Liechtenstein’s foreign minister Aurelia Frick and her Maltese counterpart George Vella have recently signed a bilateral double taxation agreement (DTA) in New York in respect of taxes on income and on wealth, according to Global Tax News.
The DTA is based on the Organization for Economic Cooperation and Development’s Model Convention and reflects the current agreement policies of both treaty partner states.
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The agreement includes provisions clarifying and regulating the entitlement to tax treaty benefits of Liechtenstein pension funds, charitable organizations, and investment funds.
Also, both countries have agreed within the framework of the DTA to waive withholding taxes on dividends, interest, and royalties.
Furthermore, the agreement will ensure national taxing rights for the taxation of natural persons, and includes an information exchange clause in accordance with the international standard.
Finally, the DTA makes provision for an arbitration clause to ensure that within the framework of a specified process, a binding solution is achieved for both treaty partner states in the event of an interpretation or application dispute, thereby increasing legal certainty for investors.
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By GlobalDataThe agreement, which is expected to apply from 1 January, 2014 will require the parliamentary approval of both contracting jurisdictions however no additional legislative measures are needed for implementation of the treaty.
Following the completion of this agreement, the Liechtenstein Government has underlined its commitment to further expand the Principality’s DTA network, both within and outside of Europe.
