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Malta income tax treaty and FATCA status

For a U.S. citizen, the IRS list includes Malta among countries with U.S. income tax treaty links. Treasury's FATCA table lists Malta with an in-force Model 1 agreement.

Malta on the IRS treaty list

The IRS A to Z treaty page includes Malta in its country list and provides links to tax treaties between the United States and particular countries.

The IRS explains that treaty provisions may reduce or exempt tax on certain income in specified cross-border situations. Residents of foreign countries may receive reduced U.S. tax or exemptions for certain U.S.-source income. Under the same treaties, U.S. residents or citizens may receive reduced foreign tax or exemptions for certain income from foreign sources. Rates and exemptions vary by country and income category.[4]

The IRS says that if a treaty does not cover a kind of income, or no treaty exists between the country and the United States, tax is paid according to the applicable U.S. return instructions. For a U.S. citizen, treaty treatment of a particular income item depends on the applicable treaty provisions.[4]

Malta on the Treasury FATCA table

Treasury's agreements and understandings table lists Malta as In Force (6-26-2014) and identifies the agreement as Model 1. Under FATCA, foreign financial institutions report account information to the IRS for accounts held by U.S. taxpayers or certain foreign entities with substantial U.S. taxpayer ownership.[3]

Treasury says foreign financial institutions may directly register with the IRS to comply with FATCA regulations, or comply with intergovernmental agreements treated as in effect in their jurisdictions.

Reading the two listings

U.S. citizens may receive treaty treatment for certain foreign-source income, subject to the applicable treaty terms, including any saving clause. A Model 1 FATCA agreement is an information reporting arrangement and is separate from the U.S. income tax treaty.[3][4]

Related reading

For Malta's reporting frameworks, see Malta reporting frameworks and U.S. trust forms for related information exchange and trust registration topics. See FATCA agreement lookup for Treasury's table of agreements and understandings by jurisdiction. Malta trust taxation and U.S. reporting and Trust types and roles under Malta law cover other Malta trust topics that sit alongside treaty and FATCA status.

Questions and answers

Does the IRS treaty list include Malta?

Yes. Malta appears in the IRS A to Z country list, which provides links to U.S. tax treaties by country.

What does the IRS say an income tax treaty can do?

The IRS says treaty rules can reduce or exempt tax on certain items of income in specified cross-border settings. The rates and exemptions vary among countries and income items.[4]

How does Treasury list Malta under FATCA?

Treasury lists Malta as In Force (6-26-2014) and identifies the agreement as Model 1. Under FATCA, foreign financial institutions report specified account information to the IRS.[3]

What does Treasury say an intergovernmental agreement does in this context?

Treasury says foreign financial institutions may comply with FATCA regulations through direct IRS registration or through intergovernmental agreements treated as in effect in their jurisdictions. Treasury publishes model agreements for FATCA implementation.[3]

What if an income type is not covered by a treaty?

The IRS says that if a treaty does not cover a particular kind of income, tax is paid in the manner and at the rates shown in the applicable U.S. return instructions. The same rule applies when no treaty exists between the country and the United States.[4]

Related glossary terms

  • Foreign entity: Form 8938 instructions treat interests in foreign corporations and partnerships, and in trusts and estates, as specified foreign financial assets in some cases.
  • Treaty rate table: A treaty rate table summarizes income categories and tax rates or exemptions under U.S. income tax treaties. The IRS explains the tables' scope and limits.

Related articles and guides

Tools and official documents

  • FATCA agreement lookup: Look up any jurisdiction in the U.S. Treasury FATCA table and see its agreement model and status as the Treasury lists them, with a link to the source.
Sources and data notes
  1. Malta Tax and Customs Administration, Guidance Note on the Tax Treatment of Trusts. https://mtca.gov.mt/personal-tax/legal-and-technical/test/guidance-note-on-the-tax-treatment-of-trusts. Retrieved .
  2. Malta Tax and Customs Administration, DAC 2, Automatic Exchange of Account Information (CRS/FATCA). https://mtca.gov.mt/business-tax/InternationalAffairs/international-tax-cooperation/exchange-of-information/dac-2. Retrieved .
  3. U.S. Department of the Treasury, Foreign Account Tax Compliance Act: agreements and understandings by jurisdiction. https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act. Retrieved .
  4. Internal Revenue Service, United States income tax treaties, A to Z. https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z. Retrieved .
  5. Internal Revenue Service, Foreign trust reporting requirements and tax consequences. https://www.irs.gov/businesses/international-businesses/foreign-trust-reporting-requirements-and-tax-consequences. Retrieved .
  6. Internal Revenue Service, Instructions for Form 3520. https://www.irs.gov/instructions/i3520. Retrieved .
  7. Malta Tax and Customs Administration, Double Taxation Conventions. https://mtca.gov.mt/personal-tax/individual/double-taxation-conventions. Retrieved .
  8. Malta Tax and Customs Administration, Tax Exchange Information Agreements (TEIAs). https://mtca.gov.mt/business-tax/InternationalAffairs/international-legislation-and-agreements/international-agreements/tax-exchange-information-agreements-(teias). Retrieved .

Dates in this block record when each source was read for this page.