Malta Double Tax Treaties

Key Legal Points

• Malta has concluded over 80 double tax treaties to eliminate double taxation on both passive and active income.
• Taxpayers may claim foreign tax credit relief, provided it does not exceed Malta’s tax liability on the same income.
• Malta offers unilateral relief and a Flat Rate Foreign Tax Credit system for companies meeting specific conditions.
• pidends, interest, and royalties paid to non-residents are generally exempt from withholding tax under Maltese law.

What is a Double Tax Treaty?

Double taxation often occurs as an unintended consequence of tax legislation, whereby international businesses are burdened with income tax arising from the country where the income was earned, and taxed once more when the income is repatriated in the home country of the business. This is an issue which tax authorities all over the world seek to avoid. Therefore, several countries, including Malta, seek to enter into double tax treaties with important trading partners in an