On Wednesday 16th February 2011 Dr. Jean-Philippe Chetcuti Cauchi and Dr. R. Azzopardi from Chetcuti Cauchi attended a seminar organized by AmCham Malta on the US-Malta Double Tax Agreement (DTA). The guest speakers at the seminar included Ambassador for the United States H.E Douglas Kmiec, Dr. J. Brockdorff Partner at KPMG, and Dr. A. Fiott. Finally Mr. Kenneth Farrugia from FinanceMalta concluded the seminar with additional remarks on the US-Malta DTA and how FinanceMalta is active in that respect.
Ambassador Kmiec initiated the discussions by emphasizing the objectives of the US-Malta DTA which was set up in such a manner as to abolish the possibility of treaty shopping and therefore the prevention of anti-abuse. Moreover, Ambassador Kmiec highlighted the necessity for this Treaty particularly in light of the fact that trade between the two countries had been increasingly so considerably.
The presentation provided a historical analysis of the negotiations between the US and Malta as regards the said US-Malta DTA. The extension of the CIR’s power has resulted in the removal of Malta was from the Black List in contrast with fellow DTA partners of the US.
The US-Malta DTA is designed to exploit both Malta and the US’s economic ties and provides an effective channel for encouraging US-Malta cross border trade and investment. The US-Malta DTA is extremely attractive for several industries, especially:
1. The Financial Industry and/or Financial Services
2. Real Estate Mortgage Investments Conduit
3. Transfer Pricing
4. Manufacturing businesses
5. Services (general)
6. ICT
Finally, general remarks from the Speakers on the panel revolved around the fact that by virtue of the LOB provisions, the US-Malta DTA strongly prevents the abuse of tax benefits through double tax treaties. Furthermore, it was also noted that this Treaty specifically serves high value businesses seriously setting up a substantial presence (even if small) with a real business operation in Malta.
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On Wednesday 16th February 2011, Dr. Jean-Philippe Chetcuti Cauchi and Dr. Ramona Azzopardi from Chetcuti Cauchi attended a seminar organized by AmCham Malta on the US-Malta Double Tax Agreement (DTA). The guest speakers at the seminar included Ambassador for the United States H.E Douglas Kmiec, Dr. Juanita Brockdorff Tax Services Partner at KPMG, and Dr. Antoine Fiott at Fenech Farrugia Fiott Legal. Finally Mr. Kenneth Farrugia from FinanceMalta concluded the seminar with additional remarks on the US-Malta DTA and how FinanceMalta is active in that respect. One of the main points of the discussion on the US-Malta DTA concerned the inept structure and set-up of the DTA which abolish treaty shopping; thereby preventing treaty-abuse. Furthermore, it was also established that an additional core point of the US-Malta DTA is the Limitation of Benefits clause; the latter of which deals with the enforcement of the prevention of treaty abuse.
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