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8th August, 2008 - Malta and the United States have today signed a double taxation agreement which must now overcome the final formality of US Senate approval before coming into force. The last double taxation agreement which existed between the two countries was suspended in 1997 when new tax legislation based on a nominee concept came into force in Malta in 1994, which US authorities feared could lead to tax avoidance, particularly in the light of Malta’s double taxation agreement with Libya, where substantial US commercial interests exist. Following an overhaul of Malta’s legislative framework, particularly in the areas of tax and financial services, the re-introduction of a double taxation agreement has featured high on the agendas of both countries.
This development is expected to facilitate growth in bilateral trade and services (particularly financial services) between Malta and the United States, making it more attractive for Malta to be a base for US companies operating in oil-related industries in North Africa.
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