Malta Ratifies Tax Treaty With Monaco

  • By:Melissa Speigner
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Malta has ratified the Malta – Monaco Income Tax Treaty (2018). The income tax treaty was signed on 1st October 2018, and it is the first of its kind between the two countries. By way of Legal Notice 91 of 2019, as published as a schedule to Legal Notice 70 of 2019 the treaty entered into force on the 16th May 2019.

According to the treaty (which follows the OECD model convention) the residence state is entitled to full jurisdiction to tax income generated from dividends, interest and royalties in accordance with its  domestic tax legislation, with the source state having no rights to levy any withholding taxes on such income, given that both counties do not levy withholding tax.

Posted in: International Taxation