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Tax treaty - Malta & Switzerland

Switzerland and Malta have signed a new Double Tax Agreement, designed to further the positive development of bilateral economic relations and foster the exchange of information.

Signed on February 25, Switzerland and Malta agreed withholding tax exemption for dividend payments in the case of related companies with a capital stake of at least 10% in the company making the payment. This exemption applies so long as the participating interest is held for at least one year. In addition, most-favoured-nation treatment of Switzerland was agreed in an arbitration clause. Should Malta negotiate an arbitration clause with another country, the clause agreed between Switzerland and Malta would automatically become applicable.

The Federal Council of Switzerland will now submit the signed agreement to parliament, which will then decide whether the DTA should be subject to an optional referendum. The agreement can enter into force once the partner state has provided its approval. Usually, the new provisions are applicable from January 1 of the calendar year following the date of entry into force.