On September 27th 2013 Malta and Liechtenstein representatives in New York have signed a double taxation agreement. The document was signed by Malta’s Minister of Foreign Affairs, Mr. George William Vella and his Liechtenstein counterpart Aurelia Frick.
The Organization for Economic Cooperation and Development’s Model Convention served as basis for the treaty between two countries concerning taxes on wealth and income.
The document clarifies the entitlement to tax treaty advantages for various funds, charitable organizations. Both countries are waiving withholding taxes on interest, royalties and dividends.
In order to achieve a legal certainty for investors the parties, included the arbitration clause in the agreement. In the event of dispute, a binding solution is achieved for both partner states.
The treaty is expected to take effect next year’s January.