remuneration not exceeding two thousand five hundred United States dollars for
      personal services rendered in that other State provided such services are in connection with
      his studies or training or are incidental thereto.</p>
                    <p>4. For the purposes of this Article the term "Government":</p>
                    <p>a) in the case of Finland, means the Government of Finland and shall
      include:</p>
                    <p>(i) the municipalities;</p>
                    <p>(ii) the statutory bodies; and</p>
                    <p>(iii) any institution wholly or mainly owned by the Government of Finland or the
      municipalities or the statutory bodies thereof, as may be agreed from time to time between the
      competent authorities of the Contracting States;</p>
                    <p>b) in the case of Malaysia, means the Government of Malaysia and shall
      include:</p>
                    <p>(i) the governments of the States;</p>
                    <p>(ii) the local authorities;</p>
                    <p>(iii) the statutory bodies;</p>
                    <p>(iv) the Bank Negara Malaysia; and</p>
                    <p>(v) such institutions, the capital of which is wholly or mainly owned by the
      Government of Malaysia or the governments of the States or the local authorities or the
      statutory bodies thereof, as may be agreed from time to time between the competent authorities
      of the Contracting States.</p>
                </content>
            </article>
            <article eId="art_20">
                <num>Article 20</num>
                <heading>Other income</heading>
                <content>
                    <p>Items of income of a resident of a Contracting State not dealt with in the foregoing
      Articles, shall be taxable only in that State except that, if such income is derived from
      sources in the other Contracting State, it may also be taxed in that other State.</p>
                </content>
            </article>
            <article eId="art_21">
                <num>Article 21</num>
                <heading>Elimination of double taxation</heading>
                <content>
                    <p>1. The laws in force in either of the Contracting States shall continue to govern the
      taxation of income in the respective Contracting State except where express provision to the
      contrary is made in this Agreement. Where income is subject to tax in both Contracting States,
      relief from double taxation shall be given in accordance with the following paragraphs of this
      Article.</p>
                    <p>2. In Finland double taxation shall be eliminated as follows:</p>
                    <p>a) Where a resident of Finland derives income which, in accordance with the provisions
      of the Agreement, may be taxed in Malaysia, Finland shall, subject to the provisions of
      sub-paragraph b), allow as a deduction from the tax on income of that person, an amount equal
      to the tax on income paid in Malaysia. Such deduction shall not, however, exceed that part of
      the tax on income, as computed before the deduction is given, which is attributable to the
      income which may be taxed in Malaysia.</p>
                    <p>b) Dividends paid by a company which is a resident of Malaysia to a company which is a
      resident of Finland shall be exempt from Finnish tax to the extent that the dividends would
      have been exempt from tax under Finnish taxation law if both companies had been residents of
      Finland.</p>
                    <p>c) Where in accordance with any provision of the Agreement income derived by a
      resident of Finland is exempt from tax in Finland, Finland may nevertheless, in calculating
      the amount of tax on the remaining income of such resident, take into account the exempted
      income.</p>
                    <p>3. In the case of Malaysia, subject to the provisions of the law of Malaysia regarding
      the allowance as a credit against Malaysian tax of tax payable in any country other than
      Malaysia, the amount of Finnish tax payable under the law of Finland and in accordance with
      the provisions of the Agreement, by a resident of Malaysia in respect of income from sources
      within Finland shall be allowed as a credit against Malaysian tax payable in respect of such
      income, but in an amount not exceeding the portion of Malaysian tax which such income bears to
      the entire income chargeable to Malaysian tax.</p>
                    <p>4. For the purposes of paragraph 2 of this Article, the term "tax on income paid in
      Malaysia" shall be deemed to include Malaysian tax which would, under the law of Malaysia and
      in accordance with the Agreement, have been payable on:</p>
                    <p>a) any income derived from sources in Malaysia had the income not been exempted from
      Malaysian tax in accordance with:</p>
                    <p>(i) sections 54A, 54B, 60A, 60B and Schedule 7A of the Income Tax Act 1967 of Malaysia
      or sections 21, 22, 26, 30KA or 30Q of the Investment Incentives Act 1968 of Malaysia, so far
      as they were in force on, and have not been modified since, the date of signature of the
      Agreement or have been modified only in minor respects so as not to affect their general
      character; or</p>
                    <p>(ii) any other provisions which may subsequently be agreed in an Exchange of Letters
      between the Governments of the Contracting States to be of a substantially similar
      character;</p>
                    <p>b) interest to which paragraph 3 of Article 11 applies had that interest not been
      exempted from Malaysian tax in accordance with that paragraph;</p>
                    <p>c) approved industrial royalties to which paragraph 3 of Article 12 applies had those
      royalties not been exempted from Malaysian tax in accordance with that paragraph.</p>
                    <p>5. Where royalties derived by a resident of Finland are, as film rentals, subject to
      the cinematograph film hire duty in Malaysia, that duty shall, for the purposes of
      sub-paragraph a) of paragraph 2 of this Article, be deemed to be Malaysian tax.</p>
                </content>
            </article>
            <article eId="art_22">
                <num>Article 22</num>
                <heading>Non-discrimination</heading>
                <content>
                    <p>1. Nationals of a Contracting State shall not be subjected in the other Contracting
      State to any taxation or any requirement connected therewith which is other or more burdensome
      than the taxation and connected requirements to which nationals of that other State in the
      same circumstances are or may be subjected.</p>
                    <p>2. The taxation on a permanent establishment which an enterprise of a Contracting
      State has in the other Contracting State shall not be less favourably levied in that other
      State than the taxation levied on enterprises of that other State carrying on the same
      activities. This provision shall not be construed as obliging a Contracting State to grant to
      residents of the other Contracting State any personal allowances, reliefs and reductions for
      taxation purposes on account of civil status or family responsibilities which it grants to its
      own residents.</p>
                    <p>3. Enterprises of a Contracting State, the capital of which is wholly or partly owned
      or controlled, directly or indirectly, by one or more residents of the other Contracting
      State, shall not be subjected in the first-mentioned State to any taxation or any requirement
      connected therewith which is other or more burdensome than the taxation and connected
      requirements to which other similar enterprises of the first-mentioned State are or may be
      subjected.</p>
                    <p>4. Moreover nothing contained in this Article shall be construed as obliging a
      Contracting State to grant to nationals of the other Contracting State not resident in the
      first-mentioned State those personal allowances, reliefs and reductions for tax purposes which
      are by law available on the date of signature of this Agreement only to nationals of the
      first-mentioned State or to such other persons specified therein who are not resident in that
      State.</p>
                    <p>5. In this Article, the term "taxation" means taxes to which the Agreement
      applies.</p>
                </content>
            </article>
            <article eId="art_23">
                <num>Article 23</num>
                <heading>Mutual agreement procedure</heading>
                <content>
                    <p>
                        <embeddedStructure class="mli-replaced">
                            <p>
                                <authorialNote>
                                    <p>1. [REPLACED by the first sentence of paragraph 1 of Article 16 of the
        MLI]</p>
                                </authorialNote>
                            </p>
                            <p>[Where a resident of a Contracting State considers that the actions of one or both of
        the Contracting States result or will result for him in taxation not in accordance with the
        provisions of this Agreement, he may, irrespective of the remedies provided by the domestic
        law of those States, present his case to the competent authority of the Contracting State of
        which he is a resident.]</p>
                        </embeddedStructure>
                    </p>
                    <p>
                        <embeddedStructure class="mli-replacement">
                            <p>
                                <authorialNote>
                                    <p>
                                        The following first sentence of paragraph 1 of Article 16 of the MLI replaces
        the first sentence of paragraph 1 of Article 23 of this Agreement:
                                        <authorialNote marker="3" placement="bottom">
                                            <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, the first
            sentence of paragraph 1 of Article 16 of the MLI has effect with respect to the
            application of this Agreement by the Republic of Finland:</p>
                                            <p>a) with respect to taxes withheld at source on amounts paid or credited to
            nonresidents, where the event giving rise to such taxes occurs on or after 1 January
            2022; and</p>
                                            <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
            levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                            <p>and,</p>
                                            <p>In accordance with paragraph 1 of Article 35 of the MLI, the first sentence of
            paragraph 1 of Article 16 of the MLI has effect with respect to the application of the
            Agreement by Malaysia:</p>
                                            <p>a) with respect to taxes withheld at source on amounts paid or credited to
            nonresidents, where the event giving rise to such taxes occurs on or after 1 January
            2022; and</p>
                                            <p>b) with respect to all other taxes levied by Malaysia, for taxes levied with
            respect to taxable periods beginning on or after 1 December 2021.</p>
                                        </authorialNote>
                                    </p>
                                </authorialNote>
                            </p>
                            <article>
                                <num>ARTICLE 16 OF THE MLI – MUTUAL AGREEMENT PROCEDURE</num>
                                <content>
                                    <p>
                                        Where a person considers that the actions of one or both of the
            [
                                        <i>Contracting States</i>
                                        ] result or will result for that person in
          taxation not in accordance with the provisions of [
                                        <i>this Agreement</i>
                                        ],
          that person may, irrespective of the remedies provided by the domestic law of those
            [C
                                        <i>ontracting States</i>
                                        ], present the case to the competent authority
          of either [
                                        <i>Contracting State</i>
                                        ].
                                    </p>
                                </content>
                            </article>
                        </embeddedStructure>
                    </p>
                    <p>
                        <embeddedStructure class="mli-replaced">
                            <p>
                                <authorialNote>
                                    <p>[REPLACED by the second sentence of paragraph 1 of Article 16 of the
        MLI]</p>
                                </authorialNote>
                            </p>
                            <p>[The case must be presented within two years from the first notification of the
        action resulting in taxation not in accordance with the provisions of the
        Agreement.]</p>
                        </embeddedStructure>
                    </p>
                    <p>
                        <embeddedStructure class="mli-replacement">
                            <p>
                                <authorialNote>
                                    <p>
                                        The following second sentence of paragraph 1 of Article 16 of the MLI replaces
        the second sentence of paragraph 1 of Article 23 of this Agreement:
                                        <authorialNote marker="4" placement="bottom">
                                            <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, the second
            sentence of paragraph 1 of Article 16 of the MLI has effect with respect to the
            application of this Agreement by the Republic of Finland:</p>
                                            <p>a) with respect to taxes withheld at source on amounts paid or credited to
            nonresidents, where the event giving rise to such taxes occurs on or after 1 January
            2022; and</p>
                                            <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
            levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                            <p>and,</p>
                                            <p>In accordance with paragraph 1 of Article 35 of the MLI, the second sentence of
            paragraph 1 of Article 16 of the MLI has effect with respect to the application of the
            Agreement by Malaysia:</p>
                                            <p>a) with respect to taxes withheld at source on amounts paid or credited to
            nonresidents, where the event giving rise to such taxes occurs on or after 1 January
            2022; and</p>
                                            <p>b) with respect to all other taxes levied by Malaysia, for taxes levied with
            respect to taxable periods beginning on or after 1 December 2021.</p>
                                        </authorialNote>
                                    </p>
                                </authorialNote>
                            </p>
                            <article>
                                <num>ARTICLE 16 OF THE MLI – MUTUAL AGREEMENT PROCEDURE</num>
                                <content>
                                    <p>
                                        The case must be presented within three years from the first notification of the
          action resulting in taxation not in accordance with the provisions of [
                                        <i>the
            Agreement</i>
                                        ].
                                    </p>
                                </content>
                            </article>
                        </embeddedStructure>
                    </p>
                    <p>2. The competent authority shall endeavour, if the objection appears to it to be
      justified and if it is not itself able to arrive at a satisfactory solution, to resolve the
      case by mutual agreement with the competent authority of the other Contracting State, with a
      view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement
      reached shall be implemented notwithstanding any time limits in the domestic law of the
      Contracting States.</p>
                    <p>3. The competent authorities of the Contracting States shall endeavour to resolve by
      mutual agreement any difficulties or doubts arising as to the interpretation or application of
      the Agreement. They may also consult together for the elimination of double taxation in cases
      not provided for in the Agreement. In particular, they may consult together for the purpose of
      reaching an agreement on the allocation of income in cases referred to in Article
      9.</p>
                    <p>4. The competent authorities of the Contracting States may communicate with each other
      directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.
      When it seems advisable in order to reach agreement to have an oral exchange of opinions, such
      exchange may take place through a body consisting of representatives of the competent
      authorities of the Contracting States.</p>
                </content>
            </article>
            <article eId="art_24">
                <num>Article 24</num>
                <heading>Exchange of information</heading>
                <content>
                    <p>1. The competent authorities of the Contracting States shall exchange such information
      as is necessary for carrying out the provisions of this Agreement or of the domestic laws of
      the Contracting States concerning taxes covered by the Agreement insofar as the taxation
      thereunder is not contrary to the Agreement. The exchange of information is not restricted by
      Article 1. Any information received by a Contracting State shall be treated as secret in the
      same manner as information obtained under the domestic laws of that State and shall be
      disclosed only to persons or authorities (including courts and administrative bodies) involved
      in the assessment or collection of, the enforcement or prosecution in respect of, or the
      determination of appeals in relation to, the taxes covered by the Agreement. Such persons or
      authorities shall use the information only for such purposes. They may disclose the
      information in public court proceedings or in judicial decisions.</p>
                    <p>2. In no case shall the provisions of paragraph 1 of this Article be construed so as
      to impose on a Contracting State the obligation:</p>
                    <p>a) to carry out administrative measures at variance with the laws or the
      administrative practice of that or of the other Contracting State;</p>
                    <p>b) to supply information which is not obtainable under the laws or in the normal
      course of the administration of that or of the other Contracting State;</p>
                    <p>c) to supply information which would disclose any trade, business, industrial,
      commercial or professional secret or trade process, or information, the disclosure of which
      would be contrary to public policy.</p>
                </content>
            </article>
            <article eId="art_25">
                <num>Article 25</num>
                <heading>Diplomatic agents and consular officers</heading>
                <content>
                    <p>Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or
      consular officers under the general rules of international law or under the provisions of
      special agreements.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 7 of the MLI applies and supersedes the
      provisions of this Agreement:
                                <authorialNote marker="5" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 7 of the MLI has effect with respect to the application of this Agreement by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraph 1 of Article 35 of the MLI, paragraph 1 of Article 7
          of the MLI has effect with respect to the application of the Agreement by
          Malaysia:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2022;
          and</p>
                                    <p>b) with respect to all other taxes levied by Malaysia, for taxes levied with
          respect to taxable periods beginning on or after 1 December 2021.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 7 OF THE MLI – PREVENTION OF TREATY ABUSE (Principal purposes test provision)</num>
                        <content>
                            <p>
                                Notwithstanding any provisions of [
                                <i>the Agreement</i>
                                ], a benefit
        under [
                                <i>the Agreement</i>
                                ] shall not be granted in respect of an item of
        income [ ] if it is reasonable to conclude, having regard to all relevant facts and
        circumstances, that obtaining that benefit was one of the principal purposes of any
        arrangement or transaction that resulted directly or indirectly in that benefit, unless it
        is established that granting that benefit in these circumstances would be in accordance with
        the object and purpose of the relevant provisions of [
                                <i>the
        Agreement</i>
                                ].
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <article eId="art_26">
                <num>Article 26</num>
                <heading>Entry into force</heading>
                <content>
                    <p>1. The Governments of the Contracting States shall notify each other that the
      constitutional requirements for the entry into force of this Agreement have been complied
      with.</p>
                    <p>2. The Agreement shall enter into force thirty days after the date of the later of the
      notifications referred to in paragraph 1 of this Article and its provisions shall have
      effect:</p>
                    <p>a) in Finland:</p>
                    <p>(i) in respect of taxes withheld at source, to income derived on or after 1 January in
      the calendar year next following the year in which the Agreement enters into force;</p>
                    <p>(ii) in respect of other taxes on income, to taxes chargeable for any taxable year
      beginning on or after 1 January in the calendar year next following the year in which the
      Agreement enters into force;</p>
                    <p>b) in Malaysia:</p>
                    <p>in respect of Malaysian tax for any year of assessment beginning on or after 1 January
      in the second calendar year following the year in which the Agreement enters into
      force.</p>
                </content>
            </article>
            <article eId="art_27">
                <num>Article 27</num>
                <heading>Termination</heading>
                <content>
                    <p>This Agreement shall remain in force until terminated by a Contracting State. Either
      Contracting State may terminate the Agreement through diplomatic channels, by giving written
      notice of termination on or before the thirtieth day of June of any calendar year following
      after the period of five years from the date on which the Agreement enters into force. In such
      event, the Agreement shall cease to have effect:</p>
                    <p>a) in Finland:</p>
                    <p>(i) in respect of taxes withheld at source, to income derived on or after 1 January in
      the calendar year next following the year in which the notice is given;</p>
                    <p>(ii) in respect of other taxes on income, to taxes chargeable for any taxable year
      beginning on or after 1 January in the calendar year next following the year in which the
      notice is given;</p>
                    <p>b) in Malaysia:</p>
                    <p>in respect of Malaysian tax for any year of assessment beginning on or after 1 January
      in the second calendar year following the year in which the notice is given.</p>
                    <p>In witness whereof the undersigned, duly authorised thereto, have signed this
      Agreement.</p>
                    <p>Done in duplicate at Kuala Lumpur this 28th day of March 1984 in the Finnish language,
      Bahasa Malaysia and the English language, all three texts being equally authentic. In the case
      of any divergence of interpretation the English text shall prevail.</p>
                </content>
            </article>
            <hcontainer name="attachments">
                <hcontainer eId="protocol" name="attachment">
                    <heading>Protocol</heading>
                    <content>
                        <p>At the signing today of the Agreement between the Government of Finland 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 upon the following
      provisions which shall form an integral pan of the Agreement.</p>
                        <tblock>
                            <num>1. Ad Articles 5, 6 and 7.</num>
                            <p>Under Finnish taxation law income from agriculture or forestry is treated as income
        from immovable property. Accordingly, income from agriculture or forestry carried on in
        Finland shall, in the case of Finland, for the purposes of the Agreement be treated as
        income from immovable property referred to in Article 6 of the Agreement.</p>
                            <p>Under Malaysian taxation law income from agriculture, or timber or other forest
        produce, is treated as business income. Accordingly, a farm or plantation, or a place of
        timber or other forest produce, shall, in the case of Malaysia, for the purposes of Article
        7 of the Agreement be regarded as a permanent establishment referred to in Article 5 of the
        Agreement.</p>
                        </tblock>
                        <tblock>
                            <num>2. Ad Article 10.</num>
                            <p>Where, for the purposes of Article VII of the Agreement between the Government of
        Malaysia and the Government of the Republic of Singapore for the Avoidance of Double
        Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed in
        Singapore on 26th December, 1968 −</p>
                            <p>a) a dividend was paid by a company −</p>
                            <p>(i) which was resident in both Malaysia and Singapore and the meeting at which the
        dividend was declared was held in Malaysia; or</p>
                            <p>(ii) which was resident in Singapore and at the time of payment of that dividend the
        company declared itself to be a resident of Malaysia,</p>
                            <p>the dividend shall be deemed to have been paid by a company resident in
        Malaysia;</p>
                            <p>b) a dividend was paid by a company −</p>
                            <p>(i) which was resident in both Malaysia and Singapore and the meeting at which the
        dividend was declared was held in Singapore; or</p>
                            <p>(ii) which was resident in Malaysia and at the time of payment of that dividend the
        company declared itself to be a resident of Singapore,</p>
                            <p>the dividend shall be deemed to have been paid by a company not resident in
        Malaysia.</p>
                            <p>In witness whereof the undersigned, duly authorised thereto, have signed this
        Protocol.</p>
                            <p>Done in duplicate at Kuala Lumpur this 28th day of March 1984 in the Finnish
        language, Bahasa Malaysia and the English language, all three texts being equally authentic.
        In the case of any divergence of interpretation the English text shall prevail.</p>
                        </tblock>
                    </content>
                </hcontainer>
            </hcontainer>
        </mainBody>
    </doc>
</akomaNtoso>
