The ‘Treaty for the Elimination of Double Taxation’ signed by Malta and the Principality of Liechtenstein on 27 September 2013 has entered into force on 1 July 2014 by Legal Notice 259 of 2014.
The treaty is based on the OECD Model Convention and relates to taxes on income, on capital and on funds.
The treaty delves into clarifying and governing the entitlement to tax treaty benefits of Liechtenstein pension funds, charitable organisations, and investment funds. The two countries have also agreed to waive withholding taxes on dividends, interest, and royalties.
Additionally, the treaty also includes an arbitration clause to ensure that a binding solution is achieved for both treaty party states in the event of any dispute and this thereby increases legal certainty for investors.
