Application of preferential rates


A Protocol on amendments to the Convention for the avoidance of double taxation with Malta in terms of increasing the withholding tax on dividends and interest to 15% was signed.

The Protocol also defines a list of exceptions, according to which preferential rates will be applied to income in the form of dividends and interest. In this case, the tax should not exceed 5%.

In particular, this rate will be applied to institutional investments, as well as to public companies that have at least 15% of their shares in free circulation and own at least 15% of the capital of the company paying the specified income during the year. 5% rate is also applied to the interest income of such companies paid on Bank loans, on some Eurobond loans, as well as on debt obligations to governments, Central banks, pension funds, and insurance companies of the countries participating in the Convention.

This Protocol comes into force from January 1, 2021.