Double taxation agreement with Malta comes into force

On 23 October 2009, the Isle of Man concluded a comprehensive double taxation agreement with Malta.

The Isle of Man ratified the agreement on 19 January 2010, and the Chief Minister, Tony Brown MHK, informed the government of Malta that ratification had taken place.

Malta’s High Commissioner to the United Kingdom, His Excellency Joseph Zammit Tabona, has now confirmed that Malta has completed its own ratification procedures, and as a consequence the agreement will enter into force on 26 February 2010.

The double taxation agreement between the two governments is based on the model published by the Organisation for Economic Co-operation and Development (OECD). In addition to the agreement signalling that the Isle of Man and Malta wish to develop their bilateral economic relations, it will also act to prevent tax evasion, and delivers the OECD’s agreed international standard on tax transparency and exchange of information.

The negotiation, signing and ratification of tax co-operation agreements demonstrates the Isle of Man’s commitment to international standards and the effort to establish a global system based on co-operation between countries, transparency and effective exchange of information in tax matters; all of which strengthen financial stability. On 2 April 2009, the OECD acknowledged the Isle of Man’s quality in regulation and co-operation by placing it on what many have referred to as the ‘white list’ of countries which have substantially implemented the internationally agreed tax standard.

The full text of the news release issued today can be viewed here and the text of the agreement is available here.