Double Taxation Relief (Taxes on Income)

L.N. 5 of 1983

INCOME TAX ACT, 1948

(ACT NO. LIV OF 1948)

Double Taxation Relief (Taxes on Income)

(Republic of France) Order, 1983

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

Tax Act, 1948, the Minister of Finance has made the following order

This order may be cited as the Double Taxation Relief (Taxes Citation.

on Income) (Republic of France) Order, 1983.

FTEHIM BEJN

IR-REPUBBLIKA TA' MALTA

U

L-GVERN TAR-REPUBBLIKA TA' FRANZA

GHALL-HELSIEN MINN TAXXA DOPPJA

U

BIEX TIĠI EVITATA' EVAŻJONI FISKALI DWAR

TAXXI FUQ INCOME

Il-Gvern tar-Repubblika ta' Malta u l-Gvern tar-Repubblika ta' Franza billi jix-

tiequ jagħmlu Ftehim għall-Helsien minn Taxxa Doppja u Biex Tiġi Evitata Evażjoni

Fiskali Dwar Taxxi Fuq Income, ftiehmu kif ġej

B

KAPITLU I

Għan tal-Ftehim

ARTIKLU 1

Għan Personali

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

Kontraenti 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 Kontraenti jew mis-sottodiviżjonijiet politiċi jew milI-awtorita-

jiet lokali tagħhom, 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 kapitali totali, jew fuq elementi ta' income jew ta' kapital

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

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

tal-kapital.

It-taxxi eżistenti li għalihom japplika dan il-Ftehim huma

(3)

fil-każ ta' Franza

(a)

it-taxxa fuq l-income;

(i)

it-taxxa dwar korporazzjoni; inkluża kull taxxa miżmuma minn ras

(ii)

il-għajn, ħlas bil-quddiem (precompte) je'w ħlas avvanzat dwar l-imsemmija

taxxi;

(hamnhekk iżjed 'il quddiem imsejħa "it-taxxa ta' Franza");

fil-każ ta' Malta

(b)

it-taxxa fuq l-income u soprataxxa inkluża ħlasijiet bil-quddiem ta' taxxa

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

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

(4) Il-Ftehim għandu wkoll japplika għal kull taxxi bħalhom jew li sostanzjalmen t

jixbħuhom li jiġu mposti wara d-data tal-Armar ta' dan il-Ftehim b 'żieda ma', jew

minflok, it-taxxi eżistenti. L-awtoritajiet kompetenti ta' l-Istati għandhom javżaw lil

xulxin b'kull tibdil sinjifikanti li jkunu għamlu fil-liġijiet ta' tassazzjoni rispettivi

tagħhom.

B

KAPITLU n

Tifsiriet

ARTIKLU 3

Tifsiriet Ġenerali

(1)

F'dan il-Ftehim

(a) il-frażi "Franza" tfisser id-dipartimenti Ewropej u barranin

(Gwadeloupe, Guyane, Martinique u Reunion) tar-Repubblika ta' Franza, u kull

area barra il-baħar territorjali ta' dawk id-dipartimenti li hi, skond il-liġi

intemazzjonali, area li fiha Franza tista' teżerċita drittijiet dwar qiegħ il-baħ~ u

s-sottoswol u r-riżorsi naturali tagħhom;

il-frażi

(b)

"Malta" tfisser ir-Repubblika ta' Malta, u, tinkludi flimkien

mal-Gżira ta' Malta, il-Gżira ta' Għawdex u l-Gżejjer l-oħra ta' l-Arċipelagu Malti

inklużi l-ibħra territorjali tagħhom, . flimkien ma' kull area barra l-ibħra territorjali

ta' Malta li, skond il-liġi intemazzjonali, 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 sottoswol u r-riżorsi

naturali tagħhom;

(ċ)

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

persum;

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

titqies bħala għaqda korporata għall-finijiet ta' taxxa;

(e) il-frażijiet "impriża ta' Stat Kontraenti" u "impriża ta' l-Istat Kontraenti

l-ieħor" ifissru rispettivament impriża li titmexxa minn persuna residenti ta' Istat

Kontraenti u impriZa mmexxija minn persuna residenti ta' l-Istat Kontraenti l-

ieħor;

il-frażi "nazzjonali" tfisser

(f)

(i) dwar Franza, kull individwu li jkollu n-nazzjonalita ta' Franza;

(ii) dwar Malta , kull ċittadin ta' Malta kif .provdut fil-KapitluUI tal-

Kostituzzjoni ta' Malta u fl-Att ta' 1-1965 dwar iċ-Cittadinanza Maltija;

(iii) kull persuna, soċjeta jew assoċjazzjoni legali li jiksbu l-istat

tagħhom bħala tali mil-liġi fis-sehħ fi Stat Kontraenti.

il-frażi "traffiku intemazzjonali" tfisser kull trasport b'bastiment jew

(g)

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

tagħha fi Stat Kontraenti, barra minn meta l-bastiment jew l-inġenju ta' l-ajru

jkunu mħaddma biss bejn postijiet fl-Istat Kontraenti l-ieħor;

il-frażi "awtorita kompetenti" tfisser

(h)

fil-każ

(i)

ta' Franza, il-Ministru ta' l-Ekonomija u tal-Finanzi jew

ir-rappreżentant awtorizza t tiegħu;

fil-każ

għall-finanzi

(ii)

la' Malta, il-Ministru responsabbli

jew

ir-rappreżentant awtorizza t tiegħu.

(2) FI-applikazzjoni tal-Ftehim minn Stat Kontraenti, kull frażi li ma tkunx

xort'ohra mfissra ghandha, kemm-il darba r-rabta tal-kliem ma tehtieġx xort'ohra,

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

li huma suġġetti ghall-Ftehim.

ARTIKLU 4

Domiċilju Fiskali

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

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

hemmhekk minħabba d-domiċilju , tr-residenza jew il-post tal-maniġġ tagħha jew xi

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

suġġetta għat-taxxa fdak l-Istat Kontraenti biss dwar income minn għejjun hemmhekk

jew kapital li jkun qiegħed fdak l-Istat.

(2) Meta minħabba d-disposizzjonijiet tal-paragrafu (1) individwu jkun residenti

taż-żewġ Stati Kontraenti allura l-Istat tiegħu għandu jiġi stabbilit kif ġej

(a) dan għandu jitqies li hu residenti ta' l-Istat Kontraenti li fih għandu dar

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

. disposizzjoni tiegħu fiż-żewġ Stati Kontraenti, dan għandu jitqies li hu residenti ta'

dak i-Istat Kontraenti li miegħu r-relazzjonijiet personali u ekonomiċi tiegħu jkunu

l-iktar marbuta (ċentru ta' nteressi vitali);

(b) jekk l-Istat Kontraenti li fiħ għandu ċ-ċentru ta' nteress vitali ma jkunx

jista' jiġi stabbilit, jew dan ma jkollux għad-disposizzjoni tiegħu dar permanenti

fxi wieħed mill-Istati Kontraenti dan għandu jitqies li hu residenti ta' l-Istat

Kontraenti li fih soltu jirrisjedi;

(ċ) jekk dan ikollu post fejn soltu jirrisjedi fiż-żewġ Stati Kontraenti jew ma

jkollu febda wieħed minnhom, dan għandu jitqies li hu residenti ta' l-Istat Kon-

traenti li tiegħu jkun nazzjonali;

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

minnhom, l-awtoritajiet kompetenti ta' l-Istat Kontraenti għandhom jiddeċiedu bi

ftehim bejniethom .

(3) Meta minħabba d-disposizzjonijiet tal-paragrafu (1) persuna li ma tkunx

individwu tkun residenti taż-żewġ Stat Kontraenti, allura għandha titqies li hi residenti

ta' l-Istat Kontraenti li fih ikun qiegħed il-post tal-maniġġ effettiv tiegħu .

ARTIKLU 5

Stabbiliment Permanenti

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

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

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

(2)

post ta' maniġġ;

(a)

fergħa;

(b)

(ċ)

uffiċċju ;

(d)

fabbrika;

ħanut tax-xogħol; u

(e)

minjiera, bir taż-żejt jew tal-gass, barriera jew post ieħor ta' estrazzjoni

(f)

ta' riżorsi naturali nkluż sit tat-tħaffir fuq il-baħar.

B

(3) . Sit tal-bini jew kostruzzjoni jew proġett ta' immuntar jew attivitajiet super-

viżorji in konnessjoni magħhom, għandhom jikkostitwixxu stabbiliment permanenti

sakemm dak il-proġett jew l-attivitajiet tas-sit idumu iżjed minn tnax-il xahar.

(4) Minkejja d-disposizzjonijiet ta' qabel ta' dan l-Artiklu, il-frażi "stabbiliment

permanenti" ma għandhIex tItqIes II tinkludi

(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' stock 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-tiżmim ta' post fiss ta' negozju għall-iskop biss ta' xiri ta' oġġetti jew

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

it-tiżmim ta' post fiss ta' negozju għall-iskop biss biex titkompla, għall­

(e)

intrapriża, xi attivita oħra, jekk din tkun ta' xorta preparatorja jew awżiljarja;

(f) it-tiżmim ta' post fiss ta' negozju għall-iskop biss li jingħaqdu flitnkien

attivitajiet imsemmija fis-sub-paragrafi minn (a) sa l-(e) ta' dan il-paragrafu bekk

iżda li l-attivita ġenerali ta' post fiss ta' negozju li tinkiseb minn dik l~għaqda tkun

ta' xorta preparatorja jew awżiljarja .

(5) Minkejja d-disposizzjonijiet tal-paragrafi (1) u (2), jekk persuna - barra

minn aġent ta' status indipendenti li għalih japplika l-paragrafu (6) - qed tagħmilha

minflok impriża u għandha, u li s-soltu teżerċita, fi Stat Kontraenti awtorita li

tikkonkludi kuntratti fisem l-impriża, dik l-impriża għandha titqies li għandha

stabbiliment permanenti fdak l-Istat dwar xi attivitajiet li dik il-persuna tagħmel fisem

dik l-impriza, sakemm l-attivitajiet ta' dik il-persuna ma jkunux limitati għal dawk

imsemmija fil-paragrafu (4) li, jekk ikunu eżerċitati minn post fiss ta' negozju, ma

kienux jagħmlu dan il-post fiss ta' negozju stabbiliment permanenti skond dak

il-paragrafu.

(6) Impriża ma għandhiex titqies li jkollha stabbiliment pen'nanenti fi Stat

Kontraenti għaliex biss tkun qed tmexxi negozju fdak l-Istat l-ieħor permezz ta' sensal,

aġent ġenerali b'kummissjoni jew xi aġent ieħor bi status indipendenti. meta dawk

il-pe rsuni jkunu qed jaġixxu fil-kors ordinarju tan-negozju tagħhom .

(7) Il-fatt li kumpannija li tkun residenti ta' Stat Kontraenti tikkontrolla jew tkun

kontrollata minn kumpannija li tkun residenti ta' l-Istat Kontraenti l-ieħor. jew li

tmexxi negozju fdak 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 fi-Istat Kontraenti li fih

dik il-proprjeta tkun qegħda.

(2) Il-frażi "proprjeta irnmobiljari" għandha tiġi mfissra skond il-liġijiet ta'

tas~alZjoni ta' l-Istat Kontraenti li fih tkun qegħda dik il-proprjeta. Il-frażi għandha

f'kull kat tinkludi proprjeta aċċessorja għal proprjeta immobiljari, drittijiet li għalihom

japplikaw id-disposizzjonijiet tal-liġi ġenerali dwar proprjeta landed, użufrutt ta'

ptQPtjeta iit"ih1obiljari, 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; bastimenti, dgħajjes u inġenji ta' l-ajru ma għandhomxjitqiesu bħala

proprjeta immobiljari.

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

(3)

jinkj~eb rrriU·, użu dirett. kiri jew użu ta' kull xort'oħra ta' proprjeta immobiljari.

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

income minn proprjeta immobiljari ta' mpriża u għal income minn proprjeta immo-

bUjari li tkun użata għall-qadi ta' servizzi professjonali.

ARTIKLU 7

Profitti minn Negozju

(1) Il -profitti ta' mpriża ta' Stat Kontraenti għandhom jiġu ntaxxati biss f'dak

l-Istat kemm-il darba l-impriża ma tkunx tmexxi negozju fi-Istat Kontraenti l-ieħor

permezz ta' stabbiliment pt;(t'rianenti li .lk~Hi qiegħed henunhf?kk . Jekk l-impriża tmexxi

negozju kif intq~il qal:mi ~ il-profhti ta' l .. impriża ji~!għu ji~u ntaxxati fi-Istat l-ieħor iżda

biss għal dik il-pi:irtj iTllnnhom li jlnq nlgħu minn dak l-i~tabbjliment permanenti.

(2) Bla ħ:ii:\ra għ.id·'ditposiz:z:jonijiet tal .. paragn~fu (3), meta mpriża ta' wieħed

mill-Istati Kontraenti trlJexxi ne~{pzju 'fI -brat 'KontU~t;nti 1··leħor permezz ta' stabbi-

liment permarHmti li jkun qiegħed hemmhekk, għandhom ji~u attribwiti lil dak l-

istabbiliment p'el'marid'ltl fkullStat Kohtraenti l-profitti !t·kien ikun mistenni jagħmel

kieku kien impriża distinta u separata li taħdem l-istess attivitajiet jew oħrajn bħalhom

taħt l-istess kondizzjonijiet jew oħrajn bħalhom u li taħdem għal kollox separatament

mill-impriża li tagħha tkun stahhiliment permanenti .

(3) Meta jiġu stahhiliti l-profitti ta' stahhiliment permanenti, għandu jkun

permess hħala tnaqqis spejjeż li jsiru għall-iskopijiet ta ' dak !-istahhliliment permanenti

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

l-istabhiliment permanenti jkun qiegħed sew jekk isiru band'oħra .

(4) Safejn ikun soltu li fi Stat Kontraenti jiġu stabhiliti l-profitti li għandhom jiġu

attrihwiti lil stahbiliment permanenti fuq il-hażi ta' tqassim tal-profitti totali ta' l-impriż a

fuq il -partijiet diversi tagħha, ehda ħa)ia fil-paragrafu (2) ma għandha ttellef lil dak

l-Istat Kontraenti milli jistahhilixxi l-profitti li għandhom jiġu ntaxxati skond dak

it-tqas<.,im kif soltu jsir; il-metodu tat -tqassim li ji)ii wżat għandu, h'd~.lOak()llu, ikun

hekk li r-riżultat ikun skond il-prinċirii li jino.;;thu fdan l-Artiklu.

B

Ma għandhom jiġu attribwiti ebda profitti lil stabbiliment permanenti

(5)

minħabba biss ix-xiri minn d~k l-istabbiliment permanenti ta' oġġetti jew merkanzija

għall -impriża .

(6) Għall-finijiet tal-paragrafi ta' qabel, il-profitti li għandhom jiġu attribwiti

lill-istabbiliment permanenti għandhom jiġu stabbiliti bI-istess mod minn sena għal sena

kemm-il darba ma jkunx hemm raġuni tajba u biżżejjed biex isir kuntrarju.

(7) F'każ li profitti jinkludu oġġetti ta' income li qed jiġu trattati separatament

f Artikli oħra ta' dan il-Ftehim, allura d-disposizzjonijiet ta' dawk l-Artikli ma jiġux

imfixkla bid-disposizzjonijiet ta' dan l-Artiklu.

ARTIKLU 8

'Shipping' u Trasport bi-Ajru

(1) Profitti mit-tħaddim ta' . bastimenti jew inġenji ta' l-ajru fi traffiku inter-

nazzjonali jiġu ntaxxati biss fi-Istat Kontraenti li fih il-post tat-tmexxija effettiva ta'

l-impriża jkun qiegħed .

(2) Jekk il-post tat-tmexxija effettiva ta' mpriża tax-shipping ikun abbord basti-

ment, allura għandu jitqies li jkun qiegħed fi-Istat Kontraenti li fih ikun qiegħed il-port

tar-ritorn tal-bastiment jew, jekk ma jkollux dak il-port tar-ritorn, fi-Istat Kontraenti li

tiegħu l-operatur tal-bastiment ikun residenti.

(3) Id-disposizzjonijiet tal-paragrafu (1) għandhom japplikaw ukoll għal profitti

li jinkisbu mill-parteċipazzjoni fpool, fnegozju joint jew faġenzija ta' operazzjoni

intemazzjonali.

ARTIKLU 9

Impriżi Assoċjati

(1)

Meta-

(a) impriża ta' Stat Kontraenti tipparteċipa direttament jew indirettament

fit-tmexxija, kontroll jew kapital ta' mpriża ta ' l-Istat Kontraenti l-ieħor; jew

(b) l-istess persuni jipparteċipaw direttament jew indirettament fit-tme x-

xija, kontroll jew kapital ta' mpriża ta' Stat Kontraenti u mpriża ta' l-Istat

Kontraenti l-ieħor,

.

u f' kull każ jiġu magħmula jew imposti kondizzjonijiet bejn iż-żewġ impriżi fir-relazzjo-

nijiet kummerċjali jew finanzjarji ta' bejniethom li ma jaqblux ma' dawk li kienu jiġu

magħmula bejn impriżi indipendenti , f'dak il-każ kull profitti li , kieku ma kienux dawk

il-kondizzjonijiet, kienu jakkumulaw għal waħd a mill-impriżi, iżda minħabba dawk

il-kondizzjonijiet ma gewx hekk akkumulati jistgħu jiġu nklużi fil-profitti ta' dik

l-i mpriża u ntaxxati skond hekk.

B

ARTIKLU 10

Dividendi

(1) Dividendi mħallsa minn kumpannija li tkun residenti ta' Stat Kontraenti lil

residenti ta' l-Istat l-ieħor jistgħu jiġu ntaxxati fdak l-Istat l-ieħor.

(2) Iżda, dawk id-dividendi jistgħu jiġu ntaxxati fl-Istat Kontraenti li tagħha

l-kumpannija li tħallas id-dividendi tkun residenti, u skond il-liġi ta' dak l-Istat iżda

(a) meta d-dividendi jitħallsu mill-kumpannija residenti ta' Franza lil

residenti ta' Malta li jkun is-sid benefiċjarju tagħhom, it-taxxa ta' Franza hekk

dovuta ma għandhiex tkun iżjed minn

(i) 5 fil-mija ta' l-ammont gross tad-dividendi jekk ir-reċivitur ikun

kumpannija li jkollha direttament għall-anqas 10 fil-mija tal-kapital tal-

kumpannija li tħallas id-dividendi;

(ii) fil-każijiet l-oħra kollha 15 fil-mija ta' l-ammont gross tad-dividendi.

(b) meta d-dividendi jitħallsu minn kumpannija residenti ta' Malta lil

Franza li tkun is-sid benefiċjarju tiegħu

residenti ta'

(i) it-taxxa .t a' Malta ma tkunx iżjed minn dik li tkun dovuta mill-

kumpannija li tħallas id-dividendi dwar il-profitti hekk mqassma;

(ii) minkejja d-disposizzjonijiet tas-sub-paragrafu (i), it-taxxa ta' Malta

m'għandhiex tkun iżjed minn 15 fil-mija ta' l-ammont gross tad-dividendi jekk

dawk id-dividendi jitħallsu minn qliegħ jew profitti maqlugħa fxi sena li

dwarha l-kumpannija tkun qed tirċievi benefiċċji ta' taxxa taħt id-disposiz-

zjonijiet li jirregolaw l-għajnuna lill-industriji f Malta , u l-azzjonist jagtlti

prospetti u kontijiet lill-awtoritajiet ta.' Malta dwar l-income tiegħu li hu

suġġett għat-taxxa f Malta għas-sena ta' stima relattiva.

Dan il-paragrafu ma għandux jolqot it-tassazzjoni tal-kumpannija dwar il-profitti li

minnhom jitħallsu d-dividendi.

(3) Il-frażi "dividendi" kif użata fdan l-Artiklu tfisser income minn azzjonijiet ,

azzjonijiet "jouissance" jew drittijiet "jouissance", azzjonijiet fminjieri, azzjonijiet

founders jew drittijiet oħra li ma jkunux talbiet għal dejn li jipparteċipaw fi profitti, kif

ukoll income minn drittijiet korporati oħra li hu suġġett għall-istess trattament ta'

tassazzjoni bħal income minn azzjonijiet skond il-liġi fuq tassazzjoni ta' l-Istat li hi tkun

residenti l-kumpannija li tagħmel it-tqassim.

Id-disposizzjonijiet tal-paragrafi (1) u (2) m ' għandhomx japplikaw jekk minn

(4)

jirċievi

d-dividendi, li jkun residenti ta' Stat Kontraenti, jmexxi negozju fl-Istat

Kontraenti l-ieħor li tiegħu tkun residenti l-kumpannija li tħallas id-dividendi, permezz

ta' stabbiliment permanenti sitwat hemmhekk, jew tagħmel fdak l-Istat Kontraenti

l-ieħor servizzi professjonali minn bażi stabbilit hemmhekk, u l-holding li dwarhom

jitħallsu d-dividendi jkollu effittivament x'jaqsam ma' dak l-istabbiliment permanenti

jew mal-bażi stabbilit. F'dak il-każ, għandhom japplikaw id-disposizzjonijiet ta' l-

Artiklu 7 jew ta' l-Artiklu 14 skond il-każ.

(5) (a) Residenti ta' Malta li jirċievi minn kumpannija li tkun residenti ta'

Franza dividendi li, jekk riċevuti minn residenti ta' Franza, jintitolaw lil dak

ir-residenti għal kreditu fiskali (avoir !iscal), ikun intitolat għal ħlas mit -Teżor

Franċiż li jkun daqs dak il-kreditu (avoir fiscal) suġġett għat-tnaqqis mit-taxxa

miksuba fis-sub-paragrafu (a)(ii) tal-paragrafu (2) ta' dan I~Artiklu;

B

(b)

id-disposizzjonijiet tas-sub-paragrafu (a) ta' dan il-paragrafu japplikaw

biss għal residenti ta' Malta, li jkun jew

(i) individwu; jew

(ii) kumpannija li ma tikkontrollax·ll~kumpamlija li tħaITasTcl~dlvlaenai;

għall-finijiet ta' dan is-sub-paragrafu, kumpannija għandha titqies li tik-

kontrolla kumpannija oħra meta, jew waħedha jew flimkien ma' kumpannija

waħda jew iżjed minn waħda ass9ċjati magħha t~~ontrolla direttament jew

indirettament għall-inqas 10 fil-mija tas-saħħa tal-vot tal-kumpannija l-oħra,

li ż-żewġ kumpanniji għandhom jitqiesu li jkunu assoċjati jekk waħda tkun

kontrollata direttament jew indirettament mill-oħra jew it-tnejn ikunu kont-

rollati direttament jew indirettament minn terza kumpannija bil-metodu

msemmi hawn fuq.

(ċ) id-disposizzjonijiet tas-sub-paragrafu (a) ta' dan il-paragrafu ma jappli-

kawx jekk min jirċievi l-ħlas mit-Teżor Franċiż miksub taħt is-sub-paragrafu (a) ta'

dan il-paragrafu ma jkunx suġġett għat-taxxa ta' Malta dwar dak il-ħlas;

(d) ħlasijiet mit-Teżor Franċiż miksuba taħt is-sub-paragrafu (a) ta' dan

il-paragrafu jitqiesu li huma dividendi għall-finijiet ta' dan il-Ftehim .

(6) (a) Meta l-ħlas bil-quddiem (precompte) jithallas dwar dividendi minn

kumpannija li tkun residenti ta' Franza lil residenti ta' Malta li ma jkunx intitolat

għall-ħlas mit-Teżor Franċiż imsemmi fil-paragrafu (5) ta' dan l-Artiklu dwar dawk

id-dividendi, dak ir-residenti ta' Malta jkun intitolat li jithallas lura l-ħlas bil-

quddiem, suġġett ghat-tnaqqis ta' taxxa dwar l-ammont imħallas lura skond il-

paragrafu (2) ta' dan l-Artikolu;

(b) ammonti mhallsa lura taht id-disposizzjonijiet sub-paragrafu (a) ta' dan

il-paragrafu jitqiesu li jkunu dividendi ghall-fiinijiet ta' dan il-Ftehim.

(7) Meta kumpannija residenti ta' Malta jkollha fi Franza stabbiliment per-

manenti, il-profitti ta' dan l-istabbiliment permanenti għandhom, wara li tkun ħallset

it-taxxa Franċiża dwar Korporazzjoni. thallas taxxa li r-rata tagħha ma tkunx iżjed minn

10 fil-mija, skond il-liġi Franċiża .

ARTIKLU 11

Mgħax

(1) Mghax li jinqala' fwiehed mill-Istati Kontraenti u li jithallas lil residenti ta'

l-Istat Kontraenti l-iehor jista' jiġi ntaxxat fdak l-Istat l-iehor.

(2) Iżda, dak l-imghax jista' jiġi ntaxxat fl-Istat Kontraenti fejn jinqala', u skond

il-liġi ta' dak l-Istat, iżda jekk min jirċevih ikun is-sid benefiċjarju ta'l-imghax, it-taxxa

hekk imposta ma ghandhiex tkun iżjed minn 10 fil-mija ta'l-ammont gross ta'l-imghax .

(3) Minkejja d-disposizzjonijiet tal-paragrafu (2), kull imghax bhill dak li hu

msemmi fil-paragrafu (1) ghandu jiġi ntaxxat biss fl-Istat Kontraenti li tieghu l-bene-

fiċjarju jkun residenti, jekk dak l-imghax jithallas fuq self moghti jew garantit minn dak

l-Istat jew minn korp statutorju tieghu.

(4) Il-frażi "mghax" kif użata fdan l-Artiklu tfisser income minn dritt ghal dejn

ta ' kull xorta, sew jekk ipotekati u sew jekk le, u sew jekk jaghtu jew le jedd ghal sehem

fil-profitti tad-debitur , u b 'mod partikulari, income minn securities tal-Gvern, u income

minn bonds jew debentures, inklużi premiums u prizes li jkunumal-bonds jew mad-

debentures. Unttljlet ta' penali għal ħlas li jsir tard ma jitqiesux bħala mgħax

g~all-fini ta' dan l-Artiklu .

.

B

(5) Id-disposizzjonijiet tal-paragrafi (1) u (2) ma għandhomx japplikaw jekk

minn jirċievi l - imgħax, li jkun residenti ta' wieħed mill-Istati Kontraenti, imexxi

negozju fi-Istat Kontraenti l-ieħor permezz ta' stabbiliment perman~nti hemmhekk li

minnu jaqla' l-imgħax, jew jagħmel servizzi professjonali fdak l-Istat l-ieħor minn bażi

stabbilit hemmhekk u d-dritt għal dejn li minnu jinqala' l-imgħax ikollu effettivament

x'jaqsam ma' dak l-istabbiliment permanenti jew mal-bażi stabbilit. F'dak ii-każ għand­

hom japplikaw id-disposizzjonijiet ta' l-Artiklu 7 jew ta' l-Artiklu 14, skond il-każ.

(6) L-imgħax għandu jitqies li nqala' fi Stat Kontraenti meta min iħallsu jkun dak

l-Istat innifsu, sotto-diviżjoni politika, awtorita lokali, korp statutorju jew residenti ta'

dak l-Istat. Meta, iżda, il-persuna li tħallas l-imgħax sew jekk tkun residenti ta' wieħed

mill-Istati Kontraenti sew jekk le, ikollha fwieħed mill-Istati Kontraenti stabbiliment

permanenti li miegħu jkollu x'jaqsam id-dejn li dwaru jkun tħallas l-imgħax , u dak

l-imgħax ikun ir-responsabbilta ta' dak l-istabbiliment permanenti, allura dak l-imgħax

għandu jitqies li nqala' fi-Istat Kontraenti li fih ikun sitwat l-istabbiliment permanenti.

(7) Meta, minħabba relazzjonijiet speċjali bejn min iħallas u min jirċievi jew

bejniethom it-tnejn u xi persuna oħra , l-ammont ta' l-imgħax li tħallas, meta jitqies

id-dritt għal dejn li dwaru jkun tħallas, ikun iżjed mill-ammont li kien ikun iniftiehem

bejn min iħallas u minn jirċievi fin-nuqqas ta' dik ir-relazzjoni, id-disposizzjonijiet ta'

dan l-Artiklu għandhom japplikaw biss għall-ammont l-aħħar imsemmi. F'dak il-każ,

dik il-parti żejda fuq il-ħlasijiet tibqa' taxxabbli skond il-liġi ta' kull Stat Kontraenti,

meta jitqiesu d-disposizzjonijiet l-oħra ta' dan il-Ftehim .

ARTIKLU 12

Royalties

(1) Royalties li jinqagħlu fi Stat Kontraenti u li jitħallsu lil residenti ta' l-Istat

Kontraenti l-ieħor jistgħu jiġu ntaxxati fdak l-Istat l-ieħor.

(2) Iżda, dawk ir-royalties jistgħu jiġu ntaxxati fi -Istat Kontraenti minn fejn

jinqagħlu, u skond il-liġi ta' dak l-Istat , iżda jekk min jirċievi ikun is-sid benefiċjarju

tar-royalties, it-taxxa hekk imposta ma għandhiex tkun iżjed minn 10 fil-mija ta'

l-ammont-tar-royaltżes.

(3) Minkejja d-disposizzjonijiet tal-paragrafu (2) , ħlasijiet ta' kull xorta riċevuti

bħala kumpens għall-użu ta', jew għall-jedd ta' l-użu ta', kull dritt ta' l-awtur ta' xogħol

letterarju, artistiku jew xjentifiku inklużi xogħlijiet rikordjati għax-xandir jew televiż­

joni, ikun taxxabbli biss fi-Istat Kontraenti li fih il-benefiċjarju jkun residenti, jekk dak

ir-residenti hu s~sid benefiċjarju tal-ħlasijiet.

Il-frażi "royalties" kif użata fdan l-Artiklu tfisser ħlasijiet ta' kull xorta

(4)

riċevuti bħala kumpens għall-użu ta', jew għall-jedd ta' l-użu ta' kull dritt ta' l-awtur ta'

xogħol letterarju, artistiku jew xjentifiku inklużi films ċinematografiċi, u films jew

xogħol għal xandir televiżiv jew bir-radju, kull invenzjoni , trade mark, disinn jew

mudell, pjan, formula jew proċess sigriet, jew għal kull informazzjoni dwar esperjenza

ndustrijali, kummerċjali jew xjentifika .

(5) Id-disposizzjonijiet tal-paragrafi (1) ; (2) u (3) ma għandhomx japplikaw jekk

min jirċievi r-royallies, li jkun residenti ta' Stat Kontraenti, ikun qed imexxi negozju

fi-Istat Kontraenti l-ieħor li fih ir-royallies jinqagħlu permezz ta' stabbiliment per-

manenti sitwat hemmhekk, jew ikun qed jaqdi fdak l-Istat l-ieħor servizz professjonali

minn bażi staBbilit sitwat hemmhekk, u d-dritt jew il-proprjeta li dwarha jitħallsu

B

ARTIKLU 14

Servizzi Personali Indipendenti

(1) Income li jinkiseb minn residenti ta' wieħed mill-Istati Kontraenti dwar

servizzi professjonali jew dwar attivitajiet indipendenti oħra bħal dawn ta' l-istess xorta

għandu jiġi ntaxxat biss fdak l-Istat. Iżda, dak l-income jista' jiġi ntaxxat fl-Istat

Kontraenti l-ieħor fiċ-ċirkostanzi li ġejjin

jekk ikollu bażi stabbilit regolari fl-Istat l-ieħor sabiex jaqdi l-attivitajiet

(a)

tiegħu

(fdak il-każ dik il-parti ta' l-income li tkun attribwita għal dak il-bażi

stabbilit tista' tiġi ntaxxata fdak l-Istat Kontraenti l-ieħor); jew

(b) jekk ikun preżenti fdak l-Istat Kontraenti l-ieħor għal perjodu jew

perjodi li jkunu b'kollox jew iktar meta jingħaddu flimkien minn 183 ġurnata fxi

sena kalendarja.

(2) Il-frażi "servizzi professjonali" tinkludi, b'mod speċjali, attivitajiet indipen-

denti xjentifiċi, letterarji, artistiċi, edukattivi jew ta' tagħlim kif ukoll attivitajiet indi-

pendenti ta' physicians, avukati, inġiniera, periti , dentisti u accountants.

ARTIKLU 15

Sevizzi Personali Dipendenti

(1) .Bla ħsara għad-disposizzjonijiet ta' l-Artikli 16, 18 u 19, salarji, pagi u

kumpens Ieħor bħal dan li jinkiseb minn residenti ta' wieħed mill-Istati Kontraenti dwar

impieg ikunu taxxabbli biss fdak l-Istat kemm-il darba l-impieg ma jiġix eżerċitat fl-Istat

Kontraenti l-ieħor. Jekk l-impieg jiġi hekk eżerċitat, dak il-kumpens li jinkiseb minnu

jista' jiġi fdak l-Istat l-ieħor.

(2) Minkejja d-disposizzjonijiet tal-paragrafu (1), kumpens li jinkiseb minn

residenti ta' wieħed mill-Istati Kontraenti dwar impieg eżerċitat fl-Istat Kontraenti

l-ieħor ikun taxxabbli fl-Istat l-ewwel imsemmi jekk

(a) min jirċevih ikun qiegħed fl-Istat l-ieħor għal żmien jew żminijiet li

fit-total ma jkunx iktar minn 183 ġurnata fis-sena kalendarja li tkun; u

(b) il-kumpens ikun imħallas minn, jew fisem,

prinċipal

li ma jkunx

residenti ta' l-Istat l-ieħor; u

(ċ)

il-kumpens ma jkunx għak - karigu ta' stabbiliment permanenti jew bażi

stabbilit li l-prinċipal ikollu fl-Istat l-ieħor.

(3) Minkejja d-disposizzjonijiet ta' qabel tel' dan l-Artiklu , kumpens li jinkiseb

minn residenti ta' wieħed mill-Istati dwar impieg eżerċitat abbord vapur jew inġenju ta'

l-ajru mħaddem fuq traffiku internazzjonali jkun taxxabbli biss fdak l-Istat Kontraenti

li fih ikun sitwat il-post tal-maniġġ effettiv ta' l-impriża.

ARTIKLU 16

Drittijiet tad-Diretturi

Id-drittijiet tad-diretturi u tilasijict simili li jinqalgħu minn residenti ta' Stat

Kontraenti fil-kariga tiegħu bħala membru tal-bord tad-diretturi jew ta' organu ieħor

si mili ta' kumpannija li tkun residenti ta' l-Istat Kontracnti l-ieħor jistgħu jiġu ntaxxati

fi-Istat l-ieħor.

B

ARTIKLU 17

Artisti u Atleti

(1) B'dak kollu li jinsab fid-disposizzjonijiet ta' l-Artikli 14 u 15, income li

jinqala' minn min jagħmel spettakoli ta' divertiment, bħal artisti tat-teatru, tal-films

ċinematografiċi , tar-radju jew tat-televiżjoni , u mużiċisti , u minn atleti, mill-attivitajiet

personali tagħhom bħala hekk jista' jiġi ntaxxat fl-Istat Kontraenti li fihom dawk

l-attivitajiet jiġu eżerċitati.

(2) Meta income dwar attivitajiet personali ta' min jagħmel spettakolu ta'

divertiment jew atleta bħala tali jmur mhux għal dak jew l-atleta nnifsu iżda għal

persuna oħra , dak l-income jista' b'dak kollu li jinsab "fid-disposizzjonijiet ta' l-Artikli

7, 14 u 15 jiġi ntaxxat fl-Istat Kontraenti li fih l-attivitajiet ta' li jagħmel spettakolu ta'

divertiment jew ta' l-atleta jkunu eżerċitati.

(3) B'dak kollu li jinsab fid-disposizzjonijiet tal-paragrafu (1) , rimunerazzjonijiet

jew profitti, u salarji , pagi jew income ieħor simili li jinkiseb minn min jagħmel

spettakoli ta' divertiment jew atleti mill-attivitajiet personali tagħhom bħala hekk fi Stat

Kontraenti għandhom jiġu ntaxxati biss fl-Istat Kontraenti l-ieħor jekk iż-żjara

tagħhom fl-ewwel Stat Kontraenti jkun sostnut sostanzjalment mill-fondi pubbliċi ta'

dak l-Istat Kontraenti l-ieħor, minn waħda mis - sotto-diviżjonijiet politiċi tiegħu jew

mill-awtoritajiet lokali jew minn korpi statutorji tiegħu.

(4) B'dak kollu li jinsab fid-disposizzjonijiet tal-paragrafu (2), meta income

dwar attivitajiet personali bħal dawk ta' min jagħmel spettakoli ta' divertiment jew

atleti fi Stat Kontraenti jitħallas mhux lil min jagħmel spettakoli ta' divertiment jew

lill-atleta nnifsu iżda lil persuna oħra , b'dak kollu li jinsab fl-Artikli 7, 14 u 15, dak

l-income għandu jkun taxxabbli biss fl-Istat Kontraenti l-ieħor jekk din il-persuna tkun

sostnuta sostanzjalment mill-fondi pubbliċi ta' dak l-Istat Kontraenti l-ieħor, minn

w aħda mis-sotto-diviżjonijiet politiċi tiegħu jew mill-awtoritajiet lokali jew minn korp

statutorju tiegħu, jew jekk din il-persuna tkun organizzazzjoni li ma tagħmilx qliegħ ta'

l-Istat l-ieħor.

ARTIKLU 18

Pensjonijiet

(1) Bla ħsara għad-disposizzjonijiet tal-paragrafu (2) ta' l-Artiklu 19, pensjo-

nijiet u rimunerazzjoni oħra simili, u ħlasijiet fis-sena, imħallsa lil residenti ta' Stat

Kontraenti bħala kumpens għal impieg ta' qabel għandhom jiġu ntaxxati biss fdak

l-Istat.

(2) Minkejja d-disposizzjonijiet tal-paragrafu (1), pensjonijiet. u ħlasijiet ~~ra

magħmula taħt il-leġislatura dwar is-sigurta soċjali ta' Stat Kontraentl għandhom JIġu

ntaxxati biss fdak l-Istat.

Kif użati fdan l-Artiklu-

(3)

(a) il-frażi " pensjonijiet u rimunerazzjoni oħra simili" tfisser ħlasijiet per-

jodiċi li jsiru wara rtirar b'kumpens għal ir:'pieg ta' qabel jew bħala kumpens għal

korrimenti li jiġġarrbu minn impieg ta' qabel;

(b) il-frażi "ħlas fis-sena" tfisser somma determinata mħallsa perj?dik~en~

fi żminijiet determinati matul il-ħajja, jew matul perijodu ta' żmien speĊIfikat Jew 11

jista' jiġi aċċertat, taħt l-obbligazzjoni li jsiru l-ħlasijiet bi tpattija għal kumpens

xieraq u sħiħ fi flus jew fdak li jiswa flus.

B

ARTIKLU 19

Servizz tal-Gvem

(a) Rimunerazzjoni, barra minn pensjoni, imħallsa minn wieħed mill-Istati

(1)

Kontraenti jew minn sotto-diviżjoni politika jew awtorita lokali tiegħu lil xi

individwu dwar servizzi mogħtija lil dak l-Istat jew sotto-diviżjoni jew awtorita

lokali tiegħu tista' tiġi ntaxxata biss fdak l-Istat.

(b) Iżda , dik ir-rimunerazzjoni tkun tista' tiġi ntaxxata biss fl-Istat

Kontraenti l-ieħor jekk is-servizzi jingħataw fdak l-Istat u min jirċeviha jkun

residenti ta' dak l-Istat Kontraenti l-ieħor li

(i)

ikun nazzjonali ta' dak l-Istat; jew

(ii) ma jkunx sar residenti ta' dak l-Istat sabiex biss jaqdi dawk is-

serviZZI.

(2) (a) Kull pensjoni mħallsa minn, jew mill-fondi maħluqa minn , . wieħed

mill-Istati Kontraenti jew minn sotto-diviżjoni jew awtorita lokali tiegħu lil xi

individwu dwar servizzi mogħtija lil dak l-Istat jew sotto-diviżjoni jew awtorita

lokali tiegħu tkun tista' tiġi ntaxxata biss fdak l-Istat;

(b) Iżda, dik il~pensjoni tista' tiġi ntaxxata biss fl-Istat Kontraenti l-ieħor

jekk minn jirċeviha jkun nazzjonali ta' u residenti fdak l-Istat.

(3) Id-disposizzjonijiet ta' l-Artikli 15, 16 u 18 għandhom japplikaw għal

rimunerazzjoni u pensjonijiet dwar servizzi mogħtija dwar kull negozju mmexxi minn

wieħed mill-Istati Kontraenti jew minn sotto-diviżjoni politika jew minn awtorita lokali

tiegħu . '

.

ARTIKLU 20

Studenti

(1) Hlasijiet li student jew apprendist fimpriża li kien jew li minnufih qabel ma

jżur

Stat Kontraenti kien residenti ta' Stat Kontraenti l-ieħor u li jkun fl-Istat

Kontraenti l-ewwel imsemmi biss għall-fini ta' l-edukazzjoni jew tat-taħriġ tiegħu

jirċievi għall-fini ta' manteniment , edukazzjoni jew taħriġ ma jkunx intaxxat fdan

l-Istat, iżda jekk dawk il-ħlasijiet isiru lilu minn fondi barra dak l-Istat.

(2) Rimunerazzjoni li student jew apprendist fimpriża li kien jew li minnufih

qabel ma jżur Stat Kontraenti kien residenti ta' Stat Kontraenti l-ieħor u li jkun fl-Istat

Kontraenti l-ewwel imsemmi biss għall - fini ta' l-edukazzjoni jew tat-taħriġ tiegħu

jirċievi minn servizzi magħmula fdak l-Istat ma jkunx intaxxat fdak l-Istat iżda jekk

dawk is-servizzi jkollhom x'jaqsmu ma' l-edukazzjoni jew it-taħriġ tiegħu jew dik

ir-rimunerazzjoni ta' dawk is-servizzi jkunu meħtieġa sabiex isaħħu r-riżorsi provduti

lilu għall-fini tal-manteniment tiegħu .

ARTIKLU 21

Għalliema

u Riċerkaturi

(l) Għalliem jew riċerkatur li kien jew li minnufih qabel ma jżur stat Kontraenti

kien residenti ta' l-IStat Kontraenti l-ieħor, u li jkun fi-Istat Kontraenti l-ewwel

imsemmi sabiex igħalicm jew sahiex jagħmel riċerki jkun eżentat minn taxxa f'dak

l-Istat għal perijodu ta' mhux iżjed minn sentejn fuq rimunerazzjoni dwar dawk l-

attivitajiet.

(2) Dan l-Artiklu ma għandux japplika għal income minn riċerki jekk dawk

ir-riċerki ma jkunux ġew użati fl-interess pubbliku iżda primarjament ġew użati għall­

benefiċċju privat ta' persuna jew persuni speċifiċi.

ARTIKLU 22.

'Income' Ieħor

Oġġetti

ta' income ta' residenti ta' Stat Kontraenti, jinqalgħu minn fejn

(1)

jinqalgħu, li ma humiex tnittati fl-Artikli ta' qabel ta' dan il-Ftehim ikunu jistgħu jiġu

ntaxxati biss f'dak l-Istat.

(2) Id-disposizzjonijiet tal-paragrafu (1) ma għandhomx japplikaw jekk min

jirċievi l-income, li jkun residenti ta' Stat Kontraenti, imexxi negozju fl- Istat Kontraenti

l-ieħor permezz ta' stabbiliment permanenti sitwat hemmhekk, jew jaqdi fdak l-Istat

l-ieħor servizzi professjonali minn baŻI stabbilit sitwat hemmhekk, u d-dritt jew

il-proprjeta li dwarha jitħallas l-income jkollu effettivament x'jaqsam ma' dak l-istab-

biliment permanenti jew mal-bażi stabbilit. Fdak il-każ għandhom jappli,k aw id-dispo-

sizzjonijiet ta' l-Artiklu 7 jew ta' l-Artiklu 14, skond il-każ.

.

KAPITLU IV

Tassazzjoni ta' Kapital

ARTIKLU 23

Kapital

(I) Kapital rappreżentat bi proprjetaimmobbli, ·kif imfissra fil-paragrafu (2) ta'

l-Artiklu 6, jista' jiġi ntaxxat fl~Istat Kontraenti fejn dik il-proprjeta tkun sitwata.

(2) Kapital rappreżentat bi proprjeta mobbli li tifforma parti mill-proprjeta ta'

negozju ta' stabbiliment permanenti ta' mpriża; jew minn proprjeta mobbli li tappar-

tjeni lil bażi stabbilit użat għall-qadi ta' servizzi professjonali, jista' jiġi ntaxxat fl-Istat

Kontraenti li fih l-istabbiliment permanenti jew il-bażi stabbilit ikun sitwat.

(3) Vapuri u inġenji ta' l~ajru li jitħaddmu fuq traffiku internazzjonali u proprjeta

mobbli li tappartjeni lit-tħaddim ta' dawk il-vapuri u inġenji ta' l-ajru għandhom jiġu

ntaxxati biss fl- Istat Kontraenti li fih il-post effettivtal-n:taniġġ ta' l-impriża jkun sitwat.

(4) L-elementi l-oħra kollha tal-kapital ta' residenti ta' Stat Kontraenti għand­

hom jiġu ntaxxati hiss f'dak l-Istat.

KAPITLU V

Tneħħija ta' Taxxa Doppja

ARTIKLU 24

Tneħħija ta' Taxxa Doppja

Fil-każ ta' Franza, it-taxxa doppja għandha tiġi evitata kif ġej

(1)

(a) L-Income minbarra dak imsemmi fis-sub-paragrafu (b) ta' hawn taħt

ikun eżentat mit-taxxi ta' Franza msemmija fis-sub-paragrafu (a) tal-paragrafu (3)

ta ' l-Artiklu 2 jekk l-income jkun taxxabbli f'Malta taħt dan il-Ftehim.

(b) (i) L-income msemmi fl-Artikli 10, 11, 12, 14, 16 u 17, riċevut minn

Malta jista' jiġi ntaxxat fi Franza fuq l-ammont gross. It-taxxa ta' Malta dovuta

fuq dak l-income tintitola lil residenti ta' Franza għal kreditu ta ' taxxa li jkun

daqs l-ammont ta ' taxxa ta' Malta dovut iżda li ma għandux ikun iżjed

mill-ammont ta' taxxa ta' Franza dovuta fuq dak l-income . Dak il-kreditu

għandu jitħalla kontra taxxi msemmija fis-suh-paragrafu (a) tal-paragrafu (3)

ta' l-Artiklu 2, fuq il-bażi li fuqu dak l-income jkun inkluż;

(ii) fil-każ ta' income msemmi fl-Artikli 10, 11 u 12 riċevut minn Malta

minn residenti ta ' Franza , it-taxxa ta' Malta għandha titqies li tħall se t kifġej

(aa) dividendi, bir-rata ta' 15 fil-mija kif provdut fil-paragrafu

(2)(b)(ii) ta' l-A rtiklu 10

(bh) imgħax, bir-rata ta ' 10 fil-mija kif provdut fil-paragrafu (2) ta'

l-Artiklu 11: u

(ċċ)

royalties, harra minn dawk imsemmija fil-par agrafu (3) ta'

l-Artiklu 12, hir-rata ta' l() fil-mija kif provdut fil-paragrafu (2) ta ' l-

imsemmi Artiklu.

(ċ)

Dividendi mqassma minn kumpannija li tkun residenti ta ' Malta lil

kumpannija li tkun residenti ta' Franza tkun eżenti minn taxxa ta' Franza safejn

dawk id-dividendi kienu jkunu eżentati minn taxxa taħt it-taxxa ta' Franza jekk

iż-żewġ kumpanniji kienu residenti ta ' Franza.

(d)

Minkejja d-disposizzjonijiet tas-sub-paragrafu (a), it-taxxa ta' Franza

tinħadem fuq

l-income dovut fi Franza skond dan il-Ftehim bir-rata xierqa għat­

total ta ' l-income dovut skond il-liġi ta ' Franza.

Fil-każ ta' Malta, it-taxxa doppja għandha titħallas kif ġej

(2)

Bla ħsara għad-disposizzjonijiet tal-liġi ta ' Malta dwar l-għoti ta' kreditu

kontra taxxa ta' Malta dwar taxxa harranija , meta, skond id-disposizzjonijiet ta'

dan il-Ftehim, ikun hemm inkluż f'likwidazzjoni ta' Malta income minn fondi fi

Franza, jew elementi ta' kapital sitwat fi Franza, il-taxxa ta' Franza fuq dak

l-income jew fuq elementi ta' kapital, skond il-każ , għandha tingħata hħala kreditu

kontra t-taxxa ta' Malta li għandha titħallas fuqhom.

Meta ·l-Ftehim jipprovdi li income li jinqala' fi Stat Kontraenti għandu jkun

ħielc.., minn taxxa f'dak l-Istat. sew f'kollll jew f'p:lrti , ll , taħt i! . li {',i li tklln fis-sdlħ fl-Istat

Kontraenti l-ieħor, dak l-income jkun suġġett għal taxxa h 'referenza għall-ammont tiegħu

li jinthagħat lil jew jiġi riċevut f'dak 1·l stat I·ieħor II mhllx h'refnen/:l għall-ammollt

sħiħ fuqu, allura l-ħelsien li jitħalla fl·lstat l-ewwel irmemmi għandu japplika hiss għal

dak I·ammont ta' income li jinthaghat lil jew li ji .l! i riċ'cvut tl·lstat I · ieħor .

KAPITLU VI

Disposizzjonijiet Speċjali

ARTIKLU 25

Ebda Diskriminazzjoni

Iċ-ċittadini ta' Stat Kontra~nti , ikun.u residen.ti t~' ~tat Kopt.rae~ti jew le, ma

(1)

jkunux su_ġġetti fi-Istat Kontraentl għal XI tassaz~jom je~ ~tIega. ~1. għ~ndhom

x'jaqsmu magħha li tkun ta' piż ieħor jew aktar mlt-tassaz.zjonI u .ħtIgle~ . h għand~

horn x'jaqsmu magħha li għalih iċ-ċittadini ta' dak l-Istat l-Ieħor fl-Istess cirkostanzI

huma jew jistgħu jkunu suġġetti.

(2) !t-tassazzjoni ta' stabbiliment permanenti li mpriża ta' Stat Kontraenti jkollha

fi-Istat Kontraenti l-ieħor ma għandhiex tinġabar bi żvantaġġ fdak l-Istat l-ieħor għat­

tassazzjoni miġbura minn impriżi fdak l-Istat l-ieħor li jmexxu l-istess attivitajiet.

Din id-disposizzjoni ma għandhiex tiftiehem li tobbliga wieħed mill-Istati li

jagħti lil residenti ta' l-Istat Kontraenti l-ieħor xi tnaqqis, ħelsien u riduzzjonijiet

personali għall-finijiet ta' tassazzjoni minħabba l-istat ċivili jew ir-responsabbiltajiet

tal-familja li jagħti lil residenti tiegħu stess.

(3) Hlief meta japplikaw id-disposizzjonijiet ta' l-Artiklu 9, tal-paragrafu (7) ta'

l-Artiklu 11, jew tal-paragrafu (7) ta' l-Artiklu 12, mgħax, royt:!lties u nfieq ieħor

imħallsa minn impriża ta' Stat Kontraenti lil residenti ta' l-Istat Kontraenti l-ieħor

għa ndhom, sabiex jiġu stabbiliti l-profitti taxxabbli ta' dik l-impriża, ikunu jistgħu

jitnaqqsu taħt l-istess kondizzjonijiet bħallikieku kienu tħallsu lil residenti ta' l-Istat

l-ewwel imsemmi .

BI-istess mod , kull dejn ta' mpriża ta' Stat Kontraenti lil residenti ta' l-Istat

Kontraenti l-ieħor għandu, sabiex jiġi stabbilit il-kapital taxxabbli ta' dik l-impriża, ikun

jitnaqqas bħallikieku kien ingħata lil residenti ta' l-Istat l-ewwel imsemmi .

(4) Impriżi ta' Stat Kontraenti, li l-kapital tagħhom ikun proprjeta ta' jew

ikkontrollat minn, għal kollox jew f'parti, direttament jew indirettament. minn

residenti wieħed jew aktar ta' l-Istat Kontraenti l-ieħor, ma jkunux suġġetti fi-Istat

Kontraenti l-ewwel imsemmi għal xi tassazzjoni jew ħtiġiet li għandhom x'jaqsmu

magħha li tkun ta' piż ieħor jew aktar mit-tassazzjoni u ħtiġiet li għandhom x'jaqsmu

magħha li għalihom impriżi hħal dawk fi-Istat l-ewwel imsemmi huma jew jistgħu jkunu

suġġetti.

Fdan l-Artiklu, il-frażi "tassazzjoni" tfisser taxxi ta' kull xorta u deskrizzjoni.

(5)

ARTIKLU 20

Proċedura għal

Ftehim Reċiproku

(I) Meta residenti ta' Stat I<ontraenti jidhirlu li l-azzjonijiet ta' wieħed mill-Istati

Kontraenti jew tat-tnejn iwasslu jew jistgħu jwasslu li jiġi ntaxxat mhux skond dan

il-Ftehim, hu jista', minkejja r-rimedji provduti hil-liġijiet nazzjonali ta' dawk l-Istati,

jippreżenta l-każ tiegħu lill-awtorita kompetenti ta' l-Istat Kontraenti li tiegħu jkun

residenti, jew, f'kull każ imsemmi fil-paragrafu (I) ta' l-Artiklu 25. għal dak l-Istat

Kontraenti li tiegħu jkun nazzjonali. Dan il-każ għandu jiġi ppreżentat fi żm;en tliet snin

mill-ewwel avviż ta' l-azzjoni li toħloq it-tassazzjoni mhux skond dan il-Ftehim.

B

(2) L-awtorita kompetenti għandha tara ; jekk l-oġġezzjoni tidher li tkun ġusti­

fikata u jekk hi nnifisha ma tkunx tista' tasal gQal soluzzjoni xierqa , li tiddeċiedi l-każ bi

ftehim reċiproku ma' l-awtorita kompetenti ta' l-Istat Kontraenti l-ieħor, bil-ħsieb li tiġi

evitata tassazzjoni li ma tkunx skond dan il-Ftehim. Kull ftehim milħuq għandu jiġi

implimentat minkejja kull termini fil-liġijiet nazzjonali ta' l-Istati Kontraenti.

L-awtoritajiet kompetenti ta" l-Istati Kontraenti għandhom jaraw li jidde-

(3)

ċiedu bi ftehim reċiproku kull diffikultajiet jew dubji li jinqalgħu dwar l-interpre-

taZzjoni jew}applikazzjoni tal-Ftehim.

' .

. .

I

i

'

l

.

parti'kolanp.ent, .!-awtorytajiet komp~tenti ta' l-Istati ,Kontraenti jistgħu jikkon-

sultaw flimkien sabiex jaraw li jiddeċiedu fuq

(a) l-istess attribuzzjoni fiż-żewġ Stati Kontraenti tal-profitti dovuti lii stab-

biliment permanenti sitwat fi Stat Kontraenti ta' mpriża fi-Istat Kontraenti l-ieħor;

l-istess tqassim ta' income bejn residenti ta' . Stat KQntraenti u kull

(b)

pers~na asoċjata ms~.r:nmija fl-Artiklu 9.

Huma jistgħu jjkkonsultaw lil xulxin fuq it-tneħħija ta' taxxa doppja għal każijiet li

mhux provdut għalihom fdan il-Ftehim.

(4) L-awtoritajiet kompetenti ta' l-Istati Kont!aent\jistgħu jikkomunikaw flim-

kien direttament sabiex jilħqu ftehim fis-sens tal-paragrafi ta' qabel dan. Meta jkun

aħjar li sabiex jintlaħaq·ftehim ikun hemm bdil ta' opiojonijiet orali ; dan il-bdil jista' jsir

permezz ta' ,K ummissjoni li tkun magħmula minn rappreżentanti ta' l-awtoritajiet

kompet~nti ta ~ l-Istatj. Kontraenti.

_

l

.

.

_ (5) . L-awtoritajiet kompetenti ta' l-Istati Kontraenti jistgħu bi ftehim flimkien

jiddeċiedu dwar ix-xorta ta' applikazzjoni ta' dan il-Ftehim u, speċjalment, il-ħtiġiet li

għalihom ir-residenti ta' Stat Kontraenti jkunu s4ġġetti sabiex jiksbu l-ħelsien ta' taxxi

jew eżenzjonijiet provduti għalihom f'dan il-Ftehim .

. ARTIKLU 27

Tibdil ta' Informazzjoni

(1) L-awtoritajiet kompetenti ta' 1~lstati Kontraenti għandhomjibdlu dik l-infor-

l'

mazzjoni li tkun meħtieġa sabiex iseħħ dan il-Ftehim jew il-liġijiet domestiċi ta' l-IstatI ·

Kontraenti dwar it~taxxi milquta b'dan il-Ftehim safejn it-taxxa taħt dawk il-liġijiet ma

tkunxkuntrarja għal dan il-Ftehim . Kull informazzjoni riċevuta minn Stat Kontraenti

għandha titqies li hi sigrieta bI-istess mod bħal informazzjoni miksuba tatIt il-liġijiet

domestiċi ta' dak l-Istat u għandha tingħata biss lil persuni jew awtoritajiet (inklużi qrati

jew korpi amministrattivi) li għandhom x'jaqsmu mal-likwidazzjoni jewġbir ta',

l-eżekuzzjoni jew prosekuzzjoni dwar, jew id-deċiżjoni ta' appelli dwar, it-taxxi li huma

s-suġġett ta' dan il-Ftehim. Dawn il-persuni jew awtoritajiet għandhom jużaw biss

l-informazzjoni għal dawn il-finijiet. Dawn il-persuni jew awtoritajiet jistgħu jikxfu

l-informaizjoni fi proċedimenti tal~qorti pubbliċi jew f'deċiżjonijie~ ġudizzjarji.

F'ebda każ ma għandhom id~disposizzjonijiet tal-paragrafu (1) jiftiehmu

(2)

bħ'ala li jimponu fuq xi wieħed mill-Istati Kontraentil-obbligu

~

•

•

•

j

,

J

,(a) .li jieħu miżuri amminiS'trat~ivi li ma jk unux skond il-ħti.ġiet jew il-prattika

amministrattiva ta' dak Hstat Kontraenti jewta'!-[stat l-ieħor ;

.

B' 27

li jagħti dawk il-partikolaritajiet li ma jkunux jistgħu jinkisbu skond

(b)

il-liġijiet jew fil-kors normali ta' l-amministrazzjoni ta' dak l-Istat Kontraenti jew

ta' l-Istat l-ieħor;

.

(ċ)

li jagħti informazzjoni li tikxefxi sigriet tal-kummerċ, negozju, industrja,

kummerċjali jew professjonali jew xi proċess tal-kummerċ, jew informazzjoni, li

l-kxif tagħha jkun kontra l-interess pubbliku (ordre public).

.

"

ARTIKLU 28

Uffiċjali Diplomatiċi u

Konsulari

Ebda ħaġa fdan il-Ftehim ma għandha tolqot il-privile~ġi fiskali ta' uffiċjali

(1)

diplomatiċi

u d-domestiċi personali tagħhom, ta' membri ta' uffiċjali k9nsulari,

jew ta' membri ta' uffiċjali permanenti lil organizzazzjonijiet intemazzjonali taħt

ir-reg?li ġenerali ta" liġi intemazzjonali jew taħt id-disposizzjonijiet ta' ftehim speċjali.

(2) Minkejja d-disposizzjonijiet ta' l-Artiklu 4, individwu li jkun uffiċjal diplo-

matiku iew konsulari jew permanenti fi Stat Kontraenti li ikun sitwat fl-Istat Kontraenti

l-ieħor Jew fxi Stat ieħor jitqies għall-tinijiet ta' dan il-Ftehim li jkun residenti ta' l-Istat

li qed jibgħat jekk

(a) skond il-liġi intemazzjonali, ma jkunx taxxabbli fi-Istat li qed jirċievi fuq

income minn għejjun barra dak l-Istat; u

(b) , ikollu l-obbligu fl-Istat li qed jibgħat għall-istess obbligazzjonijiet dwar

taxxa fuq l-income totali mid-dinja kollha kif ikunu obbligati residenti ta; dak

l-Istat li qed jibgħat.

·

_ .. ,

(3) Dan il-Ftehim ma għandux japplika għal organizzazzjonijiet intemazzjonali,

għal korpijiet u uffiċjali tagħhom u għal persuni li jkunu membri ta' uffiċċju diplomatiku

jew konsulari jew permanenti fxi Stat ieħor, 11 jkunu preżenti fi Stat Kontraenti u mhux

ittrattati fxi wieħed mill-Istati Kontraenti'bħalt\ residenti dwar t~i 'fuq income u fuq

kapital.

ARTIKLU 29

l

.

Estensjoni ta' Territorju

(1) Dan il-Ftehim jista' jiġi estiż, kollu kemm hu jew b'xi tibdil meħtieġ, għat­

territorji tar-Repubblika ta' Franza li jimponu taxxi sostanzjalment li jixbhu x-xorta ta'

dawk li għalihom japplika dan il-Ftehim. Kull estensjorii bħal din għandha tibda sseħħ

minn dik id-data u tkun suġġetta għal dak it-tibdil u kondizzjonijiet, inkużi kondizzjo-

nijiet dwar terminazzjoni, kif jista' jiġi speċifikat u miftiehem bejn l-Istati Kontraenti

fnoti li għandhom jinbidlu permezz ta' mezzi diplomatiċi, jew b'xi mod ieħor skond

il-proċeduri kos.tituzzjonali tagħhom.

.

(2) Kemm-i! darba ma jkunx hemm qbil kuntrarju bejn iż-żewġ Stati Kontraenti,

it-terminazzjoni tal-Ftehim minn xi wieħed minnhom, taħt l-Artiklu 31,twaqqaf ukoll,

bil-mod kif provdut ~ħalih fdak l-Artiklu. l-applikazzjoni tal-Ftehim għa) xi territorju li

għalih ikun ġie estiż taħt dan l-Artiklu.

-

KAPITLU VII

Disposizzjonijiet Finali

ARTIKLU ' 30

Bidu fis-Seħħ

(1) Kull Stat Kontraenti għandu javża lill-ieħor meta jingħalqu l-proċeduri

meħtieġa bil-liġi tagħhom sabiex jinġab fis-seħħ dan il-Ftehim. Dan il-Ftehim għandu

jibda jseħħ fl-ewwel ġurnata tat-tieni' xahar li jiġi wara x-xahar li fih jingħataw l-aħħar

notifikazzjonijiet ta' dan il-Ftehim.

Id-disposizzjonijiet tiegħu għandhom japplikaw għall-ewwel darba

(2)

(a) d\Var taxxi miżmuma minn ras il~għajn, għal ammonti mħallsa fil-ġurnata

tal-bidu fis-se~ħ .ta' dan il-Ftehim jew wara; ' "

"

(b) dwar taxxi oħra fuq income, għal income li jkun.inkJseb matul is-seI1a

kalendarja li fiha l-Ftehim beda jseħħ, jew dwar l-perijodu ta' kontijiet li jispiċċa

fdin is~sena.

ARTIKLU 31

Terminlizzjoni

Dan il-Ftehim għandu jkollu effett indefinittivament. IŻ,da , wara 1-1981, kull

(1)

wieħed mill-Istati Kontraenti jista' jittennina f-Ftehim billi jagħti almenu , avviż bil-

miktub ta' sitt xhur pennezz ta' mezzi diplomatiċi.

(2J . F'każ bħal dan, id~disposizzjonijiet tiegħu għandhom japplikaw għall-aħħar

darba

-

, , ' l a) ' t dwar taxxi miżmuma minn ras il-għajn, is-somom imħ'allsa qabel jew

fil-3i 'ta' Diċembru't'as-sena kalendarja li matulha tiġi notifikata Henninazzjoni;

(b) dwar taxxi oħra fuq income, għal income li jinkiseb matul is-sena kalen-

darja li fiha tiġi notifikata t-tenninazzjoni jew dwar il-perijodu tal-kontijiet li

jispiċċa fdik is-sena.

B'XHIEDA TA' DAN l-hawn ,taħt iffirmati, awtorizzati kif imiss, iffirmaw dan'

il-Ftehim,

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. MAGHMYL fil-Belt Valletta, illum 25 ta' Lulju 1977, in duplikat, fl-ilsien Franċiż

u fl-ilsien Ingliż, ' iż-żewġ testi awtentiċi ndaqs.

.

,

Għall-Gvern tar-Repubblika Franċiża '

Għall-Gvern tar-Repubblika ta' Malta

SERGE GELADE

JOSEPH ABELA

PROTOKOL

Fiż-żmien ta' l-iffirmar tal-Ftehim bejn il-Gvem tar-Repubblika ta' Malta u

l-Gvem tar-Repubblika ta' Franza dwar il-Helsien minn Taxxa Doppja u biex tiġi

Evitata Evażjoni Fiskali dwar Taxxi fuq Income, is-sottoskritti ftiehmu fuq id-disposiz-

zjonijiet li ġejjin.

I. Dwar l-Artiklu 5, impriża ta' assigurazzjoni ta' Stat Kontraenti titqies li jkollha

stabbiliment permanenti fl-Istat Kontraenti l-ieħor jekk tiġbor premiums u tassigura

riskji hemmhekk.

Dwar il-paragrafi(l) u (2) ta' l-Artiklu 7, meta I!lpriża fi Stat Kontraenti tbiegħ

It is hereby declar~d -

Arrangements

to have

(a)

that the arrangements specified in the Agreement set in effect.

the Schedule to this Order have been made with the Government of

the Republic of France with a view to affording relief from double

taxation and preventing fiscal evasion in relation to the following

taxes in1posed by the laws of the Republic of France

(i) the income tax;

(ii) the corporation tax; including any withholding tax,

prepayment (precompte) or advanced payment with respect to

the aforesaid taxes;

(b)

that it is expedient that those arrangements should have

effect.

The Double Taxation Relief (Taxes on Income) (Republic of Revokes

France) Order, 1981 is hereby revoked.

L.N.134 of

1981. SCHEDULE

AGREEMENTBETWEEN

TIIE GOVERNMENT OF THE REPUBLIC OF MALTA

AND

TIIE GOVERNMENT OF THE FRENCH REPUBLIC

FOR TIIE A VOIDANCE OF DOUBLE T AXA TION AND

TIIE PREVENTION OF FISCAL EV ASION

WITH RESPECf TO T AXES ON INCOME

The Govemment of the Republic of Malta and the Govemment of the French

Republic desiring to conclude an Agreement for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on income have agreed as follows

CHAPTER I

Scope of the Agreement

ARTICLE 1

Personal Scope

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

Contracting States.

ARTICLE 2

Taxes Covered

(1) This Agreement shall apply to taxes on income and on capital imposed on

behalf of each Contracting State or of its political subdivisions or local authorities,

irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed on

total income, on total capital , or on elements of income or of capital, including taxes on

gains from the alienation of movable or immovable property, taxes on the total amounts

of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

(3)

The existing taxes to which the Agreement shall apply are

(a)

in the case of France

(i) the income tax;

(ii) the corporation tax; including any withholding tax, prepayment

(precompte) or advance payment wit.h respect to the aforesaid taxes;

(hereinafter referred to as "French ta:.x");

(b) in the case of Malta

the income tax and surtax including prepayments of tax whether made by

deduction at source or otherwise ,

(hereinafter referred to as "Malta tax" )

(4) The Agreement shall apply also to any identical or substantially similar taxes

which are imposed after the date of sign ature of this Agreement in addition to, or in

place of, the existing taxes. The competent authorities of the Contracting States shall

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

taxation laws.

I •

CHAPTER fi

Definitions

ARTICLE 3

General Definitions

(1)

In this Agreement

(a) the term "France" means the European andovers~as departments

(Guadeloupe, Guyane, Martinque and Reunion) of the French Republic, and any

area outside the territorial sea of those departments which is, in accordance with

internationallaw, an area within which France may exercise rights with respect to

the sea-bed and subsoil and their natural resources;

(b) the term "Malta" means the Republic of Malta and includes in addition

to the Island of Malta, the Island of Gozo and the other islands of the Maltese

Archipelago, together with the territorial waters thereof, and any area outside the

territorial sea of Malta which, in accordance with internationallaw, has been or

may hereafter be designated, under the law of Malta concerning the Continental

Shelf, as an area within which the rights of Malta with respect to the sea bed and

subsoil and their natural resources may be exercised;

(c) the term "person" means an individual, a company and any other body of

persons;

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

treated as a body corporate for tax purposes;

(e) . the terms "enterprise of a Contracting State" and "enterprise of the

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

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

Contracting State;

(f)

the term "nationals" means

(i)

in respect of France, all individuals possessing the nationality of

France;

(ii) in respect of Malta, all citizens of Malta as provided for in Chapter

III of the Constitution of Malta and in the Maltese Citizenship Act, 1965;

(iii) alllegal persons, partnerships and associations deriving their status

as such from the law in force in a Contracting State ;

(g) the term "international traffic" means any transport by ship or aircraft

operated by an enterprise which has its place of effective management in a

Contracting State , except when the ship or aircraft is operated solely betweeh

places in the other Contra~ting State ;

(h)

the term "competent authority" means

(i) in the case of France. the Minister of Economyand Finance or his

authorised representative;

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

authorised representative .

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(2) As regards the application of the Agreement by a Contracting State any term

not otherwise defined shall, unless the context otherwise requires, have the meaning

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

subject to the Agreement.

ARTICLE 4

Fiscal Domicile

(1) For the purpose of this Agreement, the term "resident of a Contracting State"

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 . But this term does not include any person who is liable to tax in that Contracting

State in respect only of income from sources therein or capital situated in that State.

(2) Where by reason of the provisions of paragraph (1) an individual is a resident

of both Contracting States, then his status shall be detennined as foHows

(a) he shall be deemed to be a resident of the Contracting State in which

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

available to him in both Contracting States, he shaB be deemed to be a resident

of the Contracting State with which his personal and economic relations are

dosest (centre of vital interests);

(b) if the Contracting State in which he has his centre of vital intercsts

cannot be determined, of if he has not a permanent home available to him in

cither Contracting State, he shall be deemed to be a resident of the Contract-

ing State in which he has a habitual abode; .

(c) if he has a habitual abode in both Contracting States or in neither of

them, he shall be deemed to be resident of the Contracting State of which hc is

a national;

(d) if he is a national of both Contracting States of of neither of them,

the competent authorities of the Contracting States shall settle the ql.lcstion by

mutual agreement.

(3) Where by reason of the provisions of paragraph (l) a person other than an

individua1 is a resident of OOth Contracting States \ then it shali be deemed to be a

resident of the Contracting State in which its place Qf effeċtivc management is situated.

ARTICLE 5

Permanent Establishment

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

means a fixed place of business through which the business of an enterprise is wholly or

partly cc.med on.

(2)

The term "pemlaf!ent establishment" shall include especially

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a place of management;

( L1J

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop; and

(f) a mine, an oil or gas well, a quarryor any other place of extraction of

natural resources including an offshore drilling site.

(3) A building site or construction or installation project or supervisory activities

in connection therewith, shal1constitute a permanent establishment provided that such

site, prgject or activities last for more than twelve months

(4) Notwithstanding the preceding provisions of this Article, the term "perma-

nent establishment" shaH be deemed not to include;

(a) the use of facilities solely for the purpose of storage, display or delivery 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 collecting information, for the enterprise;

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

carrying on, for the enterprise, any other activity, if it has a preparatory or auxiliary

character;

(f) the maintenance of a fixed place of business solely for any combination of

activities mentioned in sub-paragraphs (a) to (e) of this paragraph, provided that

the overall activity of the fixed place of business resulting from this combination is

of a preparatory or auxiliary character.

(5) Notwithstanding the provisions of paragraphs (1) and (2), if a person- other

than an agent of an independent status to whom paragraph (6) applies - is acting on

behalf of an enterprise and has, and habitually exercises, in a Contracting State an

authority to conclude contracts in the name of the enterprise, that enterprise shaH be

deemed to have a permanent establishment in that State in respect of any activities

which that person undertakes for the enterprise, unless the activities of such person are

limited to those mentioned in paragraph (4) which, if exercised through a fixed place of

business, would not make this fixed place of business a permanent establishment by

virtue of that paragraph.

(6) . An enterprise shaH not be deemed to have a permanent establishment in a

Contracting State merely because it carries on business in that State through a broker,

general commission agent or any other agent of an independent staius, where such

persons are acting in the ordinary course of their business.

(7) The fact that a company which is resident of a Contracting State controls or is

controlled by a company which is a resident of the other Contracting State, or which

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

otherwise), shaH not itself constitute either company a permanent establishmentof the

other.

CHAPTER III

Taxation of Income

ARTICLE 6

Income from Immovable Property

(1) Income from immovable property may be taxed in the. Contracting Stilte in

which such property is situated.

(2) The term "irnmovable property" shall be defined in accordance with the

taxation laws of the Contracting State in which the property in question is situated. The

term shall in any case include property accessory to immovable property ,rights to which

the provisions of generallaw respecting landed property apply , usufruct of irnmovable

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

the right to work, mineral deposits', sources and other natura} resources; ships, boats

and aircraft shall not be regarded as immovable property.

(3) The provisions of paragraph (1) shall apply to income derived from the direct

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

(4) The provisions of paragraphs (1) and (3) shall also apply to the income from

immovable property of an enterprise and to tncome from immovable property used for

the performance of professional services.

ARTICLE 7

Business Profits

(1) The profits of an enterprise of a Contracting State sħall be taxable only in that

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

permanent establishment situated therein. If the enterprisecarries on business as

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

of them as is attributable to that permanent establishment.

(2) Subject to the provisions of paragraph (3), where an enterprise of a C;on-

tracting State carries on business in the other Contracting State through a permanent

establishment situated therein, there shall in each Contracting State be attributed to

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

distinct and separate enterprise engaged in the same or similar activities under the same

of similar conditions and dealing wholly independently with the 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 p~rmanent

establishment including executive and general administrative expenses so incurred,

whether in the State in which the permanent establishment is situated or elsewhere. .

(4) Insofar as it has been customary in a Contracting State to determine the

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

of the total profits of the enterprise to its various parts, nothing in paragraph (2) shall

B

preclude that Contracting State from detenrtiriing the profits to be taxed by sHch an

apportio'nment as may be customary ~ the . t:nethod of apportionment adopted shall,

however, be such that the result shall be in accordance with the principles embodied in

this Article.

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(5) No ptofit\ ~hall be attribut~d to a permanent establishment by reasdn of the

mere. p~rchase l;>y t?at ,~ermanent estabIi~rment of goods or merchand~se for the

enterpnse. ..:.

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(6) For the purposes of the preceding,paragraphs, the profits to be attributed to

the ' permanent establishment shall be determined by the same method year by year

unless there is good and sufficient reason to the contrary .

. ' . ('i) Where profits in,clude items of i.ncome whiċh are dealt with separately in other

Articles of this Agreement, then the rrovisions of those Articles shaH not be affected by

the provisions of this Article'.

'0.

ARTICLE 8

Shipping and Air Transport

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

taxable only in the CDntracting State in which the place of effective management of the

enterprise is situated.

(2) If the place of effective management of a shipping enterprise is aboard a ship,

then it shall be deemed to be situated in the Contracting State in-which the home

harbour is situated, or if there is no such home harbour, in the Contracting State 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 intemationaLoperating agency.

ARTICLE 9

Associated Enterprises

Where-

(a) . a'n enterprise ()f a Contracting State participates directly or indirectly in

the management. control or c'upital of an enterprise of the other Contracting State

or

(h) the same persons participate directly of indirectly in the management,

control of capital of an enterprise l)f a Contracting State and an enterprise of the

other Contracting State.. . .

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and in either case conditions are made orimposed between the two enterprises in their

commcrcial of financial relations which differ from those which wouldbe made between

independent enterpriscs. then any profits which would. hut for those conditions. have

accrucd to one of the cnterprises. hut. hv reason of those conditions. have not so

accrucd. may he included in the profits of that enterprise and taxcd acconlingly,

ARTICLE 10

Dividends

(1) Dividends paid by a company which is a resident of a Contracting State to a

resident of the other Contracting State may be taxed in that other State .

(2) However , such dividends may be taxed in the Contracting State of which the

company paying the dividends is a resident, and according to the law of that State, but

(a) where the dividends are paid by the company resident of France to a

resident of Malta who is the beneficial owner thereoL the French tax so charged

shaH not exceed

(i) 5 per cent of the gross amount of the dividends if the recipient is a

company which holds directly at least 10 per cent of the capital of the company

paying the dividends;

(ii) in all other cases, 15 per cent of the gross amount of the dividends;

(b) where the dividends are paid by a company resident of Malta to a

resident of France who is the beneficial owner thereof

(i) Malta tax shall not exceed that chargeable on the company paying the

dividends in respect of the profits so distributed;

(ii) notwithstanding the provisions of sub-paragraph (i), Malta tax shall not

exceed 15 per cent of the gross amount of the dividends if such dividends are paid

out of gains or profits eamed in any year in respect of receipt of tax benefits under

the provisions regulating aids to industries in Malta, and the shareholder submits

retums and accounts to the taxation authorities of Malta in respect of his 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 the dividends are paid.

(3) 111e term "dividends" as used in this Article means income from shares,

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

rights, not being debt-c1aims, participatiilg 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.

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

(4)

dividend~,

being a resident of a Contracting State , carries on business in the other

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

permanent establishment situated therein, of performs in that other State professional

services from a fixed base situated therein and the holding in respest of which the

dividends are paid is effectively connecteo with such permanent establishment of fixed

base. In such a case the provisions of Article 7 or Article 14, as the case may be, shaH

apply .

(5) (a) A resident of Malta who receives from a company which is a resident of

France dividends which , if received by a resident of France, would entitle such

resident to a fiscal credit (avoir fiscal), shall be entitled to a payment from the

French Treasury equal to such credit (avoir fiscal) subject to the deduction of the

tax provided for in sub-paragraph (a)(ii) of paragraph (2) of this Article;

(b) "the provisions of sub-paragraph (a) of this paragraph shaH apply only to a

resident of Malta, being either

(i) an individual; or

(ii) a company which does not control the' ċorripany paying the divi-

dends; for the purposes of this sub-paragraph, a company shaH be deemed to

control another company when, eitheralone or together with one ormore

ass?ciated companies it controls direct1y or indirectly at least 10 per cent of the

votmg power of the other company, and two companies shaH be deemed tobe

associated if one is controIled directly or indirectly by the other or both are

controIled directly or indirectly by a third company in the manner aforesaid.

(c) the provisons of sub-paragraph (a) of this paragraph shaH not apply if the

recipient of the payment from the French Treasury provided for under sub-para-

gtaph (a) of this paragraph is not subject to Malta tax in respect of that payment;

(d) Payments from the French Treasury provided for under sub-paragraph

(a) of this paragraph shaH be deemed to be dividends for the purposes of this

Agreement.

"

(6) (a) Where the prepayment (precompte) is levied in respect of dividends

paid by a company which is a resident of France to a resident of Malta who is not

entitled to the payment from the French Treasury referred to in paragraph (5) of

this Article with respect to such dividends, that resident of Malta shaH be entitled to

the refund of the prepayment, subject to the deduction of tax with respect to the

refunded amount in accordance with paragraph (2) of this ArticIe;

(b) amounts refunded under the provisions of sub-paragraph (a) of this

paragraph shaIl be deemed to be dividends for the purposes of this Agreement.

(7) Where a company resident of Malta has in France a pennanent establishment,

the profits of this permanent establishment shaH, after having bome the French corpor-

ation tax, be liable to a tax the rate of which shaH not exceed 10 per cent, according to

the law of France.

ARTIClE 11

Interest

(1) Interest arising in a Contracting State' and paid to a resident of the other

Contracting State may be taxed in that other State.

(2) However, such interest may be taxed in the Contracting State in which it

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

of the interest. the tax so charged shaH not exceed \0 per cent of the gross amount of the

interest.

(J) Notwithstanding the provisions of p~lfagraph (2), any such interest as is

mcntioned in paragraph ( l) shaH be taxable only in the Contracting Stateof w!tic~ the

beneficiary "is a resident, if such interest is payable on loans granted or guaranteed by

that State or a statutory body thereof.

(4) The term "interest" ~lS used in this Article means income from deht-c1aims of

every kind, whether or not sccured by mortgage, and whether or not carrying a right to

participatc in the debtor's proflts. and in p;lrticular. income from government securities

and income from honds or dcbentun:s, including premiums and prizes attachirig to

bonus o[ debcnturcs. Pcnalty chargcs for latc payment shaH not be regarded a:, interest

forthc purposc of this ArticIL-.

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

interest, being a resident of a Contracting State, carries on business in the other

Contracting State in which the interest arises, through a permanent establishment

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

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

connected with such permanent establishment or fixed base. In such a case, the

provisions of Article 7 or Article 14, as the case may be, shaH apply.

(6) Interest shaH be deemed to arise in a Contracting State when the payer is that

State itself, a political subdivision, a local authority, a statutory body thereof or a

resident of that State. Where, however, the person paying the interest, whether he is a

resident of a Contracting State or not, has in a Contracting State a permanent establish-

ment in connection with which the indebtedness on which the interest is paid was incurred,

and sllch interest is borne by such permanent establishment, then such interest shaH be

deemed to arise in the Contracting State in which the permanent est3blishment is

sitllated.

(7) Where, owing to a special relationship between the payer and the recipient 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 Article shaH apply only to the last-mentioned amount. In that case, the

excess part of the payment shall remain taxable according to the law of each Contracting

State, due regard being had to the other provisions of this Agreement.

ARTICLE 12

Royalties

(1) Royalties arising in a Contracting State and paid to a resident of the other

Contracting State may be taxed in that other State.

(2) However, such royalties may be taxed in the Contracting 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 amount of the

royalties.

.

(3) Notwithstanding the provlslons of paragraph (2), payments of any kind

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

artistic or scientific work, including works recorded for broadcasting or television, shaH

be taxable only in the Contracting State of which the beneficiary is a resident, if such

resident is the beneficial owner of the payments.

. (4) The term "royaltics" as used in this Article means payments of any kind

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

artistic or scientific work including cincmatographic films and works recorded for

broadcasting or television, any patent, trade mark, design or model, plan, secret

fornlUla or process or for information concerning industrial, commercial or scientific

expenence.

(5) The provisions of paragraphs (1), (2) and (3) shaH not apply ifthe recipient of

the royalties, being a resident of a Contracting State, carries on business in the other

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

B

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

situated' therein, and the right or property in respect of -.yhich the royalties are paid is

effectively connected with such permanent establishment or fixed base. In such a case,

the provisicins of Article 7 or Article 14, as the case may be, shall apply.

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(6) Roya1ties shall be deemed to ari se in a Cdntractinġ State when the payer is

that State itself, a political subdivision, a loeal authority , a statutory body thereof or a

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

resident of a Contracting State or not, has in a Contracting State a permanent estab-

lishment with which the right or property in respect of which the royalties are paid is

effectively conI1ected, and such royalties are bome 9Y such permanent establishment,

then such royalties shall be deemed to arise in the Contracting State in which the

permanent establishmentis situated.

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

between both of them and some other person, the amount of the royalties paid, having

regard to the use, right or information for which they are 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 Article shall apply only to the last-mentioned

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

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

Agreement. It

ARTICLE 13

Capital Gains

(i) Gains from the alienation of immovable property, as defined in paragraph (2)

of Article 6 or from the alienation of shares or comparable interest in a real property

cooperative of in a company the assets of which consist principally of immovable

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

(2) Gains from the alienation of movable property forming part of the business

property of a permanent establishment which an enterprise of a Contracting State has in

the other Contracting State of of movable property pertaining to a fixed base available

to a resident of a Contracting State in the other Contracting State for the purpose of

performing professional services, including such gains from the alienation of such a

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

fixed base, may be taxed in the other State . However. gains from the alienation of

movable property pertaining to the operation of ships and aircraft operated in inter-

national traffic shall be taxable only in the Contracting State in which the place of

effective management of the enterprise is situated.

(3) Gains from the alienation of shares forming part of a suhstantial interest in the

capital of a company which is a rcsidcnt nf a ('nntracting State may. hc taxcd in that State

and according to the law of that State . For the purposes of this paragraph, a suhstantial

intcrcst shall be deemed to exist when thċ alienator, alone or together with associated or

relatcd persons, holds dircctly or indircl,tly shan:s which together give right to 25 per

ccnt or more of the company protlts.

(4) Gains from the alicnatinn of any property othcr than those mentioned in

paragraphs (l), (2) and (3), shall hctaxahlc only in thl~ C\lI1tracting Sta·te of which the

alicnator is a rcsident.

B

ARTICLE 14

Independent Personal Services

(1) Income derived by a resident of a Contracting State in respect of professional

services or other independent activities of a similar character shall be taxable only in that

State. However, such income may be taxed in the other Contracting State in the

following circumstances

(a) if he has a fixed base regularly available to him in the other Contracting

State for the purpose of performing his activities (in which case only so much of the

income as is attributable to that fixed base may be taxed in that other Contracting

State); or

(b) if his stay in the other Contracting State is for a period or periods

amounting to or exceeding in the aggregate 183 days during any caJendar year.

(2) The term "professional services" includes, especially, independent scientific,

literary, artistic, educational or teaching activities as well as the independent activities

of physicians, lawyers , engineers, architects , dcntists and accountants.

ARTICLE 15

Dependent Personal Services

(1) Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other

similar remuneration derived by a residcnt of a Contracting State in respect of an

employment shall be taxable only in that State unless the employment is exercised in the

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

derived therefrom may be taxed in that other State.

(2) Nmwithstanding the provisions of paragraph (1), remuneration derived by a

resident of a Contracting State in respect of an employment exercised in the other

Contracting State shall be taxable only in the first-mentioned State if

(a) the recipient is present in the other State for a period or periods not

exceeding in the aggregate 183 days in the calendar year concemed; and

(b) the remuneration is paid by, or on behalf of, an employer who is not a

resident of the other State ; and

(\.:) the remuneration is not borne by a permanent establishmentor a fixed

base which the employer has in the other State.

(3) Notwithstanding the preceding provisions of this Article; remuneration in

respect of an employment exercised ab9ard a ship or aircraft in international traffic may

be taxed in the Contracting State in which the place of effective management of the

enterprise is situated .

ARTICLE 16

Directors' Fees

Directors' fees and similar payments derived by a resident of a Contracting State in

his capacity as a member of the board of directors or other similar organ of a company

which is a resident of the other Contracting State may be taxed in that other State.

ARTICLE 17

Artistes and Athletes

(1) Notwithstanding the provisions of Articles 14 and 15, income derived by

entertainers, such as theatre, motion picture, radio or television artistes, and musicians,

and by athletes, from their personal activities as such may be taxed in the Contracting

State in which these activities are exercised.

(2) Where income in respect of personal activities as such of an entertainer Of

athlete accrues not to that entertainer or athlete himself but to another person that

income may , notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the

Contracting State in which the activities of the entertainer or athlete are exercised.

(3) Notwithstanding the provisions of paragraph (1), remuneration or profits,

and wages, salaries and other similar income derived by entertainers and athletes from

their personaI activities as such in a Contracting State shaH be taxable only in the other

Contracting State if their visit to the first Contracting State is supported substantially

from the public funds of that other Contracting State, one of its politica! subdivisions or

local authorities or of a statutory body thereof.

(4) Notwithstanding the provisions of paragraph (2), where income in respect of

personaI activities as such of entertainers and athletes in a Contracting Stateaccrues not

to that entertainer or athlete himse!f but to another person, notwithstanding the

provisions of Articles 7, 14 and 15, that income shaH be taxable only in the other

Contracting State if this person is supported substantially from the public funds of that

other Contracting State, one of its political subdivisions or local authorities or of a

statutory body thereof, or if this person is a non-profit organisation of that other State.

ARTICLE 1H

Pensions

(1) Subject to the provisions of paragraph (2) of Article 19, pensions and other

similar remuneration, and annuities paid to a resident of a Contracting State in consi-

deration of past employment shall be taxable only in that State .

(2) Notwithstanding the provisions of paragraph (1), pensions and other

payments made under the social security legislation of a Contracting State shaH be

taxable only in that State .

(3)

As used in this Article

(a) the term "pensions and other similar remuneratiun" means periodic

payments made after retimment in consideration of pasl employment. or by way of

compensation for injuries receivcd in connection with past employment;

(0) the term "annuity" rneans a stated sum paid periodically during life, or

during a speci/ied of ascertainaolc pċriod of tirne, under an ooligation tn make the

payments in return for adequate and fu 11 consideration in money or money's '"orth .

B

ARTICLE 19

Government Service

(1) (a) Remuneration, other than a pen~ ion, paid by a Contracting State or a

political subdivision or a local authority thereof to any indiv.idual in respect of

services rendered to that State or subdivision of local authonty thereof shaH be

taxable only in that State;

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

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

that other Contracting State who

t

(i)

is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of

perfonning the services.

(2) (a) Any pension paid by, or out offunds created by, a Contracting State or a

political subdivision or a local a~thofity thereof to any individual in respect of

services rendered to that State cr subdivision or local authority thereof shaH be

taxable only in that State;

(b) However, such pension shall be taxable only in the other Contracting

State if the recipient is a national of and a resident of that State.

(3) The provisions of Articles 15, 16 and 18 shall apply to remuneration and

pensions in respect of services rendered in 'connection with any business carried on by

one of the Contracting States or a political subdivision or a local ~uthority thereof.

ARTICLE 20

Students

(1) Payments which a student or business apprentice who is or was immediately

before visiting a Contracting State a resident of the other Contracting State and who is

present in the first-mentioned Contracting State solely for the purpose of his education .

or training receives for the purpose of his maintenance, education or training shaH not

be taxed in that State, provided that such payments are made to him from sources

outside that State.

(2) Remuneration which a student or ' business apprentice who is or was

immediately before visiting a Contracting State a resident of the other Contractjng State

and who is present in the first-mentioned Contracting State solely for the purpose of his

education or training derives from services rendered in that State shaH not be taxed in

that State provided that such services are in connection with his education or training or

that the remuneration of such services is necessary to supplement the resources

available to him for the purpose of his maintenance.

ARTICLE 21 ·

Teachers and Researchers

(l) A teacher or researcher who is or was immediately before vlsltmg a

Contracting State a resident of the other Contracting Statc , and who is present in the

first-mentioned Contracting State for the purpose of teaching or engaging in research

shall be exempt from tax in that State for a period not exceeding two years on

remuneration in respect of such activities.

(2) This Article shall not apply to income from research if such research is

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

person or persons.

ARTICLE 22

Other Income

(1) Items of income of a resident of a Contracting State, wherever arising, not

dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

(2) The provisions of paragraph (1) shall not apply if the recipient of the income,

being a resident of a Contracting State, carries on business in the other Contracting

State 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 income is paid is effectively connected with such permanent

establishment or fixed base. In such a case the provisions of Article 7 or Article 14, as the

case may be, shaH apply.

CHAPTER IV

Taxation of Capiu.I

ARTICLE 23

Capital

(1) Capital represented byimmovable pr6perty. as defined in paragraph (2) of

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

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

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

(3) Ships and aircraft operated in international traffic and mo"able property

pertaining to the operation of·such ships and aircraft shall be taxable only in the

Contracting State in which the place of effective management of the enterprise is

situated .

(4) All othcr clements· of capital of a resident of a Contracting State shall be

taxable only in that Stale. .

.

l (

CHAPTER V

E1imination of Double Taxation

ARTICLE 24

Elimination of Double Taxation

(1)

In the case of France, double taxation shall be avoided as follows

(a) Income 6ther than that referred to insub-paragraph (b} below.shall be

exempt from the French taxes rderred to in sub-paragraph (a}of paraġraph (3) of

Article 2 if the income is taxable in Malta under this Agreernent.

(b) (i) Income referred to in Articles 10, 11, 12, 14, 16 and 17, reċeived

from Malta may be taxed in France on the gross amount. The Malta tax levied

on such income entitles residents in France to a tax credit corresponding to the

amount of Malta tax levied but which shall not exceed the amount of French

tax leviedon such income. Such credit shall be aHow~d against taxes referred

to in sub-paragraph (a) of patagraph (3) of Artic1e 2, iil the bases of which such

income is ihchide~;

(ii) in the case ofincome referred to in Articles 10, 11 and 12 received

from Malta by a resident of France, Maita tax shaH be deemed 10 have been

paid as foHows

(aa) dividends, at the rate of 15 per cent as provided in paragraph

(2)(b )(ii) of Article 10;

(bb) Interest at the rate of 10 per cent as provided in paragraph (2)

of Article 11; and

(cc) royalties, other than thpse referred to in paragraph (3) of

Article 12, at the rate of 10 per cent as provided in paragnipħ (2) ·o f the

said Article.

(c) Dividends distributed by a company which is -a resident of Malta to a

company which is a resident of Francesha:ll be· exempt from French tax to the

extent that the dividends wOuldhave been exempt from tax under French law if

both companies had been residents of France.

(d) . Notwithstanding the provisions ofsub-paragraph (a), French tax is com-

puted on income chargeable in France by virtue of this Agreement at the rate

appropriate to the total of the income chargeable in accordance with the French

taw.

(2)

In the case of Malta, double taxation shall be eliminated as follows

Subject to the provisions of the law of Malta regarding the allowance of a

credit against Malta tax in respect of foreign tax, where, in accordance with the

provisions of this Agreement, there is included in a Malta assessment income from

sources with in France, or elements of capital situated in France, the French tax on

such income or elements of capital, as the case may be, shall be allowed as a credit

against the relative Malta tax payable thereon.

(3) Where the Agreement provides that income arising in a Contracting State

shall be relieved from tax in that State, either in full of in part, and, under the law in

force in the other Contracting State, such income is subject to tax by reference to the

amount thereofwhich is remitted to or received in that other State and not by reference

to the fuH amount thereof, then the reliefto be allowed in the first-mentioned State shall

apply only to so much of the income as is remitted to or received in the other State.

B

CHAPTER VI

Special Pro~ons

ARTICLE 25

Non-Discrimination

(1) The nationals of the Contractjng State, whether or not they are residents of

one of the Contracting States, shall n9t be subjected in the Contracting State to any

taxation or any requirement connected therewith which is other or more burdensome

than the taxation and connected requirements to which nationals of that other State in

the same circumstances are or may be subjected.

(2) The taxa.tio.n . ~n . a permanent establishment which an enterprise of a

Contracting State:lias"irt the other Contracting State shall not be Iess favourably Ievied in

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

the same activities.

This provision shall not be construed as obliging a Contracting Stateto grant to

residents of the other Contracting State any personal allowances,reliefs and reductions

for taxation purposes on account of civiI status or family responsibi1ities which itgrants

to its own residents.

.

(3) Except where the provisiOIiS of Article 9, paragraph (7) of Article 11, or

paragraph (7) of Article 12, apply interest, roya1ties and other disbursements paid by an

enterprise of a Contracting State to a resident of the other Contracting State shalI, for

the purpose of determining the taxable profits of suchenterprise, 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 a Contracting State to a resident of the other

Contracting State shalI, for the purpose of determining the taxable capital of such

enterprise, be deductible as if they had been contracted to a resident of the first-

mentioned State.

(4) Enterprises of a Contracting State, the capitaI of which is wholly or partly

owned or controlled, directly or indirectly by one or more residents of the other

Contracting State, shall not be subjected in the first-mentioned Contracting State to any

taxation or any requirement connected therewith which is other or more burdensome

than the taxation and connected requirements to which other similar enterprises of that

first-mentioned State are of may be subjected.

(5)

In this Article, the term "taxation" means taxes of every kind and description.

ARTICLE 26

Mutual Agreement Procedure

(l) Where a resident of a Contracting State, considers that the actions of one or

both of the Contracting States result or will result forhim in taxation not in accordance

with this Agreement, he may, notwithstanding the remedie~ provided by the .national

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

of which he is resident or, if his casecomes under paragraph (1) of Article 25, to that of

B

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

years of the first notification of the action giving rise to taxation not in accordance 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 resolve the case

by mutual agreemen,t with the competent authority of the other Contracting State, with

a view to the avoidance of double taxation not in accordance with the Agreement. Any

agreement reached shall be implemented notwithstanding any tirt1e limits in the

nationallaws of the Contracting State.

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

resolve by mutual agreement any difficulties arising as to the application of the

Agreement.

In particular, the competent authorities of the Contracting States may consu1t

together to endeavour to agree;

(a) to the same attribution in both Contracting States of the profits

attributable to a permanent establishment situated in a Contracting State of an

enterprise of the other Contracting State;

(b) to the same allocation of income between a resident of a Contracting

State and any associated person referred to in Article 9.

They may also consu1t together for the elimination of double taxation in cases not

provided for in the Agreement.

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

each other direct1y for the purpose of reaching an agreement in the sense of the

preceding paragraphs. When it seeIhs advisable in order to reach agreement to have an

oral exchange of opinions, such exchange may take place through a Commission

consisting of representatives of the competent authorites of the Contracting State.

(5) The competent authorities of the Contracting States may by mutual agree-

ment settle the mode of application of this Agreement and, especially, the requirements

to which the residents of a Contracting State shall be subjected in order to obtain the tax

reliefs or exemptions provided for by this Agreement.

ARTICLE 27

Exchangeoflnfonnation

(1) The comptent authorities of the Contracting States shall exchange such

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

laws of the Contracting States concerning taxes covered by this Agreement in so far as

the taxation there under is not contrary to this Agreement. Any information received by

a Contracting State shall be treated as secret in the same manner as information

obtained under domestic laws of that State and shall be disclosed only to persons or

authorities (including a court or administrative body) involved in the assessment or

collection of, the enforcement of prosecution in respect of, Of the determination of

appeals in relation to, the taxes which are the subject of this Agreement. Such persons

or authorities shall use the information onl).' for such purposes. These persons Of

authorit.ies may disclose the information in public court proceedings or in judicial

decisions,

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

on one of the Contracting States the obligation

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

administnitive practice of that or of the other Contracting 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 Contracting State;

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

trial, commercial or professional secret or trade process, or information, the ·

dis~losure of which would contrary to public policy (ordre public).

ARTICLE 28

Diplomatic and Consular Officials

(1) Nothing in this Agreement shall effect the fiscal privileges of members of

diplomatic missions and their person.al domestics, of members of consular missions, or

of members of permanent missions to international organisations under the general

rules of internationallaw or under the provisions of special agreements.

(2) Notwithstanding the provisions of Article 4, an individual who is a member of

a diplomatic or consular or permanent mission of a Contracting State which is situated in

the other Contracting State or in a third State shall be deemed for the purposes of this

Agreement to be a resident of the sending State if

(a) in accordance with internationallaw, he is not taxable in the receiving

State on income from sources outside that State; and

(b) he is liable in the sending State to the same obligations in relation to tax

on his total world income as are residents of that sending State.

(3) This Agreement shaH not apply to internation31 organisations, to organs and

officials thereof and to persons who are members of a diplomatic or consular or

permanent mission of a third State, being present in a Contracting State and not treated

in either Contracting State as residents in respect of taxes on income and capital.

ARTICLE 29

Territorial Extension

(1) This Agreement may be extended, either in its entirety of with any necessary

modifications, to the overseas territories of the French Republic which imposes taxes

substantially similar in character to those to which the Agreement applies. Any such

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

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

between the Contracting States in notes to be exchanged through diplomatic channeIs

or in any other manner in accordance with their constitutional procedures. .

(2) Unless otherwise agreed by both Contracting States, the termination of the

Agreement by one of the m under Article 31 shaH also terminate, in the manner

provided for in that Article, the application of the Agreement to any territory to which it

has been extended under this Article.

CHAPTER VD

Final ProvisioDS

ARTICLE 30

Entry into Force

(1) Each Contracting State shaH notify to the otherthe completion of the

procedure required by its law for the bringing in to force of this Agreement. This

Agreement shall enter into force on the first day of the second month foHowing the

month in which the later of these notifications has been given.

(2)

!ts provisions shall apply for the first time

(a) as regards taxes withheld at sourc-e, to amounts payable on or after the

date of entryinto force of this Agreement;

(b) as regards other taxes on income, to income derived during the calendar

year in which the Agreement entered in to force, or relating to the accounting

period ending during this year.

ARTICLE 31

Termination

(1) This Agreementshall remain in force indefinitely. However, after 1981, each

Contracting State may terminate the Agreement by giving at least ·six months written

notice through diplomatic channels.

(2)

In such an event, its provisions shaH apply for the last time

(a) as regards taxes withheld at source, the sums payable before or Qn the

31st December of the calendar year during which the termination has been notified;

(b) as regards other taxes on income, to income derived during the calendar

year during which the termination has been notified or relating to the accounting

period ending during such year.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed

this Agreement.

DONE at Valletta this twenty fifth day of July 1977, in duplicate, in the French and

English languages, both texts being equally authentic.

For the Government of the

For the Government of the

French Republic

Republic of Malta

JOSEPH ABELA

SERGE GELADE

PROTOCOL

At the time of signature of the Agreement between the Govemment of the

Republic of Malta and the Government of the French Republic for the A voidance of

Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income,

the undersigned have agreed upon the following provisions.

I. In respect of Article 5, an insurance enterprise of a Contracting State shaH be

deemed to have a permanent establishrnent in the other Contracting State if it collects

premiums and insures risks therein.

In respect of paragraphs (1) and (2) of Article 7, where an enterprise of a

Contracting State seils goods or merchandise or carries on business in the other

Contracting State through a permanent establishment situated therein, the profits of

this permanent establishment are not determined on the basis of the total amount

received by the enterprise, but are detennined only on the basis of the remuneration

which is attributable to the actual activity of the permanent establishrnent for such sales

or business. In the case of contracts for the survey, supply, installation or construction

of industrial, comrnercial or scientific equipment or premises, or of public works, when

the enterprise has a permanent establishment the profits of such permanent establish-

ment are not determined on the basis of the total amount of the contract, but are

deterrnined only on the basis of that part of the contract which is effectively carried out

by the perrnanent establishrnent in the Contracting State where the permanent

establishment is situated. The profits related to that part of the contract which is carried

out by the head office of the enterprise shaH be taxable only in the Contracting State of

which the enterprise is a resident.

111. In respect of paragraph (1) of Article 7, paymcnts of any kind received as a

consideration for the use of, or the right to use, industrial, commercial or scientific

equipment shaH be deemed to be profits of an enterprise to which the provisions of

Article 7 apply . Similarly, payments received as a consideration for studies or surveys of

a scientific, geological or technical nature , or for consultant or supervisory services shall

be deemed to be payments to which the provisions of Article 7 apply .

IV.

In respect of Artic1e 8

(a) where profits derived from the operation of a ship in international traffic

by an enterprise whose place of effective management is situated in Malta are

exempt from tax under the provisions of section 86 of the Merchant Shipping Act ,

1973 , or under any identical or similar provisions, such profits may be taxed in

France unless it is proved to the satisfaction of the competent authority of France

that not more than 25 per cent of the capital of the company owning the relative

ship is controlled, directly or indirectly , by persons not rcsidents of Malta;

(b) where a person who is a resident of France participates directIy or

indirectly in the management, control or capital of such an enterprise, such person

shaH be taxable in France in respect of that part of the profits, derived by such

enterprise and exempt from tax in M.alta as aforesaid, which is appropriate to the

participation of such person in the enterprise.

V . In respect of Articies 1'1 and 12, where any interest or royalties derived from

Malta are received by a resident of France. tax in Malta is charged on the amount of the

interest or royalties as reduced by all expenses properly attributable thereto. If the tax

so charged is in excess of 10 per cent of the gross amount of the interests or royalties

(that is before the dcduction of the aforesaid expense), the tax is reduced so as not to

exceed 10 per cent of the gross interests or royaJties .

VI,

In respect of Article 25

(~) Nothing in paragraph (1) shall be construed as preventing France from

granfiJig only to persons possessing French nationality the benefit of the exemption

()f the gaim; derived from the alienation of immovable property or parts of immo-

-vable pmperty constituting the residence in France of French persons who are not

t esidents of France , as provided in Article 6-11 ofthe law no. 76.660 ofJuly 19,

1976; and

(b) Nothing in paragraph (3) shall be construed as preventing France from

applying ihe provision of Article 212 of the "Code General des Impots" as regards

interest paid by a French Company to a foreign mother Company.

IN WITNESS WHEREOF the undersigned have signed the present Protocol

which shall have the same force and validity as if it were inserted word by word in the

Agreement.

DONE at Valletta this twenty fifth day of July 1977, in duplicate, in the French and

English languages , both texts being equally'authentic.

For the Government of the

For the Government of the

Republic of Malta

French Republic

JOSEPH ABELA

SERGE GELADE

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