Ireland Malta Double Tax Agreement

The Agreement shall enter into force with effect from tax periods beginning in Ireland and Malta on or after the expiry of a period of six months from the date of subsequent entry into force of the Multilateral Instrument (MCI). Malta approved its agreement with reservations to the MLI by subsidiary legislation 123.183 and ratified the MLI on 18 December 2018. Malta and Moldova have signed a double taxation convention. The agreement was signed on 10 April 2014 between Foreign Minister George Vella and his Moldovan counterpart, Natalia Gherman. The Agreement shall apply to tax periods which will begin on the expiry of a period of six months from the date of entry into force of the Multilateral Agreement on the Implementation of The Tax Convention Measures to Prevent Profit Reduction and Profit Shifting (PGI) for Ireland and Malta. On 18 December 2018, Malta ratified the Multilateral Agreement on the Implementation of Tax Measures to Prevent Profit Reduction and Profit Shifting, better known as the Multilateral Instrument (MLI). Malta has expressed a number of reservations that can be consulted by access to www.oecd.org/tax/treaties/beps-mli-position-malta.pdf The double taxation convention between Ireland and Malta will have a positive impact on foreign real estate investors and those wishing to trade between the two countries. Following tough negotiations, Malta signed its first double taxation agreement with Ireland on 14 November 2008. The convention was signed in Rome by Ambassadors Walter Balzan and Sean O`Huiginn on behalf of their respective governments. The treaty was subsequently ratified by both states on 15 January 2009 and entered into force on 1 January 2010. Malta transposed the Treaty into its national law by virtue of Legal Opinion 502 of 2008. The structure is possible on the basis of the provisions of Article 4 (Resident) of the Io-Maltese Tax Convention 2008, which provide that a company considered to be established in both Contracting States is established only in the State where its place of effective management is located. In order to prevent the use of the structure, the agreement concluded by the competent authority provides that the treatment of companies established in a single State does not apply: companies may, under certain conditions, claim double taxation relief under the flat-rate foreign tax credit instead of other forms of double taxation relief.

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