Malta has signed a double taxation convention with Libya, Foreign Minister Tonio Borg said.

Following the signings earlier this year with Ireland, Montenegro and Switzerland, this is the fourth such convention to be signed this year.

Its aim is to avoid double taxation and prevent fiscal evasion. It covers direct taxes on income and capital and enables both countries to exchange information for a more effective stand against tax evasion. It will enter into force following ratification by both countries, superseding another signed in 1972.

Photo shows Ramadan Barq, director for European Affairs at the Libyan Foreign Ministry (left) and Malta’s Ambassador to Libya, Joseph Cassar, signing the new convention.