Malta: Malta's Double Tax Treaties - January 2016

Last Updated: 25 January 2016
Article by André Zarb, Anthony Pace, Juanita Brockdorff and Doreen Fenech

In order to encourage the growth of international trade including that of financial services, successive Maltese governments have sought to conclude double tax treaties with important trading partners as well as with emerging countries. This policy is expected to continue in the future. To date, treaties are in force with 70 countries.

The following table illustrates the treaty and non-treaty withholding tax rates when dividends, interest and royalties are paid from treaty countries to Maltese residents. In general there is no withholding tax under Maltese law on dividends, interest and royalties even where a treaty allows such tax. Non-Treaty rates quoted in the table below do not take into account provisions of European Union Law which may be applicable.

Treaties signed but not yet in force

Curacao and Ukraine and protocol to the treaty with Belgium.

Treaties being (re)negotiated

Azerbaijan, Bosnia and Herzegovina, Oman and Thailand.


  1. 0% for the use of, or right to use copyrights of literary, artistic or scientific work
  2. 0% for interest on commercial debt-claims
  3. 0% for the production or reproduction of literary, educational, dramatic, muscial or artistic work
  4. Tax on royalties derived as a consideration for the use of, or right to use, industrial, commercial, or scientific equipment shall not exceed 10% on an amount corresponding to 70% of the gross amount of the royalties
  5. Held for a 12 month period prior to the date the dividends are declared
  6. 0% applies to interest paid by the Government of that Contracting State, a political subdivision, a local authority or the Central Bank thereof and interest paid to a resident of the other Contracting State on corporate bonds traded on a Stock Exchange in the first- mentioned State.
  7. 0% for the use of or right to use, any copyright of literary, artistic or scientific work, cinematographic films or tapes for television or broadcasting
  8. 0% for interest paid in connection with the sale on credit of any industrial, commercial or scientific equipment or paid in connection with the sale on credit of any merchandise by one enterprise to another
  9. The 0% rate applies to interest paid on loans as defined in the Malaysian Income Tax Act
  10. 5% applies to the use of or, the right to use copyright of literary, artistic or scientific work including cinematograph films or films or tapes used for radio or television broadcasting
  11. Held for an uninterrupted period of 24 months. This period can also be met after the payment of dividends is made
  12. 5% applies to royalties paid for the use of or the right to use, industrial, commercial or scientific equipment
  13. 7% applies if the interest is received by a bank, 10% in all other cases
  14. Held for at least 12 months and provided both companies:

    1. are subject to and not exempted from tax;
    2. are not resident for tax purposes in a third state under any double taxation agreement; and
    3. have adopted the form of a limited liability company.
  15. 0% applies to interest paid between associated companies and to interest paid in connection with the sale on credit of any industrial, commercial or scientific equipment; in connection with the sale of any merchandise by one enterprise to another enterprise; or on any loan of whatever kind granted by a bank
  16. Lower rate of 5% also applies if the beneficial owner is a Collective Investment Scheme
  17. 5% for the use of or the right to use, any industrial, commercial or scientific equipment, and copyright of literary, artistic or scientific work
  18. 15% applies to interest that does not quality as portfolio interest
  19. 0% applies in four given scenarios, 5% applies to interest from loans granted by certain banks, 10% applies in all other cases


  1. 0% for fully franked dividends, distributions of conduit income, etc. 30% for unfranked dividends
  2. 0% applies if paid out of foreign sourced income, 25% applies if paid out of profits that are exempt or have not been taxed and 15% applies in all other cases
  3. 0% applies to arm's length paymentss
  4. 5% applies to film royalties and 10% applies to any other royalties
  5. 30% of profits multiplied by the applicable corporate tax rate
  6. 20% applies to patent royalties
  7. 25% applies where the shareholding is less than 10% and where the payor is a company resident in Israel whose shares are listed and traded on a stock exchange. 30% applies where the shareholding is equal to or more than 10%.
  8. A final dividend distribution tax is payable by the dividend-paying company at 15%
  9. Royalties paid to non-resident companies are subject to a withholding tax of 30% on 75% of the gross royalty i.e. resulting in a final tax of 22.5%
  10. 15% applies to dividends distributed by fund managers, investment custodians and corporate bodies.
  11. 15% if less than 10% holding and exchange of information; 27% in other cases.
  12. 0% generally and 26.38% an interest from convertible bonds, profit-sharing bonds and participation bans amongst others
  13. The 5% rate applies to interest on debts, deposits and guarantees
  14. 3% applies to loans secured by property, 35% on bonds issued by Swiss debtors and on bank deposits and 0% for qualifying interest under EU Swiss Savings agreement
  15. 10% applies when distributed by mining, telecommunications, insurance, re-insurance and financial companies and banks
  16. 0% for film copyright royalties
  17. 3% applies to interest paid by financial institutions out of deposits in domestic currency or indexed units with more than a 1-year term, interest on bonds with a term of more than 3 years issued through a public offer and quoted on the stock exchange and on income certificates issued by financial trusts through public subscription and stock price for periods which exceed 3 years, 5% applies to interest from 1-year term or less deposits and 12% applies to any other interest
  18. 9% for certain mortgage and long-term municipal bonds, 15% for state and other municipal bonds, and 20% in other cases.
  19. 0% applies to interest income paid to a non- resident company from traded government bonds, loans provided by a foreign resident to the state in foreign currency, and deposits of foreign currency bank accounts, provided that no business or profession is conducted in Israel by the foreign resident. 26.5% applies in all other cases
  20. 10% applies to interest paid to financial institutions, or to publicly traded securities, 15% applies to reinsurance companies, 21% applies to non-resident suppliers of machinery and equipment or paid by financial institutions, 40% applies to entities subject to preferential tax regime, 35% applies to other interest payments
  21. 5% applies to railroad wagons, 35% applies to patents, trademarks and advertising, 40% applies to royalties paid to entities subject to preferential tax regime and 25% applies to other royalties
  22. 5% applies under the participation exemption rules; 10% in other cases

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions