(Archived Content)
WASHINGTON – The U.S. Department of the Treasury today announced a new income tax treaty with Malta. Approved by the U.S. Senate on July 15, 2010, the new tax treaty officially entered into force today when the United States and Malta exchanged instruments of ratification in Valletta.
Provisions of the tax treaty include:
- Reduced source-country withholding tax on dividend, interest and royalty payments.
- A comprehensive limitation on benefits provision.
- A comprehensive provision allowing for full exchange of information between the U.S. and Maltese revenue authorities.
With respect to taxes withheld at source, the new treaty shall have effect for amounts paid or credited on or after January 1, 2011. For all other taxes, the new treaty will generally have effect for taxable years starting on or after January 1, 2011.
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