Double Taxation Treaties

Malta has a vast network of double taxation treaties which offer competitive conditions, and other treaties are currently being negotiated/signed/ratified.

The treaties generally follow the OECD convention model, although some may vary significantly from the model.

The treaties generally make provision for double taxation relief through an ordinary tax credit, but Maltese law also makes provision for other mechanisms for international double taxation relief.

Remember that regardless of double taxation treaties, Malta generally does not tax dividends, interest and royalties at source.

Actually, with the application of the current full allocation system in Malta, the payment of dividends to non-residents, who comply with certain requirements, are not subject to taxation at source.

Exemption from with holding tax on the payment of royalties and interests to non-residents in Malta

Know more

Azerbeijan	Albania	Australia
Austria	Bahrain	Barbados (add convention)
Belgium (add convention)	Bulgaria	Canada
China (add convention)	Croatia	Curazao*
Cyprus	Czech Republic	Denmark
Egypt	Estonia	Finland (add convention)
France (add convention I and II)	Georgia	Germany (add convention)
Greece	Guernsey	Hong Kong
Hungary	Iceland	India (add convention)
Ireland	Isle of Man	Israel
Italy (add convention)	Jersey	Jordan
South Korea	Kuwait	Latvia
Lebanon (add convention)	Libya (add convention I and II)	Liechtenstein
Lithuania	Luxembourg (add convention)	Malaysia
Mauritius	Mexico	Moldova
Montenegro	Marocco	Netherlands (add convention)
Norway	Pakistan	Poland (add convention)
Portugal	Qatar	Russia
Romania	San Marino (add convention)	Saudi Arabia
Serbia	Singapore (add convention)	Slovakia
Slovenia	South Africa (add convention)	Spain
Sweden	Switzerland (add convention)	Syria
Tunisia	Turkey	UAE
United Kingdom	United States of America	Ukraine*
Uruguay	Vietnam	-

^(*)Not yet in force

Taxation in Malta

Rulings in Malta

Safety and certainty are essential aspects when structuring international investments. In order to meet investors’ needs, it is possible to ask the Maltese tax authorities to issue an advance tax ruling that is valid for 5 years.

Taxation in Malta

Personal income taxation in Malta

Taxation in Malta for individuals with residence and domicile in Malta applies to worldwide income. In the case of persons which are either resident or domiciled in Malta, taxation focuses only over income obtained in Malta or remitted to Malta and on capital gains obtained in Malta.

Taxation in Malta

Tax refund system

Malta offers an extremely competitive tax regime, based on a full imputation system, in which tax on profits paid by the company distributing dividends is made available to the shareholder as a tax credit, to avoid double taxation on the same income.

Taxation in Malta

Income tax

Income Tax is governed by the Income Tax Act (ITA), the Income Tax Management Act and subsidiary legislation. This tax is levied on income and some specific kinds of capital gains for natural and legal persons.