The double taxation deal between Malta and Ireland

The government of Malta has been working diligently to improve international business with various states around the world. One of these nations is Ireland. Ireland’s participation in business with Malta has proved fruitful for both states. One of the most prominent cooperations between the two nations is the Malta-Ireland double taxation agreement. The goal of this agreement is to eliminate the double taxation of businesses operating in both countries. Due to the double tax system, a lot of foreign investors are finding interest in opening businesses in Malta. 
In order to catapult the idea, a stiff dialogue was made in 2008 being represented by the state ambassadors. An agreement was reached and signed on November 14, however, the two nations could not endorse the treaty until the following year on January 15. They also took their time before executing the agreement and only started its implementation in 2010 on the first day of January.
All this time, Ireland did not make the negotiations with Malta an easy task but eventually, their success was greatly appreciated. The Maltese government adapted this accord into their local legislation by legal notice 502 0f 2008. The settlement between the two states yielded provisions centered on the OECD model established in 2008 but had slight variations from the model concord. On this treaty, the article pressed for absolutely zero tax rates charged on payment of interest. The payment of dividends and royalties attracted very much lower than 15% withholding tax rates. Boundaries were made which safeguard investors in the two nations from biased tax burdens when doing business in the other state. An article on the sharing of tax data to fight crimes associated with tax evasion was also created!
It may be necessary to mention the progressive feedback given by Ireland after the Malta deal; the state exempted the dividend withholding taxes which was only possible domestically to every other country that engages with their government in DT agreements! Malta’s engagement with Ireland puts them on a good footing to grab opportunities especially after changes in their local tax guidelines. Experts say business will flourish between the two states. This is possible as Malta will function as the anchor location attributed by its broader involvement in this exemption system that encompasses foreign shareholders.
Other exceptional efforts being made by the government of Malta include the provision of tremendous services to international companies engaging in business with their state. There are permanent establishments such as land and infrastructure that have been set up according to the OECD model conventions and the government sees to it that they are well maintained. As a leading state in business, the nation has provided a conducive environment for doing business. It has a focused unwavering government, backed by an English literate skilled labor force. Another marvel to this beautiful nation is the climate which is highly accommodative.
Professional Assistance
To get more insights regarding all the states that successfully signed DT agreements with the Maltese government, you can reach out to SIGTAX. Our team of accountants, lawyers, and consultants stay au courant with the latest business trends and regulations in Malta. They can also help with legal counsel on how to set up a company in Malta including giving a profound understanding of the nations’ tax system. Thus, you can be confident that you will get relevant info which guides you to do everything the right way and in your favor.


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