Athens News Agency: News in English, 06-10-13

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Greece, Malta double taxation avoidance accord

[01] Greece, Malta double taxation avoidance accord

The double taxation avoidance agreement (DTAA), signed on Friday morning, is considered the most important form of economic cooperation between the two countries, and is expected to act as an incentive for the further growth of bilateral economic and commercial relations.

The agreement provides for the double taxation of incomes of natural and legal entities, with auspicious effects for Greek business enterprises, particularly in the shipping sector.

Specifically with regard to the maritime sector, Article 8 of the agreement provides for the "flag criteria", which introduces advantages for Greek-flag merchant marine vessels active in both countries, according to the Greek national economy and finance ministry's director of the International Economic Relations Directorate, George Kounadis.

The accord further determines the extent of the tax authority of the signatore countries, accelerates the curtailment of tax-evasion, ensures a fixed taxation regime, establishes the principle of non-discriminatory treatment and, chiefly, ensures uniform conditions of competition for investors, Kounadis explained.

Double taxation is defined as the levy of taxes on income/capital in the hands of the same taxpayer in more than one country, in respect of the same income or capital for the same period. Double taxation may arise when the jurisdictional connections, used by different countries, overlap or the taxpayer has connections with more than one country.

Caption: EPA file photo of Malta's foreign minister, Michael Frendo in Wales last year (Crown copyright)

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