Malta's tax-efficient regime

Fostering an optimal environment for foreign investers

Chetcuti Cauchi | Published on 18 Jul 2017

Maltas Tax Efficient Regime Img

Malta boasts its extensive network of OECD Model based double tax treaties. Currently, there over 70 such treaties are in force and Malta continues to seek further collaboration in tax matters with new reputable trading partners as well as emerging economies.

As one of the methods of mitigating double taxation, in most cases the treaties entered into by Malta reduce the rates of withholding taxes that residents of treaty partner jurisdictions are obligated to remit to their local tax authorities when making payments of certain income categories to Malta tax residents. In some cases, however, domestic legislation of the payer jurisdiction may provide for lower or even zero withholding tax rates.

The table below shows the rates of withholding taxes to be deducted by residents of Malta treaty partner jurisdictions from dividend, interest and royalty payments, as per tax treaties that are currently in force.

Triety Partner Dividends (%) Interest (%) Royalties (%)
Albania 5/15 5 5
Australia 0/15 15 10
Austria 15 5 10
Azerbaijan 8 8 8
Bahrain 0 0 0
Barbados 5/15 5 5
Belgium 15 10 10
Bulgaria 0 0 10
Canada 15 15 10
China (P.R.C.) 5/10 10 7/10
Croatia 5 5 0 0
Cyprus 15 10 10
Czech Republic 5 0 5
Denmark 0/15 0 0
Egypt 10 10 12
Estonia 5/15 10 10
Finland 5/15 0 0
France 5/15 10 10
Georgia 0 0 0
Germany 5/15 0 0
Greece 5/10 8 8
Guernsey 0 0 0
Hong Kong 0 0 3
Hungary 5/15 10 10
Iceland 5/15 0 5
India 10 10 10
Ireland 5/15 0 5
Isle of Man 0 0 0
Israel 0/15 5 0
Italy 15 10 10
Jersey  0 0 0
Jordan 10 10 10
Korea (R.O.K.) 5/15 10 0
Kuwait 0 0 10
Latvia 5/10 10 10
Lebanon 5 0 5
Libya 5/15 5 5
Liechtenstein 0 0 0
Lithuania 5/15 10 10
Luxembourg 5/15 0 10
Malaysia 0 15 15
Mauritius 0 0 0
Mexico 0 5/10 10
Moldova 5 5 5
Montenegro 5/10 10 5/10
Morocco 6.5/10 10 10
Netherlands 5/15 10 10
Norway 0/15 0 0
Pakistan 15 10 10
Poland 0/10 5 5
Portugal 10/15 10 10
Qatar 0 0 5
Romania 5 5 5
Russia 5/10 5 0
San Marino 5/10 0 0
Saudi Arabia 5 0 5/7
Serbia 5/10 10 5/10
Singapore 0 7/10 10
Slovakia 5 0 5
Slovenia 5/15 5 5
South Africa 5/10 10 10
Spain 0/5 0 0
Sweden 0/15 0 0
Switzerland 0/15 0/10 0
Syria 0 10 18
Tunisia 10 12 12
Turkey 10/15 10 10
United Arab Emirates 0 0 0
United Kingdom 0 10 10
United States 5/15 10/15 10
Uruguay 5/15 10 5/10
Vietnam 5/15 10 5/10/15

 


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