27th April 2009

Speech by the Hon. John Dalli, Minister For Social Policy, during the opening of the KS International conference - St. Julian's - 24th April 2009

Good Morning,

I would like to welcome you to Malta and I would wish you a pleasant stay. I am sure that the organisers will do their utmost to render your stay with us as enjoyable and fruitful as possible. It is opportune to emphasise the role that Malta is playing in the international financial sector so that you are armed with information that can benefit you and your clients.

The Mediterranean embraces two large continents, Europe, the old continent and North Africa with its African hinterland that is developing as the next window of opportunity for the global economy. The traditional military strategic importance that Malta enjoyed over the past centuries has now turned into an economic strategic asset as we have, over the past two decades, equipped ourselves with the tools to become a hub from which we can deliver a range of services worldwide.

• We have political stability, enhanced through our membership of the European Union.
• We have a credible legal and juridical structure
• We have a sound regulatory framework in all sectors, and
• We have a wealth of skilled human resources.

Malta has become a sought after location for international trade and international finance. I suggest that you get acquainted witht he details of our offer. I will not go into the details myself as I am sure that you will be in contact with the others who are up to date and willing to share their knowledge with you.

I will simply emphasize the mainstays of our Financial Services Regime which ensures that the significant advantages that Malta offers are used in a manner that both offers fiscal benefits to the foreign investor and is consistent with Malta's international obligations.

• The avoidence of double taxation.

All income originating from overseas is not subjected to double taxation, even if there is no double taxation agreement in existence. Unilateral relief from double taxation is provided through a system of flat rate foreign tax credits and refunds to non-resident shareholders on tax paid on dividend payments from overseas.

• Limiting the maximum tax liability of non-residents to Malta taxation on dividends from international business companies
• A taxation scheme for groups of companies allowing offset of losses between fellow subsidiaries
• Advance rulings by the commissioner of Inland Revenue. In this way the investor has certainty and clarity on international tax issues. These rulings guarantee the tax position for a minimum of five years and may be renewed for a further five year period
• Professional secrecy legislation
• Money laundering regulations
• Ratification of the Hague Convention on recognition of Trusts and incentives for the management of unit trusts from Malta whilst still allowing such trusts to be governed by foreign trust law

I am sure that during your seminar and your private dialogue with Maltese counterparts you will have the opportunity to be informed of the other features that make up our regime. I wish you well.

Thank you.