Officials from Malta and Romania signed, on 4 July, an amending protocol to the existing 1995 double tax agreement (DTA) between the two countries.
The Protocol updates the 1995 DTA in line with the OECD Model Tax Convention, equipping the two governments with rules and instruments to ensure that profits are taxed where economic activities generating them take place and protections against tax avoidance.
Companies operating in both countries will benefit from a more predictable and stable tax regime, helping to expand their business activities and attract new investments.
“We have encouraged trade relations in several sectors, including Maltese exports of pharmaceutical and electrical products to Romania and the exports of cereals, machinery, aluminium, pharmaceuticals and plastics flowing in the other direction,” said Maltese Minister for Trade Ian Borg.
“Some 265 Romanian companies are based in Malta. And with four flights a week between the two countries, there is potential for stronger links in tourism,” he added.
The protocol is the first to amend the treaty and will enter into force after the ratification instruments are exchanged. Further details of the protocol will be published once available.
“The strengthening of this tax treaty between the two countries is a welcome development and as a licensed Company Service Provider Sovereign is well placed to assist businesses from Romania to expand and set up their enterprises in Malta,” said Sovereign Trust (Malta) Managing Director Stephen Griffiths.
“With Malta having more than 80 tax treaties in place worldwide, together with its EU membership and central Mediterranean location it is an ideal jurisdiction from which to conduct business.”
