Malta & Liechtenstein sign DTA

Source: Jeanette Braunsberger¸ PKF Malta¸ October 2013

After 6 month of negotiations on the DTA¸ Liechtenstein’s Foreign Minister Aurelia Frick and her Maltese contracting party George Vella have signed on 27th September in New York a bilateral double taxation agreement between Malta and Lichtenstein in respect of taxes on income and on wealth.

The bilateral double taxation agreement treaty mostly follows the Organization for Economic Cooperation and Development’s Model Convention. The agreement contains provisions clarifying and governing the entitlement to tax treaty benefits of Liechtenstein pension funds¸ charitable organizations¸ and investment funds.

Moreover¸ both countries have agreed within the framework of the DTA to remit withholding taxes on dividends¸ interest¸ and royalties. Also¸ the treaty guarantees national taxing rights for the taxation of natural persons¸ and includes an information exchange clause in accordance with the international standard. The residency of trusts is regulated separately.                           

According to the Liechtenstein government¸ the agreement is designed to increase reciprocal investment between both countries and will serve to contribute to the further positive development of economic relations between them. The text will be published following the signing. The agreement is expected to apply from January 1¸ 2014. Following the results of this accord¸ the Liechtenstein Government underlined its commitment to further expanding the Principality’s DTA network¸ both within and outside of Europe.