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What is the interest withholding rate between United Kingdom and Malaysia?

Under the United Kingdom-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 2.5% across United Kingdom's 54 active treaty partners, and 10% across Malaysia's 24 active partners.

Network Comparison

United Kingdom

Rank 42 of 54 active treaties (lowest rate = #1)

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

Higher rates with: New Zealand (10%), Portugal (10%), Romania (10%)

Malaysia

Rank 8 of 24 active treaties (lowest rate = #1)

Lower rates with: China (10%), Germany (10%), France (10%)

Higher rates with: Indonesia (10%), India (10%), Japan (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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