{"id":557,"date":"2023-10-24T12:31:12","date_gmt":"2023-10-24T12:31:12","guid":{"rendered":"https:\/\/companyincorporationmalta.com\/?p=557"},"modified":"2023-10-24T12:31:14","modified_gmt":"2023-10-24T12:31:14","slug":"malta-canada-double-tax-treaty","status":"publish","type":"post","link":"https:\/\/companyincorporationmalta.com\/malta-canada-double-tax-treaty\/","title":{"rendered":"Malta-Canada Double Tax Treaty"},"content":{"rendered":"\n<p><strong>Malta<\/strong>\u00a0has signed its\u00a0<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/double-tax-treaties-malta\">double taxation treaty<\/a>\u00a0with Canada<\/strong>\u00a0in 1986 and enforced in 1988. The\u00a0<strong>agreement<\/strong>\u00a0covers the taxes imposed on income and capital in\u00a0<strong>Malta<\/strong>\u00a0and in\u00a0<strong>Canada<\/strong>. The taxes levied \u00a0on income also refer to elements composing the income, among which:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; alienation of immovable and movable property,<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries.<\/li>\n<\/ul>\n\n\n\n<p>In the case of Canada, the agreement covers the taxes on incomes, while in the case of Malta, the convention covers:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the income tax,<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prepayments of the income tax.<\/li>\n<\/ul>\n\n\n\n<p>The&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/malta-usa-double-taxation-avoidance\">Malta-Canada double tax treaty<\/a><\/strong>&nbsp;also affects any similar taxes imposed by both countries\u2019 tax authorities who also have the obligation of notifying each other about any changes in the legislation. Additionally, the agreement contains a provision on the mutual exchange of tax information.<\/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-canada-double-tax-treaty\/#fiscal-domicile-in-the-malta-canada-double-tax-agreement\" title=\"Fiscal domicile in the Malta-Canada double tax agreement\">Fiscal domicile in the Malta-Canada double tax agreement<\/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-canada-double-tax-treaty\/#taxation-under-the-malta-canada-treaty\" title=\"Taxation under the Malta-Canada treaty\">Taxation under the Malta-Canada 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-canada-double-tax-treaty\/#reduced-tax-rates-under-the-malta-canada-agreement\" title=\"Reduced tax rates under the Malta-Canada agreement\">Reduced tax rates under the Malta-Canada agreement<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"fiscal-domicile-in-the-malta-canada-double-tax-agreement\"><\/span><strong>Fiscal domicile in the Malta-Canada double tax agreement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>agreement for avoidance of double taxation between Malta and Canada<\/strong>&nbsp;applies based on fiscal domicile. According to this provision, a resident of one of the contracting states will be subject to taxation in the country they reside in. In the case of companies, the fiscal domicile is the country the legal entity was registered in or has a management place in. For information about how fiscal domicile is determined, you can refer to our&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/about-us\">agents in company formation in Malta<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"taxation-under-the-malta-canada-treaty\"><\/span><strong>Taxation under the Malta-Canada treaty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>Malta-double taxation treaty<\/strong>&nbsp;provides for the following:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income derived from selling or renting immovable property situated in a country can be taxed in the other country,<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; business profits of enterprises will be taxed only in the country the&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/register-company-malta\">company<\/a><\/strong>&nbsp;conducts commercial activities,<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income derived from international traffic will be taxed only in the country the company operating the vessel or aircraft is registered.<\/li>\n<\/ul>\n\n\n\n<p>The&nbsp;<strong>Malta-Canada double tax treaty<\/strong>&nbsp;also covers permanent establishments which must be operating in a country for at least 183 days in a calendar year. Our&nbsp;<strong>Maltese agents<\/strong>&nbsp;can provide you with information about the sites considered permanent establishments under the&nbsp;<strong>treaty with Canada<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"reduced-tax-rates-under-the-malta-canada-agreement\"><\/span><strong>Reduced tax rates under the Malta-Canada agreement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following reduced tax rates apply under the&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/malta-malaysia-double-taxation-treaty\">Malta-Canada double taxation agreement<\/a><\/strong>:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; maximum rate of 15% in the case of dividend payments,<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a maximum rate of 15% in the case of interest payments,<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a maximum rate of 10% in the case of royalties payments.<\/li>\n<\/ul>\n\n\n\n<p>For information about the&nbsp;<strong>avoidance of double taxation<\/strong>&nbsp;under the&nbsp;<strong>agreement<\/strong>&nbsp;<strong>with Austria<\/strong>, please&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/contact-us\">contact<\/a><\/strong>&nbsp;our&nbsp;<strong>agents in Malta<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Malta\u00a0has signed its\u00a0double taxation treaty\u00a0with Canada\u00a0in 1986 and enforced in 1988. The\u00a0agreement\u00a0covers the taxes imposed on income and capital in\u00a0Malta\u00a0and in\u00a0Canada. The taxes levied \u00a0on income also refer to elements composing the income, among which: In the case of Canada, the agreement covers the taxes on incomes, while in the case of Malta, the convention [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":179,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[298,300,296,297,299],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Malta-Canada Double Tax Treaty<\/title>\n<meta name=\"description\" content=\"Find here the main provisions of the Malta-Canada double tax agreement. 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