Double Tax Treaty Malta Monaco

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:

Elimination of double taxation

Double taxation is eliminated by the allowance of a credit for any tax suffered in the source country against the tax liability for that income in the residence country.

Taxation of dividends

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).

Taxation of interest

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 (ie 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).

Taxation of royalties

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 (ie 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.

Should you need any further information on the Malta Monaco double tax treaty and the potential tax optimisation opportunities that may arise therefrom for companies and individuals based in Monaco and Malta, please contact us on info@papilioservices.com

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