Practice Areas

Financial & Fiscal Services

Malta's current treaty network consists in thirty-eight (38) double tax treaties. A number of agreements or protocols have been reached with other countries but are yet to be ratified. "Unilateral relief" is granted when income arises outside Malta and is subject to tax outside Malta. The amount of the tax paid outside Malta is allowed as a credit against the income tax chargeable in Malta, and the amount of income tax so chargeable shall be reduced by the amount of the credit. The "flat-rate foreign tax credit" is available where proof of payment of the foreign tax is not made available to the fiscal authorities. It is equivalent to 25% of the foreign income receivable before any deductions are made.