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.
Although Malta and Russia have a long history of bilateral relations, they did not conclude a double taxation agreement until the 24th of April 2014. The treaty was signed in an effort to avoid double taxation as well as to prevent fiscal evasion in regards to taxes on capital and income charged on companies conducting business in the two countries. It came into effect on the 22nd of May 2014.
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.
Malta first agreed on a double taxation agreement with the USA in 1980 but due to changes in their tax model, the deal could not last through 1997 after their collaborator pulled out. Almost a decade later, the two signed yet another pact in 2006 which this time was framed based on the US tax model. This deal went into effect the following year although it was subject to further improvements which came in 2010. Of more significance was the facilitation for fighting tax evasion that made the greater worth for this change.
A vast majority of investors doing business in Malta opt for a private limited liability business entity. This is the most widely used company type in Malta, for good reasons — it’s quite flexible and offers the most benefits for foreign investors.
One of the most widespread and most preferred company types in Malta is the limited liability entity. This is attributed majorly to the increased level of flexibility and numerous tax benefits that this company type brings to non-residential investors. It’s also the most ideal legal structure for foreign companies who want to establish subsidiary branches in Malta.
