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Application of the MLI to the Tax Treaty between Japan and Malaysia

 The MLI enters into force for Japan on January 1, 2019, and for Malaysia on June 1, 2021.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Malaysia on February 18, 2021, the MLI applies to the tax treaty between Japan and Malaysia as described below.

1. Tax treaty covered by the MLI
-“Agreement between the Government of Japan and the Government of Malaysia for the Avoidance of Double
  Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
  Date of signature: February 19, 1999
  Date of entry into force: December 31, 1999
-“Protocol Amending the Agreement between the Government of Japan and the Government of Malaysia for the 
  Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
  Date of signature: February 10, 2010
  Date of entry into force: December 1, 2010

2. Provisions of the MLI applicable to the tax treaty
  - Article 3(1) (Provisions regarding income derived by or through an entity or arrangement that is treated as fiscally
    transparent)
  - Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will not 
    create opportunities for non-taxation or reduced taxation)
  - Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the
    principal purposes of any arrangement or transaction was to obtain those benefits)
  - Article 12(1) and (2) (Provisions regarding an agent that is deemed to constitute a permeant establishment)
  - Article 13(2) (Provisions regarding an activity that is deemed not to constitute a permanent establishment even if the
    activity is carried on through a fixed place of business)
  - Article 13(4) (Provisions for combining business activities carried on by closely related persons for the purpose of
    determining whether a permanent establishment exists)
  - Article 15 (Provisions for the definition of a person closely related to an enterprise)
  - Article 16(1), 1st sentence (Provisions for presentation of a case of taxation not in accordance with the provisions of
    the tax treaty for a mutual agreement procedure)

3. Entry into effect
 The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between Japan and Malaysia:
 (a) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise
     to such taxes occurs on or after January 1, 2022; and
 (b) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable
     periods beginning on or after December 1, 2021.