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Malta Signs More Tax Treaties In 2013

29 Jan 2013
In January 2013 Malta signed Tax Treaties with Liechenstein, Mexico and Saudi Arabia. This brings Malta's total of double taxation and other bilateral agreements to 66. Taxand Malta investigates the agreed decisions made in these new Tax Treaties.

Following 6 months of talks, Liechtenstein and Malta agreed a DTA and initialled in Vaduz a corresponding agreement in respect of taxes on income and on wealth. It is understood that the DTA largely follows the OECD Model Convention and governs the tax treatment of wealth structures and funds.

Malta and Mexico have signed a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (Double Tax Treaty). This Convention also provides for the exchange of information on tax matters based on internationally agreed standards, with a view to combating international tax avoidance and evasion.

Saudi Arabia
This treaty is largely based on the OECD Model Convention on Income and Capital. Malta and Saudi Arabia have agreed:

  • The withholding tax rate on dividends paid by a company which is a resident of Saudi Arabia is 5%
  • The withholding tax rate on royalties is also 5% if they are paid for the use of industrial, commercial or scientific equipment, but it is 7% in all other cases
  • No withholding tax is applicable on 'income from debt claims' (referred to as interest in other tax treaties)

Discover more: Malta signs new Tax Treaties


Your Taxand contact for further queries is:
Walter Cutajar
T. +356 2730 0045


Taxand's Take

Multinationals with operations in any of these jurisdictions should research into the applicable Tax Treaty and ensure their business is compliant. These Tax Treaties will encourage bilateral investment and shall be welcomed by all parties.

Taxand's Take Author