Prior to this agreement, Maltese enterprises registered in Iceland and Icelandic enterprises registered in Malta would pay income tax on profits in the country where the business operation is based and the equivalent tax in their country of origin, unless unilateral tax release was applied.

This agreement provides for double taxation between Malta and Iceland to be eliminated.

Commenting on the agreement, Foreign Affairs Minister Michael Frendo said that such agreements provide an improved climate between two countries for fostering business opportunities.

There are similar agreements between Malta and other countries in existence. Since gaining independence in 1964, Malta has signed 44 double taxation agreements and the Foreign Affairs Ministry is currently negotiating a further 17.

The agreement was signed by the ministry’s permanent secretary, Cecilia Attard Pirotta and Sverrir Haukur Gunnlaugsson, Iceland Ambassador to Malta.