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What is the interest withholding rate between Malaysia and United States?
Under the Malaysia-United States tax treaty, the withholding rate on interest is 15%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 15% rate compares to a median of 10% across Malaysia's 24 active treaty partners, and 10% across United States's 64 active partners.
Network Comparison
Malaysia
Rank 24 of 24 active treaties (lowest rate = #1)
Lower rates with: Philippines (15%), Pakistan (15%), Thailand (15%)
United States
Rank 57 of 64 active treaties (lowest rate = #1)
Lower rates with: India (15%), Morocco (15%), Mexico (15%)
Higher rates with: Philippines (15%), Thailand (15%), Tunisia (15%)
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.