9th February 2010

Malta ratifies double taxation agreement with Qatar

By virtue of Legal Notice 69 of 2010, Malta ratified the double taxation agreement with Qatar which was signed on the 23 January 2009. The treaty shall be applicable with effect from the 9 December 2009.

The double taxation agreement between Malta and Qatar is based on the OECD Model Convention. No withholding taxes are imposed on the payment of dividends and interest and thus these sources of income are only taxable in the residence state of the recipient. With respect to royalties, the treaty provides for a reduced treaty rate of 5%.

The Malta-Qatar treaty will further expand Malta’s treaty network with Middle East countries.