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08.08.2008

News / U.S., Malta Sign Income Tax Treaty

Washington, DC--The Treasury Department today announced that U.S. Ambassador to Malta, Molly Bordonaro, and Malta Finance Minister Tonio Fenech have signed a new income tax treaty between the two countries in the Maltese capital of Valletta.

The agreement provides for reduced withholding rates on cross-border dividend payments generally with the elimination of withholding on cross-border dividend payments to pension funds. It also generally provides for withholding at a 10-percent rate on interest, royalties, and other income.

The treaty also contains a comprehensive limitation of benefits provision and provides for the exchange of information between the competent authorities to facilitate the administration of each country's tax laws.
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