The Minister of Finance, the Economy and Investment, the Hon. Tonio Fenech and his counterpart, the Belgian Minister of Finance, Didier Reynders have signed an agreement to amend the existing Double Taxation Agreement between the State of Malta and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion.
Double Taxation Agreement with Belgium
The Double Taxation Agreement with Belgium was amended to bring the provisions on the exchange of information in line with internationally agreed standards as set out in the corresponding Article of the 2008 Organisation for Economic Co-operation and Development (OECD) Model Tax Convention on Income and on Capital.
Minister Fenech commented that this agreement continues to enhance the double taxation treaty network which enables Malta to develop trade relations with other countries, attract inward direct investment and serves as an important platform for Maltese residents doing business in partner countries. Malta and Belgium have important trade links, which have been developed further especially since Malta’s accession into the European Union. This agreement seeks to build on these links by providing another tool that enhances both Governments’ ability to avoid double taxation and prevent fiscal evasion.
The double taxation agreement with Belgium had been originally signed on 28 June, 1974 and was further amended through a Supplementary Agreement signed on 23 June, 1993.