Switzerland Awaits DTA with Malta


The Swiss Federal Council has submitted a double taxation agreement with Malta for approval. The Council has also submitted such agreements with South Korea, Romania, Sweden, Singapore and Slovakia to parliament for approval.

Containing the OECD (Organisation for Economic and Cooperation Development) standard on tax information exchange, the Double Taxation Agreements also contain various provisions that benefit the Swiss economy.

What are the benefits of the DTAs?

Such benefits include reductions in withholding tax. It appears that in some of the agreements, full exemption is provided for the cross-border payment of dividends, interest and royalties from liability to withholding tax at source.

Simultaneously, some of the agreements contain arbitration clauses within the scope of mutual agreement procedures. In addition, tax discrimination is prevented by them. In the case of Malta, this is the first DTA between the two countries. The rest of the agreements are protocols to revise the existing double taxation agreements.

In order to enter into force, the agreement must be adopted by the Maltese Parliament, having received the approval of the Swiss cantons and business associations.