The Swiss Federal Department of Finance (FDF) has recently announced that Switzerland’s bilateral double taxation agreement (DTA) with Malta has now entered into force.
According to the FDF, the DTA between Switzerland and the Republic of Malta entered into force on the same day as the diplomatic exchange of notes, namely July 6, 2012.
The agreement contains provisions on the exchange of information in accordance with the international standard applicable at present, the FDF says, noting that the treaty will serve to contribute to the further positive development of bilateral economic relations.
The FDF states: “Aside from the exchange of information, Switzerland and Malta have in particular agreed withholding tax exemption for dividend and interest payments between related companies with a capital stake of at least 10% in the company making the payment. Royalties are exempt from withholding tax.”
The provisions of the agreement will apply from January 1, 2013.