tax treaty: A new Tax Treaty between Serbia and Malta

A new tax treaty has been signed in Sept. 2009 between Serbia and Malta. After entering into force, dividends having received from Serbia will be liable to a withholding tax rate of 5% in the case that the receiving party is a company which has a minimum 25% of the payor company. In all other cases, the withholding tax rate will be 10% for those dividend payments.

The new treaty sets a 10% interest withholding tax rate. Withholding tax on royalties will be 5% for scientific activities, literate and copyright and 10% for trademark and patents.

If dividends are paid from Malta, the tax treaty defines the withholding tax rate for the dividend payment will not exceed the tax rate applied to the profits where the dividend is being paid.

Read more about Serbia Tax and Malta Tax.