Legal Notice 70 of 2019 published on the 12th of April 2019 ratifies the new double tax treaty with the Principality of Monaco.
The double tax treaty is largely based on the OECD Model Tax Convention.
In general, the relevant provisions of the treaty stipulate that dividends, interest and royalties paid by individuals and / or companies resident for tax purposes in Monaco will be exempted from withholding tax.
Similarly, Malta is obliged to exempt dividends, interest and royalties paid to individuals and companies resident in Monaco. (Such exemption is already prescribed by Malta’s domestic tax laws – Malta does not levy any withholding tax on dividends, interest and royalties irrespective of the existence of a double tax treaty);
Under Article 21 of this treaty both Contracting States are obliged to eliminate double taxation using the credit method.
For more information on the application of this treaty kindly contact:
Franco Falzon C.P.A., LL.M
T: +356 2010 7771
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