Monaco & Malta Double Tax Treaty

A double tax treaty between Malta and the Principality of Monaco was signed on 27 September 2018 and recently published by the Maltese authorities. Some of the main features of the treaty are the following:

Monaco Withholding Taxes

Dividend Income

The double tax treaty between Malta and Monaco sets out that dividends paid by a company resident in Monaco to a resident of Malta who is the beneficial owner thereof shall be taxable in Malta only (ie no withholding tax).

No withholding tax is charged on dividends paid by a company in Malta to a shareholder resident in Monaco (as a result of domestic law provisions).

Interest Income

The double tax treaty between Malta and Monaco sets out that interest arising in Monaco and paid to a resident of Malta shall be taxable in Malta only (i.e. no withholding tax).

No withholding tax is charged on interest paid by a Malta resident person to a person resident in Monaco (as a result of domestic law provisions).

Royalty Income

The double tax treaty between Malta and Monaco sets out that royalties arising in Malta and paid to the beneficial owner thereof resident in Malta shall be taxable in Malta only (i.e. no withholding tax).

No withholding tax is charged on royalties paid by a Malta resident person to a person resident in Monaco (as a result of domestic law provisions

).

Artistes and Sportsmen

Income derived by a person from entertainment or sports may be taxed in the state where the activities are exercised.

Pensions

Pensions and similar remuneration in consideration of past employment and any annuity shall be taxed in the country of residence only.

Other Income

Income not specifically dealt with in the Malta Monaco double tax treaty shall be taxable in the country of residence only.

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