US Senate approves the tax treaty with Malta
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Tonio Fenech, Minister of Finance, the Economy and Investment has announced that the US Senate has now approved Malta’s Tax Treaty with the United States. He said that this is a critical step in deepening Malta’s relationship with the USA, not only at the political and social levels, but also in trade and investment. The ratification of the treaty will now be affirmed through the exchange of diplomatic notes.
He went on to say that a Tax Treaty is a signal of the excellent relations between two countries and their tax and legislative authorities. It is a necessary step in attracting further investment from the USA and facilitating Maltese trade and investment into the world’s largest and most valuable market.
Both the Maltese and the US Governments agreed to establish a tax treaty along the internationally recognised Organisation for Economic Cooperation and Development (OECD) Model Tax Convention to provide a solid basis for development and growth in the relationship of both countries. The potential created through this treaty is excellent for all industry sectors of Malta. Malta already has a good base of quality and substantial US organisations operating in Malta, providing the evidence required to show potential investors that Malta offers a quality environment to operate
Minister Fenech then thanked US Senators Kerry and Lugar, respectively Chairman and Ranking Member of the US Senate Committee on Foreign Relations, as well as their teams for the support they have always shown throughout the ratification process. He also thanked the US Treasury and the US Embassy in Malta, Malta’s International Tax team, and Ambassador Miceli and his people in Washington for their professional support throughout.
The Minister concluded by saying that, “Demand for this treaty has been high with US investors querying its status to clear the way for fresh investment here. Minister Fenech augured that Maltese and international practitioners who have already started preparing for the eventuality of a ratified treaty with the USA will now be able to succeed in their endeavours.”