Double Taxation Conventions

Last Updated: 03/06/2020

In today’s globalized economy, almost all countries are interconnected by cross-border investments; trade in goods and services, transfers of knowledge & technology, and the movement of workers. These transactions and activities may generate different types of income and may trigger tax consequences under the domestic tax laws of more than one country that is involved. This  creates a risk that two countries may have the right to tax the same income in the hands of the same person, examples include cross-border commuters, posted workers, pensioners resident in one EU country receiving a pension from another. Most countries have however concluded agreements to avoid double taxation.

Malta has a broad treaty network, the majority of which are based on the OECD Model Tax Convention. Malta’s double taxation conventions provide rules in respect of dividends, interest, royalties, income from employment, students, entertainers and sportspersons amongst others, as well as rules on the elimination of double taxation.