Liechtenstein’s Foreign Minister Aurelia Frick and the Maltese counterpart George Vella signed a bilateral double taxation agreement (DTA) between the two countries in respect of taxes on income and on wealth. The DTA was signed in New York.
The treaty is based on the Organisation for Economic Cooperation and Development’s (OECD) Model Convention.
Both countries have agreed to waive withholding taxes on dividends, interest, and royalties. The treaty also contains provisions clarifying and governing the entitlement to tax treaty benefits of Liechtenstein pension funds, charitable organisations, and investment funds. In addition, the treaty guarantees national taxing rights for the taxation of natural persons, and includes an information exchange clause. The residency of trusts is regulated separately. Finally, the DTA makes provision for an arbitration clause to ensure that within the framework of a specified process, a binding solution is achieved for both treaty partner states in the event of an interpretation or application dispute.
The treaty requires the parliamentary approval of both jurisdictions and is expected to apply from January 1, 2014.