Further to its signature in August 2011, the double taxation agreement between Switzerland and Malta entered into force on the same day as the diplomatic exchange of notes on 6 July 2012. The benefits of the Treaty are effective as from 1 January 2013.
Aside from wide ranging provisions on the exchange of information between the Swiss and Maltese Tax Authorities in accordance with the international standards, the treaty provides for an exemption for dividend and interest payments between related companies with a capital stake of at least 10% in the company making the payment. It also provides for an exemption from withholding tax on royalties.
It is anticipated that the double tax agreement will contribute further to the positive development of bilateral economic relations between the two countries.