One of Malta’s most recent double tax treaties is with Ukraine. The treaty came into effect on the 28th of August, adding on to Malta’s vast network of double taxation agreements. To date, Malta holds over seventy double tax agreements with various countries and jurisdictions from around the world.
Double taxation often crops up for companies doing business internationally and can be such a headache to the modern business world. Maltese citizens contemplating of doing business in Switzerland and Swiss citizens who want to do business in Malta vice versa will be relieved to know of the June 2012 standing treaty that prevents double taxation for legal entities carrying out taxable activities in either of the two states.
Malta and the Grand Duchy of Luxembourg have a lot in common. They are both the smallest member states of the European Union—Malta is the smallest member state followed by Luxembourg. In order to avoid double taxation as well as prevent fiscal evasion in regards to taxes on capital and income, the two nations signed a Double taxation agreement on the 29th of April 1994. The treaty was signed by the plenipotentiaries of the two countries, Guido de Marco(Former Deputy Prime Minister for Foreigh Affairs) and Jacques F. Poos(Former Deputy Prime Minister of Foreigh Affairs, Foreign Trade and Cooperation). It came into effect in 1996.
After several meetings between the Maltese and British plenipotentiaries, the Double taxation agreement between the two countries was finally concluded and it came into effect on the 27th of March 1995. Their goal was to provide double taxation relief and make business easier between Maltese and British nationals.
The Maltese government greatly supports the business sector in Malta and one of its primary goals is to create a more convenient atmosphere for both local and international businesses. In order to moderate one of the barriers which deter the growth of international companies, Malta strongly leverages the double taxation system. This move has proved rewarding to both Malta and foreign investors who have taken a keen interest in doing business with Malta. Over 70 DT agreements have been signed so far with more than 60 of them already into effect.
Registering for tax in Malta is no different from other countries and it actually comes with a number of benefits. Every business operating in Malta is mandated to register for tax with the Department of Inland Revenue in Malta in order to legally operate on the market. To be recognized as a taxpayer, you should obtain a Maltese PE number, which is also issued out by the department of inland revenue. This will allow you to legally retain and pay taxes for both your company and for your employees.
