19th January 2010
Amendment to the double taxation agreement between Malta and Belgium
The Minister of Finance, the Economy and Investment, the Hon. Tonio Fenech and his counterpart, the Belgian Minister of Finance, Didier Reynders signed an agreement to amend the existing Double Taxation Agreement between Malta and Belgium for the avoidance of double taxation and the prevention of fiscal evasion. The agreement was originally signed on 28 June, 1974 and was further amended through a Supplementary Agreement signed on 23 June, 1993.
The Double Taxation Agreement with Belgium was amended to bring the provisions on the exchange of information in line with internationally agreed standards as set out in the corresponding Article of the 2008 Organisation for Economic Co-operation and Development (OECD) Model Tax Convention on Income and on Capital.
The treaty between Malta and Belgium provides for a reduced treaty rate of 15% on dividends and 10% on interest and royalties. However these reduced treaty rates may be superseded by the Parent Subsidiary Directive as well as the Interest and Royalties Directive which may apply between the two Members States.
Minister Fenech commented that this agreement continues to enhance the double taxation treaty network which enables Malta to develop trade relations with other countries, attract inward direct investment and serves as an important platform for Maltese residents doing business in partner countries. Malta and Belgium have important trade links, which have been developed further especially since Malta’s accession into the European Union. This agreement seeks to build on these links by providing another tool that enhances both Governments’ ability to avoid double taxation and prevent fiscal evasion.
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