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Malta and Hong Kong have signed a double taxation agreement today. The agreement was signed by the Secretary for Financial Services and the Treasury, Professor K C Chan and the Maltese Ambassador to China, Mr Joseph Cassar. The Hong Kong Malta DTA sets out the allocation of taxing rights between the Malta and HK and is widely based on the OECD model treaty. A press release issued by the Hong Kong authorities states that the DTA is the 22nd comprehensive agreement for the avoidance of double taxation concluded by Hong Kong with its trading partners. These include Belgium, Thailand, the Mainland of China, Luxembourg, Vietnam, Brunei, Netherlands, Indonesia, Hungary, Kuwait, Austria, United Kingdom, Ireland, Liechtenstein, France, Japan, New Zealand, Switzerland, Portugal, Spain and the Czech Republic. For a list of DTAs concluded and signed by Malta please click here.
The treaty does not prescribe withholding tax cappings on Malta bound dividends and interest but provides for a 3% capping on Malta bound royalties. In terms of Maltese law, no witholding taxes are due on payments of dividends, royalties and income to HOng Kong residents. The DTA contains a comprehensive Exchange of Information clause that is based on the lastest OECD article.
The text of the DTA is available on HK's Inland Revenue Department's website on the following link www.ird.gov.hk/eng/pdf/Agreement_Malta_HongKong.pdf
The Hong Kong/Malta DTA will come into force after the completion of ratification procedures on both sides. For further information about Maltese tax implications of the DTA, please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
We can assist clients doing business in or via Hong Kong by relying on our Hong Kong based WTS-Alliance fellow partner firm headed by Claus Schuermann and Michael Lorenz. For further information about WTS Hong Kong visit wts.com.hk.