Malta – Curacao Double Taxation Agreement Initialled

CSB Group has learnt that the process towards a double taxation agreement (DTA) has been initialled between Malta (represented by Finance Minister Edward Scicluna and Curaçao (represented by Minister for Finance, Jose Jardim). The Netherland’s Ambassador to Malta, Rita Dulci Rahman was present.

Speaking during the initialling of documents, Prof. Scicluna emphasised the importance of such Double Taxation Agreements with regards to encouraging genuine business and trade between countries, in this case between Malta and Curaçao. The DTA also provides for exchange of information on tax matters between the competent authorities of Malta and Curaçao to combat international tax avoidance and evasion.

He welcomed the initialling as a positive step towards stronger economic cooperation and trade, and augured that the agreement will lead to closer business cooperation between the two countries.

The negotiations for the Double Taxation Agreement were held in Malta and were conducted in a friendly atmosphere of mutual understanding.  The delegations agreed all of the provisions of the proposed Agreement. The proposed Double Taxation Agreement between Malta and Curaçao is mainly based on the OECD Model Tax Convention on Income and on Capital but, includes special provisions to cater for certain domestic taxation laws of both sides.

The DTA provides a means of settling on a uniform basis the most common problems that arise in the field of international juridical double taxation. Its main purpose is to remove the obstacles that double taxation presents to the development of economic relations between Malta and Curaçao.

Such exchange of information is on the lines of internationally agreed standards and will therefore give more credibility to Malta and Curaçao where transparency and exchange of information on tax matters are concerned.

The DTA facilitates business and also provides for the exchange of information on tax matters and now needs to be signed and ratified by both sides before it enters into force.