USA & Malta Double Tax Treaty

The Double Tax Treaty Malta USA came into force on 23 November 2010. The main features of the Malta USA tax treaty are as follows:

USA Withholding Taxes

Dividend Income

The Double Tax Treaty Malta USA sets out a maximum American withholding tax of 5% on dividends distributed by an American resident company to a Maltese resident company where the Maltese resident company holds at least 10% of the voting shares in the American resident company. In all other circumstances, the maximum American withholding tax is 15%.

Interest Income

The Double Tax Treaty Malta USA sets out a maximum American withholding tax of 15% on interest paid by an American resident to a Maltese resident beneficial owner of the interest income.

Royalty Income

The Double Tax Treaty Malta USA sets out a maximum American withholding tax of 10% on royalties paid by an American resident to a Maltese resident beneficial owner of the royalty income.

Other Income

The Double Tax Treaty Malta USA states that certain pensions and other similar remuneration arising from American sources and paid to a Maltese resident are taxable only in Malta.

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