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What is the dividend withholding rate between Malaysia and Pakistan?

Under the Malaysia-Pakistan tax treaty, the withholding rate on dividends is 15% for portfolio investors (general rate). A reduced rate of 15% applies when the beneficial owner is a company holding a qualifying ownership stake (typically 10% or more of voting stock). Note that the reduced rate requires the recipient to file the appropriate treaty benefit claim form before payment. This 15% rate compares to a median of 10% across Malaysia's 24 active treaty partners, and 15% across Pakistan's 28 active partners.

Network Comparison

Malaysia

Rank 23 of 24 active treaties (lowest rate = #1)

Lower rates with: Japan (15%), South Korea (15%), New Zealand (15%)

Higher rates with: Philippines (25%)

Pakistan

Rank 19 of 28 active treaties (lowest rate = #1)

Lower rates with: India (15%), Italy (15%), South Korea (15%)

Higher rates with: Netherlands (15%), Norway (15%), Poland (15%)

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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