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What is the interest withholding rate between Malaysia and Pakistan?

Under the Malaysia-Pakistan 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 Pakistan's 28 active partners.

Network Comparison

Malaysia

Rank 22 of 24 active treaties (lowest rate = #1)

Lower rates with: Egypt (15%), New Zealand (15%), Philippines (15%)

Higher rates with: Thailand (15%), United States (15%)

Pakistan

Rank 27 of 28 active treaties (lowest rate = #1)

Lower rates with: Singapore (12.5%), Canada (15%), United Kingdom (15%)

Higher rates with: United States (30%)

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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