Malta And Iceland Sign Double Taxation Avoidance Agreement

by Robert Lee, Tax-News.com, London

28 September 2004

The Maltese government has announced the signing of a double taxation avoidance agreement between Malta and Iceland.

As a consequence of the agreement signed by the Permanent Secretary in the Ministry of Foreign Affairs Ms. Cecilia Attard Pirotta and HE Mr. Sverrir Haukur Gunnlaugsson, Ambassador for the Republic of Iceland to Malta, nationals having business interests in either jurisdiction will now pay tax due on income in one country only.

Prior to this agreement, Maltese enterprises registered in Iceland and Icelandic enterprises registered in Malta would pay Income Tax on profits in the country where the business operation is based and the equivalent tax in their country of origin unless unilateral tax release was applied.

Commenting on the agreement, Minister of Foreign Affairs Dr. Michael Frendo noted that such agreements provide an improved climate between two countries to foster business opportunities.

Since gaining Independence in 1964, Malta has signed 44 Double Taxation agreements and the Ministry of Foreign Affairs is currently negotiating a further seventeen such agreements.

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