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Double Taxation Agreement Spain Malta

There is an article on the limitation of benefits under which the provisions of Articles 6 to 21 of the Treaty do not apply to persons enjoying special tax treatment under the laws or administrative practice of one of the States covered by the Protocol; (ii) persons enjoying special tax treatment of a State identified by mutual agreement between the competent authorities. They shall not apply to income received by a resident of the other State from such persons or to shares or other rights of such persons held by a resident. In addition, notwithstanding other provisions of the treaty, a resident of one State does not benefit from a reduction in or exemption from the taxes provided for in the treaty by the other State if the main objective or one of the principal purposes of the constitution or existence of the resident or of a person related to the resident is to receive contractual benefits that would otherwise not be available. Successive Maltese governments have attempted to conclude double taxation agreements with major trading partners and emerging countries to foster the growth of international trade, including financial services. To date, treaties are in force with more than 65 countries and this policy is expected to continue in the future. Most of Malta`s double taxation treaties are based on the OECD model. After the conclusion of a tax treaty by Ministerial Decree, the Act is repealed by all contrary provisions of Maltese national tax legislation. A reduction in double taxation is possible in the provisions of the tax treaty concerned. For more information on Malta`s double taxation conventions, see below. In 2008, Malta and Spain established 40 years since the establishment of diplomatic relations.

A year later, King Juan Carlos I and Queen Sofia of Spain, as well as the Spanish Foreign Minister, visited Malta to strengthen economic and social relations. During this visit, after months of negotiations, the Minister of Foreign Affairs signed a series of bilateral agreements with his Maltese counterpart. The agreements covered a number of sectors, including a Malta-Spain Joint Committee on Commercial Navigation and a joint statement on strengthening cooperation between the two ministries. This Joint Declaration is seen as a confirmation of the excellent relations that Malta and the Kingdom of Spain have established over the centuries. If, under the Treaty, the income of a resident established in Spain is exempt in Spain, Spain may take into account the exempt income for the calculation of the amount of tax on the remaining income of that resident (exemption with progressivity). . . .

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