A double tax agreement between Hong Kong and Malta has been signed. Technical discussions and negotiations undertaken by the Hong Kong and Maltese tax authorities with a view to the finalisation of the text of that agreement only commenced in March, 2011.
The agreement excludes source State taxation on dividends and interest. However, tax may be withheld in the source State on outbound royalty payments, albeit at a rate not exceeding 3%. Of course, Malta would not withhold any tax on outbound royalties in terms of its domestic tax laws.
The agreement, which also reproduces the latest OECD exchange of information standards, will enter into force once ratification procedures applicable in both jurisdictions are completed.
Contact us here should you require any legal assistance with tax in Malta.