US Senate approves tax treaty with Malta

The ratification of the treaty will now be affirmed through the exchange of diplomatic notes.

“A Tax Treaty is a signal of the excellent relations between two countries and their tax and legislative authorities. It is a necessary step in attracting further investment from the USA and facilitating Maltese trade and investment into the world’s largest and most valuable market,” finance minister Tonio Fenech said.

Both the Maltese and the US Governments agreed to establish a tax treaty along the internationally recognised Organisation for Economic Cooperation and Development (OECD) Model Tax Convention to provide a solid basis for development and growth in the relationship of both countries.

“The potential created through this treaty is excellent for all industry sectors of Malta.  Malta already has a good base of quality and substantial US organisations operating in Malta, providing the evidence required to show potential investors that Malta offers a quality environment to operate,” Fenech added.

Minister Fenech thanked US Senators Kerry and Lugar, respectively Chairman and Ranking Member of the US Senate Committee on Foreign Relations, as well as their teams for the support they have always shown throughout the ratification process. He also thanked the US Treasury and the US Embassy in Malta, Malta’s International Tax team, and Ambassador Miceli and his people in Washington for their professional support throughout.