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Benjamin Griscti

The double tax agreement between Malta and Mexico entered into force on 9th August 2014.

This treaty affords double taxation relief in relation to:

  • the federal income tax and
  • the business flat rate tax, as imposed by the laws of the United Mexican States and income tax, as imposed by the laws of Malta.

What are the main features of this treaty?

  • Dividends: 0% withholding tax, hence no tax is imposed
  • Interest: that arises in one of the Contracting States and paid to an resident of the other may be taxed in that other state. If the beneficial owner of the interest is a resident of the other Contracting State, the tax charged shall not exceed:
  1. 5% of the gross amount of the interest from loans granted by a bank
  2. 10% of the gross amount of the interest in all other cases
  • Royalties: these are dealt in the same way as the interest – however, if the beneficial owner of the interest is a resident of the other Contracting State, the tax charged shall not exceed 10% gross amount of the royalties.

This agreement with Mexico is proof of the growing interest in the Latin America region, considering that Malta already has a double tax agreement with Uruguay.

For more information about Malta Double Tax system please contact our Tax Advisor, Benjamin Griscti on bgriscti@ksimalta.com.