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TAX NEWS: Malta USA Double Taxation Treaty

Thursday, 09 December 2010 13:20

The long-awaited double taxation avoidance agreement between the USA and Malta has now been signed after having been ratified by the US Senate and signed by President Obama in early November. The agreement seeks to eliminate barriers to trade and investment. The new agreement is a milestone in the relationship between the two countries, and goes a long way at strengthening ties between the two nations. The double taxation agreement replaces an earlier agreement which was terminated in 1997 by the US.

American Ambassador Douglas Kmiec and Finance Minister Tonio Fenech signed the agreement on the 23rd of November 2010 and it will come into force as from 1 January 2011. The ambassador said it would expand opportunities for people from the two countries to trade and increase investment. He said that Malta could be attractive to US investors in view of its EU membership, location and accessibility.