Barbados & Malta Double Tax Treaty

The Protocol amending the Double Tax Treaty Malta Barbados came into force on 30 April 2014. The amendment provides for enhanced exchange of information with Barbados.

Barbados Withholding Taxes

The main features of the Malta Barbados tax treaty are as follows:

Dividend Income

The Double Tax Treaty Malta Barbados sets out a maximum Barbadian withholding tax of 5% on dividends paid by a company resident in Barbados to a company resident in Malta which holds at least 5% of the capital of the company paying the dividend. In all other cases, the maximum Barbadian withholding tax is 15%.

Interest Income

The Double Tax Treaty Malta Barbados sets out a maximum Barbadian withholding tax of 5% on interest paid by a resident of Barbados to a resident of Malta.

Royalty Income

The Double Tax Treaty Malta Barbados sets out a maximum Barbadian withholding tax of 5% on royalties paid by a resident of Barbados to a resident of Malta.

Other Income

The Double Tax Treaty Malta Barbados definition of a permanent establishment (PE) is based on the OECD Model, and includes the possibility of a services PE.

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When navigating tax matters from Malta to Barbados and from Barbados to Malta, it’s essential to understand how the Double Tax Treaty between the two countries impacts taxation on income, capital gains, and other financial obligations. This treaty ensures that individuals and businesses benefit from reduced tax liabilities and avoid the risk of double taxation. By leveraging this agreement, both residents and companies can optimise their tax position when operating or investing across Malta to Barbados or Barbados to Malta. Please contact us should you require any more information on the Malta-Barbados Double Tax Treaty and the unique tax planning opportunities.

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