Malta has formally brought into force amendments to its double taxation agreement with the Republic of San Marino, marking another step in the country’s ongoing efforts to strengthen international tax cooperation and modernise cross-border tax administration. The development follows the publication of Legal Notice 174 of 2026, a commencement notice issued under the Income Tax Act. The notice confirms that the protocol amending the tax convention between Malta and San Marino, originally published through Legal Notice 98 of 2026, is deemed to have entered into force on 22 April 2026.
Background to the Amendment
Earlier this year, Malta enacted Legal Notice 98 of 2026, which introduced an Additional Protocol amending the Convention between Malta and San Marino with respect to taxes on income. The protocol updates the existing treaty framework that was originally signed in Valletta on 3 May 2005 and later amended in Rome on 10 September 2009.
According to the text of the protocol, one of the key amendments concerns the treaty’s Mutual Agreement Procedure (MAP). The amendment removes the provision that previously stipulated that a mutual agreement procedure would expire by the end of the third year following the presentation of a taxpayer’s case.
Tax practitioners generally view mutual agreement procedures as an important mechanism for resolving disputes arising from the interpretation or application of double taxation treaties. By removing the previous time limitation, the amendment is expected to provide greater flexibility for competent authorities to resolve complex cross-border tax matters. The legal notices themselves state only that the expiry provision is being deleted and do not specify any further policy rationale.
Entry into Force Confirmed
Legal Notice 98 of 2026 provided that the protocol would enter into force once both contracting states had completed their respective legal requirements and notified each other through diplomatic channels. It also stipulated that a separate notice in the Government Gazette would establish the date on which the protocol became effective.
That procedural step has now been completed through Legal Notice 174 of 2026, which officially confirms that the protocol entered into force on 22 April 2026.
Significance for Malta’s International Tax Framework
The amendment reflects Malta’s continued commitment to maintaining an up-to-date treaty network aligned with contemporary international tax standards and dispute-resolution practices. Double taxation agreements are designed to prevent the same income from being taxed in two jurisdictions, while also creating mechanisms for cooperation between tax authorities.
With the protocol now in effect, taxpayers and advisers dealing with income that falls within the scope of the Malta–San Marino double tax treaty should take note of the revised provisions, particularly those relating to dispute resolution and treaty administration.
The commencement notice brings legal certainty to the amendment process and confirms that the updated treaty framework is now fully operational between the two jurisdictions.
For more details, please refer to:
- Legal Notice 98 of 2026 – Double Taxation Relief on Taxes on Income with the Republic of San Marino (Amendment) Order, 2026;
- Legal Notice 174 of 2026 – Commencement Notice.
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