Malta and Libya signed a new double taxation convention agreement in Tripoli, Foreign Minister Tonio Borg announced on Monday.

The new convention was signed on Sunday by Dr. Joseph Cassar, Malta’s Ambassador to Libya and Mr. Ramadan Barq, Director for European Affairs at the Libyan Foreign Ministry.

The purpose of the Convention is to avoid double taxation and prevent fiscal evasion and covers direct taxes on income and capital and enables both countries to exchange information for a more effective stand against tax evasion.

The Convention will enter into force following ratification by both countries.

Once it comes into force, this Convention for the Avoidance of Double Taxation will supersede the previous one signed on the 5 October 1972.

Ambassador Cassar said that the new Convention should further help to stimulate the economic growth between the two countries.

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