Cyprus-Malta Double Taxation TreatyUpdated on Tuesday 22nd September 2015
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The Cypriot-Maltese double taxation agreement
Cyprus has signed a double taxation agreement with Malta in 1993. The agreement was enabled in 1994 and contains the provisions on how the avoidance of double taxation will be applied. The agreement also contains provisions about the prevention of fiscal evasion. The double taxation agreement applies to residents of Cyprus and Malta.
For information about other double taxation treaties, you may also contact our lawyers in Cyprus.
What are the taxes covered by the Cyprus-Malta double taxation agreement?
The Cyprus-Malta double tax agreement applies to the taxes on income and capital on behalf of one of the contracting states in the other state. The income tax will cover the total income and capital or elements of the income and capital and also includes any gains from the alienation of property. The agreement also covers salaries paid by Cypriot or Maltese companies to employees from one of the contracting states. At state level, the double taxation agreement covers the following taxes:
- - the Cypriot corporate and income tax, the defense contribution, the capital gains tax and the immovable property tax,
- - the Maltese income tax.
Other similar taxes will also fall under the provisions of the double taxation agreement between Cyprus and Malta. The treaty also applies to Maltese and Cypriot companies.
The taxation of income according to the Cyprus-Malta double tax treaty
With respect to the taxation of income derived from the alienation of movable or immovable property in Cyprus or Malta, the agreement provisions the income may be taxed in the country the property is located in. Immovable property refers to buildings, livestock and equipment employed in agriculture and forestry. Income from rentals will also be covered by the Cyprus-Malta double taxation treaty.
With respect to business profits, the agreement establishes the profits of a Maltese or Cypriot company will be taxed in the country the company is registered in. The dividend tax will be levied in Cyprus or Malta depending on the beneficial owner. However, under certain circumstances, the dividend tax may be applied in the other state.
For information about the tax rates applied according to the double taxation agreement you may refer to our Cypriot lawyers.