The Double Tax Agreement between the United Arab Emirates (UAE) and Malta has been in force since January 2008. It was signed in March 2006 in Abu Dhabi after bilateral talks between Maltese Foreign Minister Michael Frendo and H.E. Dr. Mohammed Khirbash, Minister of State for Finance and Industry of United Arab Emirates, and came into effect by virtue of L.N. 99 of 2009.
The Double Tax Agreement directs the taxing rights pertaining to dividends, interest and royalties to the resident state of the person receiving the income. The relevant provisions do not impose any withholding tax on these types of income, a position largely compatible with the states’ domestic regimes. In addition, Article 11 of the ancillary Protocol specifically allows UAE residents to claim refunds of tax paid in Malta.
The Dubai Chamber of Commerce and Industry (DCCI) held that the double tax agreement, along with the establishment of a consulate and a Malta Trade Centre in Dubai reflected Malta’s efforts to consolidate its economic relations with the region and strengthen the framework for increased trade, investment and business opportunities between the two countries. DCCI Director General Abdul Rahman Ghanim Al Mutaiwee praised the advance in fostering economic ties between the two states and invited Maltese businessmen to consider Dubai as a distribution centre for their products to the Arabian Gulf Region. He held that trade with Malta witnessed evident growth.
The Malta External Trade Corporation (METCO), which has a representative office in the Gulf, is widely considered as a major destination for Maltese exporters and traders. The potential Malta offers in serving as a stepping stone for European companies to the lucrative region is evident. Director General Al Mutaiwee expressed the Dubai Chamber’s commitment to co-operate with the Malta External Trade Corporation, the Malta Trade Centre in Dubai and with potential investors and businessmen with a view to accelerating the pace of UAE investment in and trade with Malta. Indeed, Malta has worked on further plans to consolidate its relations with the Arabian Gulf Region through Dubai, including a recurrent positive participation in the Big 5 exhibition in Dubai.
[Full List of Malta Double Taxation Agreements]
