Double Tax Treaty Malta Pakistan

Double Tax Treaty Malta Pakistan

The Double Tax Treaty Malta Pakistan, was signed on 8 October 1975 and is currently in force. The main features of the treaty are as follows.

Pakistani Withholding Taxes

Dividend Income

The Double Tax Treaty Malta Pakistan sets out a maximum Pakistani withholding tax of 15%  on dividends distributed by a Pakistani resident company to a Maltese resident company where the Maltese resident company holds at least 20% of the voting power of the Pakistani resident company. In all other circumstances, there is no Pakistani withholding tax.

Interest Income

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

Royalty Income

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

Other Income

The Double Tax Treaty Malta Pakistan states that the taxation of immovable property strictly follows the lex situs principle whereby taxing rights are granted to the state in which the immovable property is situated.

Please contact us should you require any more information on the Double Tax Treaty Malta Pakistan.

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