The Agreement on Double Taxation Relief between Lithuania and Malta came into force on the 2nd February 2004 after being signed on 17 May 2001 in Vilnius, Lithuania.
By virtue of the Agreement, tax on dividend income is capped to 5% of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 25% of the capital of the distributing company, and 15% in other cases. This, however, must be read in the light of the Parent-Subsidiary Directive transposed into the law of both states, both being member states of the EU. Tax on interest and royalty income is capped at 10%, however here too the Interest & Royalties Directive applies.
Malta has established itself as a centre for international investment, both into and out of the European Union. This is as a result of its attractive fiscal policies, including a full participating holding exemption, and close diplomatic relations with states all over the world. Historically Eastern European countries have used other states to invest into and out of countries elsewhere in Europe; however Malta is increasingly offering an appealing alternative.
Malta offers a number of benefits for investors seeking to expand their operations into Eastern Europe. Apart from a favourable tax regime, Malta’s stable infrastructure is reputed for being efficient, transparent and friendly. Malta is equally attractive for Eastern European investors looking to develop profitable activities in established European markets. Investment schemes and business incentives available cover many sectors including IT, pharmaceuticals and electronic goods.
Malta is represented in Lithuania through a non resident ambassador based in Valletta (in the Ministry of Foreign Affairs) and an honorary consulate in Vilnius. Lithuania is represented in Malta through its embassy in Rome (Italy) and an honorary consulate in Valletta.
[Full List of Malta Double Taxation Agreements]
