Malta Removed from Russian Blacklist of Offshore Jurisdictions

Malta Removed from Russian Blacklist of Offshore Jurisdictions

November 2014

The Russian Finance Minister has, by formal decree, published an updated black-listed offshore jurisdictions. One of the most conspicuous amendments, is the removal of Malta, from the same blacklist, albeit a total of forty-one (41) jurisdictions remain on the blacklist.

The decision, signals a progressively closer relationship between Malta and the Russian Federation, after several decades of lukewarm relations and diplomatic silence. The move to remove Malta from the blacklist, is a natural coronation to the execution and the coming into force of the Double Tax Treaty Provision, entered into and signed by the two countries, in May 2014, following several years of negotiations. This treaty supersedes the Malta – Russian tax treaty (2000) which has been superseded.

The signing of the double tax treaty represents a thawing of the relationship between the two countries, and the endorsement that the Republic of Malta is not a tax-haven, but an onshore jurisdiction which albeit firmly entrenched in the EU acquis communitaire and a full member of the European Union since 2004, enjoys a holistic and unbiased view, towards other non-EU economies.

According to the International Monetary Fund, the Russian Federation is, currently the eighth largest economy in terms of GDP, and a major player in the commodities and energy market.   This economic clout has also been underscored in the recent Memorandum of Understanding signed between the Maltese Chamber of Commerce and the Chamber of Commerce and Industry of the Russian Federation, signed in June 2014.

The double tax treaty with the Russian Federation and the subsequent removal from the blacklist represents another major milestone for the Government of Malta, which has been progressively and steadily increasing its political and geo-economical collaboration with a series of Memoranda of Understanding and Double Tax Treaty Agreements with a number of central and South American Republics.

To start reaping the full benefits of an onshore, low-tax, EU jurisdiction simply contact us by email on enquiries@fbsmalta.com or by calling at +356 2338 1500 for bespoke advice.