Double Taxation Relief (Taxes on lncome) (ln_1980_90) | MT

Malta Government Gazette — Legal Notice 1980 90 — Double Taxation Relief (Taxes on lncome)

Preamble — Double Taxation Relief (Taxes on lncome) Open official source

L.N. 90 of 1980

INCOME TAX ACT, 1948

(ACT NO. J.JV OF 1948)

Double Taxation Relief (Taxes on lncome)

(Kingdom of the Netherlands) Order, 1980

IN exercise of the powers conferred by section 68A of the Income

Tax Act, 1948, the Minister of Finance, Customs and People's Financial

Investments has made the fol1owing order:-

l. This order may be cited as the Double Taxation Re1ief (Taxes

on Income) (Kingdom of the Netherlands) Order, 1980.

It is hereby declared -

2·

(a) that the arrangements specified in the Agreement set

out in the Schedule to this order have been made with the Govern

ment of the Kingdom of the Netherlands with a view to affording

relief from double taxation and preventing fiscal evasion in rela

tion to the fol1owing taxes imposed by the laws of the Kingdom

of the Netherlands

(i)

income tax (de inkomstenbelasting);

(ii)

wages tax (de loonbelasting);

(iii)

company tax (de vennootschapsbelasting);

(iv)

dividend tax (de dividendbelasting); and

(v)

capital tax (de vermogensbelasting);

that it is expedient that those arrangements should have

(b)

effect.

B

SCHEDULE

AGREEMENT BETWEEN

THE REPUBLIC OF MALTA

and

THE KINGDOM OF THE NETHERLANDS

FOR THE AVOIDANCE OF DOUBLE TAXATION

and

THE PREVENTION OF FISCAL EV ASION

WITH RESPECT TO T AXES ON INCOME AND ON CAPIT AL

The Government of the Kingdom of the Netherlands and the Government of

the Republic of Malta, desiring to conc1ude an agreement for the avoidanee of

double taxation and the prevention of fiseal evasion with respeet to taxes on ineome

and on eapital, have agreed as follows

CHAPTERI

Scope of the Agreement

ARTICLE l

Personal Scope

This Agreement shall appIy to persons who are residents of one or both of

the States.

ARTICLE 2

Taxes Covered

(1) This Agreement shall apply to taxes on ineome and on eapital imposed on

behalf of each of the States or of its politicaI subdivisions or Ioeal authorities,

irrespeetive of the manner in which they are Ievied.

(2) There shall be regarded as taxes on income and on eapital all taxes im

posed on total income, on total capitaI, or on eIements of income or of capital,

including taxes on gains from the a1ienation of movable or immovable property,

taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes

on capital appreciation.

The existing taxes to which this Agreement shall apply are, in partieular

(3)

in the ease of the N ether1ands

(a)

- income tax (de inkomstenbelasting);

- wages tax (de loonbelasting);

- company tax (de vennootschapsbeIasting);

- dividend tax (de dividendbelasting);

- capital tax (de vermogensbelasting);

(hereinafter referred to as "N ether1ands tax");

B

in the case of Malta

(b)

the income tax and surtax, including prepayments of

tax whether

made by deduction at source or otherwise,

(hereinafter referred to as "Malta tax").

(4) This Agreement shall aIso apply to any identical 01' substantially similar

taxes which are imposed after the date of signature of this Agreement in addition

to, or in place of, the existing taxes. The competent authorities of the States shalI

notify to each other any substantial changes which have been made in their res

pective taxation laws.

(5) Where under any provision of this Agreement income is relieved from tax

in one of the States, either in fnll 01' in part, and, under the law in force in the

other State, a person, in respect of the said income, is subject to tax by reference

to the amount thereof which is remitted to or received in that other State and not

by reference to the full amount thereof, then the relief to be al10wed under this

Agreement in the first-mentioned State sha11 apply to so much of the income as is

remitted to or received in the other State.

CHAPTER 11

Definitions

ARTICLE 3

General Definitions

In this Agreement, unless the context otherwise requires

(1)

(a) the term "State" means the Netherlands or Malta, as the context

requires; the term "States" means the Netherlands and Malta;

(b) the term "the Netherlands" comprises the part of the Kingdom of

the Netherlands that is situated in Europe and the part of the seabed and its

subsoil under the North-Sea, over which the Kingdom of the Netherlands has

sovereign rights in accordance with international law;

(c) the term "Malta" means the Republic of Malta, and, when used in a

geographical sense, means the Island of Malta, the Island of Gozo and the

other islands of the Maltese archipelago, inc1uding the territorial waters there

of, and any area outside the territorial sea of Malta which, in accordance with

international law, has been or may hereafter be designated, under the laws of

Malta concerning the Continental Shelf, as an area within which the rights of

Malta with respect to the seabed and subsoil and their natural resources may

be exercised;

(d) the term "person" comprises an individual, a company and any other

body of persons;

(e) the term "company" means any body corporate or any entity which

is treated as a body corporate for tax purposes;

(f) the terms "enterprise of one of the States" and "enterprise of the

other State" mean respectively an enterprise carried on by a resident of one of

the States and an enterprise carried on by a resident of the other State;

the term "national" means

(g)

(i) in respect of the Netherlands, any individual possessing the na

tionaIity of the Netherlands and any legal person, partnership or associa

t ion deriving its status as such from the law in force in the Netherlands;

(ii) in respect of Malta, any citizen of Malta as provided for in

Chapter III of the Constitution of Malta and in the Maltese Citizenship

Act, 1965, and any legal person, partnership or association deriving its

status as such from the law in force in Malta;

(h) the term "international traffic" means any transport by a ship or

aircraft operated by an enterprise which has its place of effective management

in one of the States, except when the ship or aircraft is operated solely between

places in the other State;

(i)

the term "competent authority" means

(i) in the case of the Netherlands, the Minister of Finance or his

authorized representative;

(ii) in the case of Malta, the Minister responsible for finance or his

authorized representative.

(2) As regards the application of this Agreement by either of the States, any

term not otherwise defined shaH, unless the context otherwise requires, have the

meaning which it has under the laws of that State relating to the taxes which are

the subject of this Agreement.

ARTICLE 4

Fiscal Domicile

(1) For the purposes of this Agreement, the term "resident of one of the

States" means any person who, under the law of that State, is liable to taxation

therein by reason of his domicile, residence, place of management or any other

criterion of a similar nature. The term does not include any person who is liable

to tax in that State in respect only of income from sources therein or capital situ

ated in that State.

(2) For the purposes of this Agreement an individual, who is a member of a

diplomatic or consular mission of one of the States in the other State or in a third

State and who is a national of the sending State, shaH be deemed to be a resident

of the sending State if he is submitted therein to the same ob1igations in respect

of taxes on income and capital as are residents of that State.

(3) Where by reason of the provisions of paragraph (1) an individual is a resi

dent of both States, then his status shaH be determined as fol1ows

(a) he shaH be deemed to be a resident of the State in which he has a

permanent home available to him. If he has a permanent home available to

him in both States, he shaH be deemed to be a resident of the State with which

his personal and economic relations are closest (centre of vital interests);

(b) if the State in which he has his centre of vital' interests cannot be

determined, or if he has not a permanent home available to him in either State,

he shaH be deemed to be a resident of the State in which he has an habitual

abode;

(c) if he has an habitual abode in both States or in neither of them, he

shaH be deemed to be a resident of the State of which he is a national;

(d)

if he is a national of both States or of neither of them/ the competent

authorities of the States shal1 settle the question by mutual agreement.

(4) Where by reason of the provisions of paragraph (1), a per son other than

an individuaI is a resident of both States, then it shaH be deemed to be a resident

of the State in which its place of effective management is situated.

B

ARTICLE 5

Permanent Establishment

(1) For the purposes of this Agreement, the term "permanent establishment"

means a fixed place of business in which the business of the enterprise is whol1y

or partly carried on.

The term "permanent establishment" shaH include especially

(2)

a place of management;

(a)

(b)

a branch;

(c)

an office;

(d)

a factory;

(e)

a workshop;

(f)

a mine, quarry or other place of extraction of natural resources;

. � g � � bui1ding site or construction or assembly project or supervisory

.

actlvltles m connectlOn therewith, where such site, project or activity continues

for more than twelve months.

The term "permanent establishment" shaH not be deemed to include

(3)

(a) the use of faci1ities solely for the purpose of storage, display or deli

very of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the

enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the

enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of

purchasing goods or merchandise, or for coHecting information, for the enter

prise;

(e) the maintenance of a fixed place of business solely for the purpose

of advertising, for the supply of information, for scientific research or for

similar activities which have a preparatory or auxiliary character, for the

en terprise.

(4) A person acting in one of the States on behalf of an enterprise of the

other State - other than an agent of an independent status to whom paragraph (5)

applies - shaH be deemed to be a permanent establishment in the first-mentioned

State if he has, and habitually exercises in that State, an authority to conclude

contracts in the name of the enterprise, unless his activities are limited to the pur

chase of goods or merchandise for the enterprise.

(5) An enterprise of one of the States shaH not be deemed to have a perma

nent establishment in the other State merely because it carries on business in that

other State through a broker, general commission agent or any other agent of an

independent status, where such persons are acting in the ordinary course of their

business.

(6) The fact that a company which is a resident of one of the States controls

or is controHed by a company which is a resident of the other State, or which car

ries on business in that other State (whether through a permanent establishment

or otherwise), shall not of itself constitute either company a permanent establish

ment of the other.

B

CHAPTER 111

Taxation of income

ARTICLE 6

Income from Immovable Property

(1) Income from immovable property may be taxed in the State in which

such property is situated.

(2) The term "immovable property" shaH be defined in accordance with the

law of the State in which the property in questian is situated. The term shall in

any case include property accessory to immovable property, rights to which the

provisions of general law respecting landed property apply, usufruct of immovable

property and rights to variable or fixed payments as consideration for the working

of, or the right to work, mineral deposits, sources and other natural resources, and

debt-claims of every kind secured by mortgage on immovable property, excIuding

bonds or debentures; ships and aircraft shall not be regarded as immovable pro

pel'ty.

(3) The provisions of paragraph (1) shall ap p ly to income derived from the

direct use, letting, or use in any other form of immovable property.

(4) The p r o v i s i on s of paragraphs (1) and (2) shall also apply to the income from

immovable property of an enterprise and to income from immovable property used

for the performance of professional services.

ARTICLE 7

Business Profits

(1) The profits of an enterprise of one of the States shall be taxable only in

that State unless the enterprise carries on business in the other State through a

permanent establishment situated there in. If the enterprise carries on business as

aforesaid, the profits of the enterprise may be taxed in the other State but only so

much af them as is attributable to that permanent establishment.

(2) Subject to the provisions of paragraph (3), where an enterprise of one of

the States carries on business in the other State through a permanent establish

ment situated therein, there shalI in each State be attributed to th1t perm1nent

establishment the profits which it might be expected to make if it were a distinct

and separate enterprise engaged in the same 01' similar activities under the same

or similar conditions and dealing wholly independently with t he enterprise of which

it is a permanent establishment.

(3) In the determination of the profits of a permanent establishment, there

shall be allowed as deductions expenses which are incurred for the purposes of

the permanent establishment incIuding executive and general administrative ex

penses so incurred, whether in the State in which the permanent establishment is

situated or eIsewhere.

(4) Insofar as it has been customary in one of the States to determine the

profits to be attributed to a permanent establishment on the basis of an apportion

ment of the total profits of the enterprise to its various parts, nathing in paragraph

(2) shall preclude that State from determining the profits to be taxed by such an ap

portionment as may be customary; the method of apportionment adopted shall,

B

however, be such that the result shall be in a c c o r d a n c e with the p r i n c i ples embo

died in this Article.

(5) No pr o fits shaH be attributed to a permanent establishment by r e a son

of the mere pur cha s e by that permanent establishment of goods or merchandise

for the e n t er p ri s e .

For the purposes of the p r eced in g paragraphs, the p r ofi t s to be attributed

(6)

ra the permanent establishment shall be d e te rm in ed by the same method year by

year unless there is good and s u fficie nt reason to the contrary.

(7) Where p rofi ts include items of i nco m e which are dealt w i th separ a t e ly in

o t her Articles of this Agreement, then the provisions of those Articles shall not

be a ff ec t e d by the provisions of this Article.

ARTICLE 8

Shipping and Air Transport

(1) Profits from the operation of ships or aircraft in international traffic shall

be taxabl e only in the St a te in which the p la c e of effective management of the

enterprise is situated.

(2) lf the pl a c e of effective management of a shipping enterprise is aboard a

ship, then it shall be deemed to be situated in the State in which the ho me harbour

of the ship is situated, or, if there is no such home harbour, in the S ta te of which

the operator of the ship is a resident.

(3) The provisions of paragraph (1) shall also apply to profits derived from the

participation in a pool, a joint business or in an international operating agency.

ARTICLE 9

Associated Enterprises

Where

(1)

(a) an enterprise of one of the States participates directly or indirect1y

in the management, c o n trol or capital of an enterprise of the other State, or

(b) the same persons participate direct1y or indirectly in the manage

ment, c o n tr ol or capital of an enterprise of one of the States and an enterprise

of the other State,

and in either cas e conditions are made or imposed between the two e n ter p r ises in

their commercial or financial relations which differ from those which would be

made between independent enterprises, then any profits which would, but for those

co n d i ti o ns have accrued to one of the en terprise s but, by reason of those condi

,

tions, have not sa accrued, may be included in the profits of that enterprise and

taxed accordingly.

(2) Where p r ofi ts on which an enterprise of one of the States has been charg

ed to tax in that State are a]so inc1uded in the profits of an e n t e r p ri s e of the o t her

State and taxed accordingly a n d the profits so included are profits which would

have accrued to that ent erpris e of the other State if the conditions made between

the ent e r p ri ses had been those which would have been made between independent

enterprises, then the first-mentioned Stat e shaB make an appropriate adjustment to

B

the amount of tax charged on those profits in the first-mentioned State. In deter

mining such an adjustment due regard shall be had to the other provisions of this

Agreement in relation to the nature of the income, and for this purpose the compe

tent authorities of the States shall if necessary consult each other.

ARTICLE 10

Dividends

(1) Dividends paid by a company which is a resident of one of the States to

a resident of t h e other State may be taxed in that other State.

(2) Dividends paid by a company which is a resident of the Netherlands to a

resident of Malta may aIso be taxed in the Netherlands, and according to Nether

lands law, but, if the recipient is the beneficial owner of the dividends, the tax so

charged shall not exceed

(a) 5 per cent of t he gross amount of the dividends i� the recipient is a

company which holds directly at least 25 per cent of the capltal of the company

paying the dividends;

(b)

15 per cent of the gross amount of the dividends, in all other cases.

This paragraph shall not affect the taxation of the company in respect of the

profits out of which the dividends are paid.

(3) Dividends paid by a company which is a resident of Malta to a resident

of the Netherlands who is the bene:ficial owner thereof shall be exempt from any

tax in Malta which is chargeabIe on dividends in addition to the tax chargeable in

respect of the profits of the company. Furthermore, Malta tax chargeable with res

pect to distributed profits of the company shall not exceed 15 per cent of the gross

amount thereof, if the distributed profits consist of gains or profits earned in any

year in respect of which that company is in receipt of any benefit under the provi

sions regulating aids to industries in Malta, and the profits are distributed to a

company which is a resident of the Netherlands and which is not charged to Ne

therI'ands cornpany tax with respect to such pro:fits: provided that the receiving

company submits returns and accounts to the taxation authorities of Malta in

respect of its income liable to Malta tax for the relative year of assessment.

This paragraph shall not affect the taxation of the company in respect of the

profits out of which distributions are made, but the recipient of any distributed

profits shall be entitled to any refund which may be available under the Iaw of

Malta on account of the tax paid by the company, if the tax so paid is in excess of

that chargeable on the distributed profits in accordance with the provisions of this

paragraph or of the law of Malta.

(4) the term "dividends" as used in this Article means income from shares,

"jouissance" shares or "jouissance" rights, mining shares, founders' shares or other

rights participating in profits, as well as income from other corporate rights which

is subjected to the same taxation treatment as income from shares by the taxation

law of the State of which the company making the distribution is a resident.

(5) The provisions of paragraphs (1), (2) and (3) shal l not apply if the recipient

of the dividends, being a resident of one of the States, carries on business in the

other State of which the company paying the dividends is a resident, through a per

manent estab1ishment situated therein, or performs in that other State professional

servi�e� from a fixe� b ase situ.ated

.

the dlvldends are pald IS effectIvely connected WIth such permanent establishment

or fixed base. In such a case, the provisions of Artic1e 7 or Artic1e 15, as the case

may be,

shall apply.

B

(6) Where a c o m p a n y which is a resident of one of th� States derives p r o fi ts

income from the other State, that other State may n ot lmpose any tax on the

01'

d i v i d en d s paid by the company, exeept insofar a� s�eh dividends ar e paid t<? �

.

resident of that other State or insofar as the holdmg In respeet of whlch the dlVl

dends are paid is effectively connected with a permanent es ta bl is h m ent or a fixed

base s it u a te d in t ha t other State, nar s u b j e ct the c o m pa n y s undistributed p r o fi ts

'

to a tax on undistributed profits, even if the dividends paid or the undistributed

profits eonsist wholly or partly of profi.ts or in e o m e arising in s u e h other State.

ARTICLE 11

lnterest

(1) Interest arising in one of the States and paid to a r e s i d en t of the other

State may be taxed in that o t h e r State.

(2) However, sueh interest may be taxed in the S ta te in w hi ch it arises and

according to the law of that S t a te , but if the recipient is the beneficial owner of

the interest, the tax sa eharged shaH not exceed 10 per cent of the gross amount

of the interest.

(3) Notwithstanding the provisions of paragraph (2)

(a) interest arising in Malta and paid to the Netherlands Government,

the Central Bank of the Netherlands. the N e d e r I a n d s e Financieringsmaats

ehappij voor Ontwikkelingslanden N.V. ( N e th e r l a n ds finance eompany for de

veloping eountries), and the Nederlandse Investeringsbank voor Ontwikkeling

slanden N.V. (Netherlands i n v es t m e n t bank for developing

countries) sha11 be

.

exempt from Malta tax;

(b) interest a r i s in g in the Netherlands and paid to the Malta Govern

ment, the Central Bank of Malta or the Malta Development Corporation shaB

be exempt from Nether1ands tax;

(e) the exemptions granted by this paragraph shall also apply to any

other statutory body of one of the States if sueh body p o sse ss e s a distinet

Iegal persona1ity.

(4) The term "interest" as u s e d in this Article means ineome from Govern

ment securities, ineome from bonds or debentures, whether or not seeured by mort

gage but not carrying a right to participate in profits, and income from debt-cIaims

of every kind not secured by mortgage, as well as all o t h e r income assimilated to

income from money lent by t h e taxation law of th e States in which the income

anses.

(5) The provisions of paragraphs (1) and (2) shall not apply if the recipient of

the interest, being a resident of one of the States, carries on business in the other

State in which the interest arises, through a permanent estab1ishment situated

therein, or p er f or m s in that other S t a t e professional services from a fixed base

situated therein, and the debt-claim in respect of which the interest is paid is

effectively eonnected with such permanent establishment o r fi.xed base. In such a

case, the provisions of Artic1e 7 or Article 15, as the case may be, shaH apply.

(6) In te r es t sh aH be deemed to a r i s e in one of the States when the payer is

that State itself, a politieal subdivision, a Ioeal authority or a r e s ide nt of that State.

Where, however, the person paying the interest, whether he is a r e s id e n t of one

of the St a t e s or not, has in one of t h e States a permanent estabIishment in eonnection

with which the indebtedness on which the interest is paid was incurred and such

interest is borne by sueh permanent establishment, then sueh intere � t shall be

deemed to arise in the State in which the permanent establishment is situated.

B

(7) Where, owing to a special relationship between the payer and the recip

ient or between both of them and some other person, the amount of the interest

paid, having regard to the debt-claim for which it is paid, exceeds the amount which

would have been agreed upon by the payer and the recipient in the absence of such

relationship, the provisions of this ArticIe shall app1y only to the last-mentioned

amount. In that case, the excess part of the payments shall remain taxable accord

ing to the law of each State, due regard being had to the other provisions of this

Agreement.

ARTICLE 12

Royalties

(1) Royalties arising in one of the States and paid to a resident of the other

State shall be taxable only in that other State if such resident is the beneficia1

owner of the royalties and the royalties consist of payments of any kind received

as consideration for the use of, or the right to use, any copyright of literary, artistic

Of scientific work.

(2) Royalties arising in one of the States and paid to a resident of the other

State may be taxed in that other State if the royalties consist of payments of any

kind received as a consideration for the use of, or the right to use, cinematogra

phic films or tapes for television or broadcasting, any patent, trade mark, design,

model, plan, secret formula or process, industrial, commercial or scientific equip

ment, or information concerning industrial, commercial or scientific experience.

However, such royalties may also be taxed in the State in which they arise, and

according to the law of that State, but if the recipient is the beneficial owner of

the royalties, the tax so charged shall not exceed 10 per cent of the gross amoun t of

such royalties.

(3) The provisions of paragraphs (1) and (2) shall not appIy if the recipient of

the royalties, being a resident of one of the States, carries on business in the other

State in which the royalties arise, through a permanent establishment situated

therein, or performs in that other State professional services from a fixed base

situated therein, and the right or property in respect of which the royalties are

paid is effectively connected with such permanent establishment or fixed base. In

such a case, the provisions of Artic1e 7 or Artic1e 15, as the case may be, shall

apply.

(4) Royalties shall be deemed to arise in one of the States when the payer

is that State itself, a political subdivision, a Iocal authority or a resident of that

State. Where, however, the person paying the royalties, whether he is a resident

of one of the States or not, has in one of the States a permanent establishment in

connection with which the liabiIity to pay the royalties was incurred, and such

royalties are borne by such permanent establishment, then such royaIties shall be

deemed to arise in the State in which the permanent estab.Iishment is situated.

(5) Where, owing to a special relationship between the payer and the recip

ient or between both of them and some other person, the amount of the royaIties

paid, having regard to the use, right or information for which they are paid, ex

ceeds the amount which would have been agreed upon by the payer and the recip

ient in the absence of such relationship, the provisions of this Article shall apply

only to the last-mentioned amount. In that case, the excess part of the payments

shalI remain taxable according to the law of each State, due regard being had to

the other provisions of this Agreemen t,

B

ARTICLE 13

Limitation of Articles 10, 11 and 12

International organizations, organs and oftlcials thereof and members of a dip

lomatic or consular mission of a third State, being present in one of the States, are

not entitled, in the other State, to the reductions or exemptions from tax provided

for in Articles 10, 11 and 12 in respect of the items of income dealt with in these

Articles and arising in that other State, if such items of income are not subject to

a tax on income in the first-mentioned State.

ARTICLE 14

Capital Gains

(1) Gains from the alienation of immovable property, as defined in paragraph

(2) of Article 6, may be taxed in the State in which such property is situated.

(2) Gains from the a1ienation of movable property forming part of the busi

ness property of a permanent establishment which an enterprise of one of the

States has in the other State, or of movable property pertaining to a fixed base

available to a resident of one of the States in the other State for the purpose of

performing professional services, incIuding such gains from the alienation of such

a permanent establishment (alone 01' together with the whole enterprise) or of such

a fixed base, may be taxed in the other State.

(3) Notwithstanding the provisions of paragraph (2), gains from the aIienation

of ships and aircraft operated in international traffic 01' of movable property per

taining to the operation of such ships and aircraft, shaH be taxable only in the State

in which the place of effective management of the enterprise is situated. For the

purposes of this paragraph the provisions of paragraph (2) of ArticIe 8 shaH apply.

(4) Gains from the alienation of any property other than those mentioned in

paragraphs (1), (2) and (3), shall be taxed only in the State of which the alienator is

a resident.

(5) The provisions of paragraph (4) shaH not e:ffect the right of each of the

States to levy according to its own law a tax on gains from the alienation of shares

or "jouissance" rights in a company which is a resident of that State, derived by an

individual who is a resident of the other State but has been a resident of the first

mentioned State in the course of the last five y,ears preceding the alienation of the

shares or "jouissance" rights.

ARTICLE 15

Independent Personal Services

(1) Income derived by a resident of one of the States in respect of profes

sional services or other independent activities of a similar character shaH be tax

able only in that State unless he has a fixed base regularly available to him in the

other State for the purpose of performing his activities. If he has such a fixed base,

the income may be taxed in the other State but only so much of it as is attributable

to that fixed base. A resident of one of the States performing such professionaI ser

vices or other independent activities in the other State shaH be deemed to have

such a fixed base available to him in that other State li he is present in that other

State for a period or periods exceeding in the aggregate 183 days in the calendar

year concerned.

fi

(2) The term "professional services' : inc1u � e� especially indepen � ent scienti

fic, literary, artistic, educational or t ea ch m g a c tl v l t l . e s as �ell as the mdependent

.

activities af ph ys ici a ns lawyers, engmeers, archltects, d e n t l s t s and accountants.

,

ARTICLE 16

Dependent Personal Services

(1) Subject to the provisions af Articles 17, 19, 20 and 21, s a l a r i e � wages and

,

other similar remuneration derived by a resident of one of the S t ate s m respect of

an em p l o y men t shall be taxable anly in that State unless the emplayment is exer

cised in the other State. If the employment is so exercised, such remuneration as is

derived t h e r e f r om may be taxed in t h a t ather State.

(2) Notwithstanding the provisions af paragraph (1), r e m u n e r a t i a n derived by

a resident of ane of the States in r e s p e c t af an emplayment exercised in the ather

State shall be taxable anly in the first-mentianed Sta t e if

the r ec i p i e n t is present in the o t her State far a periad or p e r i ads nat

(a)

exceeding in the a g g r e g a t e 183 days in the calendar year concerned; and

(b) the r e m u ner a t i o n is paid by, or on beha]f of, an employer who is nat

a r esi d e n t of the other State; and

(c) t h e remuneration is not b o r n e by a pe r m a n e n t establishment or a

fixed base which the e m p lo y e r has in the other State.

(3) Notwithstanding the preceding provisions of this A r ti c l e remuneration

derived by a resident of one of the States in r e s p ec t of an e m p lo ym e n t exercised

a bo a r d a ship or aircraft in international traffic shall be taxable only in that State.

ARTICLE 17

Directors' Fees

(1) Di r ecto r s fees and similar payments derived by a resident of the Nether

'

lands in his c a p a c i ty as a me m b e r of the board of d i r ecto r s of a company which is

a resident of Malta may be taxed in Malta.

(2) Remuneration and other p a ym e nt s derived by a resident of Malta in his

capacity as a "bestuurder" or a "commissaris" af a company which is a resident of

the Netherlands may be taxed in the Ne t h e rl a nds

.

ARTICLE 18

Artistes and Athletes

(1). Notwithstanding the pr�visio?s of Arti7Ies 15 an � 16, i n c o m e derived by

entertamers, such as t h e at r e, motIOn plcture, radlO or televIsion artistes and musi

cians, and by ath l e t es , from their personal a c t i v i t i e s as such ' may be t � xed in the

State in which t h ese activities are exercised.

Where i n c o me in r es p ect of personal activities as such of an e nt e rtai ner

(2)

cr u e s nat to t h a t �ntertainer ?� a t hl e t e himself but ta a n o the r person,

or a � hlete a c

.

that m co m � may notwlthst�n ? �ng the provIslOns of Articles 7, 15 an d 16, be taxed in

!

the State ID whIch the actIvltles of the entertainer or athlete are exercised.

B

ARTICLE 19

Pensions

Subject to the provIslons of paragraph (2) of Article 20, pensions and other

simiJar remuneration paid to a resident of one of the States in consideration of

past emp10yment shaH be taxable only in that State.

ARTICLE 20

Government Service

Remuneration, other than a pension, paid by one of the States 01' a

(1)

(a)

political subdivision or a local authority thereof to any individual in respect

of services rendered to that State or subdivision Of local authority thereof may

be taxed in that State.

(b) However, such remuneration shall be taxable only in the other State

if the services are rendered in that State and the recipient is a resident of that

other State who

is a national of that State; or

(i)

(i i)

did not become a resident of t hat State solely for the purpose

of performing the services.

(2)

(a)

Any pension paid by, or out of funds created by, one of the States or

a political subdivision or a loeal authority

thereof to any individual in respect

of services rendered to that State or subdivision or Iocal authority thereof

may be taxed in that State.

(b)

However, such pension shal1 be taxable only in the other State if the

recipient is a national of and a resident of th a t State.

(3) The provisions of Articles 16, 17 and 19 sha11 apply to remuneration or

pensjons in respect of services rendered in connection with any trade or business

carried on by one of the States or a political subdivision or a I o c al authority

thereof.

ARTICLE 21

Professors and Teachers

(1) Payments which a professor or te a c h e r is a resident of one of the States

and who is present in the other S ta t e for the purpose of teaching or scientific re

search far a maximum periad of two years in a university, college or ot he r estab

lishment for teaching or scientific research in that other State, receives for such

teaching or research, sha11 be taxable only in the first-mentioned State.

(2) This ArticIe shaH not apply to income from research if such research is

undertaken not in the public interest but primari1y for the private benefit of a

specific per son or persons.

ARTICLE 22

Students and Trainees

(1) An individual who was a resident of one of the States immediately before

visiting the other State and is temporari1y present in that other State solely as a

student at a university, college, school or other similar educational institution in

B

that other State or as a business apprentice shall, from the date of his first arrival

in that other State in c o nn ect i on with that visit, be exempt from tax in that other

State

(a) on all remittances from abroad for purposes of his maintenance, edu

cation or training; a n d

(b) for a period not exceeding in the aggregate :five years, on any remu

neration not exceeding 5000 guilders, or the equivalent in Malta currency, for

each calendar year for personal services rendered in that other State with a

view to supplementing the resources available to him for such purposes.

(2) All. individual who was a resident of one of the States immediately before

visiting the other State and is temporarily present in that other State solely for the

purpose of study, research or training as a recipient of a grant, allowance or award

from a scientific, educational, religious or charitable organisation or under a tech

nical assistance programme entered into by the Government of one of the States

shall, from the date of his first artival in that other State in connection with that

visit, be exempt from tax in that other State

(a)

on the amount of such grant, allowance or award, and

(b) on all remittances from abroad for the purposes of his maintenance,

education or t ra i n i n g

.

ARTICLE 23

Other Income

(1) Items of income of a resident of one of the States, wherever arising, not

dea1t with in the foregoing Articles of this Agreement shall be taxable o n l y in that

State.

(2) The provisions of p ar a g r ap h (1) shaH not apply ii the recipjent of the in

come, being a resident of one of the States, carries on business in the other State

through a permanent estab1ishment situated therein, or performs in that other

State professional services from a :fixed base situated therein, and the right or

property in respect of which the income is paid is effectively connected with such

permanent establishment <of :fixed base. In such a case, the provisions of Artic1e '}

or Artic1e 15, as the case may be, shall apply.

CHAPTER IV

Taxation and Capital

ARTICLE 24

Capital

(l) C a pi tal represented by immovable p r o pe rt y as de:fined in paragarph (2) of

,

Artic1e 6, may be taxed in the State in which such property is situated.

(2) Capital represented by movable property forming part of the business

p r o p e rty of a permanent establishment of an enterprise, or by movable property

pertaining to a fixed base used for the performance of professional services, may be

taxed in the State in which the permanent establishment or fixed base is situated.

B

(3) Notwithstanding the provisions of pa r a g raph (2), ship s and aircraft o p er

ated in international traffic and m o vable property pertaining to the o pe ration of

such ships and aircraft shall be taxable o n ly in the State in which the p lace of

e:ffective manageme n t of the en t e r prise is s itua t ed . For the purposes of this para

graph the p r o vi s ion s of parag r a p h (2) of A r t ic1e 8 shall ap p ly .

(4) All o ther elements of capi t al of a resident of one of the State s shall be

taxable o n ly in that State.

CHAPTER V

Elimination of Double Taxation

ARTICLE 25

Elimination of Double Taxation

(1) The Nethe r lands , when imposing tax on its residents, may inc1ude in the

basis upon which such taxes are impose d the items of inc o me or capital which ,

according to the provisions o f this Agreeme n t , may be taxed in Malta.

(2) Without preju d ice to the a pp licati on of the p r o visio n s concerning th e

c ompens a tion of loss e s in the unilatera l regulations for the av o idance of d o uble

taxation, the Nether1a n ds shall allow a deduction from the amount of tax com

puted in conformity with p a r agraph (1) o f this Article equal to s uch part of t h a t tax

which bea r s the sam e proportion to the aforesaid tax, as the part of the income or

capital which is included in th e basis referred to in pa r ag r aph (1) of this Artic1e and

may be taxed in Malta according to Articles 6 and 7, p aragra p h (5) o f Article 10.

paragraph (5) of A r ticle 11, p aragra p h (3) of Article 12, paragraphs (1) and (2) of

14, Article 15 , paragraph (1) of Article 16, paragraph (1) of Arti c 1e 17,

Artic1e

Ar t i c1e 20, pa r ag r aph (2) of A r ticle 23, and para g raphs (1) and (2) of A r tic1e 24

of this Agreement, bears to the to t al income or cap i ta l which forms the basis

refer r ed to in pa r agra p h (1) of thi s Article.

(3) Further the Netherlands shaH allow a deduction from t he tax computed

in accodance with the p r ecedin g p ara g r a p hs of t hi s Article with respect to the items

of income which may be taxed i n Malta according to paragraph (2) of Artic1e 11,

p ara g raph (2) of Artic l e 12, an d Article 18 a n d are inc1uded in the basis referred to

in pa ragr aph (1) of this Ar t icle .

The amount of this deduct i on shall be the lesser of the foIIowing amounts

(i)

the amount equaI to the Malta tax;

(ii) the amount of th e NetherIands tax which bears the same propo r tion

to the amount of tax c omputed in conformity with p a ragraph (1) of t hi s Article,

as t he amount of the said items of income bears to the amou n t of income which

form s the basis referred to in paragraph (1) of thi s Article.

(4) Wh e re by rea s o n of specia l incentive m e asur e s desi g ned to promote eco

,

nomic development in Malta, the Malta tax a c t uaIIy levied on interest an d r o ya l ties

(other t h an royalties in respect of cinematographic films or tapes for te l evis i on and

broadcasting) a ri s in g in Malta is tower than the tax Malta may 1evv a cco r din g t o

p ar a g rap h (2) of Artic1e 11 and pa r a g raph (2) of A rt ic1e 12, respectively, then the

amo u nt equal to the Malta tax r e ferred to in sub-paragraph (i) of paragraph (3) on

such interest and r o yalt i es shalI be deemed to be 10 per cent of the gr o ss amount

thereof.

B

(5) Subject to the provisions of the law of Malta regarding the allowance of

a credit against Malta tax in respect of foreign tax (which shaH not afl'ect the gene

ral principle hereof) and saving the provisions of paragraph (6), where there is in

c1uded in a Malta assessment income or capital which, in accordance with the pro

visions of this Agreement, may be taxed in the Nether1ands, the Netherlands tax

on such income or capital, as the case may be, shall be allowed as a credit against

the relative Malta tax payable thereon.

(6) Where a resident of one of the States derives gains which may be taxed

in the other State in accordance with paragraph (5) of Artic1e 14, that other State

shaH allow a deduction from its tax on such gains to an amount equal to the tax

levied in the first-mentioned State on the said gains.

CHAPTER VI

Special Provisions

ARTICLE 26

N on-discrimination

(1) The nationals of one of the States, whether they are residents of that

State or not, shall not be subjected in the other State to any taxation or any re

quirement connected therewith which is other or more burdensome than the taxa

tion and connected requirements to which nationals of that other State in the same

circumstances are or may be subjected.

(2) The taxation on a permanent establishment which an enterprise of one

of the States has in the other State shaH not be less favourably levied in that other

State than the taxation levied on enterprises of that other State carrying on the

same activities. This provision shaH not be construed as obliging one of the States

to grant to residents of the other State any personal allowances, reliefs and reduc

tions for taxation purposes on account of civi1 status or family responsibilities

which it grants to its own residents.

(3) Except where the provisions of paragraph (1) of Article 9, paragraph (7)

of Article 11 , or paragraph (5) of Article 12, apply, interest, royalties and other dis

bursements paid by an enterprise of one of the States to a resident of the other

State shaH, for the purpose of determining the taxable profits of such enterprise, be

deductible under the same condition as if they had been paid to a resident of the

first-mentioned State. Similarly, any debts of an enterprise of one of the States to

a resident of the other State shaH, for the purpose of determining the taxable capi

tal of such enterprise, be deductible as if they

. had been contracted to a resident

of the first-mentioned State.

(4) Enterprises of one of the States, the capital of which is wholIy or partIy

owned or controHed, directly or indirect]y, by one or more residents of the other

State, shaH not be subjected in the first-mentioned State to any taxation or any

requirement connected therewith which is other or more burdensome than the taxa

tion and connected requirements to which other similar enterprises of that first

mentioned State are or may be subjected.

(5) In this Article the term "taxation" means taxes of every kind and des

cription.

B

ARTICLE 27

Mutual Agreement Procedure

(1) Where a resident of one of the States considers that the actions of one or

both of the States result or will result for him in taxation not in accordance with

this Agreement, he may, notwithstanding the remedies provided by the national

laws of those States, present his case to the competent authority of the State of

which he is a resident, or, in any case referred to in paragraph (1) of Article 26, to

that of the State of which he is a national. This case must be presented within three

years from the first notification of the action giving rise to taxation not in accord

ance with the Agreement.

(2) The competent authority shall endeavour, if the objection appears to it

to be justified and if it is not itself able to arrive at an appropriate solution, to re

solve the case by mutual agreement with the competent authority of the other

State, with a view to the avoidance of taxation not in accordance with the Agree

ment. Any agreement reached shall be implemented notwithstanding any time

limits in the national laws of the States.

(3) The competent authorities of the States shall endeavour to resolve by

mutual agreement any difficulties or doubts arising as to the interpretation or ap

plication of the Agreement. They may also consult together for the elimination of

double taxation in cases not provided for in the Agreement.

(4) The competent authorities of the States may communicate with each

other directly for the purpose of reaching an agreement in the sense of the preced

ing paragraphs.

ARTICLE 28

Exchange of Information

(1) The competent authorities of the States shall exchange such information

as is necessary for the carrying out of this Agreement or of the domestic laws of

the States concerning taxes covered by this Agreement insofar as the taxation there

under is not contrary to this Agreement. The exchange of information is not rest

ricted by Article 1. Any information received by one of the States shall be treated

as secret in the same manner as information obtained under the domestic laws of

that State and shall be disclosed only to persons or authorities (including courts

and administrative bodies) involved in the assessment or collection of, the enforce

ment or prosecution in respect of, or the determination of appeals in relation to,

the taxes which are the subject of the Agreement. Such persons or authorities shall

use the information only for such purposes. These persons or authorities may dis

close the information in public cour t proceedings or in judicial decisions.

(2) In no case shall the provisions of paragraph (1) be construed so as to im

pose on one of the States the obligation

(a) to carry out administrative measures at variance with the laws or the

administrative practice of that or of the other State;

(b) to supply particulars which are not obtainable under the laws or in

the normal course of the administration of that or of the other State;

(c) to supply information which would disclose any trade, business, in

dustrial, commercial, or professional secret or trade process, or information,

the disclosure of which would be contrary to public policy.

B

ARTICLE 29

Diplomatic and ConsuLar Officials

Nothing in this Agreement shaH affect the fiscal privileges of diplomatic 01'

consular officials under the general rules of international law or under the provi

sions of special agreements.

ARTICLE 30

Regulations

(1) The competent authorities of the States shaH by mutual agreement settIe

the mode of application of paragraphs (2) and (3) of Artic1e 10, of paragraphs (2)

and (3) of Artic1e 11, and of paragraphs (1) an d (2) of Artic1e 12.

(2) The competent authorities of each of the States, in accordance with the

practices of that State, may prescribe regulations necessary to carry out the other

provisions of this Agreement.

ARTICLE 31

Territorial extension

(1) This Agreement may be extended, either in its entirety or with any neces

sary modifications, to the Netherlands Anti1les, if that country imposes taxes sub

stantiaHy similar in character to those to which this Agreement applies. Any such

extension shaH take effect from such date and subject to such modifications and

conditions, inc1uding conditions as to termination, as may be specified and agreed

in notes to be exchanged through diplomatic channels.

(2) Unless otherwise agreed the termination of the Agreement shaH not of

itself also terminate any extension of the Agreement to the Netherlands Anti1les.

CHAPTER VII

Final Provisions

ARTICLE 32

Entry into Force

(1) The Governments of the States shaH notify to each other that the consti

tutional requirements for the entry into force of this Agreement have been com

plied with.

(2) The Agreement shaH enter into force thirty days after the date of the

later of the notifications referred to in paragraph (1) and its provisions shalI have

effect

(a) in respect of taxes on income derived on or after the first day of

J anuary, 1976;

(b)

in respect of taxes on capitaI levied as from the first day of January,

1976,

B

ARTICLE 33

Termination

This Agreement shaH remain in force until terminated by the Government of

one of the States. Either State may terminate the Agreement through diplomatic

channels, by giving notice of termination at least six months before the end of any

calendar year after the year 1981. In such event the Agreement shaH cease to have

effect

(a) in respect of taxes on income derived on or after the first day of

January next following the year during which notice of termination has been

given.

(b) in respect of taxes on capital Ievied as from the :first day of J anuary

next following the year during which notice of .termination has been given.

IN WITNESS WHEREOF the undersigned,

duly authorized

thereto,

have

signed this Agreement.

DONE at The Hague this 18th day of May, 1977, in duplicate, in the Nether

lands and English Ianguages, both texts being equally authentic.

For the Government of the

Republic of Malta,

Kingdom of the Nether1ands,

(sd.)

G. AGIUS

M. VAN DER STOEL

(sd.)

B

PROTOCOL

At the moment of signing the Agreement for the avoidance of double taxation

and the prevention of fiscal evasion with respect to taxes on income and on capital,

this day concluded between the K i n gdom of the N etherlands and the Republic of

Malta, the undersigned have agreed that the following provisions shaH form an

i n terg ra l part of the Agreement.

AD ARTICLE 4

Malta Government Gazette — Legal Notice 1980 90 — Double Taxation Relief (Taxes on lncome)

Reg. 1 — Double Taxation Relief (Taxes on lncome) Open official source

An individual l iving aboard a ship without having a permanent home in either

of the States shall be deemed to be a r es i den t of the State in which the ship has

its home harbour.

AD ARTICLES 5 AND 7

Gazzetta tal-Gvern ta' Malta — Avviż Legali 1980 90 — Ordni t a ' l-] 980 dwar Ħelsien minn Taxxa Doppja (Taxxi fuq 'Income')

Skeda — Ordni t a ' l-] 980 dwar Ħelsien minn Taxxa Doppja (Taxxi fuq 'Income') Open official source

FTEHIM BEJN

IR-REPUBBLIKA TA' MALTA

u

R-RENJU T A' L OLANDA

-

GĦALL-ĦELSIEN MINN TAXXA DOPPJA

u

BIEX TIĠI EVITATA EVAżJONI FISKALI DWAR

TAXXI FUQ INCOME U FUQ KAPITAL

Il-Gvern tar-Repubblika ta' Malta u l-Gvern tar-Renju ta' l-Olanda billi jixtiequ

jagħmlu Ftehim għall-Ħelsien minn Taxxa Doppja u Biex Tiġi Evitata Evażjoni Fiskali

Dwar Taxxi Fuq Income u Fuq Kapital, ftehmu kif ġej

KAPITLU I

Għan tal-Ftehim

ARTIKLU 1

Għan Personali

Dan il-Ftehim japplika għall-persuni li huma residenti ta' wieħed mill-Istati Kon

traenti jew tat-tnejn.

ARTIKLU 2

Taxxi Koperti

(1) Dan il-ftehim japplika għal taxxi fuq l-income u fuq kapitali mposti fisem

kull wieħed mill-Istati jew mis-sottodiviżjonijiet politiċi jew mill-awtoritajiet lokali tagħ

hom, hu li hu l-mod li bih jinġabru.

(2) Għandhom jitqiesu bħala taxxa fuq l-income u fuq kapital it-taxxi kollha

mposti fuq income totali, fuq kapital totali. jew fuq elementi ta' income jew ta' kapital

magħduda taxxi fuq qliegħ mill-bejgħ ta' proprjeta mobbli jew immobbli, taxxi fuq

l-ammonti totali ta' pagi u salarji mħallsa minn impriżi, kif ukoll taxxi fuq apprezza

ment tal-kapital.

!t-taxxi eżistenti li għalihom japplika dan il-Ftehim huma, b'mod partikolari

(3)

(a)

fil-każ ta' l-Olanda

- de inkomstenbelasting (it-taxxa fuq l-income);

-- de loonbelasting (it-taxxa fuq il-paga);

- de vennootschapsbelasting (it-taxxa fuq kumpannija);

- de dividendbelasting (it-taxxa fuq dividendD;

- de vermogensbelasting (it-taxxa fuq kapital);

(hawnhekk iżjed 'il quddiem imsejħa "it-taxxa ta' l-Olanda'');

B

(b)

fil-każ ta' Malta

it-taxxa fuq l-income u soprataxxa, inklużi ħlasijiet bil-quddiern ta' taxxa

sew jekk bi tnaqqis minn ras il-għajn jew xort'oħra,

(hawnhekk iżjed 'il quddiern imsejħa "it-taxxa ta' Malta").

(4) Dan il-Ftehim għandu japplika wkoll gYml kull taxxi bħalhom jew li sostan

zjalment jixbħuhom li jiġu mposti wara d-data tal-firmar ta' dan il-Ftehim b'żieda

ma', jew minflok, it-taxxi eżistenti. L-awtoritajiet kompetenti ta' l-Istati Kontraenti

għandhom javżaw lil xulxin b'kull tibdil sinjifikanti li jkunu għamlu fil-liġijiet fiskali

rispettivi tagħhom.

(5) Meta l-Ftehim jipprovdi li income li jinqala' fi Stat Kontraenti għandu jiġi

meħlus mit-taxxa f'dak l-Istat, jew għal kollox jew f'parti, u, skond il-liġi fis-seħħ fl-Istat

l-ieħor dwar l-imsemmi income persuna tkun suġġetta għat-taxxa b'riferenza għal dak

l-ammont minnu li jintbagħat jew li jiġi riċevut f'dak l-Istat l-ieħor u mhux b'riferenza

għall-ammont sħiħ tiegħu, allura l-ħelsien li għandu jingħata taħt dan il-Ftehim fI-Istat

l-ewwel imsemmi għandu japplika għal dik il-parti mill-income li tkun intbagħtet jew

li ġiet riċevuta fl-Istat l-ieħor.

KAPITLU 11

Tifsiriet

ARTIKLU 3

Tifsiriet Ġenerali

F'dan il-Ftehim, kemm-il darba r-rabta tal-kliem ma teħtieġx xort'oħra

(1)

(a) il-frażi "Stat" tfisser l-Olanda jew Malta. skond ma teħtieġ ir-rabta tal

kliem, i1-frażi "Stati" tfisser l-Olanda u Malta;

(b) il-frażi "l-Olanda" tinkludi l-parti tar-Renju ta' l-Olanda li hija sitwata

fl-Ewropa u l-parti ta' qiegħ il-balmr u taħt is-sottoswol tiegħu taħt in-North Sea,

fuq liema r-Renju ta' l-Olanda għandu drittijiet sovrani skond il-liġi internazzjonali;

(ċ) il-frażi "Malta" tfisser ir-Repubblika ta' Malta, u, meta wżata f'sens ġeo

grafiku, tfisser il-Gżira ta' Malta, il-Gżira ta' Għawdex u l-Gżejjer l-oħra ta' l-arċi

pelagu Malti inklużi l-ibħra territorjali tagħhom, u kull area barra l-ibħra terri

torjali ta' Malta li, skond il-liġi internazzjonali, hi msejħa jew aktar 'il quddiem

tista' tissejjaħ, taħt il-liġijiet ta' Malta dwar il-blata kontinentali, bħala area li

fiha jistgħu jiġu eżerċitati d-drittijiet ta' Malta dwar qiegħ il-baħar u s-sottoswol

u r-riżorsi naturali tagħhom;

il-frażi "persuna" tinkludi individwu, kumpannija jew xi korp ieħor ta'

(d)

persuni;

(e) il-frażi "kumpannija" tfisser kull għaqda korporata jew kull entita li tit

qies bħala għaqda korporata għall-finijiet ta' taxxa;

(f) il-frażijiet "impriża ta' wiehed mill-Istati" u "impriża ta' l-Istat l-ieħor"

ifissru rispettivament impriża li titmexxa minn persuna residenti ta' wieħed mill

Istati u impriża mmexxija minn persuna residenti ta' l-Istat l-ieħor;

(ġ)

i1-frażi "nazzjonali" tfisser

(i) dwar l-Olanda, kull individwu li jkollu n-nazzjonalita ta' l-Olanda u

kull persuna, soċjeta jew assoċjazzjoni legali li tikseb dak l-istat tagħha bis

saħħa ta' liġi fis-seħħ fl-Olanda;

(iD dwar Malta, xi ċittadin ta' Malta kif provdut fil-Kapitlu III tal-Kos

tituzzjoni ta' Malta u fl-Att ta' 1-1965 dwar iċ-ċittadinanza Maltija, u kull per

suna, soċjeta jew assoċjazzjoni legali li tikseb dak l-istat tagħha bis-saħħa ta'

liġi fis-seħħ f'Malta;

B

(ħ)

il-frażi "traffiku internazzjonali" tfisser kull

trasport

b'bastiment

jew

b'inġenji ta' l-ajru mħaddma minn impriża li għandha l-post tal-maniġġ effettiv

tagħha f'wieħed mill-Istati, barra minn meta l-bastiment jew l-inġenji ta' l-ajru

jkunu mħaddma biss bejn postijiet fi-Istat l-ieħor;

il-frażi "awtorita kompetenti" tfisser

(i)

(i) fil-każ ta' l-Olanda, il-Ministru tal-Finanzi jew ir-rappreżentant awto

rizzat tiegħu;

(iD fil-każ ta' Malta, il-Ministru responsabbli għall-finanzi jew ir-rappre

żentant awtorizza t tiegħu.

(2) Fl-applikazzjoni ta' dan il-Ftehim minn xi wieħed mill-Istati, kull frażi li ma

tkunx xort'oħra mfissra għandha. kemm-il darba r-rabta tal-kliem ma teħtieġ x xort'oħra,

ikollha l-istess tifsir kif mogħti lilha taħt il-liġijiet ta' dak l-Istat dwar it-taxxi li huma

suġġetti għal dan il-Ftehim.

ARTIKLU 4

Domiċilju Fiskali

(1) Għall-finijiet ta' dan il-Ftehim, il-frażi "persuna residenti ta' wieħed mill

Istati" tfisser kull persuna li, taħt il-liġi ta' dak l-Istat, tkun suġġetta għat-tassaz

zjoni hemmhekk minħabba d-domiċi1ju, ir-residenza jew il-post tal-maniġġ tagħha jew

xi kriterju ieħor dwarha ta' din ix-xorta. Il-frażi ma tinkludix xi persuna li tkun suġ

ġetta għat-taxxa f'dak l-Istat biss dwar income minn għejjun hemmhekk jew kapital li

jkun qiegħed f'dak l-Istat.

(2) Għall-finijiet ta' dan il-Ftehim. individwu, li jkun membru ta' korp diploma

tiku jew konsulari ta' xi wieħed mill-Istati fi-Istat l-ieħor jew f'xi Stat ieħor u li jkun

nazzjonali ta' l-Istat li jibagħtu, ikun meqjus li jkun residenti ta' l-Istat li jibagħtu jekk

ikun suġġett hemmhekk għall-istess obbligazzjonijiet dwar taxxi fuq income u kapital

kif ikunu suġġetti residenti f'dak l-Istat.

(3) Meta minħabba d-disposizzjonijiet tal-paragrafu (1) individwu jkun persuna

residenti taż-żewġ Stati. allura l-istat tiegħu għandu jiġi stabbilit kif ġej

(a) dan għandu jitqies bħala persuna residenti ta' l-Istat li fih għandu dar

permanenti għad-disposizzjoni tiegħu. Jekk dan għandu dar permanenti għad-dis

posizzjoni tiegħu fiż-żewġ Stati. dan għandu jitqies li hu persuna residenti ta' dak

l-Istat li miegħu r-relazzjonijiet personali u ekonomiċi tiegħu jkunu l-iktar marbuta

(ċentru ta' nteressi vitali);

(b) jekk l-Istat li fih għandu ċ-ċentru ta' nteressi vitali ma jkunx jista' jiġi

stabbilit, jew jekk dan ma jkollux għad-disposizzjoni tiegħu dar permanenti f'xi

wieħed mill-Istati, dan għandu jitqies li hu persuna residenti ta' l-Istat li fih soltu

jirrisjedi;

(ċ) jekk dan ikollu post fejn soltu jirrisjedi fiż-żewġ Stati jew ma jkollu f'ebda

wieħed minnhom, dan għandu jitqies li hu persuna residenti ta' l-Istat li tiegħu

jkun nazzjonali;

(d) jekk: dan ikun nazzjonali taż-żewġ Stati jew ta' ebda wieħed minnhom,

l-awtoritajiet kompetenti ta' l-Istati għandhom jiddeċiedu bi ftehim bejniethom.

(4) Meta minħabba d-disposizzjonijiet tal-paragrafu (1), persuna li ma tkunx indi

vidwu tkun residenti taż-żewġ Stati, allura għandha titqies li hi persuna residenti ta'

l-Istat li fih ikun qiegħed il-post tal-maniġġ effettiv tagħha.

B

ARTIKLU 5

Stabbiliment Permanenti

(1) Għall-finijiet ta' dan il-Ftehim, il-frażi "stabbiliment permanenti" tfisser post

fiss ta' negozju li fih jiġi mmexxi għal kollox jew f'parti x-xogħol ta' l-impriża.

(2)

I1-frażi "stabbiliment permanenti" għandha tinkludi b'mod speċjali

(a)

post ta' maniġġ;

fergha

(b)

(ċ)

uffiċċju;

(d)

fabbrika;

(e)

hanut tax-xogħol;

minjiera, barriera jew post ieħor ta' estrazzjoni ta' riżorsi naturali;

(f)

(ġ) sit tal-bini jew kostruzzjoni jew proġett ta' immuntar jew attivitajiet super

viżorii in konnessjoni magħhom meta dak is-sit, proġett

jew attivita iddum sejra

.

għal iktar minn tnax-il xahar.

Il-frażi "stabbiliment permanenti" ma għandhiex titqies li tinkludi

(3)

(a) l-użu ta' faċilitajiet għall-iskop biss ta' ħażna, wiri jew tqassim ta' oġġetti

jew merkanzija li jkunu proprjeta ta' l-impriża;

(b) it-tiżmim ta' stack ta' oġġetti jew merkanzija li tkun proprjeta ta' l-impriża

għall-iskop biss ta' ħażna. wiri jew tqassim;

(ċ) it-tiżmim ta' stock ta' oġġetti jew merkanzija li tkun proprjeta ta' l-impriża

għall-iskop biss ta' proċessar minn impriża oħra;

(d) it-tiimim ta' post fiss ta' negozju għall-iskop biss ta' xiri ta' oġġetti jew

merkanzija, jew għall-ġbir ta' tagħrif għall-impriża

(e) it-tiżmim ta' post fiss ta' negozju għall-iskop biss ta' reklam, għall-għoti

ta' tagħrif, għal tiftix xjentifiku je w għal attivitajiet bħal dawn li jkunu ta' xorta

preparatorja jew awżiljarja għall-impriża.

(4) Persuna li taġixxi f'xi wieħed mill-Istati f'isem impriża ta' l-Istat l-ieħor

-

li ma tkunx aġent ta' status indipendenti li għalih japplika l-paragrafu (5)

għandha

-

titqies li tkun stabbiliment permanenti fI-Istat l-ewwel imsemmi jekk ikollha, u abit

walment teżerċita f'dak l-Istat, awtorita li tikkonkludi kuntratti f'isem l-impriża, kemm-il

darba l-attivitajiet tagħha ma jkunux limitati għax-xiri ta' oġġetti jew merkanzija għall

impriża.

(5) Impriża ta' wieħed mill-Istati ma għandhiex titqies li jkollha stabbiliment

permanenti fi-Istat l-ieħor għaliex biss tkun qed tmexxi negozju f'dak l-Istat l-ieħor per

mezz ta' sensal, aġent ġenerali b'kummissjoni jew xi aġent ieħor bi status indipendenti,

meta dawk il-persuni jkunu qed jaġixxu fil-kors ordinarju tan-negozju tagħhom.

(6) Il-fatt li kumpannija li tkun residenti ta' wierled mill-Istati tikkontrolla jew

tkun kontrollata minn kumpannija li tkun residenti ta' l-Istat l-ieħor, jew li tmexxi ne

gozju f'dak l-Istat l-ieħor (sew permezz ta' stabbiliment permanenti sew xort'oħra), ma

għandux fih innifsu jikkostitwixxi xi waħda mill-kumpanniji stabbiliment permanenti

ta' l-oħra.

B

KAPITLU 111

Tassazzjoni ta' 'Income'

ARTIKLU 6

'Income' minn Proprjeta Immobiljari

(1) Income minn proprjeta immobiljari jista' jiġi ntaxxat fl-Istat li fih dik il-pro

prjeta tkun qegħda.

(2) I1-frażi "proprjeta immobiljari" għ a n d ha tiġi mfissra skond il-liġi ta' l-Istat

li fih tkun qegħda dik il-proprjeta. Il-frażi għandha f'kull każ tinkludi proprjeta aċċes

sorja għal proprjeta immobi1jari, drittijiet li għ3.lihom japplikaw id-disposizzjonijiet tal

liġi ġenerali dwar proprjeta immobiljari, użufrutt ta' proprjeta immobiljari, u drittijiet

għal ħlasijiet li jvarjaw jew li jkunu fissi bħala kumpens għall-ħdim ta', jew għad-dritt

li jinħadmu, depożiti minerali, għejjun u riżorsi oħra naturali, u drittijiet għad-dejn ta'

kull xorta, ipotekati fuq proprjeta immobiljari barra minn bonds jew debentures; inġenji

ta' l-ajru ma għandhomx jitqiesu bħala proprjeta immobiljari.

(3) Id-disposizzjonijiet tal-paragrafu (1) għandhom japplikaw għal income li jin

kiseb mill-użu dirett, kiri jew użu ta' kull xort'oħra ta' proprjeta immobiljari.

Id-disposizzjonijiet tal-paragrafi (1) u (3) għandhom japplikaw ukoll għall

(4)

income minn proprjeta immobiljari ta' impriża u għal income minn proprjeta immo

biljari li tkun użata għall-qadi ta' servizz professjonali.

ARTIKLU 7

Profitti minn Negozju

(1) Il-profitti ta' mpriża ta' wieħed mill-Istati għ a nd h o m iiġu ntaxxati biss f'dak

l-Istat kemm-iI darba l-impriża ma tkunx tmexxi negozlu fl-Istat l-ieħor permezz ta'

stabbiliment permanenti li jkun qiegħed hemmhekk. Jekk l-impriża tmexxi negozju kif

intqal qabel, il-profitti ta' l-imnriża jistgħu iiġu ntaxxati fl-Istat l-ieħor iżda biss għal

dik il-parti minnhom li jinqalgħu minn dak l-istabbiliment permanenti.

(2) Bla ħsara għad-disposizzjonijiet tal-paragrafu (3), meta mpriża ta' wieħed mill

Istati tmexxi negozju fl-Istat l-ieħor permezz ta' stabbiliment permanenti li jkun qie

għed hemmhekk, għandhom jiġu attribwlti lil dak l-istabbiliment permanenti f'kull Stat

il-profitti li kien ikun mistenni jagħmel kieku kien impri7a distinta u separata li ta.ħdem

l-istess attivitaiiet jew oħrajn bħalhom taħt l-istess kondizzioniiiet jew oħrajn bħalhom

u li taħdem għal kollox separatament mill-impriża li tagħha tkun stabbiliment perma

nenti.

(3) Meta jiġu stabbiliti l-profitti ta' stabbiliment permanenti, għandu jkun per

mess bħala tnaqqis spejież li jsiru għall-iskopijiet ta' dak l-istabbiliment permanenti

magħduda spejjeż eżekuttivi u amministrattivi ġenerali li jsiru sew jekk fl-Istat li fih

l-istabbiliment permanenti jkun qiegħed sew jekk isiru band'otrra.

(4) Safejn ikun soltu li f'wieħed milI-Istati jiġu stabbiliti l-profitti li għandhom

jiġu attribwiti lil stabbiliment permanenti fuq il-bażi ta' tqassim tal-profitti totali ta'

l-impriża fuq il-partijiet diversi tagħha, ebda ħaġa fil-paragrafu (2) ma għandha ttellef

lil dak l-Istat milli jistabbilixxi l-profitti li għandhom ji,ġu ntaxxati skond dak it-tqassim

kif soltu jsir; il-metodu tat-tqassim li jiġi wżat għandu. b'danakollu, ikun hekk li r-riżul

tat ikun skond il-prinċipji li jinsabu f'dan l-Artiklu,

B

(5) Ma għandhom jiġu attribwiti ebda p r ofit ti lil s t ab bi l i me n t permanenti min

ħabba biss ix-xiri minn da k l-istabbiliment permanenti ta' oġġetti jew merkanzija għall

impriża.

(6) Għall-finijiet tal-paragrafi ta' qabel, i l - p r of i t ti li għandhom jiġu attribwiti lili

istabbiliment per m a n e n t i g ħ a n dhom jiġu stabbiliti bI-istess mod minn sena għal sena

kemm-i! darba ma jkunx h e mm raġuni tajba u b i żż e j j ed biex isir kuntrarju.

(7) F'każ li profitti jinkludu oġġetti ta' income l i qed jiġu trattati s epa r a t a m e n t

f Ar tik l i oħra ta' dan il-Ftehim, id-disposizzjonijiet ta' dawk l - A r t ik li ma jiġux imfixkla

bid-disposizzjonijiet ta' dan l-Artiklu.

ARTIKLU 8

'Shipping' u Trasport bi-Ajru

(1) Profitti m it-t ħ add im ta' bastimenti jew inġenji ta' l-ajru f i traffiku internaz

zjonali jiġu n t a xx a t i biss fl-Istat li fih i l - p os t tat-tmexxija effettiva ta' l-impriża

j k u n

.

qiegħed

(2) Jekk il-post ta t - t m e x xij a effettiva ta' mpriza tax-shipping i kun abbord basti

me n t allura għandu ji t q i es li jkun qiegħed fl-Istat li fih ikun qiegħed il-port tar-ritorn

,

tal-bastim nt jew, jekk ma jkollux dak il-port tar-ritorn. fl-Istat l i tiegħu l-operatur tal

bastiment ikun residenti.

(3) Id -d i spo si zzjo n iji e t ta l- p arag r a fu (1) għandhom j a p p l i k a w ukoll għal pr of i t ti li

jinkisbu mill-parteċipazzjoni f'pool, f'negozju joint jew f'aġenzija ta' operazzjoni inter

nazzjonali.

ARTIKLU 9

lmpriżi Assoċjati

Double Taxation Relief (Taxes on lncome)

Statutory Text (5 Articles)

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