8th August 2008

Malta signs tax treaty with USA

After the initialisation of the text of the treaty on 27 March 2008, work has continued in earnest and on 8 August 2008  the Ministry of Finance signed the double taxation agreement with the USA at the Auberge de Castille Valletta. This will now go before the US Senate for ratification before coming into force.  It will also be published by both the US Treasury and the Government of Malta to become a public document prior to ratification

The treaty in itself is quite unique, as there are provisions that also apply to significant Maltese communities living in other countries in particular those in the EU and Australia, so that these too may benefit from the tax provisions incentivising investment. This is an interesting development where, whilst strict anti abuse provisions to stop treaty shopping were drafted into the treaty, the US Treasury still understood the need for international trade and investment in Malta with key countries where there is a significant Maltese migrant population.

The treaty text has not yet been officially published and a detailed analysis will be made once the treaty is published.

Please click here should you wish to view the unofficial version of the Malta – USA tax treaty.