1
 
 
Home News & Events TAX NEWS: Malta and Israel enter Double Taxation Agreement

TAX NEWS: Malta and Israel enter Double Taxation Agreement

Wednesday, 03 August 2011 00:41

The Double Taxation Agreements enjoyed by Malta so far are now up to fifty nine (59) when on July 29, 2011 the long expected Double Taxation Agreement with Israel was signed in Jerusalem between Maltese Foreign Minister Tonio Borg and Israeli Foreign Minister Avigdor Lieberman.

The purpose behind a Double Taxation Agreement is primarily to avoid the payment of double taxation for both private and corporate individuals between the two contracting countries and at the same time, address tax avoidance and evasion.

At present some sixty eight (68) Maltese registered companies have an Israeli shareholding and the number thereof is now expected to grow as a direct result of the much advantageous tax benefits that Malta is able to offer whosoever would operate a business in Malta or through Malta.

Statistics show that trade between Malta and Israel has improved significantly and indeed, in 2010 Malta had imported €8.3 million worth of goods from Israel and exported €3.8 million which means that there was an increase of fifty-eight per centum (58%) over the previous year. The principle products so exported were cereals and pharmaceuticals.

Malta and Israel have entered other bilateral agreements throughout the years, including an arrangement on the removal of the Visa since September 9, 1993, on Cultural, Educational and Scientific Co-Operation since November 18, 1994, on the Fight against Drug Trafficking and Organised Crime in August 1, 2000, on Technical Co-Operation in September 12, 1995 and on Co-Operation in the Fields of Health and Medicine since April 18, 2005.

This is all in line with the partecipation of Israel in the Euro-Mediterranean Partnership which involves extending the free trade across the Mediterranean Region though a network of bilateral agreements between the EU and individual Mediterranean partners with the ultimate aim of the creation of a Euro-Mediterranean Trade Area.