Double taxation relief under Maltese law : a compartive study

Abstract

This comparative study aims to give a detailed analysis of the legal provisions under Maltese law which provide for double taxation relief in relation to the way such relief is provided under the legislation in force in the UK, US, the Netherlands and Luxembourg. The analysis, which follows an introduction to the subject of double taxation relief in Chapter 1, initially tackles the basis adopted by a state to assert its jurisdiction to impose tax and how such basis may result in double taxation. The main body of the comparative study then analyses the operation of double taxation relief, with Chapter 3 discussing Treaty Relief and Chapter 4 tackling Unilateral Relief and other forms of non-treaty relief. Treaty Relief is analysed in relation to the main Model Treaties which influence a country's negotiation of tax treaties, together with a general analysis of the main treaty articles and the methods employed to grant double taxation relief. Chapter 4 continues by analysing the main methods employed to grant relief by way of unilateral relief and other forms of non-treaty relief, namely the credit and the exemption method. The extent to which a country adopts these methods is discussed by analysing the provision of relief from double taxation on particular items of income. The credit method and the exemption method are then examined in further detail by focusing on the mechanics and restrictions involved in granting credit for foreign tax suffered, and analysing the general elements of the main exemptions granted, such as the Participation Exemption. Finally Chapter 5 concludes by providing a general overview of further relevant issues and suggestions for reform to Maltese legislation on the basis of the findings of the study, before providing concluding remarks abo