Malta And Singapore Sign Double Taxation Avoidance Agreement

by Mary Swire, Tax-News.com, Hong Kong

23 March 2006

An Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income has been signed between the Republic of Singapore and Malta.

Mr Raymond Lim, Second Minister for Foreign Affairs and Finance, signed on behalf of Singapore and Dr Michael Frendo, Foreign Minister of Malta, signed on behalf of Malta at a ceremony in Singapore on Tuesday.

The Agreement aims to alleviate the burden of double taxation which arises when the resident of a contracting state derives income from the other contracting state. It also makes clear the taxing rights between Singapore and Malta on all forms of income from cross-border economic activities between the two contracting states. There are also provisions for reduction or exemption of tax on certain types of income.

The Agreement facilitates the cross-flow of trade, investment, financial activities and technical know-how between Singapore and Malta.

With the signing of this Agreement, Singapore has signed comprehensive Avoidance of Double Taxation Agreements with 56 countries.

Malta, which recently concluded a double tax avoidance agreement with the United Arab Emirates, has a network of around 45 such agreements with another fifteen in the pipeline.

The Agreement will enter into force after its ratification by both countries. The provisions of the Agreement will apply to income arising in the year after its entry into force.

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