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TIEA Signed with Gibraltar and the Bahamas


During the first few weeks of 2012 Malta signed two Tax Information Exchange Agreements (TIEA) and a double taxation agreement. Taxand Malta takes a look at the TIEAs and what impact they may have on a Malta as an investment destination.

Malta and Gibraltar signed a TIEA which will provide both countries with tax information on request when there is evidence of fiscal crime. Also during the month of January 2012, Malta signed a TIEA with the Bahamas, to enable the two nations' tax authorities to share tax information on request.

Malta signed a convention on the avoidance of double taxation with Saudi Arabia. Saudi Arabia is the largest and most powerful member of the Gulf Cooperation Council. No details on the tax treaty are available as yet. Malta has tax treaties with several other countries in the Gulf region such as Bahrain, Kuwait, Qatar, United Arab Emirates. Malta continues to prove an interesting jurisdiction for investors from the Gulf region investing in a number of other EU Member States.

According to preliminary media reports, Malta and Moldova will start negotiations with a view to conclude a double taxation agreement during March 2012. Malta continues to expand its treaty network and other bilateral agreements with a view to attract further investment to the Island and enhance its appeal as an international financial centre.

Taxand's Take

Companies with business that operate between Malta and Gibraltar or the Bahamas would be well prepared to verify their tax documentation to make sure they are compliant in the face of heightened scrutiny. Taxpayers should watch out for further implications of the TIEAs as more announcements are made by the Finance Ministry.

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

Taxand's Take Author