62 tal-1988

L.!\', 62 of 1988

INCOME TAX ACT, 1948

(ACT NO, Ll V m' 1'iUS)

Double Taxa tion Relief (Taxt'S on Income) (Peoplc's Republ ic

of Hulgaria) Ortkr , 1988

IN .:~ .:rcise of the pow.:rs oonf.:rr.:d by secti on 68A of the Inoome

Tax Art. 1948. th.: Minist.:rof Finance has made the followingordcr:-

I. This order may be cited as the Double Taxation Relief (Tax.:s

on Income) (p<:ople's Hepub lic of Bulgaria) Order, 1988.

Qieg/led jigi hawnhekk dikjaral-

(a) Illi I-arrangamenti spetifikati fil-Ftehim muri fI-lskeda li

linsab ma' dan I-Ordni saru mal-Gve m tar-Repubblika Popolari

tal-Butgarija sabiex jinghala I'l elsien mit-taxxa doppja dwar it-tani

li gejjin imposti bil-ligijiet tar- Repubblika Popolari tal-Bulgarija

taua fuq I-income totali;

(i)

(ii) taua fuq I-income ta' rSiel u nisa mhux mWewgin,

romol irgieJ u nisa, persuni divorzjati u familji minghajr lfa!;

(ill)

laxxa fuq il-prolitti;

(b)

ilIi huwa spedjenti li dawk I-arrangamenli jkollhom sehb.

FTEHIM

BEJN IR-REPUBBUKA TA' MALTA

U

R-REPUBBUKA POPQLARI TAL-BULGARDA

G I'IALL-I'IELSIEN MIT-TAXXA DOPPJA

DWAR IT-TAXX I FUQ L-/NCOME

Ir-Repubblika la ' Malla u r-Repubblika Popolari tal-Bulgarija, imqanqlin mix-

xewqa li jinkorragiuu u jsabhu r-relazzjonijiet ekonomiti u I-koperazz.ioni ekonomika

la' benelittju retiproku bejn it-tewg pajjiZi, dwar il-he lsien mit-taxxa doppja dwar

taw fuq I-income ftehmu kif gej

ARTIKLU I

Gfum PerSQnllli

(I) Dan il-Ftehim ghandu japplika gl'lal persuni li huma residenti ta' wiehedmill-

lstali Kontraenti jew tal-tne;n .

(2)

Bhala residenti ta' Slat Konlraenti ghandhomjitqiesu

(a) fil-kat tar-Rtpubblika ta' Malta, kull persuna li labl il-ligijict ta' Malt a

ttun suggetta ghal-taua hemmhekk minllabba fir-residenza, regislrazzjoni jew xi

kriterju ichor simili taghh3;

(b)

fiI-kat tar-Repubblika Popolari tal-Bulgarija, individwi JijkunuCiuadini

tar-Repubblika Popolari taI-Bulgarija kif ukoU persuni guridiCi li jko!lhom iC-Centru

taghhom fir-Repubblika Popolari tal-Bulgarijajew ikunu registrati hemmhekk.

(3) Meta minhabba fid-dispotizzjonijict tal-paragrafu (2) individwu jkun

residenti lat-tewg Stati Kontmenti . gl'talhekk gbandu jitqies Ii jkun residenti la' 1-lsta! li

micghu ir-rdazzjonijict personal; u ckonomiCi ticghu ikunu I·aklar marbula (tcnlru ta'

\-inleressi vilali).

(4) Jekk I-Islal li fih il-persuna jkollha t-tentru la' \·inleressi vitali taghha ma

jkunx jista' jigi stabbilit, I·awtoritajiel kompetenti la' ].islali KonlTacnti gllandhom

jiddetiedu I-kwestjoni bi ftehim retiproku.

(5) Meta rninhabba fid-dispotizzjonijiet tal-paragrafu (2) peTSuna li ma tkunx

individwu tkun residenti laf-zewg Slati Kontraenti , hija glIalhekk ghandha titqies 1i

tkun persuna residenti ta' ].Istat Konlraenti li fih ikun qieglled il-post tal·maniM

effettiv tagllha.

ARTIKLU 2

Taxxi Koputi miIl-Ftehim

(1)

Il-Ftehim pre:ienti japplika ghal dawn it-taxxi I; gejjin

(a)

r Malta

iHaua fuq I-income (hawnhekk ii:jed ' il quddiem imsejha "it-taua la '

M .. h,,");

(b)

fir-Repubblika Popolari tal-Bulgarija

(i)

it-Iaxxa fuq I-income lotali;

(ii) iHaua fuq I-income la' rgiel u nisa mhux mii±ewg;n , romol irg;el u

nisa , penuni divorzjati u familji minghajr Ifal;

(iii)

it-IaXlfa fuq il -profitti.

(2) Il-Ftehim ghandujapplikagbal kull laua bbalho mjew li tkun sostan.zjalment

tixballhom li tig; imposta wara I-iffirmar tal-Ftehim b'n eda ma' jew minflok it-Iaxxi

eZistenti. L-awtoritajiet kompetenti ta' I-Istati Kontraenti gllandhom javiaw lil xulxin

b 'kull tibdil sinjifikanti li jkun sar fit-ligijiet dwar it-taui rispettivi tagllhom. Je kk ikun

hemm dubju dwar jekk tkunx saret bidla sinjifikanti fiI-ligijiet tat-Iassazzjoni li tkun

tehlieg li tigi inkorporala fil-Flehim, l-awtorilajiel kompete nti ghandhom iwmmu

aktar diskussjonijiet sabiex jaslu fi flehim.

ARTlKLU 3

Titsiriel Cenerali

Fir- rabta tal-kliem la' dan il-Ftehim

(I)

il-fraii -' Malta" tfisser ir-Repubblika ta' Malta; u

(b) meta wtata fsens geografiku. il-frati "Malta" tfisser il-Gtira ta' Malta.

il-Giira ta' Gllawdex u I-grejjer l-ohra ta' I-artipelagu Malti. maghduda l-ibhra

territorjali taghhom u kull area barra I-ballar territorjal; ta- Malta li, skond il-ligi

inlernazzjonali. gie! imscmmija Jew tista' aktar 'il quddiem tigi mscmmija, taln

il-ligi ta' Malta dwar il-Blata Konli nentali, bllala area li fiha d-drittijiet ta' Malta

dwar qiegl"t il -bahar u s-sottoswol u r-rizorsi naturali taghhom jistgl"tu jigu

c.i:erti tati.

(2) Il-frati "Repubblika Popolari tal-Bulgarija" tfisse r it-territorju sovran ta'

I-istat. is-souoswo l ta' I-an. il-bahar territoriali u z-l.oni marittimi barra I-bahar

te rri torjali li fuqhom ir-Repubblika Popolari tal-Bulgarija. skond il-legislazzjoni taghha

u I-ligi inte manjonali, teterCita drittijiet sovrani.

(3) Il-fraii "trasport intemanjonali" tfisser kull traspon imlladdem minn

residenti li ma jkunx individwu ta' I-Istat Kontraenti, barra minn meta t-

trasport ikun imhaddem biss bein postijiet fHstat Kontraenti 1-iehor.

(4)

Il-frati "persuna"

(a) fit-kat ta' Malta tfisser individwu, impri1.3 Jew xi entittl nhra li titqies

bhala gl"taqda korporata ghall-finijiet ta' taxxa u kull korp iehor ta' persuni;

(b) fil-kai tal-Bulgarija tinkludi persuna fizi ka Jew guridika kif ukoll kull

entitil ollm li titqies bllala persuna guridika gllaU-finiiie t ta' taxxa.

(5)

II-fraii '"nan.jonali'· tfisser

(a) dwar Malta, kull Cittadin ta' Malta u kull pe rsuna , soejettl Jew

asso.xjazzjoni gurid ika li tikseb 1-istat taghha bllala tali mill-ligi li tkun fis-sehl'l

f Malta;

(b) dwar ir- Repubblika Popolari taH3ulgarija, kull persuna li tir6evi

eertifikat ta' Cittadinanl.3 skond il -Iegislazzjo ni Bulgara.

Il·frazi "awlorit~ kompetenti" tfisser

(6)

(a)

m-kaz tar-Repubblika ta- Malta

I1-Ministru responsabbli ghall-finan1.i Jew ir-rappreienta nt awtoriuat

tieghu ;

B

(b)

fiI·kat tar-Repubblika Popolari tal -Bulgarija

I1-Minisuu tal-Finamj Jew ir- rappreicntant 8wtOti12..lt tiegtlu.

(7) Ma"!-appli kazzjon i ta- dan iJ-Fte him kull frati li rna IkunJ[ J[on'ohra mfissra

ghand u jkoUha. kemm-il darba r-rabu laJ-kl iem rna tei'lI iep J[on'oI'Ira . I-tifsir kif

maghl; lilha tarll j].legislau:joni nazzjonali <!war it-taua la' \-l5llt Kontraenti k;n issir

it -tass8ujoni.

ARTIKLU 4

Profirri min" N~oqu

( I) II -profiui minn ncgozju ta" residenl; ta' Slal Kontraenti wi.el'led tluma biss

laxxabbli miJI· I~lat Kontraenti '·iellor meta n-negolj u jitmexxa pcrmcu. ta' "post ta"

negozj u" si twat hemm hekk. Fdan il-kaf jisl8" jig; nlaxxat H-Istat Kontraenti [-ichor

daq stant biss mill-profiui daqskemm jinqalghu minn dak il-post ta ' negorju.

(2) Meta residend ta' Slat Kontraenti wiched ikun melllla negotju H-Istal

Ko ntrlenti-l-iehor pennezz ta' "post ta' ncgozju" organizzat hemmhekk, ghandhom

ji$U auribwiti I-profitti laht il-paragrafu (3) li kien ;hn mistenni jagllmel kieku jetertita

1-l$tess IttivitA jew aUivitA sirnili Uht I-istes.s kondizzjoni jew kondizzjoni simili bhala

imprita separatlli tafldcm ghal kollox indipendentemenl fir-relaujooijiel taghha ma'

I-impriia ii tlghha tkun post ta' ncgozju,

(3) Meta j kunu qegtldin jigu 51abbilili I-profilli la' posllan-ncgo1.ju, ghandhom

jinghataw bl'laJ a tnaqqis spejjet li jsiru ghan-ghanijiel tal-eieJtilar t a'l-alli~it;\ tieghu

rnaghduda spejjet etekultiv; u spejjet ammin iSl rattivi generali hekk maghmula sew

n-Istatli fih il·post ta' negolju jkun qieghcd jew band'oh. a.

(4) Ebda profiui ma ghandhom jigu all ribwiti lill·post ta' negozju minhabba

fix ·xiri biss mirm dak it·post la' negozju la' oUeui jew merkanlija ghall-impriia.

(S) Id-dispotizzjonijiet

ta' dan I·Aniklu ma ghandhomx jolqlu

d-dispotill.jonijiel dwar il-lass.azzjoni stipulati ft-A nikli l-ohra ta ' dan il·Fte him.

(6) Id-dispotizzjonijiet la' dan I-Aniklughandhom ukoll japplikaw ghal resident;

ta' Slal Kontraenti li jmeui n-negozju lieghu n-Istat KontTaen ti I-iehor

scparalamenl jew flimkien mal'pe rsuna J-ohra, panikolarmenl ma' persuna mill-Islal

Konlraenti l-iehoT.

(7) KuU Stat Kontraenti jista' jintaua profini milI-impr1ta ta ' l-lU5igurazzjoni

skond id-dispotiuF.nijiet taJ-ligi ticghu dwaT it·tasS8zzjoni ta' dawk il-pmfiui u 1-

thaddim ta' dawk ld-dispotizzjonijiel ma ghandux jintlaq al mid-dispotiujonijiet ta '

dan I-Artiklu,

ARTIK LU 5

POSl'Q ' NtBO~ju

( I) Ghall-fini la' dan il-Ftehim, iI-frail "post la' ncgozju" tflSSe r post fiss la'

negol.ju, fein re side nt; la' Slal Kontraenli jmexxi n·nc:g01.ju tieghu n-!slat Kon lraen li

I-iehor separalam~nl jew flimkien ;na' persuni ohm, ghal koltox jew fpani.

II-frati "post ta' negozju" tinkludi ~pecjalmenl

(2)

(a)

fergha

(b)

hanut tax-xoghol Jew dipartiment

(c) uffii:tju maghduda uffii:tji ghal ghanijiet ta' kummert, turiimu, traspon,

disinjar Jew kull uffictju ietlor

(d) minjie ra. bir tat-tej l Jew tal-gass, barriera Jew xi post iehor ta'

estrazzjoni ta' riiervi naturali

(e) progett la' koslruzzjoni Jew la' slallanjoni Jew attivilajiel la' sorvetjanza

in konnessjoni maghhom, meta dak il-progel! Jew dik t-allivilll tkompli ghat aktar

minn IS-il xahar;

(f) il-provdiment ta' servizzi, in kJuti servizzi la' konsutenza, minn imprib

pennen la' impjegali Jew persunal iehor. fejn attivitajiet ta' din ix-x.orta jkomplu

(ghall-istess progett Jew progett in konnessjoni mieghu) fiI-pajjitghal perijodujew

perijodi I. jammontaw ghal aktar minn silt xhurfx.i perijodu ta' max-il x.ahar.

(3)

(a) (i) II-partetipazzjoni ta' residen ti tar-Repubblika ta' Malta

fsoi:jet1l. ghal attivit1l. la' negozju flimkien, ghat-unexxija u distribuz:o:joni

flimkien ta' profitti u telftaghha u li tkun irnwaqqfa skond id-Digriet Nru.

535 - 80 lal-Kunsill ta' I-Ista! tar-Repubblika Popolari lal-Bulgarija,

gbandha tkun ikkunsidrata bhala post ta' negozju fiI-Butgarija.

(ii) ll-partetipazzjoni ta' residenti tar-Repubblika Popolari lal-

Bulgarija fsoi:jeta kummertjali imwaqqfa skond il· legislazzjoni Maltija

ghandha Ikun ikk unsidrata bhala post ta' negozju fMalta.

(b) Il -pan etipanjoni ta' residenti ta' Slat Kontraenti fkumpannija ta' 1-

ISlat Kontraenti I-iehor ghandha , minkejja d-dispotizzjonijiet tas-subparagrafu

(a) ta' dan ihparagrafu. tkun regulata mill-Aniklu 9 ta' dan il-Ftehim meta d-

dividendi jitqassmu minn dik il-kumpannija lil residenti la' 1-ISlal Konlraent"i

l-cwwe l imsemmi.

(4) Minkejja d-dispoiizzjonijiet ta' qabel ta' dan I-Aniklu, il-frm "posl la'

negozju" gl'landha titqies li ma tinkludix

(a)

posl pennanenti ghall-iskop biss la' xiri ta' oggel!,;

(b) it-litmim ta' materjal Jew ogge tti li jkunu proprjetlto la' l-impriia, ghall-

iskop biss la' hatna, wiri Jew konsenja u ghall"ijadi ta' "oghlijiet konnessi

miegl'l u

(t) it-liimim ta' hatna ta' ogge tti li jkunu proprjetii u'l-impriZa ghall-iskop

biss ta' proeessar minn impriia ohra;

(d ) il-titmim ta' post flSS ghall,iskop biss ta' gbir ta' taghrif ghall-imprib;

(e) il-titmim la' hatna la' oggelli esibiti mill-imprita ffiera Jew fesibizzjoni

li ghandhom jinbieghu warn I-gheluq;

(I) ;l-l iZm;m la' posl permanenti ghall-islop bis5la' all ivi lii li tkun ta' xo na

prcparollorja jew awtil jarja gIIall-impriia

($) il-lizmim la' posl permanent; gIIall-isl op biss ta ' tme:uija la ' lull

kombmazzjoni ta' l·a ttivitajiet imse mmijin ha"lIl fuq lahl il-paragrafi minn (a) ~

(c) bil-kund iT.zjoni 1i r-rii uhat tOlali la ' din il-kombi nazzjoni jkoll u xona

prc paralo rja jew alVtil jarja.

(5) Minkejja d-dispoi:izzjonijiel tal-paragrafi (i) u (2). meta persuna ·Ii ma tl unx

agent ta' status indipeode nli li ghalih japplika l-paragrafu (6) - tagixx' fisem im prita u

jkollha. u abilwalmenl teierti ta, fi Stat Konlrae nti aWlorilb. 1i taghmel kunlraU i fisem

I·impriia. dik I·imprib ghandha titqies li jkoll ha POSI ta' negOl_ju fdak 1-151at dwar kull

a tl ivi ta li dik il·pe rsuna tidhol ghaliha gh&lI· impriia. kemm· il da rba I-atti vitajiet ta'

da wk il-persuni ma jkunux limitati ghal dawk imsemmijin fiI-paragrafu (4) li. jekk jigu

etcrtilati permezz la' post liss ta' ncgozju ma jaghmlux dan il·post fiss ta' negozju post

la' negozj u tahl id-dispoZin_joni jiel la' dak il-paragrafu.

(6) Imprii.a li tkun residenli la' wiehcd mill- Istali Kont raent; ma ghandhiu

titqies li jkollha post la· negozju n· ISlal Kontraem; l·idlOr sempliecmenl gha liex tku n

qed Imc:xxi negozju fdak 1-[Slal I-idlor pe rmen ta' sensal. agent generali

t' kummi ssjoni jew xi agent ichor bi status ind ipendenti, bil·kundi1.1.joni li dawk il·

pcrsuni jkunu qcgMin jagixxu fiI -korsordinarju tan-ncgm.ju taghhom .

ART1 KLU 6

Trosporf Imu,.t:I~rjont:lli

( I) Profini miHhaddim la' baslimenli. inge nji la' I·ajm u ,·cn uri tat -lri,,! ti

t rasport int~rnazzjonali gtl;tndhom ikunu l;txxabbli biss f1- 1 Slal Kontracnli li fih is-sid la'

I-impriia jkun res identi ,

(2) Profi tl i mit-thaddim ta ' dghajjes imhaddma fil ·trasport fu ,,!lorsi intemi 13'

ilma navigabhli ghandhom ilunu taxxabbli biss f1- [5131 Kon traenti li till il-posl lal-

Imexxija cffcttiva ta' I-impriia jlun qi~ghed.

(3) Je kl il-post t3t-1mcxxija dfcu iva la' impriia ta' lra5port fuq korsi intern i ta'

ilma navigabbli jlun abbord basCimen t jcw dghajsa. allura ghandu ji l ,,!i~s li jkun SilW31

n- ISlat Kontr;,enti li tih ikun qi cgtlcd il-posl tHr-rilOm tal-baSlimcnt jcw dghajsa , jew,

jcl l ma jkollux dak il-post lar-ritom. f1- lstat Kont raenti li licghu l~peratur lal-

baSlimcnl Jew dghajs.a j kun rcsid.:nt i.

H) Id-dispo:til1.jonijiet t31-paragmti {I) u (2) ghandhLlm japplikaw ukoll ghal

proti tli mill -paflcci panjoni fpool, fnegozju nim ~ icn Je w fage nl.ija ta' operan;oni

IIltc rnall.jon:lli.

ART1 K L U 7

SDlorji u Pt:lgi

( I) Salarji. pagi u rimune ranjonijict uhm simili mihuhin minn r~sidcnt ,

13' ~Ial Kontracnli dwar impieg ghandllOm iku nu ta~xabbl i hiss fdak 1-ISlat kemm-il

darba I-impieg ma jkunux qi eghed jigi ei:ertilal fl-lslal Kontraenti l-ie1'lor. jekk 1-

impieg ikun hekk ei:e rtilal dik ir-rimunerazzjoni li tinkiseb minnu tista· tig; nlaxxata

fdak I-Istat I-iehor.

(2 ) Salarji, pagi u rimunera:zzjonijiel ohra simili mhallsin JiI residenti la'

Slat Ko ntraenti minn dak I-!stat jew minn impriZa resident i fdak 1-lslal dwar

assenjamenl temporanju fl-Islal Kontraenli I-iehor ghandhom ikunu laxxabbli biss

fI-lstat I-ewwel imsemmi kemm-i l darba ma jaqghIU fuq posl fiss ta' negozju li jkun

qieghed fdak I-Istall-iehor.

(3) Id-dispoi:izzjonijiel tal-paragrafu (2) ghandhom japplikaw ukoll ghal salarji,

pagi u rimune ra1.l':jonijiet ohm simili imhallsin IiI spetjalisli u haddiema dwar

assenjament temporanju taht kunlrall bejn peTSuni flfiCi jew guriditi Mallin u peTSuni

guriditi Bulgari fil-qadi ta· programm miftihem fil-qasam ta· esplorazzjoni x;entifika

jew teknika. skambju xjentifiku u atlivitajiet ohra bhal dawn.

(4) Minkcjja d-dispotizzjonijict ta' qabcl ta' dan I-A.rtiklu, ir-rimuncrau.joni

miksuba dwar impieg ei:ertilal abbord baslimenl, ingenj i la' I-ajnt jew ve ttura lal-lriq

imhaddma fit -trasport intemazzjonali. tista ' tigi ntaxxata fl-lstat Komraenti li fih iHid

ta' I-imprii:a jkun residenti.

(5) Id-dispoi:izzjonijiel tal-paragrafi msemmij in hawn fuq ma jirreferux ghar-

rimuner37.zjoni ta· studenti u trainees li huma suggelli ghall-Artiklu i3 ta' dan il-Ftehim.

ARTlKLU 8

Pe1l.'ijoniji~f

Pensjonijiel u rimunerazzjonijiel ohra simili li residenli ta' Stat Kontraenti jikseb

minn gIlejjun fl-Istat Kontraenti I-iehor gIlandhom ikunu biss suggelli ghat-Iaxxa fdak

I-Istat !-iehor.

ARTlKLU 9

Divid~ndi

(I) Dividendi miksubin minghand peTSuna guridika, I; Iltun residenli la' Slat

Kon traenti minn residen ti ta· l-Istat Kontraenti I-iehor huma taxxabbli biss fdak I- Istat

I-iehor.

(2 ) Minkejja d-dispo:iizzjonijiellal-paragrafu (I) mela d-dividendi jithallsu minn

kum pan nija li tkun residenti ta· Malta lil residenti lar-Repubblilta Popolari tal-

Bulgarija li j kun is-sid beneficjarju taghha. il-taxxa la' Malta tista ' tigi mposla fuq

I-ammonl gross la' dawk id-dividendi, iMa I-taxxa hekk imposta ma ghandhiex tettedi

I-inqas minn

(a)

30 fil-mija ta· I-ammont gross lad-dividendi; jew

(b) it-taxxa dovuta fuq il-profitti li minnhom jithallsu d-dividendi, stond

I-Ordinanza la· 1-1 959 dwar I-Ghajnuna !ill-Induslrji.

(3) !I-fraii ·'di videndi"' lfisser incom~ minn azzjonijiet jew income iehor li skond

il-Iegislazzjoni nazzjonal i la· 1-151at Kontraenti jkun gie egwaliual g/"Iall -incom~ minn

azzjonijict.

(4)

Id-.{jispoiizzjonijiet tal-paragrafi I u 2 ma ghandt.omx japplikaw ;ekk is-sid

benefitjarju tad-dividendi, I; jkun resident; ta' Slat Kontmen ti. imclOli negozju fl-Istat

Kontraenti I-iehor li (icghu tkun resident; I-kumpanmja li thallas id-<lividendi, permcl.z

la' post ta' nego1.ju ti jkun sitwat hcmmhekk, jew jtiertita fdak I-Istat I-ichor

professjon; libeTa jew attiviUI indipendenti ohra minn bat; stabbi!i! sitwat hemmhekk.

u I-Iwlding li dwaru jitt\all su d-dividendi jkollu x'jaqsam effettivament ma' dalr.: il-post

ta' negozju jew bati stabbilit. F'dak il-kaz, ghandhom japplihw id-dispoii1.2'.jonijiet ta'

I-Artiklu 4 jew ta"·Aniklu 12, skond il-kai: .

(5) Mela kumpanni ja li tkun resident; la' Slat Kontraenti tikseb profil1i jew

income mill- Istat Kontraenti I-iehor , dak [-Istat I-iehorma jista" jimponi ebda taxxa fuq

id-dividendi mhallsin mill-kumpannija hlief safejn dawk id-dividendi jithallsu lil

residenti ta" dak I-Istat I-iehor jew safe jn il-holding li dwaru jithallsu d-dividendi jkollu

x"jaQsam effettivament ma" post ta" negozju jew ma" baii stabbilit sitwat fdak l-Istat

I-iehor" u anqas jissuggetta I-profitti mhux imQassma tal-kumpannija ghal talOla fUQ

il-profitti mhux imqassma tal-kumpannija" ukoll jekk id"dividendi mhallsin jew il -

profitti mhux imqassmin ikunu jikkonsistu gha l kollox jew fparti minn profitti jcw

incoml! li jinqalghu minn dak I-I stat I-i.:hor.

to

ARTIKLU

Mgtuu

(I ) Mghax li ji nQala" fi Stat Kontraenti u Ii jithallas lil rcsid.:nti ta" I-lstat

Kontraenti I-iehor jista' jigi maxxat fdak I- Istat I-iehor,

(2) II -paragrafu (I) ma ghandux japplika meta residenti ta' Stat Kont raenti

jmexxi negozju f1-Istat Komraenti l-ichor,li fih jinqala"l-imghax, pennc7.1_ ta" post ta'

negozju sitwat hemmhekk, u d-dritt ghad-dejn Ii dwaru jithalIas I-imghax ikollu

x'jaqsam effeUivament ma' dak il-post ta" negozju. F'dak il-kai ghandhom japplikaw

id-dispoiizl.joni jiet la ' I-Aniklu 4.

ARTIKLU II

'Income'minn 'Roya!tie$' u Licen,i

(I) Income minn royallies u liten1.; li jinqala' fi Stat Kontraenti u li jinkiseb minn

residenti ta' 1-ISlat Kon l raenti I-iehor jista' jigi ntaxxal f dak I-lstat I-iehor.

(2) Madankollu dak I-income jista' jig; wkoll inlaxxat f1- lstat Kontraemi rejn

jinqaJa', skond il-Iegislazzjoni nazzjonali ti.:ghu, iMa I-taxxa ma ghandhiex te<!tedi

I-ghaxra fil-mija ta'l -ammont gross tar-royallies jcw litenzi.

(3) [Hraii "income mi nn royallies u litenzi" tfiSS<!r hlasiji.:1 li jkunu ritevUli

mill -utu ta ' j.:w mi ll -jedd la'l,uiu ta'

(a)

driuijict ta' I-awtur ta' xoghol x jcntifiku, litterarju u artisliku

(b)

xi pri\"imi\"i (cenifikat ta' in\"cnl.jonijielj u inno\"azzjonijicl

(c)

disinji industrjali

IFademurh

(d)

B

(.:)

programmi ta' makni ;

(f)

matriti ta' diski u ogg.:tti ohra ghar -riprOOU7.zjoni tal -h<)Sl;;

(g)

diski grammofoniti,IUf"'S u filmstinematografiti ; u

(h)

espcrjenla U know-how industrjali,

Id·dispoiilzjonijict ta' dan I·Artiklu ghandhom japplikaw ukoll ghall·income

(4)

mmn

(a) I·uiu jew il·jedd ta' I-uiu ta' taghmir industrjali, kummen!jali jew

x jenlifiku. k,f ukoll la' scrvini lekniei li ghandhom x' jaqsmu ma' dak il-Iaghmir;

(b)

ir·riprodunjoni lal-hoss jew video Fecording jew diski gr"mmofonici,

/apes, films jew o gg.:tti ohra simili,

(5) Roya/ties ghandhom jitqiesu li jinqalghu fi Stat KOnlraenli mc\a min

ihallashom '~un dak HSlat innifsu, sotto-divi.tjoni polilika, awtm;tfl lokali jcw residenti

ta' dak I-Islat. Meta, iida, il,pcrsuna li thallas ir-royallies, sew jekk Ikon residenti ta'

Stat Kontraenti sew jekk le, ikollha fi Slat Kontraenti post ta' negozjo jew baii stabbilit

li dwaru jkun sar l-obbligu li jithallso r-royalties, u dawk ir-royaltie, ikunu r-

r.:sponsabbiha ta' dak i) ' post ta' negozju jew baii stabbilit, dawk ir-Foyalries ghandhom

jitqiesu Ii jinqalghu l1-]slal li fih ikun qieghed i]-post la' neg01_jo jew baii stabbili!.

ARTIKLU 12

Driltijiet

(I) Id-driu ijiet li jin'lalghu minn residenti ta' Stat Kontraenti bhala riiuhat

tal-czcreitar ta' professjoni libeTa jew ta' atlivil:! indipendenti ohra fl-Islat Kontracnti

I-ichor huma taxxabbli fl·lstat I-e"",,'cl imscmm i, kemm·il darba I-persuna ma jkollhi.:x

baii stabbilit disponibbli ghaliha fl-Istal Kontracnti I-ichor ghall-iskop ta' 'lad; ta'

I-attivitajiel taghha. lekk il-pcrsuna jkollha dak il-baii stabbili\. I-income jista' jigi

ntaxxal fdak I- Istat ]·iehor itda biss dik il -parti minnu li tkun atribwita ghal dak il-baii

slabbil i\.

(2) JI·fraii "professjoni liber,," tinkludi partikolannent atti~ita indipendenti

xjcntifika, lenerarja. artistika, edukattiva jew didattika kif ukol1 anivit:! indipendenti

ta' tobba, denti sti. avukati. inginiera. p.:riti u certified public accountants.

(3) Mink.:jja d·dispoiil'.7.joniji.:t ta· l-Artiklo 7 u tal·paragrafu (I) la' dan I·

Artiklu. id-drittijiel li jillqalgho minn residenti ta' Stat Kontracnti bhala

persuna li taghmcl spcnakoli ta' divcrtiment (bhal artisti · tat·watru, tal-films

CinematografiCi, artisti tar·radju jew tat-televiijoni). jew bhala muiicis!a, jew bhala

atl.:ta mill-attivita jicI personali taghha bhala he!.:k ci.crCitati fl· lstat Kon lracnti I·ichor,

jistghu jigu ntaHati fdak ].Istat Komraem i l,iehor.

ARTlKLU \3

Smdenf; jew kull'TT(1;nee' IdwT

(I) IJ-hlasi jie t li jirtievi Student jew kul1lrainu ichor. li jkun resident; ta' Slat

Kontraent i u joqghod fI-lstat Kontrae nti I-ic hor biss ghall -iskop t3'l-edu kazzjoni jcw

it-tahrig (ieghll . ma ghandux jig; ntanal fdak I-Ism. sakemm dawk il-hlasiji"t

jinqalghu minD ghejj un barra minn dak '· lsla1.

(2) Id."jispot.izzjoni tal·paragrafu la' 'labd dan tappli ka wkoll gtlal hl asiji<:t li

I-istudent jew it-trainee. I; jkun rt.'Sidemi ca' S1a1 Kontraenti. jir~ievi fl-Istal Kontracnti

I-ichor gl'lali -'lad i ta' xi xoghol fdak I-Ista t I-ichor. jckk ikollu x'jaqsam ma' 1-

edukal.7.joni jew mal ·kwalifi ka [iegtlu jew jekk dak il -hlas ikun mctlli<:g bi",x

jissuplimenta Hsp.: jjei tiegtlu la' I-ghixi<:n.

ARTIKLU 14

"Income" minn Propr~It1lmmobbli

(I) L-income miksub minn residenli la- Slal Konlracnli minn proprjelil immobbli

li Ikun si twala £l -151al Konlracnli I-idlor ghandu jigi nta;txat f dak 1-ISlal ' -ichor.

(2) lI·frati " proprjcli't immobbli" ghandha jkollha Hifsira li gtl3ndha laM il-ligi

ta'I -1stat Konlra..,nli li fih tkun sitwal3 dik il-proprj..,la.

ARTIKLU 15

Qliegh. mill·Beigh. w' Propr~1iI

(I) Olicgh mi ksub minn residcnl i la' Slal Konlracnti mill -ocjgh ta proprjelii

immobbli I; Ikun silwala tHstal Kontracnli I-ichor ghandu jkun inlID<Xat biss fdak

H stat I-ichor.

(2) Olicgh miksub mill·ocjgh la' proprjelil mobbli Ii Ikun tiffonna parti mill -

proprjcla la' POSI la' negozju li residenli la' Slal Konlracnli jkollu [1 -lslal Kontracmi

I-ie hor . maghdud dak il -'lliegh miksub mill-ocjgh la" da k il-posl la' nt'gGl.ju. ghandu

jkun taxxa bbli biss fdak I-Islat I-ichor.

(.lhcgli mill-lJejgh ta' bastimenti. ingcnji ta' t-aJru J~w wtturi lal-I"4

(3)

imhaddma fi traspon internal.7.jonali u minn P/oprjetii mobbli li Ikun ;ss.:rvi ghall "

esploj tazz.joni la' dawn il·baslimcmi. ingcnji ta'l -ajru jcw wuuri taHri4 ikun laxxahhli

"iss £l -J Slat Kontracnt i li fih is-sid ta "I-impriza taHrasport ikun me4jus bh~la residenti .

(4) Olicgh mill -bcjgh ta' xi proprjt'la hlief dik ims.:mmija fiJ "paragrafi (I). (2) u

0) ta" dan j-Aniklu )isla" jigi nt3XX3t [1- lstat KOrHraCnli li l"lJejjicgh ikun residenli fill.

ARTIKL U If>

' /my)me' M/lU:r Espresmmemlm"'l'mmi

Elementi ta' income la' residenti ta' Slal Konrraenti, li jinqalghu minn rejn ikun. li

ma humi ex imsemmija £l-Ani kl i ta" qaocl, ghandhOlrl ikunu laxxabbli biss fdak 1-15Ial.

ARTlK LU 17

Tnei!lIijll/ll' Tana Doppja

1. Fil-kai: lal-Bulgarija, iHaxxa doppja ghandha litnehha kif g.:j

(I) Meta residenti lar-Repubblika Popolari lal·Bulgarija jikscb income

minn Malta, li ma jkunx incom£ minn di~idendi, imhallas minn residenti ta' Malta lil

residen ti- tar·Repubblika Po polari tal-Bulgarija, u jekk dan I-income ikun gie ntaxxat

fMalta, allura r-Repubblika Popolari tal-Bulgarija ghandha teienta dak I·income mit-

la'sanjo",.

(2) MinkcJja d-dispozi7.zjonijiet tal -paragrafu (I), dan I-income jista' jigi

kkunsidrat fil -kalkolu tal -t""r<' entwali la' tassanjoni fuq iH>qija ta' l-inrome ta' dak

ir-resident;.

It-Iaxxa mhallsa dwar I-income minn royal/ies u liCenzi skond I·Artiklu 11.

(3)

pardgr~fu

(2) , ghandha limaqqa, mit -taHa imposta fir-Repubblika Popolari tal -

Butgarija.

(4) Ghall·finijiel lal -paragrafu (\). mela, minhabba miiuri spetjali ta

inten t i~a mahsubin bie~ jippromwo~u I-i;hilupp ekonomiku fMalta, it·l3Xxa la' Malla

Ikun gicI mchlusa ghal kollox jew imnaqqsa ghal perijodu limil31 la' tmien allura

I' ammon\ la' laxxa mhallsa fMa lta ghandu jitqies li jkun I-ammon l li kicn ikun irid

Ji thallas Ii kieku ma kien inghala .:bda h.:lsicn bhal dak j.:w ma kien inghata d)da

maqqis bhal dak.

11 .

Fil-kaz ta' Malta, iHaxxa doppja ghandha ti gi mnchhija kif gcj

(5) Bla hsara ghad-dispoiinjonijiet lal·lig; ta' Malta dwar l-allowance ta'

h.:dilu kontra 13xxa ta' Malta dwar ta~~a barranija mel3, skond id-dispoiiu.joniji.:1 ta'

dan il· Ftehim , ikun hcmm inklui flikwid37.7.joni la' Malta income minn ghejjun fir-

Repubblika Popolari lal -Bulgarija, it-taHa tal·Bulgarija (uq dak I-income ghandha

linghal3 bhala hedilu kuntra I-taua relauiva la' Maim 1i lithallas fuqu.

(6) Taui mhallsin minn residenti ta' Mahadwarprofiui mill-partetipau.joni

taghhom fsoejeta ghat altivila la' nt;'gOlju nimk;"n, manigg u Iqassim Ilimkien lal-

profin i u Iclf minnha u ffurmata skond id-DigricI 535 - 110 lal- Kunsill ta' l, islat tar-

R.:pubblika Populari tal ·Bulgarija, ghandhom jitnaqqsu kontra Haua rispetli~a ta '

Malta fammont li ki.:n ikollu jithallas li kieku dak il-helsien ma kien~ ikun inghata

I,'dan id· Digrlt;'t.

(7) Mcta I-Ftehim jippro~di li income li jinqala' fi Stat Kuntraenli ghandu

jinheles mit-taxxlI fdak I-Istat. jew ghal "ollox jew fpani minnu, u taht il -ligi fis-schh

tl -]stat Kontrat;'nli I-ichor, dak I-income ikun suggen ghaHa:ua b'rifercnza gha!1 -

ammont licghu 1i jintbagha! lil jcw li jigi ritc~ut r dak 1-ISlat I·ichor u mhux b'rikr.:n7.3

ghall -ammonl shih li.:ghu, il -hclsicn 1i jinghata fl-\stat l-ewwd imsemmi ghandu jkun

japplika biss j!hal dik il·pa rt; mill-income li lincbaghat lil jew li ligi ritevuta mi!1 -lslat

I·it;'hor.

ARTIKLU 18

Ebda Diskriminaujoni

(I) Cittadini ta" Stat Kontrucnti jcw persuni guridici tatu I-Aniklu I ta' dan

il-Ftehim ma ghandhomx jkunu suggdti Il-lstat Kontracnti I-iehor ghal xi tassa1.:tjoni

jew xi htiega Ii jkollha x-taQsam maghha li tkun ta' pii. iehor jew aktar mit -tassanjoni u

htigiet li j kollhom x'jaqsmu maghha li ghalihom ic.ciuadini ta' dak I-Istatl-ic horfl -istcss

c;rkostanzi ikunu jew jistghu ikunu suggetti, Din id-di~poii7.7.joni ghandha. minkejja

d -di,;poti17jonijietta'l-Aniklu I, tapplika "'koll g1'lal persuni li ma jkunux residenti ta'

wi':1'led mill-Islati Kommcnti jcw taHnejn,

(2) Post ta' neg01.ju sitwat fi Sta t Kontraenti wiched u Ii jkun proprjcta ta'

rcsidenti ta' I- Istat Kontraenti I-iehor ma ghandux ikun suggelt f1-lstat K"ntraenti

I·ewwe! irnsemmi ghal xi tassanjoni li tkun la' pii iehor jew aktar mil -tas~u.joni li

ghaliha huma suggctti postijietta' negozju sitwati fI· lstat I..:wwcl imscmrni u organiu3ti

minn persuni li huma residenti ta' Stat jcw I-ichor. Din id-dispoti:r.l.joni ma ghandhicx

tiftiehem li tobbliga Stat Kontraen li 1i jaghti lil residenti ta ' I-lslal Kontraent; I-ichor x;

"l/o .... rmn!5. tlc lsien u tnaQQis pe rsonali gha l skopijict ta' tassazzjoni m inhabba fi·i5Ia1Os

civili jcw rcsponsabbiltajid tal -familja jew xi cirkostamj persona li ohra h jaghti !ill-

pcr;uni residenti fih_

(3) Minkejja d-di5pozizzjonijict la·I·Aniklu 2, dan I-Aniklu jkopri tani la' kull

gh amia u dcskrizzjon i,

ARTl KLU IQ

A~emi Diplomat;t; w U!ftejali KotlS"lari

Dan il -Ftchim ma ghandux jolqot il-pri,·ileggi fiskali ta ' mcmhri ta' missjonijiet

J!plomatici u kansulari tahl ir-regali generali tad-d riu intcmazzjonali jew lahl id -

dlspozm.jonijiet ta' kull ftehim specjali,

A RT1 KLU 2U

Tibdilra'/n!ormllujoni

(I) L-awtoritajiet kOmpctenli ta' 1· lstat; Kontraenti ghandhom jibdlu dik 1-

informaujoni li tkun rn~htiega bicx jitwetta<.j il· FI~him prci.enti dwar taxxl koperti

Illinn dan il·Ftehim s.lfejn it-ta''>37_zjoni lahthom ma tkunx kontra dan il - Ft~him u

I-ligljict domesti~i ta'l -lstati Kontra~nti. Kull in fom13zzjon i jew materjal ricevut minn

Slat Kontraenti ~tlandha lii!,i trattata bhala sigrk la I-istcss bhalma ligi trallata

mformazzjoni miksuba taht iT-li gij iel domestici ta ' dak l-lstat u gha ndha tinluia hiss

ghall -iskapijid ta' dan il -Ftehim.

(2\ lI -pamgmfu (1\ ma ghandu_~ jiftiehem li jimponi fUQ xi wiehcd mii-ic ... g Slali

Kontraenti I·obbligu

(a) li jwettaq miiuri amministrallivi li ma jkunux skond iJ-ligijid jc ... il·

pralt ika amministrattiva prevalcnti fi Slal Kontracnt; jew f1 · i~hor

(b) li jaghti infonna7:1.joni li ma IkunJl lista' tinkiseb lahl il -ligi jiet jew fiI -kors

normali la' I-amministrazl.joni la' SI3t Kontraenti jcw la' I-ichor;

(c) li jagl'lti infonnanjoni 1; tikxef xi sigriet jew prOCess laHummert. tall-

ncg07.ju, induslrijali jew professjonali. jcw informazzjoni I; l-kxif laghha jkun

kontra I-interess pubbliku (ordre public).

ART I K L U 21

Proi:edura glial Flehim Rdiproku

(I) Mela residenti ta' S131 Kontracnti jkun jidhirlu li I-an.jonijiet ta' wiehcd

mill-Istati Kontraenti jew tat-toejo j irriiultaw jew ikunu jirriiuhaw fli jigi ntiUxat

mhux skond il -Ftehim pretenti , huwa jista', irrispeltivame nt mir-rimedji provduli

miHigi doml:stika ta " dawk H stati. jippre:ienla I-kai. lieghu lill-awtorita kompelenli ta'

I-Istat Kontracmi li ticghu ikun rcsidcnti. Jekk I-awtorita kompetcnti nnifisha ma tk unx

tista- lasal fsolllZ1joni sodisfatenli. ghandha lara li tinisol~i l-k31 bi flchim ma'I- lstat

Konlr~cmi I-ichor_ bil-hsieb li tigi e~itata tassazzjoni li ma tkunx skond dan il-Fh:him .

Kull ftchim ghandll jigi implimentat minkejja kulllimili ta' zmicn fiI-ligi domestika ta'

I-Istati Kontraenti.

(2) L-awtoritajict kompctenti ta' Hstati Kontraemi ghandhom jaraw li jirrisolvu

bi ftchim rcciproku kull diffikultii jew dubju li jinqalghu dwar I-interpretazzjoni jew

I-applikaujuni lal-Ftehim. Huma jislghu ukoll jikkonsultaw bejniethom fuq it-tnehhija

ta' taua doppja rkai.i li ma jkunx gic provdu! ghalihom rdan il· Flehim.

(3) L-awtoritajiel kompetcnti ta' I-lstati Kontraenti jislghu jikkomunikaw

be jniethom bil-ghan li jilhqu fIe him fis-scns tal-paragrafi la' qabel.

ART1KLV 22

Bidu Its-SeMi

. ([) Dan il-Ftehim ghandu jigi ratifikat ; id-dokumenti tar-ral ifika ghandhom jigu

mlbdula kemm j ista' jkun malajr fil- Belt Valktta.

(2) Dan il -Fethim ghandu jibda jsehh fl-ewwel data tat·tidel xahar li jigi wa ra

.x-xahar li fih iku n saT il-tibdiltad-dokumenti lar·ralifika u d-dispo:i:i1.l.jonijiel !iegnu

gh~ndu jkollhom sehh dwar i! -ta~xi kollh~ imposti fuq I-income ;ew qliegh li jinqalghu

wara 1-31 ta' Ditembru tas-sena ka!endarja li fiha Jkun sar it-tibdil tad-dokumenti

taT-Tatifita.

"

ARTI KLU 2J

Tt:rmil1rlzzjoni

D an il -Flc him gl'landu ji bqa" j5e hl'l sake mm jigi dcnUnl.ja! minn wielled mill ' ]slali

Kontraent i. Kul! wichcd mill-15131; Kon traell1i jisto' jiddenull7.ja dan il-Ftehim b' meni

diplomatiti. billi jagl'lt i 3vvit ta" tcrmina7zjoni mhul aktar lard min n sill xhur 'lab.:!

il-tm icm la' xi sena kal enda rja li lit>(h. warn li jku nu ghaddew 11;"'1 sni" mid..dala tal -bidu

tis-sehh licgh u. F dak il ·kat. dan il -Ftchim jig; applikal ghall-ahhardarba dwa r iHauI

im post; ruq I·income jell' qliegt! li jinqalgtlU "m wl is-sena kalcnda rja 1; fiha ji ngh3t3

I-awi!.

MAGHMUL fSofia fit -13 13" Lulju. 1986 frewg Imp ji n-ilsic" In~lii u l1 ·iISic"

B ulgaru. iz-iewli t ... sli 3wtcntici ndaqs.

B. BELCHEV

WISTIN A BElA

Ghar-Repullhlika la" Mall a

Ghar-Repubblika Popolar;

lal· Bulga rija

Itisherebydeclarcd:-

(a) that the arrangements specified in the Agreement s.ct ou t

in th.: Schedule to thisOrd.:rhav.: been made with th.: Government

of th.: P.:opl.:·s Republic of Bulgaria with a view 10 affording relief

from dou h!.: taxation in relation to the following taxes imposed by

the laws o f th.: P.:opl.:· s Republic o f Bulgari a

(i ) tax on total income;

(ii) taJO on inoome of si ngle males and females, widows.

widowers. divorced persons and famities wit hout children

(iii ) taxon profits

(b)

that it is expedient that those arrangements should have

effec!.

SC HED ULE

AGREEMENT

BE1WEEN T HE REPUB LIC OF MALT ,\

AND

THE PEOPLE'S REPUBLIC OF BULGARIA

FOR AVOI DANCE OF DO UBLE TAXATION

WI TH RES PECr TO TA XES ON fNCOME

The Republic of Malta and the People"s Re public of Bulgaria led by Ihe desire to

~ncourag.: and deepen the ,",co nom;c relations and the eoo nomic cooperation of mUlllal

b.:ndit bc tw~en the two countri.:s. for avo idance of double taxation with respect to

taws o n i nl"Om<: have agreed as follows;

ARTICLE 1

Personal Scope

( I ) Thi, agn:.:mcnt shall apply \0 persons wllo are residents of one Of both. of the

Contracting States.

(2)

As residents of a Contracting State slla!] be deemed

(a) in the case of the Republic of Malta. any person ""ho under the laws of

Malta is liable to tax therein by reason of his residence, registration or any other

criterion of a similar nature;

(b) in Itlt: caS/: of tht: People \ Republic of Bulgaria. individuals who 3rc

nationals of the Peppl.:", Republic of Bulgaria as well as legal persons who have

t heir headquancrs in the People's Republic of Bulgaria or are registered therein.

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

of both Contracting Stato;:s, ihell hI! shall be deemed \0 be a resident of Ihe State with.

which his perwnal and economic re l3tions are closer (centre of vital interests).

If the Stat~ ill which a person has his centre of vital interests can not be

(4)

d~t~rmin~d. th~

competent authorities o f the Contracting StaleS ~hall settle the

question by mutua l agr~~ment.

(5) Where by reason of the provisio ns of paragraph (2) a person other than an

in dividual is a r~sident of both Contracting States. then it shall be deemed to be a

resident of the Co ntracting State in which its placeofeff~ctive management is situated.

A RTICLE 2

Taxe,· Co~er·ed by the Agreement

(I)

The prc<;.Cnt Agreement applies to The following taxes

(a)

in Malta

lhe income tax (hereinafTer referred to as .. Malta tax··);

(b)

in the Peopk·s Republic of Bulgaria

(i)

tax on total incomc;

(ii) tax on income of single males and females. widows, widowers,

divorced persons and families without children;

(iii )

tax on profits.

(2) The Agreement shaH apply to all identical or substan tially similar taxes which

an: imposed after The signing of the Agreemenl in addiTion to or in the place of the

existing taxes. The competent authorities of th~ Contracting STales shall nOTify each

other of any significant changes which have been made in Their respective taxation laws.

Should There be a di spute as to whether there has been a signif;eant change in the

taxation laws requiring incorporation in the Agreemen l thcn Ihe competent authorities

shall discuss furth.er in order to amv!;! at an agreement.

ARTICLE)

GCrI'-'Ta/ Definitions

In the oontext of th is Agr",em<:n t

(a )

(I)

the tenn "Malta" means the Republic of Maha; and

(b) when used in a geographical sense. the term "Malta" means the Island of

Malta. the Island of GOl.O and the other islands of the Maltese archipelago.

induding the territorial waters thereof and any area outside the territorial sea of

Mal ta which. in accordance with. internation al law. has been or may hereafte r be

designated. under the law of Malta concerning t he Continental SlIclf. as an area

within which the rights of Malta with resp«1 to the seabed and subsoil and their

natural n:sources may be exercised.

(2) The term People's Republ ic of Bulgaria means the sovereign territory of the

State, bowels of the earth, territorial sea and maritime mnes outside the territorial sea

over which thc People 's Republic of Bulgaria in accordance with its legislation alld the

intcrnationallaw exercises sove reign rights,

(3) The tenn "internatiollal transport" means any transport operated by a

resident o ther than an individual of the Contracting State, except when tlie transport is

operated solely be tween placcs in the o ther Contracting State,

(4)

Th e tenn perwn

(a) in th e case o f Malta means an individual, an enterprise oranyotheren tity

which is treated as a body corporate for tax purposes and any other body of

persons

(b) !rI the case of Bulgaria includes a physical or juridical person as well as

any o ther entity which is treated as a juridical person for tax purposes,

(5)

The lenn "na tional" means

(a) in respect of Malta. any citizen of Malta and any legal person,

panne rship or association deriving its status as such from the law in force in Malta

(b) in respect of thc People's Republic of Bulgari a any person who rece ivcs a

patenl of cit izellship according to Bulgaria n legislation,

(6)

Th e tnm "competent aut hority" means

(a)

in the case of the Republic of Maim

The Minister responsible for finance or his authorised representative.

(b )

in Ihe case of the People's Republic of Bulgaria

The Mi nister of Fin ance or his authorised'representative.

(7) Upon the application of this Agreem",nt any term not otherwise defined

unless Ihe comext otherwise requires. shall have the meaning which ;1 has under the

national tax legislation of the Contracting State Wh"TC Ille taxation is performed.

ARTICLE 4

Busin .. ss Profits

(J) The business profits of a resident of onc Contracting Stale arc taxable by the

other Cont racting Stale only wllen Ihe business is carri<:d on through a "place of

business" situated therein. [n this case only so much of the profits may be taxed in the

other Contracting State as is attribumb le 10 that place of business.

(2) When: a resident of one Comracting Slate carried on business in the other

Contracting Slate through a "place of business" organised therein. there shall be

attributed the profits under paragraph (3) which he might be expected to make if he

exe rcises the same or similar activity under the same or similar condition as a separate

enterprise dealing wholly independently in its relations with the enterprise of which it is

a place of business.

(3) In determining the profits of a place of business. there shall be allowed as

deductions expenses which are incurred for the purposes of exercising its activity

including executive and gene ral administrative expenses so incurred whether in the

State in which the place of business is situated or elsewhere.

(4) No profits shall be attributed to the place of business by reason of the mere

purchase by that place of business of goods or merchandise for the emerprise.

(5) The provisions of this Anicle will nO! affect the provisions fo r taxation

sti pu lated in the other Articles of this Agreement.

(6) The provisions of this Anicle will also apply to a resident of the one

Contracting State who cames on his business in the other Contracting State separately

or together with the other person. particula rly with a person from the other Contracting

State.

(7) Each Contracting Stale may tax profits from the business of insurance in

accordance with Ihe provisions of ils law regarding the taxation of such profits and the

opera tion of such provi,ions shall not be affected by the provisions of this Artick.

ARTiC LE 5

Place of Business

( I ) For the purpose of this Agreement. the term "place of business" means a

fixed place of business. whe re a resident of the one Con tracting State carries on his

busin ess in the o ther Comracting Slate separately or t{>gethc r with other persons.

whoHy orpanly .

(2)

The term "place ofbusincss" indudes<:S!,<cially'

(a)

a branch.

a work.shop ordcpartm~nl ;

(b)

(c) an offic~ incllHjing any commercial. touristic. nansport. design or any

other office;

(d) a mine. an oil or gas well. a quarry or any other place of extraction of

natural resources ;

(e) a construction or installation project or supervisory activities in

connection therewith. where such project or activity continues for more than 18

months;

(f) thc furnishing of services. including consultancy services, by an

enterprise through employees or other personnel. where activities of this nature

continue (for the sam~ or a connected project) within the country for a period or

periods aggregating marc than six months within any twelve month period.

(3)

(a) (i) The participation of a resident of the Republic of Malta in a

partnership for joint business activity. joint management and distribution of

the profits and losses from it and formed according to Decree No. 535 - 80 of

the Stale Council oflhe People's Republic of Bulgaria. is 10 be considered as a

place of business in Bulgaria.

(ii) The participation of a resident of the People's Republic of Bulgaria

in a contmercial partnership set up in accordance with Maltese legislation shall

be considered as a place of business in Malta.

(b) The participation ofa resident of a Contracting State in a company of the

other Contracting State shall. notwithstanding the provisions of su b·paragraph (a)

of this paragraph. be regulated by Article 9 of this Agreement where dividends are

distributed by such a company to a resid~nt of the first-mentioned Contracting

State.

(4) Notwithstanding the pre~eding provisions of this Article. Ihe term "place of

husiness" shall be deemed not to include

(a)

a permanent place solely for the purpose of purchasing goods

(b) the maintenance ofmalerials or goods belonging to the enterprise. solely

for Ihe purpose of storage. display or delivery and for performing operations

connected with it;

(c)

the maintenance of a stock of goods belonging to the enterprise solely for

the pur~ o f processing by ano ther enterprise

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

information for the enterprise;

(e) the maintenance of a stock of goods exposed by the enterprise in a fair or

an exh ibition wh ich is to be sold after the conclusion.

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(f) the maintenance of a permanent place solely forthe purposcof an activity

which has a preparatory or auxi1i31'Y character for lite emerpriso: ~

(g) the maintenance of a permanent place solely for Iht: purpose of carrying

on any combination of the activities mentioned above under paragraph (a) to

paragraph (cIon Ihe condition that the lotal result of this combination has a

preparatory or auxiliary character.

(5 ) Notwithstanding the provisio ns of paragraphs (\) and (2), where a person -

oth er than an age nt of an independen t status to whom paragraph (6) applies - is acting

on behalf of an enterprise and has, and habitually e~ercises, in a Con tracting State an

aut ho rity to conclude contracts in the name of the enterprise. that enterprise shall be

deemed to have a place of businer.s in that State in respect of any activ ities which that

perso n undertakes for the en te rprise, unless the activities of such persons are limi ted to

those mentioned in paragraph (4) which , if exercised through a fixcd place of business

would not make this fIXed place of busi ness a place of business un·d er the provisions of

that paragraph.

(6) An enterprise that is a resident of one of the Contracting Statcs shall not be

deemed to have a place of business in the other Contracting State merely because it

carries on business in that other State through a broker. general commission agent or

any other agent of independent status, provided that such peThOnS are acting in the

ordinary course of thci r business.

ARTICLE 6

lmerruuiofUll rranspon

(I) Profits from the operation of ships. aircraft or road vehicles in international

transport shall be taxable only in the Contracting State in wh ich the owner of the

enterprise is a residen t.

(2) Profits from th e operation of boats engaged in inland watcrways transport

sha ll be t:uable only in the Contracting State in which the place of effective

management of the enterprise is situated.

(3) If the place of effective management of an in land waterways transport

enterprise is aboard a ship or boat, then it shall be deemed to be situated in the

Contracting State in which the home harbour of the ship or boat is situated. or if there is

no such harbour, in the Contracting Sta te of which the operator of the ship or boat is a

resident.

(4) The provisions of paragraphs (I) and (2) shall also apply to profits from the

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

ARTI CLE 7

Salaries and Wages

( I) SalariCl;. wages and other sim ilar remunerations derived by a residcnt of a

Con tracting State in respect of an employment shall be taxable only in that State unless

B

26 1

the employmen t is exercised in the other Contract ing State. If the employment is so

exe rcised such remuneration as is derived therefrom may be taJ(ed in that other State.

(2) Salaries, wages and other similar remune rations paid to a resident of a

Contracting State by that State or by an enterprise resident in that State in respect of a

temporary assignme nt in the other Contracting State shall be Ial\able only in the first

mentioned State unless they are borne by a fixed place of business situated in that other

Slate.

(3) The provisions of paragraph (2) shall also apply to salaries, wages and other

similar remunerations paid to specialists and workers in respect of a temporary

assignment under a contract between Maltese physical or juridical persons and

Bulgarian juridical persons in the fulfilment of an agreed programme in the field o f

scientific or technical exploration, scientific exchange and other similar activities.

(4) Notwithstanding the preceding provision s of this Anicle, remuneratio n

derived in respe<;:t of an employment exercised aboard a ship, aircraft or road vehicle

operated in international transpon may be talled in the Cont racting Stale in whiCh the

owner of the enterprise is a resident.

(5) The provisions of the above mentioned paragraphs do not refer to the

remuneration of students and trainees which are subject to Anicle 13 of the Agreement .

ARTICLE 8

Peruioru

Pensions and other similar remunerations which a resident of a Contracti ng State

derives from sources in the other Contracting State shall be subject to (alIation only in

that o ther State.

A RTICLE 9

Dividendi

(I) Dividends derived from a juridical person, woo is a resident of a Contracting

State by a resident of the other Contracting State are tallable only in that other State.

(2) Notwithstanding the provisions of paragraph (1) where the divide nds are paid

by a company which is a resident of Malta to a resident of the People 's Republic of

Bulgaria who is the beneficial owner thereof, Malta tall may be imposed on the gross

amount of such dividends, but the tall so charged shall not exceed the lesser of

30 per cent of the gross amount of the dividends; or

(a)

(b) the {all chargeable on the profits out of which the dividends are paid, in

accordance wi th the Aids to Industries Ordinance of 1959.

(3) The leno "dividends" mearu; income from shares or o ther income which

according to the nationa l legislation of the Contracting State has been equalised to the

income from shares.

(4) The provisions of paragraphs (I) and (2) sllall not apply if the beneficial owner

of the dividends, bei ng a resident of a ContractingState. carries on business in the olher

Contracting State of wh ich the company paying the dividends is a resident. through a

place of business situated therein, or exercises in that olber State a liberal profession or

another independent activity from a fi~ed base situated therein. and the holding in

respect of which the dividends are paid is effectively connected with such place of

business or fixed base. In such a case the provisions of Ankle 4 or Ankle 12 . as the case

may be. shall apply.

(5) Where a company which is a reside nt of a Contracting State derives profits or

income from the other Contracting State. Ihal other State may 001 impose any tax on

the dividends paid by the company except insofar as sucll dividends are paid to a

resident of that other State or insofar as the 1I0lding in respect of which the dividends are

paid is effectively connected witll a place of business or a fixedba~ situated in thatotller

State, nor subject the company's undislributed profits 10 a lax on Ihe company's

undistributed profits, even if the dividends paid or the undistri buted profits consisl

wholly or partly of profits or income arising in such other Slale.

ARTICLE 10

Interest

(1) Interest arising in a Contracting State and paid to a residenl of Ihe other

Contracting State may be taxed in the other State.

(2) Paragraph (1) shall not apply wllen a residentofa ContractingSlatc eameson

business in the other Contracting State, in which the interest arises. through a place of

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

effecti vely connected with such place of business. In such aease the provisions of Article

4 shall apply.

ARTICLE 11

fn(:o~ from Royalria and Licenses

(I) Income from royalties and lice nses arising in a Contracti ng State which are

derived by a resident of the other Contracting State may be taxed in that other Stale.

(2) However such income may also be taxed in the Contracting State where il

arises, according to its national legislation. but the tax must not exceed ten per cent of

the gross amount of the royalties or licenses.

(3) The term '"income from royalties and licenses"" means payments rece ived

from the use of or th e right to use;

(a)

copyright of scientific, literary and artistic work;

(b)

any patents (certificate of invent ions) and innovations;

(c)

industrial designs ;

(d)

trade marks

(c)

machine programmes;

(f)

matrix of records and other anicles for reproduct ion of sound;

(8)

gramophone reoords, lapes and ci nematographic films ; and

(h)

industrial experience and know·how.

(4)

The provisions of this Anicle shall also apply \0 the income from

(a) the use or the right 10 use industrial. commercial or scientilicequipmenl,

as well as of technical services connected tll",rewilh

(b) Ihe reproduction of sound or video recording or gramophone records,

tapes, films or other similar objects.

(5) Royalties shall be deemed to arise in a Contracting State when the payer is

that State itself, a political subdivision, a local authority 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 place of business or fi)[ed base in

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

royalties are borne by such place of business or rured base, Ihen such royalties shall be

deemed 10 arise in the State in which the place of I:>usiness or fi)[cd I:>ase is situatcd.

ARTICLE 12

fus

(I) Fees derived by a rcsident of a Contracting State as a result of e)[crcising a

liberal profession or another independent activity in the other Contracting State are

ta)[able in the first-mentioned State. unless the person has a rured I:>ase availal:>le to him

in the other Contracting State forthe purpose of performing his activities. If he has such

fixed base. the income may be taxed in that other Slate bUI only so much of il as is

amil:>utable to that fixed I:>ase.

(2) T he term "Iiberal profession" includes particularly independent scientific.

fih:rary. artistic. educational or teaching activity as well as indepe ndent activity of

physicians. dentists. lawyers. engineers. architects and certified pul:>lic accountants.

(3) Notwithstanding the provisions of Artidc 7 and paragraph (\) of this Article.

fees derived by a resident of a Contracting State as an entcrtaine r (such as theatre,

motion picture. radio or television artist). or as a musician, or as an athlete from his

personal activities as such e)[~Tcised in th~ other Contracting State. may be taxed in that

other Contracting State.

A RTICLE \3

SlUden~ or any other Trainees

(I) Payments received I:>y a student or any other trainee, who is a T~sident of a

Contracting State and stays in t he other Contracting State solely for the purpose of ~is

... ducalion or training. shall nO! be taxed in that State, proVIded that such payments anse

from sources outside that Stal<:.

(2) The provision of the preceding paragraph applies also to payments which the

student or the Irainee, who is a resident of a Contracting State, receives in the other

Contracting State for performing any work in that other State, if it is connecled with his

education or Qualification or if that payment is necessary to supplement his cost of

living.

ARTICLE 14

incolTU! from ImmQvable Property

(I) Inoomederived by a resident of a Contracting State from immovable property

situated in the other Contracting State is to be taxed in that otllerStatc.

(2) The term "immovable property" shall have the meaning it has under the law

o f the Conlracting State in which the property in question is situated.

ARTICLE 15

GaillS trom Sale of Propmy

(1) Gains derived by a resident of a Contracting State from sale of immovable

property which is situated in the olher Contracting State shall be t3!lable only in that

other State.

(2) Gains derived from sale of movable property forming part of the property of a

place of busi ness which a resident of a Contracting State ha~ in the other Contracting

Sta te, including such gains derived from the sale of such place of business, shall be

t3!lable only in that other State.

(3) Gains from the sale of ships. aircraftvr road vehicles operated in international

transport and from a movable property serving for exploitatio n of these ships. aircraft or

road vehicles shall be taxable only in the Contracting Slale in which the owner of the

transport enterprise is considered a resident.

(4) Gains from sale of any property other tllan that mentioned in paragmphs (I),

(2) and (3) of this Article may be taxed in the Contracting State of which the seller is a

resident.

ARTICLE 16

Income Not bpressly Men/ioned

Ih:ms o f income of a resident of a Contracting State. wherever arising. wllicll are

not dealt willl in the foregoing Articles. shall be taxable only in that Slate.

A RTI CLE 17

Elimination of Double TlJXlltion

In the case of Bulgaria. double taxat ion shall be eliminated as follows

I.

(I) Where a resident of the People's Rcpublic of Bulgaria derives income

from Malta. not being income from d ivide nds. paid by a resident of Malta to a

resident of the People·s Republic of Bulga ria. and if this income has been taxed in

Malta. ther: the People's Republic of Bulgaria shall exempt it from taxation.

(2) Notwithstanding the provisions of paragraph (I), this income may be

taken into account in calculating the percentage of taxation on the remaini ng

income of such reside nt.

(3) The tax paid in respect of the income from royalties and licenses

according 10 Article 11, paragraph (2) shall be deducted from the tax levied in the

People·s Republic of Bulgaria.

(4) For the purposes of paragraph (I). where, by reason of special incentive

mcasures designed to promote economic development in Malta, Malta tax has

been wholly relieved or reduced for a limited period of time then the amount of tax

paid in Malta shall be deemed to be the amount that would have been payable had

no such relief bee n given or no such reduction allowed.

11 .

In the case of Malta. double laxation shall be eliminated as follows

(5) Subject 10 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

sou rces within the People·s RepublicofBulgaria. the Bulgarian tax on such income

shall be allowed as a credit against the relative Malta tax payable thereon.

(6) Taxes paid by residents of Malta in respect of profits from their

panicipation in pannership for joint business activity, joint management and

distribution of the profits and losses from it and fonned according to Decree No.

535 -BOofthe StateCounci) of the People's Repub licofBulgaria, shall be deducted

against {he respective Malta tax in an amount that would have been payab le had not

such reliefs been given with this Decree.

(7) Where the Agreement provides that income arising in a Conlracting

State shall be relieved from tax in that State, either in full or in pan. and under the

law in force in the other Contracting State. such income is subject to lax by

reference to the amount thereof which is remitted to or received in that other State

and not by refe rence to the full amount thereof, {hen the re lief to be allowed in the

first-mentioned State shall apply only to so much of the income as is remitted to or

received in the olher State .

ARTICLE 18

Non-discrimination

(1) Nationals of a Contracting State or juridical persons uJldcr Article I of the

Agreement shall not be subjected in the olhcr Contracting Slale to any taxation or any

requirement con nected therewith which isotherormore burdensome than the taxation

and connected requirements to which nationals of that other Slale in the roame

circumstances are or may be subjected. This provision shall , notwithstanding the

provisions of Article 1. also apply 10 persons whoare 001 residemsofone or both ofllle

Contracting States.

(2) A place of business situated in one Contracting State and belonging 10 a

resident of the olhcr Contracting State shall not be subjected in the first·mentioncd

Stale 10 any taxation which is otller or more burdensome than the taxation \0 which are

subjected places of business si tuated in the first·mentioned State and organised by

persons who are residents of either State. This provision shall not be construed as

obliging a Contracting State to grant to residents of the othe r Contracting State any

personal allowances. reliefs and reductions for taxation purposes on account of civil,

status or family responsibilities or any othe r personal circumstances which it grants to its

own residents.

(3) Notwithstanding the provisio!l5 of Article 2. Ihis Article covers taxes of every

kind and description.

ARTICLE 19

Diplomatic Agellls l111d Consular OffICial:;

This Agreement shall not affect the fiscal privileges of members of diplomatic and

consular missions under the general rules o f intemationallaw or under the provisions of

special agreements.

ARTICLE 20

Exchange of Information

(I) The competent authorities of the Contracting Slates shall exchange such

information as is necessary for carrying out the present Agreement concerning taxes

covered by this Agreement insofar as the taxation thereunder is not contrary to this

Agreement and to the domestic laws of the Contracting States. Any infonnation or

materials received by a Comracting State shall be treated as secret in the same manner

as information obtained under the domestic laws of that State and shall be used only for

the purposes of this Agreement.

(2) Paragraph (1) shall not be construed so as to impose on either Contracting

State the obligation

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

administrative practice prevailing in e ither Contracting State

(b) to supply information which is not obtainable under the laws or in the

normal course of the administration of either Contracting State;

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

industrial or professional secret or process, or information the disclosure of which

would be contrary to public policy (ordre public).

ARTICLE 21

Mutuo.l Agreemem PT"(>adure

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

both of the Con tracting States result o r will result for him in taxation IIOt in accordance

with the presen t Agreement. he may, irrespective of the remedies provided by the

domest ic law of those States, present his case to the competent authority of the

Contracting State of which he is a resident. If the competen t authority is itself unable to

arrive at a satisfactory solution, it will e ndea~our to resolve the case by an agreement

with the other Contracting State, with a view to the avoidance o f taxation 110\ in

accordance with this Agreement. Any agreement shall be implemented

notwithstanding any time limits in the domestic law of the Con tracting States.

(2) The competent authorities of the Contracting States shall endeavour to

resolve by mutual agreement any difficulties or doubts arising as to the interpretation or

application of the Agreement. They may also consult together for the eli mination of

double taxation in cases not provided for in the Agreement.

(3) The competent authorities of the Contracting States may comm unicate with

each other for the purpose of reaching an agreement in the sense of the preceding

paragraphs.

ARTICLE 22

Emry i"to Force

(1) This Agreement shall be ratified; the ratification instruments will be

e xchanged as soon as possible at Valletta.

(2) This Agreement shall ente r into force on the first date of the third mon~h

following the month in which the ratification instru~ents ~ave been ex~hang.e? and Its

provisions shall have effect in respect of all taxes leVIed on IOcome or gams ansmgafter

December 31 of the calendar year in which the ratification instruments have been

exchanged.

ARTICLE 23

TermintJtion

This Agreement shall remain in force until denounced by one of the Contracting

states. Either Contractin g State may denounce this Agreement through diplomat"

channels. by giving notice oftennination nol lalerthan six months before the end of any

cale ndar year beginning afte r the expiration of three years from the dale of its enlry into

force. In such eve nt, Ihis Agree me nt will be applied for the last lime in respect to taxes

levied on income or gains arising during Ihe calendar year in which the notice is given.

Done at Sofia on Ihe 23rd day of J uly. 1986, in two copies in the: English and

Bulgarian languages both texts being equally authentic.

WISTlN ABELA

B. BELCHEV

For the People's

For the Republic

of MaJta

Republic of Bulgaria

;,

' _ ...

110 ..........

_

.... 0

_"'-

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