Double Taxation Relief (S hips and Aircraft) (Swiss t·tderation) (federazzjonisvizzera)

B

L.N.3I of l988

INCO ME TAX ACT, 1948

(ACf NO. LIV OF 1948)

Double Taxation Relief (S hips and Aircraft) (Swiss t·tderation)

Order, 1988

IN exercise of the powe~ confe lTed by se<:tion 68A o f the Income

T ax Act, 1948. the Minister of Finance has made the followingorde r: -

I. 1bis order may be ci ted as the Double Taxation Relief (Ships Oution,

and Aircraft) (Swiss Federation) Orde r, 1988.

Ftehim bejn il·Kun sill Federali Svizzeru u I·Gvern tar-Repubblik a ta' Malta

I , Profltti miksuba minn impriia la' Slat Kontracn!i mit-thaddim ta' bas·

timenl i jew ingenji ta' l- ajru fl traffiku internazzjona li ghandho m ikunu denl i minn

kulllaxxa fuq I-income jcw fuq iJ-profi ui A-Istal Kon lraenti I-iehor. Din I·etenzjoni

ghandha tkun Ighodd ukol1 gtl al profitti mill-partetipazzjoni f'pool, negozju joint

jcw agcnzija intcrnazzjonali ta' Ihaddim.

2, l1-ka pital ta' intrapriia ta' Slal Kon lracnli rappreientat minn baslimcnli

u ingen;i la ' I-aj ru u minn proprjetft mobbJi li Ikun tappartje ni ghat-ttladdim ta'

dawk i1-baslimenti u ingenji la' I-ajru fi traffiku internazzjonali ghandu jkun eient;

minn kull taxxa fuq il-kapilal H-Islal Kontraenti I-iehor.

It is hereby declared that-

(a) the Schedule to this order has been agreed and made wi th

the Swiss Federal Council with 3 view to affording relief from

double taxation in relation to the taxation of shipping and aviation

companies in Malta and in Switzerland, hereinafter referred to as

"a Contracting State" and "the other Contracting State" as the

context requires,

(b) reference to the tax levied in Switzerland includes

federal , cantonal and communal tax , and

(c) il is expedient that this agreement should have effect as

from the 30th March, 1987,

SCHEDU LE

Agreement between the Swiss Federal Council and the Government of the

Republic of Malta

1. Profits derived by an enterprise of a Contracting Slate from the operation

of ships or aircraft in international traffic shall be exempt from any tax on income

or on profits in the other Contracting State. This exemption shall also apply to

profits from the parricipation in a pool, a joint business or an international

operating agency.

2. Capital of an enterprise of a Contracting State represe nted by ships and

aircraft and by movable property perraining to the operation of such ships and

aircraft in intemational traffic shall be exempt from any tax on capital in the othe r

Contracting State.

The term "enterprise of a Contracting State" means an enterprise which is

effectively managed and controlled in that State. The term shall be deemed to

incl ude any enterprise in whiCh th e Contracting Sta te has a share or which is carried

on by the Contracting State.

The term "operation of ships or aircrafl" means the business of

transporting perwns or cargo by the owner, hirer or charterer of ships or aircraft.

The tcnn "international traffic" means any transport by a ship or aircraft

operated by an enterprise of a Contracting State except when the ship or aircraft is

operated solely between places in the other Contracting State.

The exemption provided for in paragraphs land 2 hereof shall be granted

with respect to any lax levied in either Contracting State for any yearofassessment

beginni ng after 31st ~cember, 19n,

Each Contracting State rescl'\lcs the right to withdraw the present

declaration at the end of a calendar year after six months' prior notice; in such an

evcllt thec xcmption provided for in par agrap hs I and 2 shall apply for the last time

to any tax levied in either Contracting State for the year of assessment commencing

on 1st January of the year immediately following that ca\e[ldar year.