23th October 2009

Malta signs double taxation Agreements with Isle of Man and Georgia

The Government of Malta today signed two double taxation agreements, one with the Isle of Man and one with Georgia. This brings the number of double taxation agreements that Malta signed during the last eighteen months to fourteen.

Malta’s High Commissioner in the United Kingdom, Mr Joseph Zammit Tabona signed on behalf of the Maltese Government, while the Treasury minister of the Isle of Man, the Hon. Mr Allan Bell, signed on behalf of the Government of the Isle of Man. During the ceremony, which took place at the Maltese High Commission in London, Mr Zammit Tabona said that this agreement is instrumental for trade and investment relations to be strengthened further and is a step forward to explore new avenues of economic benefits between Malta and the Isle of Man.

Another agreement was also signed at the Embassy of Malta in Rome whereby Malta’s ambassador to Italy Mr Walter Balzan and the Ambassador of Georgia, Mr Konstantine Gabashvili singed on behalf of the respective Governments the double taxation agreement between Georgia and Malta. Both ambassadors expressed their satisfaction at the signing of the Agreement and hoped that other agreements would be concluded in the future in order to continue to enhance relations between the two countries.

Both double taxation agreements signed with Georgia and the Isle of Man are based on the OECD Model Convention and impose no withholding taxes on the payment of dividends, interest and royalties. Accordingly, these types of income are only taxable in the residence state of the recipient. Such agreements aim to benefit entrepreneurs from both countries as business between the respective jurisdictions will be able to take place with more ease. Both the agreement signed with Georgia and that signed with the Isle of Man are not yet in force as they are awaiting ratification.