As the ASEAN community draws closer to reality, the love of hate between Singapore and Malaysia is turning into a prop and prosper bond marked by progressive economic treaties. Malaysia is rich in natural resources and labor Singapore is strong in terms of technology, infrastructure, financial agility, enterprise ecosystem and international connectivity. Global investors and companies targeting the growth of Southeast Asian economies will benefit greatly by establishing subsidiaries in Singapore and using DTA networks and other commercial contracts. For more information on the specific provisions of the Singapore-Malaysia Tax Treaty, please visit the IRAS website. For general information on Singapore`s DBAs, see The DBA provides for an exemption from double taxation if the income is taxable in both Contracting States. In the case of Malaysia, singapore tax, which must be paid for Singapore`s income, is allowed as an account of the Malaysian tax payable on that income. Malaysian tax, which must be paid for Malaysian income, is granted as an account of Singapore tax payable on such income. The credit thus granted must not exceed the tax calculated before the credit of the country concerned. For the purpose of calculating the credit, the tax payable does not take into account specific waivers, exemptions or subsidies granted by the respective jurisdictions and takes into account the tax payable without any such waivers and reductions. .