A proposed tax treaty between Curaçao and Malta is once again in the sights of Dutch lawmakers. Per the treaty, the two jurisdictions are expected to benefit from trade opportunities. At the same time, iGaming operators are expected to profit from the agreement that also seeks to fight financial crimes and prevent potential double taxation.
Despite the described benefits, not everyone agrees with the proposal, which is why it was up for debate by Dutch lawmakers earlier this week. The recent discussion included responses from the Dutch Parliament’s Finance Committee. The debate included representatives of GroenLinks-PvdA, VVD, NSC, as well as other lawmakers.
Although there are many upsides to the aforementioned treaty, Dutch lawmakers are concerned about its potential impact on the online gambling sector. This comes at a time when both Curaçao and Malta have strongly developed gambling markets.
Wopke Hoekstra, the Minister of Foreign Affairs, participated in the discussion and addressed a number of concerns regarding the Curaçao-Malta tax treaty. He was quoted by the Curaçao Chronicle and revealed: “The gambling industry, within Curaçao’s legal framework, benefits like any other economic activity from the reduction of economic barriers.”
Moreover, Hoekstra added: “Investments in this sector will also have long-term fiscal certainty regarding the distribution of tax authorities between Curaçao and Malta, facilitating investment planning.”
The Gambling Sector Is Important for Curaçao, Malta
The Dutch Minister of Foreign Affairs acknowledged the significance of Malta’s gambling sector. He pointed to 2022 data which showed there were 350 registered gambling companies in the country. Hoekstra added that the gross added value of the gambling sector in Malta was estimated at 9.6% in 2022.
“The economic value of this industry in Malta is substantial. In 2022, the gross added value of the entire gaming sector was 9.6%.“
Wopke Hoekstra, Dutch Minister of Foreign Affairs
Additionally, he highlighted the importance of the gambling industry for Curaçao too. Pointing to data as of the end of last year, Hoekstra said that there were 1,807 gaming and lottery companies registered in the country. “The gross added value of the entire gaming sector in Curaçao is unknown,” said the Minister of Foreign Affairs.
The discussion on the proposed tax treaty between Curaçao and Malta continues.
