New double taxation agreement signed between Malta and Liechtenstein

A new double taxation agreement with Liechtenstein has been signed on the 27th of September 2013. This agreement is expected to come into force on the 1st January 2014.

This treaty is based on the internationally recognised Organisation for Economic Cooperation and Development (OECD) Model Tax Convention. The treaty provides for no withholding tax on the payment of dividends, interest and royalties. In fact Articles 10,11 and 12 of the treaty give an exclusive right to tax to the residence state, thus eliminating double taxation.

For more information about Malta’s tax system and the firm’s tax practice, please contact Stephen Balzan Tax Partner of the firm.