Income received by a Member State established in a Contracting State from immovable property situated in the other Contracting State may be taxed in that other State. Income from the fixed assets of an enterprise and the income of immobile persons used for the provision of independent personal life services are also covered by this provision. Income from the direct use, rental or other use of immovable property is the subject of the contract. The term “immovable property” means immovable property within the meaning of the law of the Contracting State in which the property is located. It includes accessories, equipment, livestock, rights and usufruct rights of fixed assets, as well as rights to variable or fixed payments in return for the processing of mineral minerals or the right to work. 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. In addition, residence is determined according to the place where the person concerned has real estate in which he or she resides. If a person is resident in both countries, the country where that person has his or her vital center of interests. Other important provisions of the double taxation treaty between Singapore and Malaysia apply to related enterprises that are considered to have their tax residence in a country that holds shares in an enterprise in the other State. From a tax point of view, affiliated companies can adjust the tax paid in the other State by submitting the corresponding accounting documents. In order to facilitate the cross-border flow of trade, investment, financial activities and technical know-how between the two countries, the Malaysian and Singaporean governments have signed a double taxation agreement (DBA). Royalties collected in a Contracting State and paid to a State established in the other Contracting State may be taxed in that other State.
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