Italy & Malta Double Tax Treaty

The Double Tax Treaty Malta Italy, as amended, was originally signed on the 16th July 1981 and is currently in force. The main features of the Malta Italy Double Taxation Treaty are as below:

Italy Withholding Taxes

Dividend Income

The Double Tax Treaty Malta Italy sets out a maximum Italian withholding tax of 15% on dividends distributed by an Italian resident company to a Maltese resident company.

Interest Income

The Double Tax Treaty Malta Italy sets out a maximum Italian withholding tax of 10% on interest paid by an Italian resident to a Maltese resident beneficial owner of the interest income.

Royalty Income

The Double Tax Treaty Malta Italy states that while certain royalty payments are not subject to any Italian withholding tax the Malta Italy Double Taxation Treaty sets out a maximum Italian withholding tax of 10% on royalties paid by an Italian resident to a Maltese resident beneficial owner of the royalty income.

Other Income

The Double Tax Treaty Malta Italy states that pensions and annuities from Italian sources paid to a Maltese resident are taxable only in Malta. However, such a rule does not apply to similar payments advanced by an Italian statutory body or local authority or political sub division thereof for services rendered therein unless the Maltese resident individual is also a Maltese citizen.

Please contact us should you require any more information on the Malta Italy Double Tax Treaty and the unique tax planning opportunities. You can email us enquiries@papilioservices.com or call us directly on +356 2258 2000.