Greece, Malta sign double taxation agreement

Greece and Malta signed an agreement for the avoidance of double taxation, during a meeting between Foreign Ministers Dora Bakoyannis and Michael Frendo.

The ministers were in the coastal town of Lagonissi, near Athens, for an informal meeting of the foreign ministers of the EU's eight Mediterranean member states.

"The double taxation avoidance agreement is considered the most important form of economic co-operation between the two countries, and is expected to act as an incentive for the further growth of bilateral economic and commercial relations," the Greek embassy in Malta said.

The agreement provides for the avoidance of double taxation of incomes of natural and legal entities and is expected to be especially useful in the shipping sector.

It also determines the roles of the tax authorities of the two countries, accelerates the curtailment of tax evasion, ensures a fixed taxation regime, establishes the principle of non-discriminatory treatment and, chiefly, ensures uniform conditions of competition for investors.

Double taxation is defined as the levy of taxes on income/capital in the hands of the same taxpayer in more than one country, in respect of the same income or capital for the same period. Double taxation may arise when the jurisdictional connections, used by different countries, overlap or the taxpayer has connections with more than one country.

For more information contact Vassilios Koutsikos at the embassy.