News Archives: Taxation

Switzerland and Italy agree on dialogue on financial and tax issues

The Federal Department of Finance (FDF) and the Italian Ministry of Economy and Finance have announced that a working meeting will soon take place. During talks held, State Secretary Michael Ambühl, Head of the State Secretariat for International Financial Matters (SIF), and Ambassador Carlo Baldocci, Diplomatic Adviser to the Italian Ministry of Economy and Finance, discussed various financial and tax issues. Also in light of the recent developments in the European Union, their discussions included the model for an agreement on the regularisation of assets held in Switzerland by non-resident taxpayers and the introduction of a withholding tax on future…

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Malta has 3rd Lowest VAT Rate among 27 EU Members

Malta has the third lowest VAT rate among the EU’s 27 members, according to the latest data published in Brussels. Giving details of the new applicable VAT rates as from the start of this year across the bloc, a document released by the European Commission shows that, at 18 per cent, Malta still enjoys one of the lowest rates in the EU, almost three percentage points below the average, which stands at 20.9 per cent. Due to the ongoing financial crisis, many member states had to revise their VAT rates upwards over the past two years. In all, 14 out…

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EU/US Dialogue on the Foreign Account Tax Compliance Act

In a letter sent to the US tax authorities, the Hungarian Presidency of the Council of the European Union and the European Commission invited the US authorities to engage in a dialogue on how to best achieve the objectives of the US Foreign Account Tax compliance Act (FATCA). In this regard it pursues goals similar to those of the EU Savings Tax Directive which provides for an exchange of information between tax authorities of EU Member States. However, FACTA could impose a significant compliance burden on EU financial institutions (including banks, investment funds and insurance companies). In light of the…

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Malta ‘cautious’ on new push for common tax regulations in EU

Malta ‘cautious’ on new push for common tax regulations in EU Times of Malta has reported Finance Minister Tonio Fenech saying that Malta is adopting a very “cautious” approach on a proposal by the European Commission for a common system to calculate the tax base of businesses operating in the EU. Malta fears such a system could see the island lose millions of euros in income from large foreign companies that have set up shop in Malta over the years due to a favourable tax system. On the other hand, large member states, such as Germany and France, have been…

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Switzerland and Malta sign Double Taxation Agreement

Switzerland and Malta signed a double taxation agreement (DTA) in the area of taxes on income. The DTA will contribute to the further positive development of bilateral economic relations and also contains provisions on the exchange of information in line with internationally applicable standards. Aside from the exchange of information, Switzerland and Malta have in particular agreed withholding tax exemption for dividend payments in the case of related companies with a capital stake of at least 10% in the company making the payment. This exemption occurs so long as the participating interest is held for at least one year. These…

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