Deputy Prime Minister and Minister of Foreign Affairs, Dr Tonio Borg today announced that Malta has signed a double taxation agreement with Libya. Following the signings earlier this year with Ireland, Montenegro and Switzerland, this makes it the fourth such convention to be acquired in 2008. Dr Borg thanked the two teams of experts from both sides for the efficient manner in which the negotiations leading to the new Convention were conducted. This reflects the close relations that have always existed between the two countries and their keen interest to ensure the enhancement of business and commercial relations between them.

The new Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to Taxes on Income between Malta and Libya was signed on Sunday December 28, 2008 at the Ministry of Foreign Affairs in Tripoli by Dr. Joseph Cassar, Malta’s Ambassador to Libya and Mr. Ramadan Barq, Director for European Affairs at the Libyan Foreign Ministry.

The purpose of the Convention is to avoid double taxation and prevent fiscal evasion and covers direct taxes on income and capital and enables both countries to exchange information for a more effective stand against tax evasion. The Convention will enter into force following ratification by both countries.

Once it comes into force, this Convention for the Avoidance of Double Taxation will supersede the previous one signed on the 5 October 1972.

During the signing ceremony Mr. Ramadan Barq said that this signing is yet another milestone in the diplomatic relations between Libya and Malta. Together with the investment guarantee agreement, the new convention consolidates the framework for enhanced economic cooperation between the two countries.

Ambassador Cassar said that the Convention and the Protocol signed are based on a long experience of fiscal cooperation between the two countries and takes into account the constant developments that continue to take place in their dynamic economies.

He said the Convention should further help to stimulate mutually beneficial growth in the economic cooperation between the two countries, a wish that has always been encouraged by the leadership of the two countries, and as recently reaffirmed by the Leader of the Revolution, H.E. Muammar Gaddafi, during the July visit to Libya by the President of Malta, H.E. Edward Fenech Adami.