The agreement provides that countries cannot discriminate, i.e. they cannot tax an inhabitant of the other country at a higher rate than they would have taxed their own citizens in the same circumstances. The American Chamber of Commerce of Malta, in collaboration with the U.S. Embassy in Malta, organized a forum on the theme „Malta Double Taxation Agreement – What it means for Maltase businesses?“. Dr. Juanita Brockdorff`s presentation on the subject on this forum can be downloaded here (.ppt 1.12 mb). The purpose of the new double taxation treaty between the United States and Malta is to promote and facilitate trade and investment between the two countries. The main objective of the Convention is to avoid double taxation of income generated in one State for a resident of the other State. However, it also provides for reduced withholding tax rates for cross-border payments of dividends, interest and royalties, as well as the abolition of withholding taxes on cross-border dividends paid to pension funds.

After years of negotiations, the double taxation agreement between the United States and Malta was signed on Tuesday, November 2, 2010 and ratified with effect from January 1, 2011. The double taxation convention replaces an earlier convention that was denounced in 1997. This is a welcome step to further strengthen the ever-growing presence of US companies participating in the Maltese economy. So far, an estimated 1-2% of the Maltese workforce in the US is in the US, mainly in hotel chains, ICT services, and production and service facilities. Agreement between the Government of the Russian Federation and the Government of the Republic of Albania for the avoidance of double taxation of taxes on income and capital According to the Convention, pensions and similar payments are taxable only by the country paying them, even if the person resides in the other country. Some payments, such as dividends and royalties, are taxable by both countries, but there is a maximum source value of 10 percent…