18th December 2008

Malta and Switzerland sign double taxation agreement

Deputy Prime Minister and Minister of Foreign Affairs Dr. Tonio Borg signed the Agreement between Malta and Switzerland for the Avoidance of Double Taxation with respect to Taxes on Income, during an official visit to Malta by H.E. Ms Micheline Calmy-Rey, Minister of the Swiss Federal Department of Foreign Affairs. The Agreement was signed in the margins of a bilateral meeting held at the Ministry of Foreign Affairs.

The purpose of this Agreement is to avoid double taxation and prevent fiscal evasion and covers direct taxes on income and capital and enables both countries to exchange information for a more effective stand against tax evasion. The Agreement will enter into force following ratification by both countries.

Dr. Borg said that this Agreement has the primary objective in making the two countries more attractive for entrepreneurs and believed that Maltese-Swiss economic and commercial cooperation will improve further. He also said that the signing of this instrument represents a major and important step forward in the bilateral relations between both countries and represents a significant addition to Malta’s existing network of double taxation treaties.

We will be reviewing and analysing the tax treaty in the coming days.