Double taxation agreement with Ukraine

John Huber & associates

The Government of Malta has published the new agreement with Ukraine for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Both States have agreed on a shared jurisdiction to tax so that the source country will have a limited primary right to tax the income, with respect to interest and royalties (Articles 11 and 12), while the residence country will have a secondary right to tax with the obligation to grant relief from double taxation.  The tax by the source country must not exceed 10% in both cases.   In terms of the Maltese Income Tax Act, interest and royalties received by non-residents is exempt from Malta tax and therefore no tax is withheld on such payments. 

The agreement can be accessed from the MFSA site click here.