Additional double taxation agreements in the pipeline

New double taxation agreements are in the offing this year as negotiations begin on some while others are only awaiting signatures, status reports from embassies and high commissions for 2009 show.

Double taxation agreements are lined up with Israel, Oman, Bahrain, Russia, Saudi Arabia and Hong Kong. Some negotiations are still in their initial stages.

Last year, Malta's business community continued to benefit from the efforts put in by diplomats increasingly adopting a business approach to their missions, according to the reports.

Diplomatic teams were actively engaged in tapping local networks to identify business opportunities in a wide array of sectors and heavily supported contact facilitation, according to the reports submitted to the Foreign Office.

Thanks to efforts by the Embassy to Belgium, Malta was represented for the first time at the Fêtes des Langues organised by the Belgian Senate. The embassy's work also led to a high-profile seminar last month which is expected to have a "strong multiplier effect" on the English language tuition industry in Malta.

In collaboration with Malta Enterprise, Rome-based diplomats held a commercial event in Malta where presentations were made by representatives of SmartCity and Finance Malta. The embassy facilitated meetings between Malta Enterprise and Italian pharmaceutical investors last year and followed up requests by Maltese entrepreneurs to build "serious contacts" with technology manufacturers.

A newly appointed honorary consul in Chennai, India, has been tasked to spread promotion of Malta's investment, tourism and education sectors. The high-profile commercial delegation's visit to Mumbai and Delhi in November was described as successful and contacts are being followed up.

Discussions in Israel by Foreign Office officials focused on the signing of a double taxation agreement. A report on the feasibility of re-opening Air Malta's route to Tel Aviv, prepared in collaboration with the honorary consul, was presented to the Ministry of Foreign Affairs and the national airline. Diplomats in Israel have reported that meetings with the Israeli Chamber of Commerce were held to highlight Malta's potential as a viable partner and efforts have been made to keep Maltese authorities updated on Israeli export news. The Tel Aviv embassy is also working to promote Malta as an EFL destination for Israeli students and an "exceptional" location for film-making.

The Moscow embassy is currently engaged in finalising pending issues pertaining to a double taxation agreement and an intergovernmental deal on diplomatic bases in both countries. Both matters are considered crucial for Maltese-Russian relations to move forward after being dormant for 20 years. A Russian business delegation is expected to visit Malta this year to explore market opportunities and it is hoped that the Maltese business community will show interest in expanding their presence in Russia.

In Tunis, diplomats have been engaged in participating in business events and last October organised a conference at the Malta Chamber of Commerce, Industry and Enterprise highlighting aspects of doing business in Tunisia.

Last March, the Prime Minister gave the green light to an agreement between Mcast and the Fraunhofer Institutes. Under the deal, the college will be assisted to conduct vocational training programmes in various technical disciplines which will lead to Mcast eventually offering tertiary qualifications recognised by the German institution.

The various highlights of the Berlin embassy's year included a seminar on Maltese investment and maritime services in Hamburg with the participation and support of Malta Enterprise, the Malta Maritime Authority and Finance Malta. One-to-one meetings were held afterwards. The embassy also supported Maltese participation in two major fairs: the ITB tourism event and the Grüne Woche green fair.

In Washington, meetings with several senators and their staff focused on a double taxation agreement with Malta. An investment promotion campaign aimed at high value sectors in the US indicated by Malta Enterprise has been initiated.

"Assiduous" efforts by the embassy in Cairo resulted in a memorandum of understanding between the Malta Chamber of Commerce, Industry and Enterprise and the Egyptian Entrepreneurs Association to set up a Maltese-Egyptian Commercial Council. Meetings were set up with various Egyptian tourism agents and the embassy joined diplomats of other EU member states at a high-profile event in the Egyptian capital showcasing opportunities within the EU.

Six bilateral agreements were signed during the President's state visit to Qatar in September, some of which cover economic activity. Malta's embassy in Riyadh is to pursue promotional campaigns this year as local firms increasingly recognise business potential in Malta. Requests have been forwarded to Malta Enterprise for evaluation and action.

Only signatures are missing on a number of agreements with countries in the region, among them bilateral accords on taxation with Oman and Saudi Arabia. Discussions on a taxation agreement with Bahrain are to begin this month.

Meanwhile, Maltese exports to Saudi Arabia last year exceeded €15 million, up 39 per cent on the previous year. Maltese exports to the Gulf reached €37 million in 2009.

Tripoli-based diplomats last year facilitated the visits of four Maltese delegations, including three trade missions, as efforts to enhance relations with one of Malta's major trade partners continued in earnest.

The embassy in China is currently engaged in supporting ministerial efforts to promote SmartCity Malta in China this month. A trade delegation led by Malta Enterprise is to visit China in May.

The visit by Malta Enterprise officials last November coincided with a seminar to promote investment in ICT and the China Overseas Investment Fair.

Parliamentary Secretary Jason Azzopardi and Hong Kong authorities last month expressed their commitment to initiating negotiations on a double taxation agreement shortly.

Last year, Malta's High Commissioner in London Joe Zammit Tabona paved the way for negotiations to begin on SR Technics' £1.2 billion investment in an aircraft maintenance project in Malta announced in November.

The High Commission also lent its support to efforts by Finance Malta to promote the island's financial services sector in March and November, and a visit by executives from 20 British companies pursuing investment opportunities in Malta. Honorary Consuls for Malta in the UK and Ireland also met at the High Commission for briefings by Finance Malta, Malta Enterprise and the Malta Tourism Authority.