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Malta-UAE Double Taxation Treaty

Malta-UAE Double Taxation Treaty

Part of the extended network of double taxation treaties Malta signed over the years is also the convention for the avoidance of double taxation with the United Arab Emirates (UAE)The double taxation treaty between Malta and the UAE was signed in 2006 and enforced in 2009. The taxation agreement covers the following taxes:

  • – in the United Arab Emirates – the income and the corporate tax,
  • – in Malta – the income tax,
  • – other similar taxes, among which the dividend, interest and royalties taxes.

Our company registration agents in Malta may provide you with more information about the double taxation treaties of this country.

Tax residency according to the Malta-UAE double tax treaty

The double taxation agreement refers to the residents of the contracting states, which in the case of Malta means any citizen registered for taxation purposes in Malta and company registered or managed in Malta. With respect to the United Arab Emirates, any national or individual with residency in any of the Emirates and companies managed or registered in any of the Emirates will be covered by the Malta-UAE double taxation agreement.

With respect to UAE and Maltese companies, the convention refers to any type of company, including: branch offices, factories, workshops, construction sites and any establishment used by a company to provide services for at least 12 months. The double taxation agreement does not apply to companies using facilities for storage, display or delivery purposes.

The Malta-UAE convention with respect to withholding taxes

The Malta-UAE double taxation agreement also refers to the taxation of dividends, interests and royalties, even if any of the country does not levy such taxes. However, article 11 in the Ancillary Protocol of the agreement allows UAE tax residents to apply for tax refunds in Malta. Individuals or companies owning real estate in Malta or in the UAE may also be taxed in the other contracting state, according to the double taxation agreement. With respect to business profits, the Malta-UAE double taxation treaty provisions the companies will be taxed in the country the company is registered in. Permanent establishments will be taxed in the country they make profits in.

For complete information about the double taxation agreement with the UAE, please contact our Maltese agents.