June 11, 2014
-- Following the re-negotiation of the double tax treaty between Malta and the Republic of India, this has now entered into force as from 7th February 2014.
Most importantly is the fact that India is restricted to a withholding tax of 10% on any dividends distributed to a Maltese beneficiary. Similarly, this treatment is also applied to interest, royalties and fees for technical services.
This bilateral agreement will provide investors with greater certainty on their tax liabilities from cross-border economic activities, and boost closer economic and trade ties between India and Malta.Extension to the Highly Qualified Persons Scheme
The Highly Qualified Persons scheme offers beneficial fiscal residence connotations to highly ranked personnel within the local financial, gaming/innovation or aviation sector. Such persons are entitled to a flat tax rate of 15% on the income derived from such eligible office. For more information on this Residence Scheme kindly click here.
For the aviation sector, the scheme used to be restricted to companies holding air operators' certificate issued in terms of the Civil Aviation Act. By virtue of Legal Notice 16 of 2014, the scheme has now been extended to cover also companies holding an aerodrome license issued in terms of article 71 of the Air Navigation Order with retrospective effect as to year of assessment 2013. The position of Chief Executive Officers within such companies has also been included.