A double taxation agreement between the Isle of Man and Malta has come into force.

The comprehensive double taxation agreement was ratified by the Manx Government last month, and now Malta’s High Commissioner to the UK, Joe Zammit Tabona, has confirmed that Malta has completed its own ratification, as a result of which the agreement will come into force on 26 February.

It signals a move by the Isle of Man and Malta to develop economic relations, and will also serve to prevent tax evasion.

The double taxation agreement, based on the model published by the Organisation for Economic Co-operation and Development, is one of three signed by the Isle of Man – the others being with Estonia and Belgium.

In addition, the Island has signed 15 tax information exchange agreements with countries including the UK, Ireland, the US, Germany and France.

The Manx Government has also pledged to move to an automatic exchange of information within the EU, from 1 July 2011, in its application of the European Union Savings Directive.