Israel & Malta Double Tax Treaty

The Double Tax Treaty Malta-Israel states that there is no Israeli withholding tax on dividends distributed by an Israeli resident company to a Maltese resident beneficial owner of the dividend income where the Maltese resident company holds directly at least 10% of the capital of the company paying the dividend.

In all other cases (including for distributions made by an Israeli real estate investment company where the Maltese resident beneficial owner holds directly less than 10% of the capital of the real estate investment company paying the dividend), the maximum Israeli withholding tax is 15%.

The Double Tax Treaty Malta Israel states that the maximum Israeli withholding tax on interest paid by an Israeli resident to a Maltese resident beneficial owner of the interest income is 5%.

The Double Tax Treaty Malta Israel states that no Israeli withholding tax is charged on royalties paid by an Israeli resident to a Maltese resident beneficial owner of the royalty income.

The Double Tax Treaty Malta Israel states that pensions and other similar remuneration from Israeli sources to a Maltese resident individual may only be taxed in Malta.

However, this does not apply for pensions paid by, or out of funds created by, Israel or a political subdivision or a local authority for services rendered to Israel, which are taxable in Israel only.