The Double Taxation Agreement between Slovenia and Malta came into force on 12th June 2003. It had been signed on 8 October 2002 in Valletta by representatives of the respective Finance Ministries and became effective in Malta through L.N. 145 of 2003.
The Agreement’s objective of preventing double taxation and avoiding tax evasion is brought about by allocating taxing rights between the two states. This is substantiated by a number of tax rate caps to encourage bilateral trade and investment. Tax on dividends distributed by a Slovenian company and received by Maltese residents may not exceed 5%where the beneficial owner is a company which holds directly at least 25% of the distributing subsidiary, or 15% in any other case. Maltese tax in a reversed scenario may not exceed the tax charged on the distributable profits. Source taxation on interest and royalty income may not exceed 5%.
Both Slovenia and Malta are members of the EU, and have therefore transposed the Parent-Subsidiary Directive and the Interest & Royalties Directive. These Directives have implications on the application of the Double Taxation Agreement and may render it inapplicable in some cases.
Slovenia and Malta have a long tradition of good relations based on mutual trust and respect. Being partners at EU-level and facing similar challenges in this respect, the two states have maintained a healthy dialogue. Indeed, the two states share the view that the EU should take the initiative to establish a dialogue about vital global issues between the centres of various civilisations. This was the focus of discussions during a state visit by Slovenian President Milan Kucan to Malta in 2002. The Slovenian President's entourage included a strong economic delegation that explored the potential for the two countries to boost their current modest level of bilateral trade.
During an event hosted by the Chamber of Commerce, the Slovenian President and the Chamber’s President emphasised the need for stronger economic relations between the two countries, especially in terms of export-oriented operations. The Slovenian President said that Maltese-Slovenian political relations have been excellent throughout the last years, however economic relations needed to be worked on. He held that Malta’s geographical position was important to Slovenia since it constituted a bridge between the European mainland and North Africa and Slovenian enterprises were seeking to expand their markets onto new territories beyond the Balkans.
In 2011, the risk management associations of Malta (MARM) and of Slovenia (SI.RISK) accepted to become members of the Federation of European Risk Management Associations (FERMA). The enthusiasm of the founding council of the Maltese Association of Risk Management has enabled it to promote the knowledge and use of risk management within the private and public sectors in the Maltese Islands. The Slovenian Association of Risk Management and Insurance Management (SI.RISK) has been meeting for two years and are currently working on changes to Slovenian tax laws in connection with directors’ and officers’ liability and environmental issues.
The Republic of Slovenia is represented through a Slovenian Consulate in Valletta while Malta has an Honorary Consulate in Ljubljana.
