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What is the interest withholding rate between China and Malaysia?

Under the China-Malaysia tax treaty, the withholding rate on interest is 10%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 10% rate compares to a median of 10% across China's 47 active treaty partners, and 10% across Malaysia's 24 active partners.

Network Comparison

China

Rank 31 of 47 active treaties (lowest rate = #1)

Lower rates with: South Korea (10%), Luxembourg (10%), Mexico (10%)

Higher rates with: Netherlands (10%), Norway (10%), New Zealand (10%)

Malaysia

Rank 5 of 24 active treaties (lowest rate = #1)

Lower rates with: Hong Kong (0%), Saudi Arabia (5%), Switzerland (10%)

Higher rates with: Germany (10%), France (10%), United Kingdom (10%)

Sources

Data last reviewed: 2026-04-07

Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.

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