Double taxation avoidance treaty with Uruguay comes into force

Malta’s double taxation avoidance treaty with Uruguay came into force this week after being signed in March 2011.

The agreement with Uruguay is the first DTA with any Latin American country.

It seeks to create attractive conditions for Uruguayan and Maltese investors but, contains provisions intended to prevent tax avoidance through improper use of the treaty.

This week, Malta also signed a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income with Mexico.

Its main purpose is to remove the obstacles that double taxation presents to the development of economic relations between Malta and Mexico.

The Convention provides for exchange of information on tax matters  between the competent authorities of the two countries based on internationally agreed standards with a view to combating international tax avoidance and evasion.

It gives more credibility to Malta in the current international scenario where transparency and exchange of information in tax matters are concerned.

Malta now has 66 double taxation and other bilateral agreements.

 

(The Times – 22 December 2012)