Double Tax Treaty Malta China

Double Tax Treaty Malta China Tax

The Double Tax Treaty Malta China entered into force on 25 August 2011. The main features of the treaty are as follows:

Dividend Income

The Double Tax Treaty Malta China sets out a maximum Chinese withholding tax of 5% on dividends distributed by a Chinese resident company to a Maltese resident company where the Maltese resident company holds at least 25% of the share capital of the Chinese resident company. In all other circumstances, the maximum Chinese withholding tax is 10%.

Interest Income

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

Royalty Income

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

Other Income

The Double Tax Treaty Malta China states certain pensions and other similar remuneration arising from Chinese sources and paid to a Maltese resident are taxable only in Malta. However such a rule does not apply to similar payments advanced by a Chinese statutory body or local authority or a political subdivision thereof for services rendered therein unless the Maltese resident individual is also a Maltese national.

Please contact us for more information on the tax planning opportunities the Malta China Double Taxation Treaty offers companies based in China and how your organisation can become more tax efficient.

Click below to go back to all of the double taxation treaties Malta has in force: