Malta-US tax agreement imminent

The government and the US Embassy announced the imminent signing of a double-taxation agreement between the two countries.

Talks between the two sides have been going on for the past years and according to US Ambassador Molly Bordonaro "a final agreement is expected soon". She said that senior representatives of the US Treasury Department will be coming to Malta on March 24 for two days of high-level talks in order to conclude the agreement.

"The high-level talks are the culmination of more than two years of talks between Maltese and American officials. These productive discussions have resulted in an agreement on a number of technical points," she said.

Asked by The Times whether the agreement will be signed soon after the talks to be held in Malta, Mrs Bordonaro would only say that the intention is to have an agreement very soon. "There is no fixed date yet but when I say soon, it means very soon," she said.

A double taxation agreement with the US is considered to be crucial to attract more American investment into Malta.

Parliamentary Secretary Tonio Fenech said the US agreement will make a welcome addition to Malta's tax treaty network which now adds up to 46 with more in the pipeline. These ensure the removal of any potential trade barriers between Malta and other countries by establishing internationally-accepted provisions for the avoidance of double taxation on the same income. Mr Fenech said such agreements also establish appropriate channels for exchange of tax information between countries in their efforts to prevent fiscal evasion.

Foreign Minister Michael Frendo thanked US President Bush for his personal intervention on the issue following a meeting with Prime Minister Lawrence Gonzi in Washington in 2005.

Speaking on another agreement being negotiated with the US - the removal of visa requirements for Maltese citizens visiting the US, Dr Frendo said talks are at a very advanced stage and should be concluded in the coming months. Malta has already received the terms of the agreement from the US authorities.