Malta USA Double Taxation Avoidance Treaty ratified

The Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed between Malta and the United States of America on 8 August, 2008 will enter into force today as the relevant Instruments of Ratification were exchanged between Minister of Finance, the Economy and Investment Tonio Fenech and United States’ Ambassador to Malta H.E. Mr Douglas Kmiec.

The Convention guarantees full transparency and exchange of information on tax issues and reaffirms Malta’s commitment to adopt recognised international standards where transparency and exchange of information is concerned. In fact, the negotiations took into account the OECD Model Tax Convention on Income and on Capital, recent tax treaties concluded by Malta and the USA and the tax treaty policies of both countries.

Minister Tonio Fenech stated that “The Convention serves both Malta and the US as a vehicle to encourage genuine business and trade between the two countries, while eliminating the risk of treaty shopping. As a member of the European Union, Malta offers a unique advantage to US companies looking to set up or expand operations in Europe, the Middle East and Africa. The Convention provides businesses from both countries with a platform for growth, both for their own business operations and for the deepening relationship between the two countries.”

“Malta has been developing and reforming its economic, legislative (including tax legislation) and regulatory structures to take advantage of the opportunities afforded by European Union membership. In the process the country has adopted world best practice standards as demonstrated by its highly successful financial services model for supervision. This has enabled Malta to widen and deepen its economic base and exploit its position as a highly regarded business hub in the region. This agreement should help Malta to attract a higher level of American investment thus incentivising job creation further.”

Minister Fenech concluded that “this agreement, this DTA, will be another important milestone in the relations between Malta and the USA and will contribute to deepen and strengthen the already very good relations between the two countries.”

(as published by the Department of Information)