PUTRAJAYA, June 26 (Bernama) -- Malaysia and Kazakhstan Monday signed an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between two countries.

The agreement was signed by Second Finance Minister, Tan Sri Nor Mohamed Yakcop and Kazakhstan Foreign Affairs Minister, Kassymzhomart Tokaev.

The agreement would enable both countries to avoid the incidence of double taxation on income such as business profits, dividends, interests and royalties derived in Malaysia and remitted to Kazakhstan or vice-versa.

It would also help them to avoid fiscal evasion with respect to taxes through mutual agreement procedures and exchange of information between both countries.

The pact would strengthen bilateral linkages between two countries in trade, investment as well as social and cultural affairs.

The signing was witnessed by Prime Minister and Finance Minister, Datuk Seri Abdullah Ahmad Badawi and visiting Kazakhstan President, Nursultan Nazarbayev.

Nazarbayev is on a three-day state visit to Malaysia to reciprocate the state visit of the Yang di-Pertuan Agong Tuanku Syed Sirajuddin Syed Putra Jamalullail and Raja Permaisuri Agong Tuanku Fauziah Tengku Abdul Rashid to the republic in September 2003.

The mutual visits have helped to enhance ties especially in trade and investment.

Nazarbayez's first visit to Malaysia was in 1996.

Before the signing ceremony, he had a "four-eye" meeting with Abdullah, followed by a delegation meeting.

Last year, Malaysia's total trade with Kazakhstan totalled RM221.6 million.

Malaysia's exports to the republic amounted to RM183.1 million while imports totalled RM38.5 million.

Among Malaysia's exports to Kazakhstan were iron and steel products, chemical, palm oil and timber.

-- BERNAMA