{"id":526,"date":"2023-10-20T11:06:24","date_gmt":"2023-10-20T11:06:24","guid":{"rendered":"https:\/\/companyincorporationmalta.com\/?p=526"},"modified":"2023-10-20T11:06:25","modified_gmt":"2023-10-20T11:06:25","slug":"malta-luxembourg-double-taxation-avoidance","status":"publish","type":"post","link":"https:\/\/companyincorporationmalta.com\/malta-luxembourg-double-taxation-avoidance\/","title":{"rendered":"Malta-Luxembourg Double Taxation Avoidance"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.companyincorporationmalta.com\/double-tax-treaties-malta\">Malta concluded double taxation treaties with numerous countries<\/a><\/strong>, among which\u00a0<strong>Luxembourg<\/strong>. The\u00a0<strong>Malta-Luxembourg agreement for the avoidance of double taxation<\/strong>\u00a0was first concluded in 1996 and was last amended in 2013, when new provisions about the income tax were introduced.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyincorporationmalta.com\/malta-luxembourg-double-taxation-avoidance\/#who-does-the-malta-luxembourg-tax-treaty-apply-to\" title=\"Who does the Malta-Luxembourg tax treaty apply to?\">Who does the Malta-Luxembourg tax treaty apply to?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyincorporationmalta.com\/malta-luxembourg-double-taxation-avoidance\/#incomes-covered-by-the-malta-luxembourg-double-tax-treaty\" title=\"Incomes covered by the Malta-Luxembourg double tax treaty\">Incomes covered by the Malta-Luxembourg double tax treaty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyincorporationmalta.com\/malta-luxembourg-double-taxation-avoidance\/#the-elimination-of-double-taxation-in-malta\" title=\"The elimination of double taxation in Malta\">The elimination of double taxation in Malta<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"who-does-the-malta-luxembourg-tax-treaty-apply-to\"><\/span><strong>Who does the Malta-Luxembourg tax treaty apply to?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With respect to&nbsp;<strong>Malta, the double taxation treaty with Luxembourg<\/strong>&nbsp;covers the income tax and other similar taxes applied in both countries. With respect to Luxembourg,&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/work-and-residence-permit-in-malta\">Maltese citizens<\/a><\/strong>&nbsp;and companies will benefit from the following reductions and exemptions applied as a consequence of the tax agreement on:<\/p>\n\n\n\n<ul>\n<li>&#8211; income tax applied to individuals,<\/li>\n\n\n\n<li>&#8211;&nbsp;<strong>corporation tax<\/strong>,<\/li>\n\n\n\n<li>&#8211; the tax on fees applied to companies\u2019 directors,<\/li>\n\n\n\n<li>&#8211; the capital tax,<\/li>\n\n\n\n<li>&#8211; communal trade tax.<\/li>\n<\/ul>\n\n\n\n<p>From a geographical point of view,&nbsp;<strong>the Malta-Luxembourg tax treaty<\/strong>&nbsp;applies to the Islands of Malta, Gozo and all the other islands in the Maltese archipelago.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"incomes-covered-by-the-malta-luxembourg-double-tax-treaty\"><\/span><strong>Incomes covered by the Malta-Luxembourg double tax treaty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As mentioned above, the&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/malta-uk-double-taxation-avoidance\">double taxation agreement between Malta<\/a>&nbsp;and Luxembourg<\/strong>&nbsp;covers the income taxes in both countries. The incomes earned by citizens of the contracting states refer to:<\/p>\n\n\n\n<ul>\n<li>&#8211; incomes derived from immovable properties,<\/li>\n\n\n\n<li>&#8211; agricultural activities,<\/li>\n\n\n\n<li>&#8211; business profits,<\/li>\n\n\n\n<li>&#8211; international traffic,<\/li>\n\n\n\n<li>&#8211; dividends,<\/li>\n\n\n\n<li>&#8211; interests,<\/li>\n\n\n\n<li>&#8211; royalties,<\/li>\n\n\n\n<li>&#8211; alienation of property,<\/li>\n\n\n\n<li>&#8211; providing independent or dependent personal services.<\/li>\n<\/ul>\n\n\n\n<p>Artists and sportsmen will also fall under the regulations of the&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/malta-netherlands-double-taxation-avoidance\">double tax treaty between Malta<\/a>&nbsp;and Luxembourg<\/strong>. Retired individuals gaining pensions will also abide by the tax treaty\u2019s regulations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-elimination-of-double-taxation-in-malta\"><\/span><strong>The elimination of double taxation in Malta<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the&nbsp;<strong>double taxation agreement, Luxembourg<\/strong>&nbsp;citizens and companies will be granted a credit against the&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/taxes-in-malta\">Maltese tax<\/a>&nbsp;<\/strong>based on the assessment of the tax paid in Luxembourg.For theLuxembourg companies paying dividends to a&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/register-company-malta\">Maltese company<\/a><\/strong>&nbsp;which holds at least 10% in the Luxembourg company, the credit will be granted based on the profits derived from the dividends.<\/p>\n\n\n\n<p>Luxembourg citizens and companies receiving interests or royalties in Malta will be levied a 10% tax on these interests and royalties.<\/p>\n\n\n\n<p>Our&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/about-us\">agents in Malta<\/a><\/strong>&nbsp;may provide you with more information about the provisions of the double&nbsp;<strong>taxation agreement with Luxembourg<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Malta concluded double taxation treaties with numerous countries, among which\u00a0Luxembourg. The\u00a0Malta-Luxembourg agreement for the avoidance of double taxation\u00a0was first concluded in 1996 and was last amended in 2013, when new provisions about the income tax were introduced. Who does the Malta-Luxembourg tax treaty apply to? With respect to&nbsp;Malta, the double taxation treaty with Luxembourg&nbsp;covers the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":197,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[234,233,232,235,231],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Malta-Luxembourg Double Taxation Avoidance<\/title>\n<meta name=\"description\" content=\"Find here the provisions of the Malta-Luxembourg double tax treaty. 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