Malta's tax agreement with Singapore for the Avoidance of
Double Taxation and Prevention of Fiscal Evasion with respect to
taxes on Income is now effective. The agreement, signed in 2006,
became operative on the 29th February this year. The
agreement will specify clearly the taxing rights of each country
on all types of income earned from 1 January 2009.
The full text of the agreement was published in the Singapore
Government Gazette on 29 February 2008 and is also available on
our website (link below).
Text of Malta Singapore Double Tax Treaty
The Agreement was signed in March 2006 in Singapore. It aims to
alleviate any double taxation that may arise when a resident of
one country derives income from the other country. The terms of
the Agreement provide for the reduction or exemption of tax on
certain types of income, which include reducing withholding tax
rates on interest received by a bank to 7% and all other
recipients of interest to 10%. The withholding tax rate on
royalties has also been reduced to 10%. The ratification of the
Agreement will further facilitate the cross-flow of trade,
investment, financial activities and technical know-how between
Singapore and Malta.
Maltese government announced that Malta enjoys extensive
commercial ties with Singapore, and the agreement is expected to
contribute to a further expansion in trade between the two
sides. Although Malta enjoys the reputation of a benign tax
jurisdiction, the Mediterranean Island has entered into more
than fifty double taxation treaties, including with the United
Kingdom, Australia, Canada, France, Germany and Italy.
Apart from these general agreements, tax treaties with
Switzerland and the US are limited to shipping and aviation. In
the case of the US, a bilateral income tax treaty is planned for
the near future.
