Malta’s double tax treaty with Uruguay, which was signed in March 2011, came into force in December 2012. It marks the first Double Tax Treaty signed between Malta and a Latin American country and signals Malta’s intent to boost economic relations with the Latin American continent. In fact, this Treaty was followed by another Treaty between Malta and Mexico which was signed in December 2012, which has not yet entered into force.
The Treaty with Uruguay is based on the OECD Model Tax Convention on Income and on Capital and aims to reduce the barriers to trade between the two countries by eliminating or reducing double taxation which may be suffered by investors carrying out any trade between Malta and Uruguay. By virtue of the article providing for the exchange of information between both states, the Treaty also provides for the prevention of tax avoidance.