Malta signs a tax treaty with Kosovo
The tax treaty between Malta and the Republic of Kosovo has been published in Legal Notice 168 of 2019.
As most other tax treaties, this tax treaty is also modelled on the OECD model convention. No withholding taxes apply on dividends paid by a company resident in Kosovo if the holding percentage of the Maltese tax resident exceeds 10% and the shares are held for more than a year. In other cases, the withholding tax rate on dividends is 10%. Withholding tax on interest paid in Kosovo is limited to 5% of the gross amount of interest whereas no withholding tax applies on royalty payments.
Elimination of double taxation is provided for under the credit method. As with other tax treaties, the treaty also contains the standard articles with respect to the Mutual Agreement Procedure and Exchange of Information.