105 tal-1995

L.N . IOS of 11)95

INCOME TAX ACf

(C AP. 123)

Double Tuation Ktlid' (Taxes OD Income)

(Unlttd Kinpom of GlUt BritAin

and NorthenJ lnIand) Order, 1995

IN cxcrcise of the powers conferred by section 76 of the

Income Tax Act, the Minister of Finance has made the foll owing

order: -

I. This order may be cited as the Double Taxation Relief Cit.' ..... .

(Taxes on Income) (United Kingdom of Great Britain and Northern

Ireland) Order, 1995.

Z.

It is hereby declared: -

(a)

th at the arrangements specified in the Convention set

oul in the Schedule to this Order have been made with the

Government of the United Kingdom of G reat Britain and

Northern Ireland with a view to affording relief from double

taxation in rclation to the following taxes imposed by the laws

of the U nited Kingdom of Great Britain and Northe rn Irela nd

(i)

the income tax;

(H)

the corporalion lax; and

(iii) the capital gai ns tu:;

(b) that it is expedient that those arrangements shoukl

have effect;

(c) that the Convention has entered into force on tbe 27th

Man:h . 1995.

SC HED U LE

CONVENTION

BETWEEN MALTA

AND THE UNITED KINGDOM OF GREAT BRITAIN

AND NORTHERN IRELAND

FOR THE AVOIDANCE OF DOUBLE TAXATION

AN D THE PREVENTION OF FISCAL EVASION

WITH RESPECf TO TAXES ON INCOME

AND CAPITA L GAINS

The Governme nt of Malta and the Govern ment of the United Kingdo m of

G reat Britai n and Northern Ireland . desiring to conclude a new Convention for

the avoidance of double taxation and the prevention of fiscal evasion wit h respect

to tlUes on income and capital gai ns. have agreed as follows

B 6S6

CHAPIER I

SCOPE OF THE CONVElOlON

ARTICLE I

PerJQnDl Sco~

This Convention shall apply to persons who an: residen ts of one or both of

the Contracting States.

ARTICLE 2

Taus Covt!ud

(1) The existin& taxes 10 which this Conve ntion shall apply are

in the case oC the Uni ted Kingdom

(a)

(i) the illCllJOlM. t . . ;

(H)

the corporation lax; aoo

the capilal gains tax;

(Hi)

(herei nafter referred 10 as "United Kingdom talC) ;

(b) in the case of Mnha

the income lax,

(herei nafter refelTCd 10 as MMalla lIue).

(2) This Convention $hIll apply abo 10 any identical or substantially similar

,axCl which are im p<lICd afte r the date of signature of this Convention in addition

10, or in place of, the existing laxes. 'The competent authorities of the Contntcting

Slales shall notify each other of any ~a.nificanl cbanges which have been made in

thei r re~dive Ulntion la""".

(3) Notwithstanding the otlter provisions of this Article Ihis Convention shall

DOl apply 10 tu paid or payable in Malta in accorda"" with the provisions of

.wbsection (11) of section 3 1 of the Income Tax Act (Cap. 123) concerning the

chargeable income of any person engaged in the production of pelroleum produced

in Malta or any substantially similar provision which is imposed after the date of

signature of this Convent ion.

CHAPTER 11

DEFlNmONS

ARTICLE 3

( I) For the purposes of this Convention, unless the context otherwise

requircs

(a) The term ~ United Kingdom~ ~a n 5 Great Britain and Northern

Ireland. including any area outside the territorial sea of the United Kingdom

which in accordance with international law has been or may hereafter be

designatcd. under the laws of the United Kingdom concern ing the Continental

Shelf. as an 'Iea within w:'ich the rights of the United Kingdom with respect

to the se. bed and .wb-soil and their natural resources may be uerciscd;

8 '"

H

(b) the term MMal la when used in I geographical sense, means the

,

Island of Malta , the bland of GOU) and the other islands of the Maltese

archi pelago iocJuding tbe terrilOrial wat ers thereof, and any area outside the

territorial sea of Malla which, in accordance wit h international law, has been

or may hereafter be designaled, under the law of Malla concerning the

Continental Shelf, as an area within which the rights of Maila with respect to

the seabcd and subsoil and their nat ural resources may be exercised;

(c) the terms Ma Con tracti ng StatcH and Hlhe other Contracting State"

mean tbe U nited Kingdom or Malla as the context requi res;

the term "pcrson" comprises an individual and

(d)

(l) in relation 10 the United Kingdom, also a rompaoy or any oth er

body of persons bUl does not include a partnership;

(il)

in relation 10 Malta , also a company and any othe r body of

pcnons;

(e) the term "companyM mean! any body corporate or any entity which

L! treated as a body corporate for tax purposes;

(0 the terms "enterprise of a Con~racti ng State" an~ ~ en te~rise of the

othe r Contract ing State me an . respectIVely. an enterpnse cam ed on by a

H

resident of a Contracting Stale and an en terprise carried on by a residen t of

the ot her Contracting State ;

(g)

ft

the term " national

means

(i) in relation to the U nited Kingdom. any British citizen. or any

British subject not possessing the citize nship of any o th er Com mollwealth

country or territory. provided he has the right of abode in the U nited

Kingdom; and allY legal person. partnership. associati on or other entity

deriving its status as such from the la w in force ill the U nit ed Kingdom;

(H) in rela tion to Maita, any citize n of Malta and any legal person,

partnership, association or other entity deriving its status as such from the

law in force in Malta;

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

aircraft operated by an enterprise of a Contracting Stale, exce pt when th e ship

or aircraft is operated solely be tween places in the other Contracting State ;

(i)

the term "competent authority" means

0)

in the case of the United Kingdom, the Co mmissioners of Inland

Revenue or their autho rised represe ntative ;

(ii) in the I;ase of Malta, th e Minister responsib le for finanl;e or his

authori sed represe ntative.

(2) In the application of this Conventio n by a Contracting State any term not

otherwise defined shall. unless the co nteKt ot herwise requires. have the meanin g

which it has und er the laws of that State ronceming the taxes to which this

Convention applies.

ARTICLE 4

Res jdelll

<I) For th e p urposes of thi s CO llve nt ion, the term "resid ent o f a Contracting

Stale" mea ns any person who, under the laws of that State. is lia ble to tax therein

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

of a similar natu re. But th is term does not include any person who is liab le 10 tax

in th at State in re spect only of inco me or capital gains from so urces therei n.

(2)

Where by reason of the provisions of paragraph (1) of tbis Article an

ind ividual is a reside nt of ooth Contracting States, then his status sha ll be

determined as follows

(a) he shall be deemed to Dc a residen t solely of the Contracting State

in which he has a permanent home avai lable to him; if he has a permanen t

home avai lable to him in both States, he shall be deemed to be a resident

solely of the ContraCling State with which his personal and economic re lations

are closer (cen tre of vital interests);

(b) if Ihe Contracting State in which he has his centre of vital interests

can not be determined, or if he has no pe rmanent home avai lable to him in

either Contracting Stale, he shall be deemed to be a resident solely of the

ConlraCling State in which he has an habitual abode;

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

of them, he shall be deemed 10 be a resident solely of the Contracting State

of which he is a national;

(d) if he is a national of bot h Contracting States or of neither of the m,

the competent au thorities of the Contracting States shall settle the question

by mutual agree ment.

(3) Where by reason of the proviskms of paragraph (1) of this Anicle a

person other than an individual is a resident of both Contracting States, Ihen it

shall be deemed to be a resident solely of the Contracting State in which its place

of effective management is sit uat ed.

ARTICLE 5

Permonent Establishment

(I) For the purposes of this Convention the term "permanent establishment~

means a ru:ed place of business through which the business of an enterprise is

wholly or partly carried on.

(2) The term "permanent eSlab1ishme nt~ includes especially'

(a)

a place of management ;

B

a branch;

(b)

(0) an offlce;

a factory;

(d)

a workshop;

(0)

an installation or structure for the exploration of natural resources;

(r)

W I mine, an oil or ._ well, I quany or any otber place of extraction

of natu ral resources;

(h)

I building site or construction or assembly project: or supervisory

activities in connection therewith, where such site, piOject o r adivilY continues

for more than six months.

(3) Notwithstanding the preceding provisions of this Article, the term

" permanent establi5hment shall be deemed nOI to include

M

<a) the use of facili tie. solely for the ptllpase of sloralc , display o r

delivery of goods or merchandise belonging 10 the en terprise;

(b) lhe maintenance of • stock of gooois or mcrdwldisc belonging 10 the

enterprise solely for the purpo ... of "Ollllc, display or delivery;

(c) tbe maintenance of . lIoc:k of coods or merchandise belonging to the

enterprise solely for the Purp11IC of Proc:l'5!jnl by anothe r enterprise;

(d) the mainlenaDCe of a filled plao: of business solely for the purpose

of purchasi ng goods or merchandise, or of rollecdna informadon , for the

en terprise;

(e) the maintemmcc of a fixed place of busi ness solely for the purpose

of carrying on, for the enterprise , any ot her activity of a preparatory or

auxiliary character;

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

combination of activities mentioned in sub-paragrlphs (a> to (e) of this

paragaph , provided thlt the overall activity of the rued place of bwiness

resultin& from this oombinltion i5 of I preparatory or all.liliary chancter.

(4) NOIwithstlndingthe provisions of paragraphs (I) and (2) of this Article

where a person - ot her than an aaent of an indepe ndent status to whom

paraaraph (5) of this Article applies - is acti ng on Dchalf of an enterprise and

has, and habit uall y exercises, in a Contracting State an authority to concl ude

contracts on Dchalf of the enterprise, that enterprise shall be deemed to have a

permanent establishment in that State in respect of any activities which that person

undertakes (or the enterprise:, un less the activities of such person arc limiled to

those: mentioned in paragraph (3) of this Article which, if exercised through a fixed

place of business, would nOI make this rued place of business a permanent

establishment under the provisions of th at paragraph .

B ""

(5) An enterprise of a Contracting Slale shall IIQ\ be deemed 10 ha~ a

permanent establishment in the othe r Contracting Slale merely because it carries

on business in th at ot her State thro ugh a broker , ge neral commission agent or any

other agen t of an indepe ndent status. where such persons are acting in the

ordinary course of their business. However , if th e activities of such an agent are

carried out wholly or almost wholly for th e en terprise (or for th e enterprise and

other enterprises whi ch are controlled by it or have a controlling inte rest in it or

are subj«1 10 the same rom mon control) and the cond itions made or im posed

between them in their commercial or financial relations differ from those wh ich

would have been made o r imposed if this had nOl been the case, Ihat age nt shall

not be co nsidered to be an agent of an independent statu5 for the pu rposes of this

paragraph.

(6) The fact that a company which is a resident of a Contracting State

controls or is controlled by a company which is a resident of the other Con tracting

State, or whieh carries on business in that other State (wbether through a

permanent establishment or otherwise). shall not of itself constitute either

company a permanent establishment of the other.

CHAyl ER III

TAXA nON OF INCOME

ARTICLE 6

Income from ImmovDbJe Proputy

(I) Income derived by a resident of a Contracting State from immovable

property (including income from agricu lture and foresuy) situated in the other

Contracting State may be tu-ed in that other State.

(2) The term Mimmovable properly~ shall have the meaning which it has

under the law of the Contracting State in wh ich the properly in question is

situated . The term shall in any case include property accessory to immovable

properl y, livestock and equipment used in agriculture and forestry. rights to wh ieh

th e provisions of general law respecting immovable or landed properly apply ,

usufruct of immovable properly and rights to variable or fIxed payments as

consideration for the working of. or the right to work or to uplore for . mineral

deposits. sources and ot her natural resources; ships. boats and aircraft shall nOI

be regarded as immovable property.

(3) The provisions of paragraph ( I) of thi s Article shall appl y to income

derived from the direct use. letting. or use in any oth er form of immovable

property .

(4) The provisions o f paragraphs (\ ) and (3) of this Article shall also apply

10 the income from immovable property of an en terprise and 10 income from

immovable property used for the performance of independent personal services.

ARTlCI E 7

Burinas Pro[iu

(1) The profits of an entcl'f'r1se of I Contracting State shall be taxable only

in that State unless the enterprise carri es on businc5.S in the other Contracting Slalt

through a pennanen! establishment situated therein. If the enterprise eanies on

business as aforesaid, the profits of the enterprise may be taxed in the other Slale

but only so much of th em as is attributable 10 that permanent establishment.

(2) Subject to the provisions of paragraph (3) of this Article, where an

enterprise of a Contracting State carries on business in the other Contractina State

through a permanent establishment situated therein , there shall in each

Contracting Slate be attributed 10 that permanent establishment the profits which

it might be expected 10 make if it were a distinct and separate enterprise engaged

in the same or similar activities under the same or similar conditions and dealing

wholly independent ly with the enterprise of which it is I permlnent establishment

or with other enterprises whkh arc oontrolled by the fint-mentioned enterprise or

have a controlling interest in it or arc subject to the same common control.

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

shall be allowed as deductions expenses of the enterprise, being expenses whk h

arc incurred for th e purposes of the pennanent cstablishment (including executive

and general administrat ive expenses SO incurred) and which would be deductible

if the pennanent establishment were an independent entity whkh paid those

expenses, whether incurred in the Contracti ng State in whkh tbe pennanent

establishment is situated or elsewhere _

(4) No profits shall be attributed to a permanent cstablishment by re ason of

the mere purchase by that permanent establishment of goods or merchandise for

the enterprise.

(5) For the puijXlSCS of the preceding paragraphs, the profilS to be attribu ted

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

year unless the re is good and sufficient reason to the contrary.

(6) The prOvisions of this Article shall not affect the application of the

provisions of the law o f a Contracting State regarding the taxation of profilS from

the business of insurance.

(7) Where profits include items of income or capital gains whk h are dealt

with separately in other Anicles of this Conven tion. then the provisions of those

Anicles shall not be afrected by the provisions of this Anicle.

ARTI CLE 8

Shippillg alld Air TrallSport

(I) ProfilS derived by a resident of I Contracting State from the operation

of ships or aircraft in inte rnational nafflc shall be taxable only in tbat State.

(2) For the purposes of this Anicle, profits from the operation of ships or

aircraft in international tramc include

(a)

income from the re ntal on a bareboat basis of ships or aircraft; and

(b) profits from the use , main tenlU10e or ren tal of conlainen (including

lnIilen and related equipment for the transpon of containen) used for the

transport of goods or merchandise;

where suo::h ren tal or suo::h use , mai ntenance or rental , as the case may be , is

incidental to the operation of ships or aircraft in international traffic.

(3) Where profits within paragraphs ( I) and (2) of this Article are derived

by a resident of a Contracting State from participation in a pool, a joint business

or an international operating agency, the profits attribu table to that resident shall

be taxable only in the Contracting State of which he is a resident.

ARTICLE 9

Au(Xw/ed Enterprises

(I)

Where

(a) an enterprise of a Contracting State participates directly or indirectly

in the management, control or capital of an en terprise of the other

Con u acting State; or

(b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a Contracting State and an

en terprise of the other Contracting State ;

and in either case conditions are made or imposed between the two enterprises

in their commercial o r financial relations which differ from those which wou ld be

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

those conditions, have accrued to one of the enterprises. but, by reason of those

conditions, have not SO accrued, may be included by a Collioacting State in the

profits of that enterprise and taxed accordingly.

(2) Where a Conuacting State includes in the profits of an enterprise of th at

State, and taxes accordingly, profits on which an enterprise of the other

Contracting State has been charged to tax in that other State and the profits so

included are profits which would have accrued 10 that enterprise of the fint-

mentioned State if the conditions made between the two enterprises had been

those which would have been made between independent enterprises, then that

other Stale shall make an appropriate adjust ment to the amount of the tax charged

therein on those profits. In determining such adjustment, due regard shall be had

to the other provisions of this Convention and the competent authorities of the

Contracting States shall if necessary consult each other.

ARTICLE 10

DivUhndt

(I) Dividends paid by • company which iI • resident of the United Kingdom

to I resident of Malta may be taxed in Malll.

(2)

An individual who is I resident of Malta .nd who re<:eiva I dividend

from • company which is • «sident of the United Kingdom. sball subject to the

provWons of this Article and provided that he is the beneficial owner of that

dividend, be enlilled

<a> 10 a lax credit in respect thereof o f an amount equlllo the lax credi t

to which an individual resident in the: Uni ted Kingdom would have been

entitled had he received tha t dividend <in Ihis Article: referred 10 as "the

resident's tax credit") less IS per cent of the aggregate of the amount or value

of th al divi dend and the amou nt of the: resident's la~ credi t. and

(b) to payment of any amount by which the lax credit to which he is

entitled by virtue of lub-paragraph (a) exceeds his liability to tax in the Un ited

Kingdom.

(3) Dividends paid by a company which i$ a rC$KJent of Mal ta 10 a resident

of the United Kingdom may be tax ed in the United Kingdom. Such dividends may

also be la:led in Malta and according to the laws of Malla . but if the recipient is

the beneficial owner of the dividcnds the tax so chargcd shall nOI Ul:eed that

cha rgeable on the profits out of which the dividends are paKJ.

(4) The term - dividends- as used in this Aflicle means income from shares.

or othe r rights not being debt -c:laims. paflicipating in profilS. as well as income

from other corporate rights aSl:iimilated to income from sha res by the taxation laws

of the State of which the company making the distribution is a resident and also

includes any ot hcr item which. under the laws of the Contrac;ting State of which

the company paying the dividend is a rcsident. is treated as a dividend o r

distribu tion of a company.

(5) The provisions of paragraph (2) or, as the case may be, (3) of this Article

shall not apply if the beneficial owner of the dividends. being a resident of a

Contracting State, carries on business in the other Contracting State of which the

com pan y paying the dividends is a reside nt, through a pennanent establishment

situated therein, or performs in that other State independent personal services

from a filled base situated therein, and the holding in TC$pccI of which the

dividends are paid is effectively connected with such permanent establishment or

fiKed base. In such a case the provisions of Article 7 or Article 14 of this

Convention. as the case may be, shall apply.

(6) Where a company which is a resident of a Contracting State derives

profilS or income from the othcr Contracti!}g State. that ot her Statc may not

impose any tu: on the dividends paid by the com pany, except insofar as such

dividends are paid to a resident of that other State or insofar as the holding in

rC$pec;t of which the dividends are paid is cffedivcly connected with a permanent

establishment Of a fixed base situated in that other State, nor subject the

company's undistributed profits 10 a tu: on undistributed profits. even if the

dividends paid or the undistributed profits consist wholly or panJy of profits or

income arising in that other State.

ARTICLE 11

InIUf!$1

( I)

Interest arisifl8 in 11 Contracting Slate and paid 10 a residen t of the othe r

Contracting Slale may be taxed in that other State.

(2) Ho weve r. such interes t ma ~ also be taxed in th c: Contracting Slale in

whi ch it arises and lIe<:ord ing to the laws of Ih ut State. but if th e recipien t is the

beneficial owner of the interest and subject 10 lax in resped o f the interest in the

other Contracting Slale the tu SO , harged shall 001 exceed 10 per cen t of the gross

amou nt of the: interest .

(3)

The term " inte res' " as used in this Article means income from debl-

claims of every kind , whether or not secured by mortgage and whether or not

carrying a right 10 participate in the debtor's profits, and in particular. income

from govem menl securities and income fro m bonds or debentures. The ICon

"interest" shall not incl ude any item which is treated as a distribution under the

provisions of Ankle 10 of this Convention.

(4) The provisions nf paragra phs (I) and (2) of Ihis An icle shall nOI apply

if the beneficial owner of the interesl, being a resident of a Co ntracting State ,

carries on busi ness in the other Contracting State in which the interest arises,

through a permanent establishme nt situated therein, or perform s in that other

State independen t personal services from a fixed base situated therei n, and the

debt-claim in respec.:l of which the interest is paid is effectively connected with such

permanent establishment Of fIXed base. In such case the provisions of Ankle 7 or

Article 14 of th is Con ven tion , as the case may be , shall apply.

(5 ) Im cre ~ t shall be dee med to arise ill H Co nt racti ng StHte whe n the payer

is Ihat State itself. a political subdi vision. a local authori ty or a resident of Ihat

State . Wh ere. however. the person paying the imerest. whether he is a residen t

of a Con tracting State or nol. has in a Cont ract ing Stall': a pe rmanent

es tablishmen t or ri.ed base in connection with wh ich the indebtedness on which

the interest is paid was inc urred . an d such in terest is borne by such pe rman ent

establis hm ent or rilled base, then such interest shall be deemed 10 arise in th e State

In which th e permanen t establishmen t or fix ed bllse is situated .

(6) Wbere, by reason of a special relationship between the payer and the

beneficial owner or between bolh of them and some other person, the amount of

the interest paid exceeds, for whatever reason. the amount which would have been

agreed upon by the payer and the beneficial owner in the absence o f such

relationship. the proviSions of this Article shall appl y only to the last·mentioned

amount of int erest. In such case, the excess pan of the payments shall remain

taxabl e according 10 Ihe laws of each Contracting State, due regard bei ng had to

the othe r provisions of Ihis Convention.

(7) The provisions of this Article shall 001 apply if it was the main purpose

or one of the main purposes of any person concerned witl, the crea tion or

assignment of the debl-claim in respect of which the inte rest is paid to tak e

advantage of Ihis Article by means of that creation or assignment.

(8) Notwitllstanding the provisions of paragraph (2) of this Article, interut

arising in a Contracting Slale shall be CJ[cmpl from tu in tha, Slale if it is derived

and beneficially owned by lhe Government of the other Contracting Slale or I

local authority thereof or any agency Of inslrumenr..lity of that Government or

local l ulhorily.

(9) Notwithstanding the provisions of Article 7 of this Convention IInd of

paragraph (2) of this Art icle, inte rest arisin!! in a Contracting Slale which is paid

10 and beneficially owned by a resident of the oth er Contracti ng State Shldl be

exempt from tax in the first ·mentioned Contracti ng State if it is paid in respect

of a loan made . guanlnleed or- insured . or any ()Iller dcbt-claim or credit

guaranteed or insured by an institution beneficially owned by the GoYernment of

the Con tract ing Slale o r any agenc;y or instrumen talit)' of Iha t Govemme nl.

ARTICLE 12

RoymtieJ

( I) Royalties anSlng in a Con tracting State and paid to a reside nt of the

other Contracting State may be taxed in tha t other State.

(2) However, such royalties may alJl() be taxed in the Contracti ng State In

which they arise and accord ing to Ihe la~ of Ihat Slale, bu t if Ibc recipient is Ihc

beneficial owne r of the royah ies and subject 10 tax in respect of the royalties in

the State of which he is a residen t , the tax so charged shall not excced \0 pe r cc nt

of the gross amount of the roya lties.

(3) 1be term Mroyalties M in this Article means payments or credits, whether

periodical or not , and however described or computed , 10 the e:uent to which they

arc made as conside ration for

(a) th e use of, or the righ t to use. any copyright, pa tent , design or

model, plan , secret fonn ul a or process, trademark or other like property or

right ;

(b) the supply of scientific, technical,

industrial

or commercial

knowledge or infonnation (know-how) ;

(c) the supply o f any assista ncc in the State of which th e pa yer of the

royal ties is residcnt that is ancillary and subsidiary to, and is furnished as a

me~ns o f ~nabli n~ the application o r enjoymen t o f any such property or right

as IS menllOfled In su b-par.lgra ph (a) . or any such knowledge o r information

as is men tioned in sub-paragraph (b) ;

(d) lotal or partial fo rbearance in respect of the use or suppl y of any

property or right referred to in this paragraph.

(4) The provisions of paragraphs (I) and (2) of this Article shall not apply

if the beneficial owner of the royal ties, being a residen t of a Conlracting State,

carries on business in the other Cootracting State in which the royal ties arise,

through a permanent establish ment si tWlted therein. Of perfomu in thal other

Contrxting State independent personal services from a fixed base situated therein,

and the right o r property in i-espcct of which the royalties are paid il effectively

connected with such pennanent establishment or fixed base. In such case the

provisions of Article 7 or Article 14 or this Conve ntion, as th e case may be, shall

apply.

(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

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

of a Contracting State or not, has in a Contracting State a pennanenl

establishment or fixed base in connection with which the obligation to pay the

royalties was incurred, and such royalties are borne by such permanent

establishment or fu:ed base , then such royalties shall be deemed to arise in tbe

State in which the pennanent establishment or fixed base is situated.

(6)

Where . by reason of a special re lationshi p bet ween the payer and the

beneficial owner or between both of them and some other person. the amount of

the royal ties exceeds. for whatever reason, the amoun t whi ch would ha ve been

agreed upon hy the payer and the be neficial owner in the absence of such

relationshi p. the provisio ns of this Article shall apply only to the last- mentioned

amount. In suc h case . the excess part of th e payments shall remain taxable

according to the laws of each Cont ract ing State . due regard being had to th e other

provisions of this Conven ti on.

(7) The provisions of this Article shall not apply if it was the main purpose

or one of the main purposes of any person concerned with the creation or

assignment of the rights in respect of which the royalties are paid to take

advantage of this Article by means of that creation or assignment.

ARTlCLE 13

AlienmiOtr of Properly

(1 ) Inco me or gains derived by a residen t of a Contracting State from the

alienation of immovable property referred to in Article 6 of this Convention and

situated in the other Contracting Slale may be taxed in thal Olher State .

(2) Income or gains derived by a resident of a Contracting Stale from the

alienation of

(a) shares. other than shares quoted on an approved Stock Exchange,

deriving their value or the greater part of their value directly or indirectly

from immovable property si tuated in th e other Contracting State, or

(b) an imerest in a partne rship or trust th e assets of whiCh consist

principally of immovable property situated in the ot her COntracting State . or

of sha re s referred to in sub-paragraph (a) above.

may be taxed in that otber State.

(3) Income or gains from the alie nation of movabl e prope rty forming part

of the business property of a permanent establishment which an en terprise of a

Con tracting State has in the other Contracting State or 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 independent perso nal se rvices,

including such income or gains from the alienation of such a permanent

establishment (alone or with th e whole enterprise) or of such fixed base, may be

ta:led in th at other State.

B ,*,7

(4) Income or gains derived by a resident of a Co ntracting Slale from the

alienat ion of shiflS or aircraft ope rated ill international traffic by an enterpri se of

<I Contracting State or movable properly pertaining 10 the ope rati on of such ship$

or aircraft , shall be ta)(abJe only in th at Contracting State.

(5) Income or gains from the alienation of any propeny other than that

referred to in paragraphs (1), (2), (3) and (4) of this Article shall be taxable only

in the Contracting State of which th e alienator is a resident provided that such

income or gains are subject 10 lax in that Contracting State.

The provisions of paragraph (5) of this Ankle shall not affect the right

(6)

of a Contracting State to lev)' according to its law a tax on income or capital gai ns

from th e alienation of any property derived by an individual who is a resident of

the other Contracting State and has been a resident of the first-mentioned

Contracting State at any time during the five years immediately preceding the

alienation of the property.

ARTICLE 14

Independent Personal &rvius

Income derived by a resident of a ContractingStale in respect of professional

(1)

services or activities of an independent character shall be taxable only in that State.

However, such income may be taxed in the other Contracting State in the following

circumstances

(a) ifhe has a fixed base regularly available to him in the other Contracting

State for the purpose ofperfonning his activities (in which case only so much of the

income as is altributable to thal fixed base may be taxed in that other Contracting

State); or

(b) if his stay in the olher Contracting State is for a period or periods

amounting to or exceeding in the aggregate 183 days during any calendar year.

The term "professional services" includes especially independent

(2)

scientific, literary, artistic. educational or teaching acti vities as well as the

independent activities of physicians. lawye rs. engineers, architects, dentists and

accoun tants.

ARTICLE 15

Dependent Personal &rvicts

(I) Subject to the provisions of Anicles 16, 18, and 19 of this Convention,

salaries, wages and other similar remuneration derived by a resident 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 Slale. If the employment is so

as

exercised, such remun eration is derived Iherefrom may be laxed in that other State.

B ...

(2) No twithstanding the provisio ns of paragraph ( I) of Ihis Article,

re mune nllion derived by a resident of a Contracting State in respect of an employment

exercised in the other Contracting State shall be taxable onl y in the first-mentioned

Slale if

(8)

the reci pient is present in the other Slale for a pe riod or pc rioos not

exceeding in the aggregate 183 days within a ny period of twe lve months; and

(b) the re muneration is paid by, o r on behalf of, a n employe r woo is DOt a

resident of the othe r Slate: a nd

(c) tbe remuneration is not borne by I pcnnanent e5tablishme nt or a fixed

base whicll the e mployer has in the o the r Slale .

(3) Notwithstandi ng the preceding provisions of Ihis AM ide. remuneration

deri ved in respect of an e mployment exercised aboard a ship, or aircraft operated in

interna tional traffi c may be taxed in the Contracting Slale of which the enterprise

operating the s hip or aircraft is a reside nt .

ARTI CLE 16

Dirulo,s' Fus

Directo rs' fees and similar payme nts derived by a resident of one of the

Conuacting States in his capacity as a member of the board of directors, or o the r

comparable body however described, of a compan y which is a reside nt of the o the r

Con tracting State may be taxed in that o ther Stale.

A RTICLE 17

ArtislCllJfld Sporum~fI

( I) No twithstandin g the pro visions of Art icles 14 a nd 15 of this C inven tion .

income derived by a resi de nt of a Contracting State as an e ntertai ne r such as a theatre.

mo tion picture, rad io or television a rt iste o r a musicia n, o r as a sportsman. fro m his

personal activi ties as such e xe rcised in the o ther Contracting State. may be taxed in tha t

o the r Sta te.

(2) Whe re income in respect of personal activi ties e xen.:ised by an e nte rtaine r o r

a sportsman in his capaci ty as s uch accrues not to the e ntertainer o r sportsman himself

but to a no the r person, that income may , no twithstanding the provisions of Articles 7,

14 and 15 of this Conventio n, be taxed in the Cont ractingSta te in which the activities of

the ente rtaine r or sport sman a re exercised .

B fH>

ARTICLE 18

PCflSioru

(I) Subject to the provisions of paragraph (2) of Article 19 of th is Conve ntion,

pensions and other similar remuneratio n paid in consideration of past employment , or

any annuily paid, to an individual who is a resident of a Contracting Slale shall be

tax.lIle only in that State.

(2) The te rm " pnnuity ~ means a Slated su m payable po!riodic311 y al Slated time s

during life or during a specified or ascertainable period of lime under an obliga tion 10

make the payments in return for adequate: and full consideration in money or mo ney's

.... "()rth.

ARTICLE 19

(I) (a) Remuneration, ocher than I pension, paid by I Contractin& Slale or I

political subdivision or a local authority thereof, to an individual in respcc1 of

services rendered to that State or subdivision or authority lhall be taxable only in

that State.

(b) Howeve r , such remuneration shall be taxable only in the o ther

Contracting State if the se rvices are rendered in that State and the individual is a

resident of that State woo

(i)

is a nation al of that State; or

(ii) did not bcrome a resident of that State solely for the purpose of

rendering the ser.oices.

(2) (a) Any pension paid by, or out of funds created by, a Con tracting State or

a polilical subdivision or a local authority thereof 10 an individual in respect of

services rendered to that State or subdivision or authority shall be tnable only in

that State.

(b) However, RICh pension shall be taxable only in the other Contracting

State if the individual is a reside nt of, and a national of, that Stale .

(3) The provi!OOns of Art)des IS, 16 and 18 of th is Convention shall apply to

remul1Cration and pensions in respect of services rendered in connection with any

busi ness ca rried on by a Contracting State or a political subdivision or a local authori ty

thereof.

B 6'"

ARTICLE 20

Students and Trflincn

An individual who is o r was a resident of a Connacting Stalt immediatcly before

making . visit 10 the other Con u.acting Slale and i5 present in the other State: solely

(a) as a student al a recognised universi ty. college, school o r otne r similar

recognised educational institu tion in that ot he r Slate: or

as a business or technical apprentice: or

(b)

(c) as J recipie nt of a gran t, allowance o r award for the primary purpose of

study. rCSor:lTch or Irainins from the Government of either Slate or from a

scie ntific, educational, religious, o r dlaritllblc organisation or under I technical

assistance programme ente red into by the Govc:rnmen t of eithe r Slate;

shall be exempt from lax in that o thc r Slate on

(i) all rcmittancC5 fro m abroad for the purposes of his maintenance ,

education , st udy. resea rch or training: and

(ii)

the amount of such grant, allowante or award.

ARTICLE 21

Of ht!, I n(omt!

( I) Items of income of a resident of a Contracting State, whereve r arising, which

Ire not dealt with in the foregoing Articles of this Convention, other Ihan income paid

out of truSh or the estatc:s of deccncd pcrsons in lhe course of administTlltion, and

which arc subjcctto tax in that State shall be taxllble only in Ihat State .

(2) The provisions of paragraph (I) of this Art icle shall nOlappl y to income,

o ther than income from immovable property liS defined in paragraph (2) of Artk le 60f

this Co nven tion, if the reci pie nt of such income, being a resident of a Contracting Slale,

carries o n business in the o the r Contractina State th ro ugh a permanent esta blishment

5ituated therein, or performs in Ihat other Slate independent pcnonal serviocs from a

rIXed base situated therein , and the right or propcny in respect of which the income is

paid is effectively connected with such perma ne nt esta blishmen t o r rIXed base. In such

case, the provisions of Article 7 or Article 14 of Ihis Conve ntion, as the case may be,

shall apply.

(3) The provisions of this Article shall not appl y if it was the main purpose orone

of the main purposes of any person conside red wi th the crC;lt ion or ass ignment of the

righh in re:spcct of which the income is paid to take ad"antagc of this Article by means

of that creation o r a»ignmen l.

CHArTER IV

ELIMINATI ON OF DOUBLE TAXATION

ARTICLE 22

EUmjtlQljon of Double TaXQlio,1

( I) Subject to the provisions of the law of the United Kin gdom regarding the

allowance as a credit against United Kingdom tax of tax payable in a te rritory outside

the United Kingdom (which shall nOt affect the general principle hereof)

(a) Malta tax payable under the laws of M~lta ~nd in accordance with this

Convention, whether directly or by deduction , on profits, income or cha rgeable ga ins

from sources within Malla (excluding in the case of a dividend, lax payable in respecl of

the profits out of which the dividend is paid) shall be allowed as a credi t agai nst any

Un ited Kingdom tax computed by refe rence to the same profits, income, or chargeable

gains by reference to which th e Malta tax is computed

(b) in the case of a dividend pai d by a company which is a resident of Malta to a

company which is reside nt of the United Kin gdom and which controls directly or

indirectly at least \0 per ccnt of the vot ing power in the company paying the dividend,

the credit shall take in to account (in addition to any Malta tax. for which credit mily be

allowed under the provisions of su b-paragraph (a) of this paragraph) the Malta lax

payable by the company in respect of the profits out of which such dividend is paid.

(2) Subjed to the provisions of the law of Malta regardi ng the allowance as a

credit against Malta tax of tax payable in a terrilOry OIJ tside Malta, where , in

accordance with the provisions of this Convention, there is included in a Malta

assessment profits, income or chargeable gains from sou rces within the United

Kingdom, the United Kingdom tax payable, whether directly or by deduction, in

respect of those sources (excluding in the case of a dividend, tax payable in respect of

the profits out of which the dividend is paid) shall be allowed as a credit agai nst any

Malta tu payable in respect of those profits, income or chargeable gains.

(3) For the purpos.es of paragraphs ( l) and (2) of this Article, profits, income and

capital gains owned by a resident of a Contracti ngState which may be tued in the other

Contracting State in ao::ordance with this Convention shall be deemed to arise in that

other Co ntracting Slale.

(4) Subject to paragraphs (5) and (6) of this Article. for the purposes of

pHragraph (I) of this Article the term " Malta taK payable" shall be de emcd to includc

any amount which would have been pa yable as Malta lax for any year but for a

deduction allowed in compuling taxable incomc, or an exemption or reduction of tax

granted fortha t yea r o r any part thereof. unde r any of the following provisio ns of Malta

law

(a)

the provisions of

(i) section 3 and. where a deduction is allowed in computing taxable

income by way of investment allowance , section 4 of the Aids to lndusnics

Ordinance , 1959

(ii) sections 7. 8 and 9 (so far as it provides for exemption from tax on

divide nds paid out of the gains or profits, or pan thereof, of a company which

arc relieved from income tax under the provisions of section 7). 19,20,23 and

36 (5) of the Industrial Development Act. 1988

so far as the provisions in question were in force on . and have not been modified

since. the dat e of signaturc of this Convention. or have been modified only in

minor respects so as not to affect thei r general character and provided always that

the competent authorit y of Mal ta has certified th at any such exemption from or

reduceion of MaIm tax givcn under these sections has been granted in order to

promote industrial. commercial. scientific, educational o r other development in

Malta IInd th at the gains or profits of the company, or any part thereof. were not

exempt from Malta tax for th e yea r in question. or part thereof. under the

provisions of Sections 4 or 5 of the Industrial Development Act, 1988. and the

competent nuthori ty of the United Kingdom has acce pted that such exemption or

reduction has been granted for such purpose: or

(b) any other provision which may subsequent ly be enacted allowing a

deduction in computing taxable income . or granting an exemption or reduction of

tax. whith is agreed by the competent au thorit ies of the Contracting States to be of

a substantially simitar character to any of the provisions referred to in sub-

paragraph (a)(i) or (ii) of this paragraph . so far as it hns not been modified

thereafte r or has been modified only in minor respects so as not to affect its gene ral

character. and subject alwllys to certification and ncreptan ce having taken pl ncr as

provided for unde r sub- paragraph (a) of this paragraph .

(5) Relief from United Kingdom tax by virtue of paragraph (4) of th is Article

shall be given for a periog of ten years only, beginning wit h the date on which this

Convention entered into force.

(6) The period referred to in paragraph (5) of th is Article may be extended by

agreement between the Contracti ng States.

ARTICLE 23

Lil11i,Olioll 01 Relitl

(1) Whe re unde r any provision of th is Convention any income is relieved from

tax in a Contracting State and. under the law in force in the other Contracting State a

perwn. in respect ot that income, is subject to tax by reference to the amount thereof

which is remitted to or received in that other Contracting Statc and not by referenCe to

the full amount thereof. then the re lief to be allowed und er this Convention in th e first-

mentioned Contracting State shall apply only to so much of the income as is taxed in the

other Contracting Sta te.

(2) The provisions of this Convention shall nOl apply to persons entitled to any

special lax ~nefit under

(a) A law of either one of the Contracting Sates wh ich has been identified in

an Exchange of Notes between th e Contracting States: or

(b)

Any sUDstantially similar law subsequently enacted.

ARTICLE 24

Por,,,trships

(J) Whe re, unde r any provisi o n of th is

as 8 resid e nt of Mahll .

t

of the United Kingdom to

, .

o n his share of such income

treated for the purposn of

as income or gains from

sources in Malta.

(2) Not hing in Article 10 of Ihis Convention shall e ntitle 11 pa nncrship which is a

resident of Malta to a tu: credit in respect of divide nds paid 10 the partnership by a

compa ny wh ich is a reside nt " f the U nited ki ngdom: but any pa nne rwh o is a reside nt of

Malta shall be tre ated fo r the purposes of the said A rtide 10 and of this pa ragn p~ as

having been paid a divide nd of an a mou nt rorresponding 10 his sha re of those d ividends

by the company which is. reside nt of the Uni ted Kingdom.

CHAPTER V

SP ECIAL P ROVIS IONS

ARTICLE 25

Non·discriminuliOl1

(I) Nationals of a Contrad ing State ~h :tll not be subjected in the other

Con u acting State toan y laxat io n o r any requ ireOle,1I con nected the rewit h which is

o the r o r mo re burdensome than the taxation Ind connected requireme nts towhich

nationals of that o the r Sta te in the same ci rcu msta nces are o r may be subjected.

(2) The taxat io n on a pe rmanent establishment. which an en h: rprise of a

Contract ing State has in the ot he r Contracting State sha ll nOt be less favourably

levied in that other State than the taxation levied o n e nterprises of tha t ot her State

car!'}ing on the same activities.

(3) Except where the provisioos of paragraph (I) of Anide 9. paragrlph (6)

of Article 11. o r paragraph (6) of Articlt 12 of this Convention l!)ply. interest.

royal ties and o ther di sbul'Kments paid by an enterprise of a Contracting State 10 a

reside-n t of the othe r Con tracti ng State shall. for the pu rpose of determining the

ta xab le profi ts of such ente rpri se. be ded uctible under the sa m~ condit io ns as if

they haJ bee n paid to a resi de nt of the firs t-mentioned State.

(4) Enterprises of a Contrad;ng Sta te, the capital of which is wholly o r

panl y o wned o r cont rolled , directly or indiredly. by one or more residents of the

o ther Contrading Slate . shall nOl be subje-ded in the first-mentio ned State to any

taxation o r any requi rement connected the rewith which is Olhe r or more

burdensome th lln th e tllxatiOn and con ne-cted re q ui re me nts to which ot he r si milar

e nt e rprises of that fi rst -me ntio ned State a rc o r ma y be subjee-ted.

(S) Not hin g in this Article shall be conmucd as obliging a Contract ing State

to grant to individuals who arc residcnlS of the other Contracting Slalc any

pel'$OOal allowances , rC"liefs and reductions fo r tax purposes on account of civil

sta tus , fa mily responsibi lities or any other personal ci rcumstances wh ich it gran ts

to its o wn resi dents.

(6) The provisions of Ihis Article shall apply 10 Ihe \axes which are Ihe

su bject of th is Conve ntion.

ARTI CLE 26

M/It"DI Agretm~"1 Proud"rt

Whe re a person considen; that Ihe aClions of one or both (If th e

(I)

Con tractin g Stat es resul t o r will result for him in taxat ion not in accordance with

the provisions of this Convenlion, he may. irrespective of Ihe re medies provided

by the domeSlie law of Ihose States. prese nl his C'd$e 10 the competenl authority of

the Cont racting State of which he is a reside nl or. if hiscase comc:s unde r paragra ph

(I) of Article 2S of th is Convention to that of Ihe Contracting Sta te of whi ch he is a

national.

(2) The COmpetc:nt authoril y shall endeavour. if the objection appears 10 il

to he juslified ,md if it is OOt itsclf able to arrive at a SlIlisfactory stllu tion . to resolve

the case by mutual agreement with the co mpete nt au tho rit y uf Ihe other

Contractin g Stale. with a view to the avoidance of taJIation which is not in

ar:rordanee with the Convention.

(3) The co mpe tent authorities of the Con tracting States shall endeavour to

resolve by mutua l agreement any difficulties or doubl s lIrising as to the

interpretation or appl iea t ion of the Conven tion .

The eom pelent authorities of the Contracting St"tes may communicate

(4)

wit h each ot her di rectly for the pu rpose of reaching lI n agreeme nt in the se nsc of

[he preceding paragraphs.

ARTICLE 27

Exchal1gt of Info rmolion

(I) The compelent ;luth\lrities of the Contracting Slales ~ hall exchange ~uch

informa lio n as is necessa ry for earryi ngou lthe provisions of this Convenlion orof

the domeslic laws of the Con tractint States concerning tues covered by the

Cnnven tion insofar as thc taxation thereu nder is not cont rary to th e Conven tinn.

Any information received by a Contracting State shall be trelued as secret in the

sa me man ner as informatio n obtained under the domestic laws of that State an d

shall he disclosed on1 r to pe r~)IIS or aUlhorit ies (including courts lm<J

adminislf8tive bodies) involved in the assessment or collec!ion o f. the enforcemen t

or prosecution in respect of. or the determi na tion of appeals in relation 10. Ihe

t3~C S covered by the Convenlio l1 . Such persons or authori ties shall u...: tire

information only for such purposes. They may disclose the informati on in publie

court proceedings or in judicial decisions.

(2 ) In no case shall the provisio ns of pa ragra ph tl ) of th is Artic le be

construed so as to impose on a Contracti ng State the obliga tion

(a ) to ca rry out administrati\'e measu res at variance wit h the laws ,m<J

administrative practice of thal or er the other Contrllcting State ;

(b) IU ~upply information which is not ohwin;lhk umkr Ihe J~W) ur in the

normal course of [he ~dminis tr~lion of I h~t or uf the other C'lnlmcling State

(c) 10 supply informatlon whic h would disclose any ~f1lde . b~si ness.

industrial, comme rcial or professional secret or trade process, o r IOfo rm allon, the

d isclosu re of which would be contrary to public policy.

A RT IC LE 2R

Diplomafic and Coruular Olfida/s

Noth ing in th is Convention shall affect the fiscal privilego of diplom a tic agents o r

consular officials under tne gene ral rules of international law or under the provisions of

special agreemcnts.

ARTICLE 29

Entry in/o Force

( I ) Each o f the Co ntrac1i ng Sta tes shall not ify to the other through the

diplomatic channe llhecompletionofthe procedures required by il$lawfo r the bringing

inlO foTIX of this eonventlon . This Convent ion s hall en le r into fo rce o n the dale of the

la ter of these notifications a nd shall thc re upon ha ve effect

(.)

in the United Kingdom

(i) in respect of income lax and capilal gains lax . for any year of

assessme nt beginni ng on or after 6 April in the calenda r year next following

that in which the Conven tion e nl e n into force

(il) in respt'C't of wrporatm tax . for any financial year beginnin, o n or

after 1 April in the cale nda r yea r next following lh at in whid! the Conventi on

en lers inlo fo rce;

(b)

in Malta

in respect of income tax , for Bny yea r of assessment beginning on or after

the first day of Janua ry in the calendar year next fo llowing that in which the

Co nvention enters into forre .

(2) The Arra ngeme nt between He r Majesty's Govern ment and the Government

of Malta fo r Ihe Avoidance of Double TaKation a nd the Preventio n o f Fiscal Evasion

wit h respect 10 Tues o n Income as amended by the Agrt'emcnt signed al Vallell' on

29t h November 1974 (hereinafter refe rred tll as -t he 196 1 ArnlOgement- ) ~ha ll

terminate and cease to be effective from the da te upon which this Conve ntion has effect

in respeCI of the taxes to which this Conve ntion applies in accordance wi th the

provisions of paragraph ( I) of I his A nicle .

(3) Whe re I ny provision of the 1961 Anangcmcnt would have afforded any

greater relief from tax than is due under this Convcn tklO , any such provision as

IfoTC:Said shall continue to have effect

(a)

in the United Kingdom, fo r a ny ye ar of assessment . financial year. o r

~hargeable period : an d

in Malt a. for any yc n of a s.'\C~S Olcnt

(h)

beginninK in eithe r case . before the entry into f",rcc of this Convention.

A RT ICLE )()

Terming/ion

This Convcntion shall rcmain in force untillcrm inaled by Ollt' of the Contrat1ing

SlaIn. EithcrContractingState may terminate the Convcntlon. through the diplomat ic

channel , by giving notice of termin ation at least sill months before the e nd of any

calcndar yea r. In such event. the Convention shall cease to have effect

(b)

in the Uni ted Kingdom

(i) in respect of inco me tu and ca pital gai ns tall, for any year of

assessment beginning on or after 6 April in the calendar year next following

that in wh ich Ihe notice is given

(ii) in respect of corporation tu. for any fin ancia l yea r beginning(ln or

after I April in the calendar year next following th at in which the notice is

give n

(a)

in Malta

in respect of income 18:11 . for any year of assessment beginning on or after the

first day of January in the calendar yea r nex t followin g that in which the notice is

given .

In witness whereof the undersigllt'd . being duly authorised thereto by their

respective Governments. have signed th is Convention.

DONE al London. this 12 day of Ma y. 1994. in the English language.

JOSEF BONNICI

STEPH EN DO RELL

For the Govern men t of Malta

For the Govern ment of the

United Kingdom of Great Britain and

Northern Ireland

6n

B

EXCHANGE OF NOTES

London

12th May. 1994

Y our Excellency

I have the honour 10 refer to the Convention between the Government of tbe

United Kingdom of Great Britain and Nonhem Ireland and the Governmen t of Malta

for the Avoidance of Double Taxation and the Prevention of Fiscal EVa5ion with

respect 10 Taxes on Income and Capital Gains which has been signed today and 10

propose on behalf of the Governmen t of the United Kingdom of Great Britain and

Nortbem Ireland that

<a> with ~fe,ence /0 Articks 7 cmd9. il is understood that oolhingconlained

thtrein shall affcct lhe application of any law of a Conulcling State relating 10 the

determination of the lax liability of a person, including the determination of such

liability by the eJlercise of discretion or the ma king of an estimate by the competent

authority of that Slale in cases in which, from the information available 10 the

competen t authority of that State, it is 001 possible or practicable 10 ascertain the

profits to be attributed to a pennanent esta blishmen t, provided that that law shall

be applied , so far as the infonnation available to the competent autho rity permits,

consistently witb the princi ples of the said two Articles;

(b) with reference to paragroph (9) of Article 11, it is und erstood thalthe

relevant institutio n, agency or instrumentality shall in the case of tbe U nited

Kingdom be the Export Credits Guarantee Department and shall in the case of

Mait a be Ihe Export C redit Guarantee Company Ltd ;

(c) wilh reference to fJOr"8r"ph (6) of Article 22, it is understood that al the

request of onc competent authority both Contracting States shall e nte r into

discussions about ex tending the period referred to in paragraph (S) at any time so

that , in the even t of an agreeme nt 10 ex tend that period being reached , there

should be no discontinuity in the applicatio n of th e Article;

(d) with reference to paragraph (2) of Article 21, the provisions of this

Conventio n shall nOI apply;

(i) to persons who are en titled to a special tax benefit under the Ma lta

Int ernatio nal Business Activities A ct 1988 exce pt for those persons who opt

unde r Section 41 of the said Act 10 be s ubject to the nonnal provisions of the

Income T ax Act (Ca p. 123); o r

(ii) to persons who and to the exten t to which under the provisions of

the Merchant Shipping Act 1973 are not subject to tax on the profi ts derived

from the operation of ships in inltroalional traffic; or

(iii) to persons en titled to any special tax benefit in respect of

distributio ns by a trust subject to the provisions of th e Offshore Trusts A ct

1988 given that a trust as laid down in tha t Act is not vested with legal

personality and therefore cannot benefit unde r the Convention in its own

right; o r

B 6"

(iv) 10 personsentilJcd toany spedal lax benefit under any substantially

similar law subsequen tly enacted and which is agreed by the competen t

authorities of the Contracting States as included within the tenns of paragraph

(2) of Article 23 of this Convention.

If the foregoing pioposals are acttptabk to the Government of Malta, I have the

honour to suggest that the present Note and Your uc:elleocy', repl y 10 Ihat effect shall

be regarded as constitu ting an agreement between the two Govemmcnu in this matter

which shall enter into force at the Iilme lime as the enlry inlo force of Ihis Convention.

' avail myself oflhis opportunity 10 extend to Your Excellency the IIl.5uranceof my

hi&hest consKIcratkln.

J .S. BUCK

tOf the SCClclary of Slale

for Foreign and Commonwealth Affairs

B

floriana

12th May. 1994

Your Excellency

I have the honour to acknowledge receipt of Your Excelle ncy's Note of today

which reads as follows

~I have the honour to refer to the Convention be twee n the Government of the

United Kingdom of G reat Britain and No rthern Ireland and the Gove rnmenl of Malta

for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with

respect to Taxes on Income and Capital Gains which has been signed today and to

propose on behalf of the Government of the United Kingdom of Great Britain and

Northern Ireland that

(a) wilh reltrel/Ce 10 Article$ 7 a" d 9, it is understood that nothing contained

therein shall affect the application of any law of a Con tracti ng State relating to the

determination of the tu: liability of a person , incl udi ng the dete nnination of such

liabili ty by the exe rcise of discretion or the mak ing of an estimate by the competent

authority of Ihat State in cases in which, from the infonnation available to Ihe

competent authority of that State, it is not possible or practicable to ascertain the

profits to be attribu ted 10 a permanent establishment, provided that th at law shall

be applied , so far as the infonnation available to the compe tent authority permits,

consiste ntly with the principles of the said two Articles;

(b) with re/ert" ct 10 iX'ragraph (9) 01 Article 11, it is understood th at the

relevant institution, agency or instrumentali ty shall in the case of the United

Kingdom be the Export Credits G uara ntee Dep31 tment aDd shall in the case of

Malta be the Export Credit Guarantee Company Lld;

(c) wjlh re/ere" u fO parIJgraph (6) 01 Article 22, it is understood th at at the

request of one competent authority both Contracting States shall enter inlo

discussions about extending the period referred 10 in paragraph (5) at any time so

that, in the even t of an agree ment to exte nd that period being reached, th ere

should be no discontinuit y in the applica tion of the Artide;

(d) wilh reltre"u I Q paragraph (2) 01 Artjcle 23, the provisions of Ihis

Convention shall nOI apply;

(i) to perso ns who are entit led to a special tax benefit under the Malta

In te rn at ional Busi ness Activities Act 1988 except for those persons who opt

unde r Section 41 of the said Act to be subj ect to the normal provisions of the

Income Tax Act (Cap. 123); or

(ii) to persons who and to the extent to which unde r the provisions of

the Mell: hant Shipping Act 1973 are not subject 10 lax o n the profi ts derived

from the operation of ships in intemalionaltraffie; or

(iii) to persons entitled to any special lax benefit in respect of

distributions by iI trust subj ect to the provisions of the Offshore Trusts Act

1988 given that a trust as laid down in th at Act is not vested with legal

personality and therefore ca nnot benefit unde r the Convention in its own

right; or

.6Ol

(lv) 10 pt;Moscntitled to any special tall benefit under a ny substantially

limilar law subsequen tl y enacted and which is _&reed by tbe corn!",!cnl

authoritics of the Contracting Sllles as incl uded wi th in the tCITIl5 o f paragraph

(2) of Artkle 23 of this Conve ntion.

If the foregoing proposals a re acceptable to the Gove rnment of Malta, I have the

IKmour 10 suggest tbalthe prese nt NOIe and You r ElIctlkncy', reply 10 Ihat effect shall

be rega rded a:s constituting a n agreemen t between the two Governments in Ihis maner,

which shall enler into force at the same time as the entry into force of Ihis Convention".

The foregoi ng propo$als being acce ptable to the Gove rnment o f Malla, I have the

honour to confi rm tha t Yo ur Excellency's Note and this Reply shall be regarded as

constituting a n agreemen t between the two Gove rnme nts in the ma ner which shall

enter into fora: lithe same lime as the e ntry in to force of Ihis Conven tion.

I avai l myse lf of lhis opponunily locxlend to You r Exce llcncy the assurance of my

highest considerat ion .

VINCENT GALEA

Commissione r of Inland Revenue

Fo r thc Governmen t of Malta

f5OIdl3c

(a) iIli I-arrangamenli spet;ifikati fiI -Ftehim muri n· hkeda

li linsab ma' da n l-ordni gew magll mula mal-Gvem lar. Renju

Unit tal-Gran Brin anj. u I-Irlanda la' Fuq sabiex jing!lata

helsicn min n tau. doppj! d ...... r it-Iuxi li gejjin slabbiliti bil-

ligijicl lar- Renju Unit tal-Gran Briltlnj. u I-Irlanda ta ' Fuq

(i) il_laxn fuq I-wonit';

(i i)

it-laua korporauiya ; u

(HO

it-Iun fuq il-ql igl'l klpitali ;

ilU huwI 5pedjenli li dlwk I-arnngamenli jkollhom

(b)

effett ;

(t)

iIIi I-Ftehim beda jscl'll'l fis-27 la' Manu, 1995.

S KEDA

FrEHIM

BEJN MALTA U R-RENJU UNIT TAL-GRAN BRITTANJA

U L -IRLANDA TA· FUO

GH ALL- MELSI EN M INN TAXXA DQPPJA

U BIEX TIC I EVITATA EV AZlONI FI SKAU

DWAR TAXXI FUO L- INCOM E

U QUGH KAPITAU

II-Gvern la' Malta u I-Gvern tar-Renju Unil tal-Gmn Brinanja u I-Irlanda la'

Fuq. billi jixliequ jagl'lmlu Flehim gd id gl'lall-l'I elsien minn laxxa doppja u bie. lit;

eyilala cYdjon; fiskali dwar tau i fuq I-income, u qli gh kapi lali. fle hmu kif gej

6JO

B

KAPITOLU I

mlAN TAL-FTEH IM

ARTlKLU 1

Gh(lll PtflonQ1i

Oa" il-Ftehim ,handu japplika ghaU-persuni li huma resident; ta ' wichcd mill-

Istati Kontraen ti jew lal-lnejn.

ARTIKLU 2

Tau; Ko~rti

(I)

It-taui c1:islenli li ghaHhom japplika dBn il· Flehim huma

(a)

m· kat tar-Renju Unit

(i) it-Iaxxa fuq J·ineorm'

(ii) il-tana korporaui"a; u

(iii) it-taua fuq il-qligh !tapilal;;

(hawnhckk itjed 'il quddic m imsejha ~ it · la.u.a lar- Renju Unit ~) ;

(b)

fil·k d ta ' Malta

i!-tau.a fuq '-income,

(hawnhek k itjed 'it quddicm imseih. Mil _laua ta ' Malta

H

) .

(2) Il· Flehim ghandu japplika wkoll ghal tull tana bhal ho m Jew li

soslanzja lment lillbahhom li jigu imposti wara d·da la la' dan il-Ftehim b'tieda ma'.

Jew minflok . iHani eUslenli. L-awtorilajicl kompctenti la' '-Islali Kontraenti

ghandhom jam .... lil .tuWn b'kull libdil sinjifikanli li ikunu saru fiI-ligiiiel "",horn

rispellivi li jirrigwardaw il-lau:a ,

(3) Mink ejja d-dispoti~jonij ie l l-ohra la' dan I-Arl iklu dan il-Flehim ma

japplika.l gha l IUxa mhal1sa Jew li lilhallas f M;tl ta skond id-d ispotizzjonij ie l illS-

subarlikolu ( 11 ) la' I-arlikolu 31 la' I-A ll dwar il-Tun fuq I -Jncom~ (Kap , 123)

dwar I-incomt la uabbli la' persun a li Ikun lahdem fiI-produzzjoni la' tejl /Hlro/tu m

li jigi prodOIl fMalta jew ku ll dispotilljoni ohm sostanljalment simili li ligi imposla

wa ra d-da la tal-firma ta' dan iI -Flchim,

KAPITOLU 11

T1.F'S IRIET

ARTI Kl U 3

Tifsirkt (jent'rtlli

(I) G l'lall-ghanijiel ta' dan il-Fte hi m, kemm -il darba r-ra bla tal -klitm ma

tdlliep .lort'ohra

il-frati " Renju Unit" tfbser iI -G ran IJrillanj~ u I-Irlanda la' Fuq , u

(a)

~ull a re~ ba rra mill-bahar terri lo rjali lar- Renju Unil li skond iI, ligi

mlernUllonal; hi hck k imsemmija Jew ak In 'il qudd ie m lista' lissejja h, lahl iI-

ligijiel tar-Renju Unit dwar il-Blilla KllnlinCnlal L I>h;lla are a li rii'll! d-drillij ie l

ta r-Renju Unil dwar qicgh iI -oahn u s-w tllhwlIl u r-ritorsi naturali laghhom

jislghu jigu derti lali ;

B 6JI

(b) il·frat; " Maha" me ta utat .. rsens geografiku tfisse r il-Gi.ir .. ta ' Ma lta .

il·Otira ta' Ghawdex u I-gi:ejjc r l-ohra la' '-A rtipc lagu Malti. nimkien ma ' ,.

ibflra territorial; laghhom . u kull a rea barra mill -baha r u: rritorjali la' Malla li .

skond il-ligi inte rnaujonali. hi hekk imsemmija jew ak tar ' il quddi c m lista'

lissejjll.h , lahl il-ligi ta ' Malta d war ii·Rlala Kon tine nt ali. bI'Iala area 1; fiha d-

driuijiet la' Malta dwar qiegh il-bahar u s-sotloswo l u r- riio~i nat urali taghhom

jistghu jigu eiCTala!;;

(t)

il-fratiji et "Slal KontTaen!i" u "I-Istal Kontrae nti I-ichor" ifissTU , sko nd

ma Ichtieg iT-rab! a taJ-k liem, if-Rell;u Unit jew Mal ta;

il· frat; Mpersuna" tinkl udi individwtl u -

(d )

Ci) ghar· rigwa td lar-Renju Unil , uk oll kumpannija jew kull korp ichor

ta' persuni itda ma' linkludix soCjelA ;

(ii) gha r. rigward la' Ma lla. wkoll kumpan nija u ku ll korp iehor la'

persum ;

(e) il·frati Hkumpannija" lfisser kull ghaqda korporala jew kull enli li

lilqies bhala ghaqd a ko rporata ghall·finijiet la' laxxa;

(I) il·fratijicl ~ imprita la' Slal Ko nlrac nti" u "imprita la' I·!stat Kontracn li

I-ichor" ifissru ri spcllivame nl impriia li litmCx:la minn residenti la' Stat

Kontracnli u imprita li tilmClla minn reside nti la' \· b I81 KonlTaenti \· iehor;

(g)

il· fran HnazzjonaU" tfisse r

(i) gha r· rigward lar-Renju Unil , kull tilladin Brillanniku. jcw kult

sudditu Brilla nniku li ma jkollux ic-alladinanza la' xi pajjiz jew Ic rrito rju

ichor lal·CommO"I'-eallh , kemm-il darba huwa jko llu I-jedd li jabita fir-Re nju

U nil ; u kull persu na Icgali , weje lA, 1I.5SOI!"jazzjoni jew enli iehof li jikseb 1-

istatus lieghu bhala hekk mill -li gi li tku n fis-se hh fi r. Re nju Unil;

(ii ) ghar-rigward la' Malta, kull cilladin Malti u kul1 !)Crsuna lega li,

sotjelA, as~jaujoni jew en li ichor li jikseb I- ista tu s lieghu bhala hekk mill·

ligi Ii tkun fis-sehh f Mall a;

H

(h) il- fraii Hu arfiku internaujonali lfisscr kull tr.l spon b'bastimenl jew

b'ingcnji la' I-ajfu imhaddma minn imprita ta' Slal Konlrae nli , barra minn

mela I-bastimcnl jcw I. ingenji la' I-ajru ikunu mh!iddma biss bejn postijiel ft-

Istat Ko ntrae nti I-ic hor ;

il-frati -awtorit ~ kom!)Ctcnti" tfisser

(i)

(i) fil · kat tar-Rcnju Unit , il- Kummi ssa rji ghat.T axxi Intern i jcw If-

rappfeien!ant aw!oriZZil! la ghh om;

(ii) fiI -kat ta ' Malta, il- Ministru responsabbli ghall.finanzi jcw If-

rappfcte nlan t aWloriuat tiegh u.

(2) A-applikazzjoni ta ' dan il-Fleh im minn Slal Ko nt raenli. kllll fraZi li mOl tk unx

xort' o hca imrlSSra fih ghandha. kemm-il darba r-rabla tal -k1iem ma tchtiep lI.ort 'obra ,

ikollha l-isless tifsi r kif moghl i litha tabt il-lipjlel ta' dak '·!slat dwar it-taxxi 1i dan il-

Flehim japplika glIa liho m.

ARTIKLU 4

Resident;

( I)

Chall.finijiet ta ' dan iI-Ftchi m. il· frati Mrcsidenli ta' Stat Konlraenti'"

lrisser kul! per$un3 ii, tab1 il-Hgijict ta' dak \-Istill . hija suggeua ghat-ta:ua

hemmhekk minhabba d.domiti lju , ir-reside nlil , post tal· maniit jew xi krilerju iehor

ta' Iona bhal di n. lroa din il·fraii ma' tinkludix lil persuna li Ikun suggelta gliat-

taxxa fda k I-Ista t gha r-rigward biss ta ' im:ome jew ta' qligl'l kapit ali minn ghejjun

gewwa fih.

(2) Fejn minhabba d-dispotiujonijiet tal-paragrafu (I) Ill' dan I-Artiklu

individwu jkun residenli tat-tewg Slati Kontraenti, allura I-Istat tiegbu gbandu jigi

determinat kif gej;

(a) huwa gha nd u jitqics 1i jk un reside nt i unikament ta' I-htat Kontraenli

li fih ikollu da r permanenti gbad-dispoti:ajoni liegh u; jekk huwa jkollu dar

permanent i ghad-dispo:i;i:ajoni tieghu fit-tewg Stali, huwa ghandu jitqies li

huwa residenti unikament la' I-Islal Konlraenli I. mieghu ir-relazzjonijiet

personali u ekonomiCi tieghu jkunu I-aktar marbula (ec ntru ta' interessi vitali);

jekk I-Istat Kontraen ti li fi h huwa jkollu e-c.entru ta' inleressi vitali

(b)

ma jistax jigi delerminal , jew jekk huwa ma jkoll ux ghad-dispoi:izzjoni tiegh u

dar permanenti f1-ebda Slat Ko nlraenti, huwa ghandu jitqics li jkun residenti

unika menl ta' 1- 151al Konlraenli li fih sollu jirrisjedi ;

(t) jekk huwa 5-SOltu jirrisjedi fit-i:ewg Stati jew febda wiehed minnhom,

huwa ghandu jilqics li jkun residenli unikament ta' I-blal Konlraenti li litghu

jkun nazzjonali;

(d) ;eH huwa jku n nazzjonali lat-tewg Slali Konlrae nti jew la' l-ebda

wiehed minnhom, I-awtoritajiet kompclenti ta' I,Istati Konl raenli ghandnom

jiddeCiedu I-kat bi ftehim Dejnitthom,

Mela minhabba d-dispoti:ajonijit:! tal. paragra fu ( I ) ta' dan I- Artikl u

(3)

persuna li ma Ik unx individwu tkun residenti tat-tewg Stali Kontraen li, din

ghandha ghaldaqstant titq ies bl'lala residenti un ikamen t ta' I-Istat Kont rae nti fejn

ikun jinsab il-post cffeni v tal-manigg I8ghha.

ARTTKLU S

Sfabbifimefl/ Permaflefl/j

(I ) Gball-finijiet ta' dan il,Ftehim il·fratl "stsbbilimenl permanenti" tfisse r

post tan-negozju rlSS li minnu jitme:u:a gbal kollox jew fpani x-xogboJ ta' imprita.

(2) lI·frm "stabbilimcnl permanenti" tinkludi b'mod speqali

post la' manigg;

(.)

fergha;

(b)

uffKtju j

(0)

(d)

fabbrika ;

hanut laJI.ltoghoJ;

(0)

(I)

slallazz}oni Jew strull ura ghall-esplorazzjoni ta ' fizorsi naturali ;

(g) minjiera, biT tat-iej! jew tal-gass, barriera Jew kull post ic hor ta'

eSlrll7%joni ta' marsi na lurali ;

art Ii Ikun qeghda tinbc n~ Jew progett ta' kostruzzjoni Jew asse millagg

(h)

jew atl iYitaj icl superviwrj i li ghandhom x'jaqsmu ma' dan , meta dik 1·art ,

progett Jew atlivitl ikomplu ghal iklar minn silt lthur.

(3) Minkejj. d-dispotiujonijiet ta' qabel ta' dan

1-Anildu ,

il-frati

"slabbilimen t pennanenti" gI'Iandha titqies li ma tin kl udix

(a) ]·utu ta' raCilitajicl gfIaU.iskop biss ta' haina , wiri jew tqassim ta'

oggelti Jew merkanxija li jkunu proprjetA la' ].impriZa;

(b) il-titmim ta' hina ta ' oggetli jew merkanrijll. li tku n proprjc:llI la' 1-

impriia ghall-iskop biss la' hltna, wiri Jew Iqassim;

(t) il-titmim la' hltna la' oggetti jew merkanzija li tkun proprjeLl la' 1-

impriia ghall-isltop biss la' peotessar minn impriia ohra;

(d) il-titmim ta ' posl flss ta' negozju ghall-isltop biss la' xiri ta ' oggelti

jew me rltanzija jew la' gbi r la' laghrif ghall-impriia ;

(e) i1-titmim la' posl fiss ta ' negozju ghall-iskop biss li laghmcl, gh all-

imprita , )ti allivil ll ohra la' )tona prepa ralorj a Jew awiiljarja;

(I)

il-manutemjoni ta' posl lan-negozju flss uniltamenl ghal

kombinazzjoni la' I-allivitajiel imsemmija fls-subparagrafi (a) sa (e) la' dan il-

paragrafu , kemm-il darba I-allivilll kollha lal-posl lan-negozju fiss li lirri:.!:ulla

minn din il-kombinazzjoni Ikun wahda ta' )torta preparalorja Jew awtiljari ,

(4) Minkejja d-dispo:.!:izzjonijiel lal-paragrafl (I) u (2) ta ' dan I-Artiklu mela

persuna - Ii ma Ikunx age nlta' stalus indipendenti li gha liha jappl ika I-paragrafu (5) la'

dan I-Artiklu - lagiui ghan-nom ta' impri:.!:a u ghandha, u soltu IweUaq fi Slal

Konuaenli awtoritllli likkonkludi kunu alti f ise m I-impri:!:a, dik I-im pri:.!:a ghandha

lilqies li ghandha stabb ilimcnt permanenti fdak I-Islat dwar kull attivi l ~ Ii di k iI-

persuna laghmel ghall-imprita, sakemm l-auivitajiet la' dik iI-persuna ma jkunux

li mitati ghal-da wk imse mmija fiI -paragrafu (3) ta ' dan I-Artiklu li, jekk jigu e:.!:ertilati

minn posl lan- negolju flu, ma jirrendux lil dan iI-posl tan-negotju flss stabbilim enl

pennanenti laht id-di spo:!:izzjonijiel la' dak il-paTagrafu,

(5) Impriia ta' Slat Kontracnti ma gliandhiCK lilqics li jkollha stabbiliment

permanenti fi Slat Kontraen ti icho r glialicx biss Imexxi ncgolju fdak I-bta! ichor

permezz ta ' se nsal, agent ge ne ral i h'kummissjoni Jew xi agent ichor bi Slalus

indipcndcnti . meta dawk il-pcrsuni jagixxu fiI -kars o rdinarju tan-negozju taghhom

lida. meta l.anivi!ajicl la' dak I-agent i kun u qeghdin jitwe uqu gbl kollox Jew

f pa rti minnho m ghall-impriza Uew ghall-impriia u ghall impriii ol'lra li huma

kontrolla ti minnha Je w li ghandhom sehe m parteCipattiv filia Je w li huma s uggetti glIall-

istcss kontroll ko muni) u I- kondizzjonijiet maghmulin Je w imposti bejnithom fir-

relazzjonijiet kummc rcjali Jew finam:jarji jkunu differe nti minn dawk li kicku kienu

jSiru Jew li ki enu jigu imposti li kieku dan ma kienx il- kat, dak I-agenl ma gbandux

jitq ies bhala agenl ta' stalu s indipende nti ghall-ghanijiella' dan il-paragrafu .

(6) !I-fallli kumpannija Ji tkun residenli la' Slat Kontraen ti tikkonlrollajew tkun

konlrollala minn kumpannija li Ikun reside nli ta' 1-lslal Konlraenti I-iehor, Jew li

tmexxi negozju rdak l-Islal I-iehor (sew permezz la' stabbilimenl pennanenti sew

xort'ohra), ma gbandux fih innifsu jikkoslilwixxi xi wahda miIJ-kumpanniji bhala

slabbilimen l permane nti la' l-ohra.

KAPITOLU III

TASS AZZJONI T A' INCOME

ART IKL U 6

In come minn ProprjeliJ Immobilja,;

(I ) Income mik sub minn reside nli la' Slal Ko nlraenti minn proprjelA immobiljari

(inklut income minn xoghol n-agrikoltura u fil-baskijiet) sitwala ft-l5tat Kontraenti 1-

idlor jisla' jigi nlanat (,dak I-Istat I-ie ho r,

(2) II -fraii "proprjet1l. immobiljari" ghandu j kollha I-istess ti fsi r Ii ghandha tahl il-

ligi ta' I-htat Kontraenti li fih il-proprjet1l. li Ikun hija silwala, Il-fra.!i ghandha (,kull kat

linklu di proprjetA accessotja ghal proprje t1l. immobiljari , bhejjem u taghmir utali ft-

agrikoltura Jew fil-baskijie t , drittij ielli ghalihom japplikaw id-di spotizzjonijietlal-ligi

generali dwar proprjela immobbli Je w terre na, utufrutl la' proprjel1l. immobiljari u

dritlijiet ghal hlasijiet Ii jvarjaw Jew fissi bhala kumpens ghall-hdim la' ,Jew ghall-jedd Ii

jinhadmu Jew li jigu es plorati de potiti minerali, ghejjun u riiorsi ohra naturali;

baSlime nli, dghajjes u ingenji la' I-ajru ma ghandho mx jilqiesu bhala proprjeta

immobiljari,

(3) Id-dispotizzjonijiet lal-paragrafu ( I) ta' dan I-Arlikolu gbandhom ukoll

japplikaw gbal income li jinkiscb mill -uiu dirett , kiri , Jew utu la' kull xort'uhra la'

proprjeta immobiljari ,

(4) Id-dispoiizzjonijiel lal-paragrafi ( I) u (3) ta' dan I-Arlikolu ghandhom

japplikaw ukoll gbal income minn proprjela immobiljari la' impriia u gbal income minn

proprjeta immobiljari li Ikun uiata ghall-qadi la' se rvizzi personali indipendenli.

B

ARTIKLU 7

Profifli minn Negotju

(1) ll-profitli ta' impriza la' Slal Kontraenti ghandhom jigu nlauali biss fdak

1-ISlat kemm-il darba I-impriia ma tm exxix lIegozju n-Istal Ko ntraenli I-ichor

permezz la' stabbiliment permanenti li jkun qieghcd hemmhekk. Jekk I-im priia

Imexxi negotj u kif intqal qabel , il-profilli ta' I-i mpri:i:a jistghu jigu ntaxxali n-I slal

I-ie hor i:i:da biss dik il-pani minnhom li tkun allribwibbli ghal dak I-istabbilimcnt

permane nt i.

(2) Bla lisara gliad-dispozizzjonijict tal-paragrafu (3) la' dall I- Artiklu, mcta

impri:i:.a la' Stat KOlltrae nti tmexxi negozju n-lstat Kontra enli I-ichor permezz ta'

slabbiliment permanenti li jkun qieghed hcmmhekk. ghandho m jigu attribwiti lil

dak I-islabbilime nt permanenti null Stat Ko ntrae nti I-profitli li ki en ikun mistenni

jaglimel kieku kien impriza distinta u scpa rala li tahdem n-istess attivitajiet jew

ohrajn bhalhom talit l-istess kundizzjo niji et jew olirajn bhalhom u li talidem

indipendente me nt ghal kollox mill-impri:i:a li taghha hija stabbil imen t permane nti

jew mill-imprizi oh ra li huma ko ntrollati mill-impriza I-ewwcl imscmmija jew li

jkollhom schem panecipattiv fiha jew li jkl.lnu suggetti ghall·istess kontroll ko muni.

(3) BieJlO jigu slabbiliti I-profitli la' slabbilimeot permanenti , gha ndhom ikunu

permessi bhala tr.aqqis dawk I-ispejjei ta' I-imprii.a, li jkun spejjez li jsiru ghall-ghanijiel

tal-istabbiliment permanenti (maghduda l-ispejje:i: e:i:ekuttivi u ammioistranivi gene rali

1i jsiru) u li jkunu jitnaqqsu li kie ku l-iSlabbiliment permanenti kien e nti indipendenti li

jkun hallas dawk l-ispejjei, sew jekk ikunu saru n-Islal Koot raenti li fih ikun hemm 1-

istabbiliment permanenli je w jekk ikunu saru band'ohra.

(4) Ma ghandhom jigu attribwiti e bda profitli lil slabbiliment permanenti

minliabba biss ;";-xiri minn dak l-istabbiliment permanenti ta' oggett; jew merkanzija

gliall-impriZa,

(5) Ghall-finijiel tal-paragrafi ta ' qabel, il-profitti li ghandhom jigu atlribwiti liIl-

iSlabbiliment permanenti ghandhom jigu stabbiliti bl-isless mod mino se na glia l sella

kemm-il darba ma jkunx hemm ragulli tajba U biuejjed biex isir kuntrarju,

(6) Id-dispotizzjonijiet ta' dan I-ATliklu m'ghandhomx jolqlU l-applikaujoni

tad-dispoiiujonijiet tal-ligi ta ' Stat KOlltraenti dwar it-Iassazzjoni ta' profitti fuq in-

negozju ta' assikuraujoni.

Me ta profitli jinkludu oggetti ta' income jew qli gh kapilali li qed jigu

(7)

trattati separatamenl f Art ikli o hra ta' dan il-Flehim, allura d-dispoiitzjonijiel ta'

dawk I·Artikli ma jkullux milq uta hid -dispoiizzjonijiet ta' dan l-Artiklu .

ART1KLU 8

Trasport biI-Balrar u bl-Airr~

(I) l1 -profitli li jinkishu minn residenti ta ' Stal Kon trae nti mit-Ihaddim ta'

bastiment jew ingenji la' I-ajru fi traffiku internazzjonali ghandu jku n bi ~s taxxabb li

fdak l- lstat.

(2) Gl\all-ghanijiel ta' dan I-Artiklu, profitti mil-thaddim ta ' banimenli jew

ingeo;i ta' I-ajm fi traffiku internazzjonali jinkludu

(a)

income mill-bini ta' bastimentijew ioteo;i ta' i-ajru fuq bati oortboa/; u

. (b)

profitti. mill-ui u, marlUlenljo ni jtW bini to' containers (maghdudin

" ~/tfs u taghmlT relatal ghal-\raspon tu' con/aincrs) utali ghat-Irasport ta '

ogge tt i jew merkanzija ;

meta dik il-k irja jew dak I-ufu, manul enzjoni jew kirja . skond it·kd. ikunu

intident ali gtlat- thaddim ta ' baslimenli jc:w iogenji ta' I.ajm fi Irarfi ku

inlcm azzjonali.

(3) Mela I'profilli li jaqghu tal'lt il-paragrafi (I ) u (2) ta ' dan I- An ikl u jinkisbu

minn .~es ide n ti ~a' ~tal Kontraenli mi!l-parteopazzjoni rpoof , negozju bi sl'ul.b jew

~genZlJa operlt,11v.a IDtemazzjonaii, il-profiui aUribwibbli IiI dak ir· residenti gbandhom

Iku nu taxxabbh blss n· lstat Kontraenti li fih ikun residenti.

ARTIKLU 9

Imp riii ArsotjQli

(1)

Meta -

(a) impriZa ta ' Stat KnntTaenli lipparteCipa direltament jew indireltament

fil-Imeltltija, kontrol! jew kapital ta' impri1a la' I-lstal Kontraenti I-iehor; jew

(b) I-isless persuni jipparteQpaw direllam enl jew indirellament fil-

tmexxija, kontroll jew kapilal ta' impri1a la' Stat Knntraenti u la' impri1a la' l-lslat

Kontraenti I-iehor;

u fkull kaZ jigu maghmula jew imposti kundizzjnniji et bejn it-tewg impriii fir-

relazzjonijiet kummertjalijew finanzjarj i ta' bejniethom li ma jaqblult ma' dawk li kienu

jigu maghmula bejn impri:ii indipende nti, fdak iI-kai profillli , kieku ma kienult dawk

il-kundiujonijiet , kienu jakkumulaw ghal wal'lda mill -impri:ii , iida minhabba dawk il-

kundizzjonij iet ma ge wlt hekk akkumulati . jis lgI'Iu jigu inkluti minn Slat Knntraenti fil-

profilti la' dik l-impri1a u intaxxali skond hekk.

(2) Meta Stal Kontraenti jinltludi fil -profilti ta ' impri1a la' dalt 1· lstat , u jinlultll

skond hekk , profill i li fuqhom impriZa ta ' I-lslat KnntTaenti I-iehor jiet intaJU[ata fdak

I-!stat I-ichor u I-profitti hekk magl'lduda jkunu profilti li kienu jinqalgbu mill-impriia

ta ' l-ewwel Slal imsemmi kieku I·kundizzjonijie t mag/'lmula bejn it-tewg impri:ii kienu

dawk Ii kienu jsiru bejn tewg impriZi indipendenli. allura dak I-Istat I-ichor gI'Iandu

jaghmel it-ti~fiI ~eraq ft-ammon! tat-taua imposta hemmhe kk fuq dawlt il-profitti.

Biel jig; stabbilit il-tibdi l, gI'Iandu jilliel'led qies llieraq tad-dispotizzjonijiet l-ohra ta'

dan il· Ftehim u I-awtnritajiel kompelenli la' 1· lslall Kon traenti ghandhom jekk ihossu

I-bfonn jikkonsullaw lillluixin.

ARTIKLU 10

Dividendi

Dividendi mhallsa minn kum pan n ij~ Ji tkun residenti tar-Renju Unit lil

(I)

residenti ta' Malta jistghu jigu intauati fMalta.

(2) Ind ividwu li jkun residenti fMalta u li jirl:ievi divide nd min n kum pannija

li tkun residenti fir-Rcniu Unit. ghandu, bllt hSllTa ghad-dispoiizzjanijiet ta' dan 1-

Artikhl u kemm-il darba huwa jkun is-sid beneficjarju ta' dak id-dividend , ikollu

jedd ghal

(a) kreditu fit -taua gl'l ar- rigward ta' dak id-dividend ta' ammant li jkun

daqs iI· kreditu fit·taua li kien i kollu jcdd ghalih individwu residenti fir -Reniu Unit

li kieku kien hu li rtieva dak id-dividend (fdan I-Artiklu imscjjah " il-kreditu fit-

tUltQ ghaJ residentn nieqes 15 fiI-mij a mill·aggregat ta' I·ammont iew valur la'

dak id-dividend u I-ammont tal·kreditu fit-taua ghal residenti. u

(b) hlas la' kull ammont li bih il-krcdilu fit-t3Xlta Ii huwa jkun intilolal

ghalih bis-sahha 18S-subparagrafu (a) ikun jeceedi dak li jkollu jhallas bhala

luxa fir-Renju Unit.

(3) Id-dividl'lldi 1i j ithallsu mum kumparulija Ii u..'l.m residenti Ta ' Malta lil

residenti tar-Rl'Ilju Unil jistgtm jigu iulaxxati fIT-Ren)u Unit. Dawk id-dividendi jislghu

j igu wkoll inlaxxati f'Malla u skOlld il-ligijiet ta ' Malta, itda jekk min jirtevihom ikun

is-sid benefitjarju lad-dividendi, it-taxxa li jkollha hekk titllllllas rua ghandhiex Ihlll

iktar millll dik 1i titha11as fuq il-profitti Ii miruihom jithallsu d-dividendi.

(4) !I-fraii ~ dividendi ~ kif tinluta fdan I-Aniklu tfisser inCQ~ minn ishma ,;ew

jeddijiet ohra li ma jkunult prctensjonijiet debitriCi. pancCipazzjoni fi profini. kif ukoll

income min? jcddijie~ k?rporanivi ohra a_~ ~ilali ma' l-income min n ishma bil-ligijiet

tat-taxxa la 1-lslal h ueghu l·kumpanOlJa h tkun qeghda taghmel it-tqassim tkun

residenti u linkludi wkoll kull element ichor li , taht il-ligijiet ta' I-Isla t Kontraen ti li

tieghu il-kumpannija li Ikun qed thal1as id-dividend tkun residenti. jitqies li hu bhal xi

dividendi jew tqassim ta' kumpannija .

(5) Id-dispoiiujonijiet tal-paragrafu (2) Jew. skond il-kai, (3) ta' dan I-Artiklu

ma ghandhomxjappli kaw jekk is-sid bcneficjarju tad-dividendi, li jkun residenli la' Stat

Kon lraenli, imexxi negozju n·15tat Konlraenti I-ichor, Ii tieghu tkun residenli 1_

kumpannija li Il'lallas id-divide ndi, penneu ta' slabbiliment permanenti li jkun sitwat

hemmhekk, jew li jkun jaqdi fda k I-Islal l-iel'lor serviu personali indipendenti minn

bail stabbilil sitwat hemmhekk , u I-holding li dwarhom id-dividendi jkunu mhallsa

jkol1u x'jaqSllm cffettivament ma' dak l-istabbili men l permanenti Jew baii stabbi lit .

F'dak iI-kai: id-dispoiiujonijiet ta' l-Artiklu 7 Jew ]-AnikJu 14 ta' dan il-Ftehim, skond

il-kai:, gfIandhom japplikaw.

(6) Meta kumpannija H t1r.un resident i la' Slal Kontraenli li1r.seb profitli Jew

income mill-Istat Kontraen ti I·iehor, dak ]-Istat I-iehor ma jista' jimponi ebela laua fuq

id-dividendi mhallsa mill-kumpannija, hlicf meta dividendi bhal dawn jithallsu IiI

residenti la' dak 1- Istal I-iehor jew safejn il-holding li dwaru jitl'lallsu d-dividendi jkollu

x'jaqsam effetlivamenl ma' slabbiliment pcrmanenti Jew ma' baii stabbilit sitwat fdak

I-Istat I·iehor, Jew jissutieua I-profiui mhulI dislribwili tal- kumpannija glial taxxa fuq

il-profiui mhult distribwiti , anki jekk id-dividendi mhallsa jew il-profiu i mhult

distribwiti jik konsislu f1r.ollolt Jew fparti minnhom minn profiui jew inco~ Ii jinqalghu

fdak 1,Istat I-ichor.

ART IK LU 11

Mghux

(I ) Mghax li jinqaJa' fi Slal Konlrae nli u li jilhallas 1i1 residenti ta ' [-Istal

Ko nlraenli I-ichor jista' jigi ntaual fdak I·!slal I-iehor.

(2) lroa . dak ]-imglla" jiSlll' ",koll jigi intaull! fl -ISlll t Kontracnti rein jinqala',

u skond il-ligijiel Ill' dak 1· lsI31, iida jekk min jir~vih ikun is-sid benefitjarju ta '

I-imghax u bla hsara gI'Ill! -t axx a fuq J-imghax fl -istat Ko nlracnti I-ichor il·tal[XII hekk

impo:;;l ll m'ghandhie:c tkun iijed minn \0 m.mija ta' I·ammo nl gross ta' j. imghax .

II-frui ~ mgbu: H kif uU la fdan I-Artiklu tfisse r incomt minn drittijie t gh al

(3)

dein la' kull xona. se w jekk ipotekati sew jekk le , u sew jekk jaghti I-jedd &hal

sc: he m fiI-profini tad-debitur sew je kk le, u b' mod paniko lari . income minn

assiguraujonijict tal-Overn u income minn bonds je w dtlHn/llra. II-frati ~ mghax "

ma gl'landlliex tink ludi xi element li jitqies bI'Iala Iqassim sko nd id-dispotizzjonijiet

la' I-Artiklu 10 la' dan il· Flehim.

(4) Id-dispo:i:izzjonijie t lal' paragrafi (I ) u (2) la' dan I-ArtikJu ma ghandho mx

japplik aw jekk is-s id bcneficja rju ta' 1-imghax , li jkun residenti ta' Stat Kontraenli,

ikun Qed imexxi negozju fI· blal Konlraenti I-icho r li fih jinqala' I-i mghax pe rm ezz

ta ' slabbiliment pe rmane nti $ilWal hemmhekk , jew jaghmel scrvizzi personali

indipendenli rdak I-Islal I-ichor minn bati stabbi lit shwat hemmhekk , u d-drill ghal

dejn Ji dwaru jithal1 as I-i mgh ax ikollu effell ivamen t x'jaqsam ma' dak I-istabbilimenl

permane nti jew baii s taDbil il. Fdak il-kat id-dispotizzjo nijiet la' I-Artiklu 7 jew 14

ta ' dan il-Ftehim , sko nd il-kat , ghandhom japplikaw.

(5) L-imghax gh a ndu jilqies li jinqala' fi Slal Kontrae nti meta min ihallas ikun

dak l-lslal innifsu. sollodiviijoni polilika , awt o rit A lokali jc w residenti ta ' dak I-

Isla\. Mcla , ii.da, il-persu na li Il'Iallas J-imghax. sew je kk Ikun residenti ta' Stat

Ko ntraent; sew jekk le , ikollha fi stat Kontraenti slabbiliment permanenli jew baii

s tabbilil Ji mi eghu jkollu x'jaqsa m id-dejn li dwaru jkun thal1as I-imghax , u dak I-

imghax jigi !iOpportat minn dak I-islabbilimenl permane nti jew bati slabbilit,

ghaldaqs hekk dak I-imghax gh andu jilqies 1i nqala' fI -!slat li fih ikun sitwat I-

istabbiliment permane nti jew il-bati sta Dbilit.

(6) Meta , minhabba relazzjoni specjali bejn min ihallas u H id be nefit jarju jew

bejnielhom it-tnejn u xi persuna ohra, I-a mmo nl la' I-imghax imhallas ikun iijed ,

ghal kull raguni li Ik un. mill·ammontli kien ikun miftie hem bejn min ihallas u $-sid

beneficjarju fin-nuqqas ta ' dik ir-relazzjoni. id.dispotizzjo nijiet ta' dan l-Arliklu

gha ndhom japplika w biss ghall-a mmonlla' mghax I-ahha r imsemmi. F'kai bhaJ dak .

il pa rti tejda tal-hl asijie t tibqa ' taxxabbli sko nd il-ligijiet la' kull Slat Kon trae nti ,

meqjusa b'mod xi e raq id-di spot izzjonijiet l-ohra la' dan il-Fte him .

(7) Id-dispot izzjo nijiet la' dan 1· Art iklu ma ghandhomx japplikaw jekk I· gh an

prinCi pali jew wie hcd mill-ghan ij ic t principali la' xi persu na li jkollha x'taqsam mal -

holqie n je w assc njamenl lal-pretensjon; debilrici li dwarh a jkun Qed jithallas I-

imghax ikun li liehu van lag minn dan I-Art iklu perme zz la' dak il-ho lqie n jew

assc njamenl .

(8) Mink ejja d.dispot izzjonijie t tal-paragrafu (2 ) ta' dan l-Artiklu. mghax li

jinqala fi Slal Kontrae nti ikun eicn!i mit-taxXH fdak l- jslHI je kk dan ikun miksu~ u

possedul benefikame nt mill -Overn ta' I-Jstat Konlraenli [-ichor jew minn awtont ll

lokali lieghu jew minn age m:ija jcw instrume ntalil!! ta· dak il-Gvcrn jew awtorit:'l lo kali .

(9) Minkcjja d-dispotizzjonijiCI la'l-Arl iklu 7 la' dan il-Flehi m u lal.paragrafu

(2) la' dan I-Ar1iklu. imgl'lax li jilnisscl fi Slat Kontraenti li jithal1as lil u jkun

bc:nefikament possedul minn resident; la' 1·15181 Konlraenli I-ichor ikun den ti rnil -

!ana O-!slat Konlraen li i-e_el imsemmi jekk dan jithal1as gI'Ia r-rigward la' self

magl'lmul. gannlil jew assigul1lt, jew \tull pretensjoni debitriti ohra jcw kreditu

ichor gan.nlil jew assigu ra t minn iSliluzzjoni li Ikun bcndikament pos5«iula mill-

Gvem ta ' I-Istet Kontraenli I-ichor jew minn xi agenzija jcw instrumental;,. la' dak

jI·Gvern.

ARTlKLU 12

Royal/ies

(I) RQyultics 1; jinqaJg.I'Iu fi Slal Konlracnli u I; jithallsu li l resident; la' 1·151al

Konlraenli I-ichor jislghu jigu inlUUli fdak 1-lslal I·ic hor.

(2) IMa, dawn ir-roya/lies jislghu jigu inlluati wkoll O-Istat Kontrac nti li fih

jinqalghu, u skond il-ligijiet ta ' dak I-btlt , iida jckk min jir.xvihom ikun is-sid

benerltjarju tar-roY(l/,its u suggett gl'lat-Iuxa 8l'1ar-ri8ward la' rOY(l/,if!$ fl -Istat li

tiegllu ikun reside nti , iHuxa hekk imposta ma 8f1andhiex tkun itjed minn 10 fiI -

mija ta' I-ammont 8ross lar-,oY(l/,ie$,

(3) I1-frati Mroytlllies " fdan l-Aniklu lfisser I'Ilasijict jcw bedili, sew jckk

perjoditi sew ]ekk le, u b' kull mod kif jigu deskriui jcw mahdumin, sal-limilu li j5iru

bhala kumpens

(a) ghall. utu la' , jew 8hall.jcdd la' I,utu , la' kul1 copyrighl , invcnz;oni.

disinn jew mudcll , pjan, formula jcw proCess sigricl, /r(lde mo,k jew kul1

proprjclll jcw jedd ichor bhal dawk ;

(b) glIall-8hoti la' taghrif jcw info rmazzjoni la' xorta xjentifika . tcknika ,

induslrijali jcw kummcrtjali (know-hOW) ;

(~)

ghall-provvisla ta' kull ghajnuna fl ·!slat li tleghu min ihallas ir-

royol/iu ikun residenli I; Ikun anallari u s"ssidjarja glial, u li lin8hala bh.ala

men 1i jl&l'lli Iok &I'Ill1-applikanjoni jew tgawdija la' dik il.proprjelll jcw ta '

dak il·jcdd kif hemm imscmmi fis-subpara8rafu (a), jew kull tlghrif jew

informanjoni lim;li kif imsemmija fis.subparagraru (b);

(d) 81'1al tolleranza lotaH jew parzjali dwar I-utu jew I-gholi la' kul1 proprjelll

jcw jedd imsemmija fdan il-paragrafu ,

(4) Id-dispotizzjonijicl tal-paragrali ( I) u (2) la' dan I-Arliklu ma glIandhomx

japplikaw jekk is-sid benelitjarju lar-royol/its , Ii jkun residenli la' Slat Konlracnli . ikun

Qed imexxi negozju fl -Istll Konlraenli I- idlor Ii fill ir.,oyu/tits jinqalghu permezz ta'

slabbiliment permanenti sitwat hemmhekk , jew ikun Qed jaqdi fdak 1-l5lal Konlraenti

I-iebor scrvini pcf10Tlali indiperKlenli minn bati §labbilil litwat hemmhekk , u d-driu

jcw il-proprjel), Ii dwarha jittJalbu r-roya/ries ikoll u x'jaqsam effenivament ma' dak 1-

iSlabbilimen l permanenli jew ma' dpk il-bati stabbilil , Fdak il-kat id-dispotizzjonijiet

la' I-Artiklu 7 jcw la' I·An ik lu 14 la' dan iI-Flehi m, skond il-kai, gtJandhom japplikaw,

B ..,

(5) Royalties gh andho m jilqicsu li jinqalghu fi Sta! Kon lrae nli me ta min

ihali ashom ikun da lr: 1-lsl3t inn ifsu. sou o-divit joni polilika, awtorit a lokali je w residen t;

ta' dak 1· /5Ial. Me ta , iMa, il-persuna li Il'I all as iT-royal/its. sew jekk tkun residenti ta '

Stal Ko ntracnti se w jekk le, ikollh a fi Sl ut Kon lraenl i stabbil ime nl perma ne nt; jcw baii

sta bbilit li d wa ru jkun itt iched l-obbJigu li jilh allsu r.royalties u dawk iT-royal/it s ik unu

r-responsa bbill ll la' da lr: l-iSlabbiliment pe rmane nti jc: .... bati 5la bbilil, all um da wk ir-

royallits gha ndhom jilq iesu li jinqalgl'lu f1· ISt3t li ri h ikun q ieghed j· isubbili me nt

pe rma nent; je w il-bati stabbilit.

Meta. mi nh abba r-rclazzjuni spel:jali bej n min ih allas u s-sid benefi cja rju jt W

(6)

bejnicll'lom stl!5S u xi persuna oli ra . l-ammont tar-royolrirs ikun itie d, gl'lal kull raguni li

(ku n, mill-ammon! li kien i"un miflie hem bein min ihallas u s-sid benefi"jarju fin-

nuqqas la' dik ir-relattjoni , id-dispozinjonijiella' dan I-Art ikl u glia ndhom japplikaw

biss ghall-ammo nl I-ahhar i

F'dak il-kai:, il-parti tejda lal-hlasijie! ghandha

tibqa ' lauabbli skond

la' kull Stat Konlrsen ti. mets jitqiesu d-

dispotizzjonijiet I-olira ta' da n i

I ,

Id-dispotittjonijiet ta' dan I· Arl iklu ma ghandliomx japplikaw jekk I-ghan

(7)

pri nCipali jew wielied mill-ghanijiet prioo pali la' xi persuna li jkollha x' laqsam mal-

holqien Jew I-assenjamenl lal-jeddijiel Ii gliar-rigward lagf'lhom ir-royallits jithallsu

iku n li jiehu van tagg la' dan I-Artiklu permczz la' da k il.holqien Jew assenjament.

ART IK LU 13

Trasfe rimentlU' Proprjetd

( I) Income iew kull qtigh miksub minn residenti ta' Stat Kontrae nti mit-

trasferiment la' proprjelli immobbli msemm ija fl · Artikl u 6 la' dan il- Flehim u li tkun

ti nsab n · lstat Kontnen li I-ichor jiSla' jigi int ilXJC.al f dak 1· ISlal I-iehor.

(2) I ncome jew kull qligh miksub minn residenli la' Stat Kontraenti mit-

trasferi ment la'

(a) ishma , Ii ma jkunux isli ma "wotali fuq Borta approva la , li ;iksbu I-valu r

laghhom Jew iI-pa rt i I·kbira tal-val ur lagf'lhom dire u ament Je w indi reu ament mi nn

proprjetli immobbli li tku n tinsab fl-Istal Kontraenl i l-ieOOT, jew

(b ) seliem f sOCjelil Jew fi mm Ii I-assi taghhom ik unu prin"ipal menl

ji kk onsistu fi prop rjetil im mobbli 1i tkun tinsab fl -Istat Kontraent i l-iehoT, Jew la'

ishma mse mm ija fis-subparagTafu (a) haw n qabel imsemmi ,

jisla jigi inlauat fdak I-!slal l-iehor.

Income jew ku ll qliegh mil-lrasferiment la' proprjelli mobbli li laghmel part i

(3 )

mill. proprjelll tan-negozju ta' stabbiliment pe rma nenti li imprii.a ta' Stat KontTaenti

jkol1 ha fl -Istat Kontrae nli I-ieho r Jew la' proprjetil mobbli li Ikun tappllflje ni ghal bati

fissa lil residenti ta' Sta t Kontraenti fl -Is tat Kont raenti I-iehor bil-ghan li jiuweu qu

servitti persona li indipende nti. inkl ut da k I-income jew qligh mit-trasferimenl la' da k 1-

istabbilime nl permanenti (wa lidu Jew flimkien ma' l-im prita kollha) Jew ta' dik iI-bati

fissa, j,Sla' jigi inlauat fdak I-lstal l-ichor.

•

(4) '"com~ jcw kull ql igh miksub minA reside nt; ta' SI31 Ko nlrae nl i rn il-

uasferiment la' bastimenti je .... intenj; ta' ' -ajrt! imhaddma r. tramku intemazzjonllli

minn imprita ta' Slat Kon trae nti je .... proprjetilo immobbli li tappanjen i ghat-thadd im ta'

dawk il-bastime nt i je w iogc nj; ta ' I-aj m . ghandu jku" ta xubbli biss rdak ', (slal

Konlraenli .

(5 ) IncQmt jew ku n qligh mil-Ir35fc:rimc nt ta' proprjel~ li ma tkun. dik

imse mm ija fiI -paragrafi ( I), (2), (3) u (4) ta ' da n I-Aniklu &ha ndu jkun laxxabbli biss n·

(Slat Konlraenli Ii fih iku n resident; min jin rasfcrixx i kemm-il da rba da k I-incomc jew

qligh ikunu suggen i gh8t-taxxll r dak ' -(stat Kontr..en ti.

(6) Id-d ispot izzjonijict tal -pa ra grafu (5) ta ' da" '-Artiklu ma ghandhomx jolqlu

id-drin li gha ndu 1-lsll1l Kon lrac nl i li jigbor skond il- ligi licgh u 11IXlI1I fuq I-inca", .. je ....

ql iegh kapitali mit- tm fe riment ta' proprjclt. miksuba minn indi yidwu li jkun resident.

la' l-lslat Ko nlm e nl i I-iehor u li kie n reside nli ta' I-e_ el Stat Konl raen li fku ll :t.mie n

matul i!-hamc s snin Ii jigu minnufih q abel il-Irasfe rime nllal -proprjetll..

ARTIKl U \4

& rviu l Personali ImJipendemi

(\) O li"" miks ub minn residenl; ta' Slal Ko n traent i ghal sc rvizzi pro fessjonali

jew atliyil aj ict ta ' ka ratlru indipendenti jkun taxxabbli blss fdak I-Istal. IMa, d a k 11-

q liegh jisla' fit-ti rkostanti li gejjin jiii ntaxul n-Istal Ko ntraen ti I-ic hor

<a) jekk ikollu baiJ riss regol ari ghad -disponzzjoni lieghu n - I~at Kontrae nl l

I-i eoor gh all-qadi ta ' I-atli yitaj ic t lieghu (flie ma kat. d ik il-pani biss mill-inC"Ome

tiegllu li hu atlri bwibbli gh al dok il -bat.i fiss lista ' tigi inlonota fdak I-Ista!

Ko ntrae nli I-ichor); je ....

(b) jekk il-qaghda lieg.h u n-lsul Konlraen li I-iehor Ikun ghal :t.mie n je ....

:i:minijie l li fit-Io ta l ikunu jgibu je .... jaqbf.u 1-183 gumala malu l xi sc na b le nda rja .

(2) JI -fra:t.i "scryizzi professjonali- linkludi spetjalmenl an iYit aj ie l indipende nli

xjenlifiCi, le n e rorj ;, a n istio . edukan ivi je .... la ' laghlim kif u ko ll an iyilaji e t indipende nli

la' tobba , l vuk a l;, lnt inie ra , perili , de ntiSli u UC"C"ountllnlS.

ART IK LU IS

Bla hsa ra ghad-dispot.injo nijie t ta' ]· Arl ikli 16. Ifl u 19 la' d an iI-Flehim .

(I )

salarj;, pagi u kumpen s iehor bhal rJan li jinkiseb minn resid e nti la' Stat Kontrae nll d .... a r

impi eg gh and hom ikun u laxxabbl i biss fdak I-!stal ke mm-iI darba I. impie g ma jigix

de to tat n· lsla t Kon lrae nll I·ie hor _ Jekk I-im piegjigi hekk e:t.e rCitat , d a k il-kumpe ns li

jinkiscb min nu jisla' jiii inla;ual f da k I-blal I-ic hor _

(2) Mi nkejj,. d-dispotizzjonijic t tal-paragrafu (I) la' dan ]·Artiklu . Itumpcns li

jinkiseb minn restdenli la' SUI Ko nlfae nli dwar impicg CZerOI31 n·lstl l Kontraen ti ].

ichor ikun tauabbli biss (J· \sla ll-ewwe l imse mmi jekk

(a) min jinXvih ikun qieg1led n· lstat I-ichor g.bal tmien;ew !minijtt! li fit·

lotal rna jitunw: aktar minn 183 gu m l t. matul ;li perijodu ta ' tnu -i] uh.r; u

(b) il. kumpen s iku n imhall as minn , ;ew fisem, prinapal li ma jku n.

residenti la' ]-Istal l-ichor; u

(t) dak iI.kumpens ma jkunx pit fuq \·islabbilimcn t pennanenti ;e..... baZi

sl8bbiJit 1i I. printipal itoll u n· Istll I-icho r.

(3) Mink cjja d-dispoZizzjonijiet ' a' qabel la' dan I-Artiklu . kumpcns miksub

dwar impicg eiertilat abbord butimenl , jew iogenji ta' I-ajru im haddma fi traffiltu

intcrnazzjonali listl' Ikun lauabbli n·!stat Kon u acnti rejn \-imprib li Ikun qcg.1'Kla

thaddem il-bastiment jew ingenji ta' l-aj ru tkun resident i.

ARTIKLU 16

DritJii;~1 w

-Dimturi

Id-drittijtet u IIlasijiet simili tad-di retturi li jinkisbu minn residenti ta' wiehed mill-

Istati Konlraenti fil-kariga tiegllu bhala membru lal-bord tad-diretluri , jew ta' korp

id'lo r bllal dak kif jisla' ikun mod iellor magllruf, ta' kumpan nija li Ikun residenti la' 1-

Istat Kontraenti I-iellor jistgllu jigu intaxxati rda k I-Islal l-iellor.

ARTIKLU 17

Anisti u Sportivj

(I)

B'dak kollu li jinsab fid-dispotinjonijiet la ' I-Artikli 14 u I S la' din il·Flehim,

it/C~ miksub minn residenli la' SUit Kontraenti minn uhud li jagJ'ltu spellak lu bhal

Irtisti tal·teatru , tal-films tinematografia , ta r. radju Jew tat-televitjoni iew mutiasla ,

Jew bhala sportiv mill.attivilajiet personali liegllu etertilali n·lslat Kontraenti I·tehor,

jistghu jigu inlaxxali rdak I-Istat l-iehor.

(2) Meta incomt dwar l-attivilajiet personali etertilali minn wielled li jaghti

speuaklu Jew spon iv bhala hc kk jinqaJa' mhux minn dak li jagl'lti !'ptuaklu Jew minn

sportiv innirsu imma minn persuna ohra. dak l·incomt jista' , minkejja d-

dispofu:zionijiet la' I·Artikli 7. 14 u 1 S la' dan iJ·Ftehim , jigi inta:u:al n· !slllt Konll1lenti

rejn I.au ivitajiet la' da k Ii jaghli speuakl u jew ta' I.tsportiv jigu eicliila!i.

B 61'

ARTIKLU 18

Ptmsjmrij ie/

Bla hsara ghad -dispozizzjonij~et l al .~r~~r~fu. (2) la' I.~rtiklu 19 ,'8' ?an il

(I)

Ftehim , kul! pe nsjo n; u rimu ncrazzjOO1 ohra Slmlli h IIIhallas ffi lOli abba flmpu: g ta ,

qabel , jtW kull "nnuify Ii tithallas, lil individw u li jkun resident; ta ' Stat Ko nl rae nll

ghandha lig; in tauata biss fdak 1· lslat.

II-fl1lt; " /Jnnr4;ty" lfisscr somma stabbilita I; titliallas pc r,ijodikamcnl ~

(2)

zminijiet stipulati malu! il-halia jew matul perijodu ta' tmiC' ~ s~~fiku jew .. a~~abbh

b'obbl igu li jsiru j.lllasijie t Iura bis-shih u b' mo<! adcgwat hi nus Jew hweJjeg h Jkun u

jiswew daqs insew.

ARTIKLU 19

Servizz wl-Cvern

(1) Ca> Rimunerazzjoni, harm minn pensjoni. imhallsa minn Slat Kontraent i

jew minn sonCHJivitjoni politika jtw aWloritll Iokati tieghll , lilxi indiv;dwu dw ar

servizzi mogt'llija liI dalr. I-Islat jew sollo-d;vitjon; Jew aw10rilli lieghu lisla' lip

inluxala biss rdak 1-lslal .

(b) Itda, dik ir-rimunerazzjoni Ilr.un lisla' ligi inluxala biss n-Istal

Konlraenli I-idlo r jelr.k is-servizzi jinghalaw rdalr. 1-151al u I-individwu jkun

residenli rdaJc 1-lslal li

(i)

ikun nazzjonali ta' dak I-Istal ; Jew

.

(ii) . ma jkunx SliT residenli la' dak I-blat sabiex unik ament jaqdi dawk

IS-servlv.:l.

(2) (a) Kull pensjon; mh allsa minn, Jew li lohro! minn fond mahluq minn Slal

Konlraenli Jew SOllo-diviijoni politika Jew awtorili lo kal i ticghu lil Iti indi vidwu

dwar servim mogl'llija lil dak I-Istat Jew sollo-divitjoni Jew awtoriti licghu l;sla'

tigi inla.u:ala biss rdak I-Islal,

(b) I:l:da , dik iI·pensjoni Ik un liSla' liti inlaxula biss n-Istat Kon tTae nt; 1-

iehor jekk l-individwu jk un resi dent i u nazzjo na]i la' dak I-Istat,

(3) Id-dispozizzjonijict la' I·Artikl i I S. 16 u 18 ta' dan il· Flehim gha nd hom

japplikaw gha l rimuneTllzzjoni u pensjonijict dwat se rvizzi mOghtija dwar ncgolju

mmexxi min n Slal Konlraenti jew minn sollo-divitjoni politika jew minn aWloritl lokali

tieghu,

ARTIKLU 20

St .. d~l1li u Trllmus

Individwu li jkun jew ki en residenti ta' Slal Konttae nti minnufih 'label majaghmel

tjara lill-Tstat Kont raenli I-khor u li jkun pretenti n-!slat I-idlor biss

(a) bbala stude nt run ivenil" . kullcU jew skoll rikonoxxuti je ....

fisliluzzjoni edukattivl ohra rikooon:ula bTlal dawk, rdak '-l5lall-icl'lor; jt ....

(b)

bhala apprc: ndi st kummertjali jew let niku; je ....

(~)

bhala wielled Ii j ir~cvi ghotja, rlllowllnce jcw rigal bil-ghan ewlicni ta'

studjo , riu Tka jc .... tahrig minghand il· Gvc:m la' J{i wiehed mill· lslali jew minn

organinazzjoni xjcntifika , edukattiva, religjuta jt .... filantrap;k. jew bis-sahl'la la'

programm ta ' assistertta telmilta 1; jkun shamel il-Gvem la' Sal

jkun denli mil-tau. rdak 1-lslall-ichor fuq

<i) kull m. jirtievi minn barn i-paiiit ahall-finijicl 'a'-manlc:nimenl.

e:dukaujoni . studju, rittrka jew tallrii lteghu;

is-somma la' dill; ,.gbotja , a/WWllfla jew rigal .

(i;)

A.RTIKLU 21

IncofM Ichor

( I) Oitell ; 'a j"COfflt ta' resident i la' Slal Konuac:nli . jinqalghu minn fc;n

j inqalghu. li m. humiex trallali n-Artikli la' qabella ' dan il· Flehim , 1i ma jkunx in~

Ii jilhallas minn ,nul jew mill-e redilll la' pcrsuni mejlin m· kors la' amm inislranjoni. u

li hum a 5uUCll i ghal-Iaua fdak 1· lslal gh andhom ikunu laxxabbli bt55 f dak 1-151al ,

(2) Id.dispo.tizzjonijiel lal. paragrafu (1) la' dan I-Aniklu ma ghandhomx

japplikaw ghal income, li ma jkunx income minn proprjelll immobbli kif imfisse r m-

paragrafu (2) la' I-A rl iklu 6 la' dan il-Flehim, jekk min jirlSevi dak I-income, li jkun

residenli la ' Slat Konl raen li, jiggeslixxi negolju fl -hlal Konlrae nl i I-iehor pcrmeu.la'

slabbilimcnl permancnti li jkun jinsab fdak I-Islal. jew iwettaq rdak 1· ls181 I· ichor

servizzi penonali indipenden li minn bati fi55li jkun jinsab fdak 1· lslal , u d-drill jew il-

proprjclt. li dwarhom jilhall as I·income ikollu x'jaqsam b'mod crfelt iv ma ' dak 1-

islabbilimcnl jew bati fi55, F'dak iI-kat , ghandhom japplikaw id-dispo.tiujonijicllI' 1-

Aniklu 7 jew la' l-Aniltlu 141a' dan il-Flchim, sltond il-kat,

(3) Id-d ispoi:injonij)el la' da n I- Anik lu ma gh andhomx japplikaw li kieltu I.ghan

prinCipali jew wiched mill.ghanijlel printi pali la' pcrsuna li jkollha x' laqsa m mal-

t'IoIq icn jew asse njamcnl 181-jcddijiel li dwarhom jilhallas I-income ikun li jiltic:hc:d

van lagg minn dan l-Aniklu pc:rmeu la' dak il-holqic:n jc:w asse njamc: nl ,

B '45

KAI'ITOLU IV

TNE""IJATA'TAXXA DOPPJA

ARTIKLU 22

Tflthhija w ' Tuxxa Doppja

(1) Bla hsan ghad-dispotizzjonijie\ tal·l igi tar-Reoju Unit ghar-rigwa rd ta' ,.

gholi bi kredilu ghat-tailxa tar-Reoju Unit la' tana li tithallas fterri torju barTa mir-

Renju Unit (It rna lolqOIX it-printipju gene rali hawn imsemmi)

(a) il-laxxa ta' Malta li lithallas skond il-ligijic t ta ' Mal ta u skond dan il·

Flehim , sew jc:kk direHamenl jew bit- tnaqqis. fuq profi ui , income jew ql igl'l

taxxabbli minn gI'Iejjun Se_a Malla (esklut fit-kai: la' dividend , il-Iuu li tithallas

dwar il-profitti li minnhom jithallas id-divide nd) ghandha lingh al ~ hi kreditu ghat-

taxxa lar.Renju Unit kif mahduma b'n:ferenza ghall-istess profill i. "ncomt. je ....

qligh taua bbli [i b'rcferc:nza ghalihom tinliadem il-Iaua la' Malta ;

(b) fiI -kat la' dividend imhallas minn kumpann ija li Ikun residenti la' Malta

HI kumpan nija li Ikun resident; tar-Renj u Unil u li tikkonlroila direll amenl Jew

indirella ment mill-inqas 10 m-mija mi11-aujonijict volan li fiI-kumpannija Ii Ikun

Qed thallas id-di videndi, il-kreditu ghandu jqis (b'iieda ma ' kulllaxxa ta' Malla Ii

ghaliha jiSla' jighala kredilu laht id-dispoiiujonijiel tas-subparagrafu (a) la' dan H-

paragraf u) it -Iaua la' Maha 1i tit hal1as mill -k umpannij a ghar-rigward lal-profilli li

minn hom jithallas dak id-dividend .

(2) Bla hsara ghad-dispoiiujonijiet tal-ligi ta' Malla I-ghoti bi kredilu ghat-Iaxxa

la' Malta la' taua li lithallas rterritorju barra minn Malla, fejn , skond id-

dispotiujonijiet ta ' dan il-Ftehim , kemm inklut fi 51ima la' Malla profitti, income Jew

qlig.h tauabbli minn g.hejjun fir-Renju U nit, it-Iaua tar-Renju Unit li tilhalla5, sew

jekk dirella ment Jew bi Inaqqis. dwar dawk I-ghejjun (esklui fiI-kai ta' dividend , il-

laua li tit ha llas dwa r il-profilli li minnhom jilhallas id-dividend) g.handha linghata bi

kredilu ghat-taXlla ta ' Malla li lithallas dwar dawk il-p rofini. income Jew qJigh

laxxabbli _

(3) Ghall-ghanijiet tal -paragrafi ( I) u (2) la' dan I-A rt iklu , il-profitti, inw me u

qligh kapilali li residenli la' Slal Konl raenti jkollu u li jistghu jigu in laxxllli n-StHI

Konlraenli I-iehor skond dan il-Flehim ghandhom jitqiesu li jilnisslu rdak I-Islat

Ko nt raen ti I-ieho r.

(4) Bla hsara ghall-paragrafi (5) u (6) la' dan I-Artiklu, ghall-gh.lOijiel tal,

paragrafu (I) la' dan I-Artiklu " il-taxx a ta' Malta li tithal1as" ghandha titqi es li tinkludi

kull ammonlli ki en jithallas bhala tana ta ' Malta ghal sena li tkun hlief ghallnaqqis

moghli fiI-hdim la' I-income taxxabbli , jew eze nzjoni Jew riduujoni ta' laxxa mogh lija

ghal dik is-sena iew xi parti minnha, lahl xi wahda minn dawn il-provvedimenli tal- ligi

la' Malta

(a)

id-dispotiujonij iel la'

(i) l-anikolu 3 u, meta jingha ta Inaqq is fiI-hdim la'i-income taxXlbbli

bhala allo .... anughal invest ime nl , l-a rtikolu" ta'l-Ordinanza la'I- 1959 dwa fl-

GtJajnuna lill- Industrji;

<ii) I-anikoli 7.8 u 9 (sal-limilu Ii jipprovdi &hal eic nzjoni miHauI fuq

id-dividendi 1i lilb allas mill-qligb jew mill-profin i, jew parti minnhom. la '

kumpannija li jkun... mchlusin mil-lllXlIa fuq I-incolm" sko nd id-

dispotiujon ijiel la'l-an ikol u 7).19, 20.23 u 36(5) la' I-An la' I- I988dwar ,.

Itvi lupp Indumijali;

kcmm·il darba dawk id-dispotizzjonijiel imsemmija kienu rlS---Sehh fid.da la la' ,.

irfirmar la ' dan il·FIc:him. u ma jkunu. inbidlu minn dik id-daI3 . jc:w ikunu inbidlu

biss fdc: ualji tghar li majkunulI jolqtu JI· xona generali taghhom u sakemm dejjem

J·awtori tll kompetenli la' Malta Ikun j~Tlifikat 1i dik l-etenzjoni minn jew tn aqq is

la' lana ta ' Malta moghtija laM dawn ' -artikoli Ikun inshall l sabicx iggib 'iI

quddi em tvilupp ind ustrija! i. kummertjali. xjenlifiku, edukalliv Jew tvilupp ichor

fMalta u li I-qligh jew pro fiui lal. kumpannija, jc:w kull parli minnhom , ma kicnux

de nli mil-Iaxlla la' Malla gl'lal dik is·sena pan ikolari , lal'll id-dispoiizzjonijiella' 1-

Arlikoli 4 jew 5 la' I- All lp ' 1-1988 dwar I-!ivilupp Induslrijali , u 1'3WIOrilrt

kompele nli tar-Renju Unil Ikun attenat li dik I-cienzjoni jew tnaqqis ikl,lnu

nghataw gl'la1 dak I-ghan ; jew

(b) kull dispoiinjoni ohra li tista' liti 5UMC'gwenlement Ic:gislala li Ikun

lipprovdi ghat toaqqis m·!'Idim la· l ·incom~ tllllllllbbli , Jew li Ikun lagh ti de nzjoni

jew tnaqqis fil -llIlIxa , li dwarha jku n hemm ftehim bejn I·awtorilajiet kompetcnli

ta' 1-lslal Kontraenti bhala 1i Ikun la' xo n a ~ta nzjalmen t simili ghat xi wal'lda

mid-dispoiiujonijicl imsemmija fis-subparagrafu (a)(i) jc:w (ii) ta' dan il·

paragr3fu . kernm-il darba rn a jkunx inbidel wara jew iltun inbidel hiss rdettalji

tghar b'mod li ma linllaqau: ix-xQrta tenerali laghha. u suiieua de.ijem gl'lal dik K:-

eertifiltanjoni u acre naujoni Ii jkl,lnu saru skond kif provdut lal'l1 is-subparagrafu

(a) la' dan il-paragrafu,

Md sicn mil-Iaxllll lar-Rcnju Unil bis·sahha lal-paragraf u ( 4) la' dan I-Aniltlu

(5)

gl'la ndu jinghala ghal perijodu la' ghallllT soio hiss, li jibdew mad-dala meta dan il-

Flehim ikun bedajschl'l.

(6) II-perijodu mscmmi m-paragnfu (5) la' dan I-Artiklu jisla' jitlawwal bi

flehim bein I-!stati KOnlraenli.

A RT IKLU 23

Um iwlzjoni w ' t1t'lsj~n

( I) Meta skond II-i dispot injoni la' dan il· Flehim ikun hemm incom~ I; jinl'ldes

mit· tana fi Slal Kontraenti u, skood il.lip fis-scl'll'l n- Istat Kontraenli I-ichor persuna,

ghar-rigward la' dalt 1-;nCOt1W', Ikun sutjella ghat-tana b'rcfcrcnza gl'lall-ammon t

tagl'l ha li jinghadda lil }ew li jigi rieevu l fdak 1·151al KonlTacnli t-iel'lor u mhw

b' rde renw ghaJl-ammonl 51'1il'l lagl'lha , ghaldaqshckk il-l'Ie1sicn li ghandu jinghata

skond dan il-Ftehim n-Islal konlracnl; l-e_cl imsemmi ghandujkl,ln japplikl biS5 ghal

daqstant mill-incomt daqskemm iiti inlauat n·ISlal Kootraenl; l-ieOO1.

(2) Id-dispoiiujonijiet ta' din il-Konvenzjoni ma gl'landhomx japplikaw ghal

dawk i'-pcrsl,lni li jkunu inlilolali gh111 xi bencfictiu tat·taxxa specjali skond

(a) Ugi ta' xi wiehcd mill·lslali Konlraenli li tk un &iel idenlifikala fi

Skambju ta' Noti hejn 1·lslali Kontracnli;jew

~I anzjlllmenl

simili li

(b) Kull liSi

ohfa

Ikun

gicl

legislalo

sussegwentcmenl.

B

ARTIKLU24

SoijtlOjitf

(I) Meta, skond xi dispoZizzjoni ta' dan il-Ftehim, sotjetll Ikun intitolata . bhala

residen ti f Malta, gbal eteru:joni mi t-laxxa fir- Rtnju Unit fuq income jewqligh kapitali,

dik id-dispotizzjoni ma ghandh iclL: lilqies bhala li tirrestringi d-driu tar- Renju Unit ti

jinlaxJla IiI sotju li jkun residen ti tar-Renju Unit fuq is-sehcm lieghu minn dak I-income'

Jew qligl'l kapitali; iida kull illcotM Jew qtigh bhal dawk ghandhom jitqiesu ghall-

gIIanijiella ' I-Aniklu 22 la' dan il-Flchim bhala income Jew qligh mi nn ghejjun f Malta.

(2) Ebda !'I aga n-Anlldu 10 la' dan il·Ftehi m ma ghandha linlitoia §Otjcl! li Iku n

residen ti fMalta s hal krcditu la' taxxa gI'Iar-rigward la' dividendi mhll.lIsa lis-soejc ta

minn kumpannija li Ikun residenti tar- Renj u Unit; itda tull sotju lijkun residenti ta'

Malta gtlandu jilqies ghall-gbanijiel la' I-irnsemmi Artiklu 10 u la' dan il-paragra ru

bhala Ii jkun Ihallas dividend ta ' ammont li jkun jikkorrispondi ghas-sehern tieghu

r daw k id-dividendi mill-kumpannija li tkun residenti tar-Renj u Unit ,

KAPITOLU V

DISP01.IZZJONIJIET SPECJALI

ARTIKLU 2S

£bda DiskriminalZjoni

(I) Nazzjonali la' Stat Kontraenti ma ghandhomx jigu suggelli fl-blal Konlraenli

I-ichor gba l xi lassazzjoni jew xi htiega li ghandha x'laqsam maghha li ma Ikunx Jew li

Ikun la' pit aktar mit-tassazzjoni u hligijietli ghandhom x'jaqsmu maghha li ghalihom

nazzjonali la' dak 1-lslal I-ie hor fl-istess t irkostam:i huma Jew jislghu jk unu suggelli.

(2) h -Iassazzjoni fuq stabbilirnent permane nt; li imprita ta ' Stat Kontraenti

jkollha fl -Islal Kon traent i I·iehor ma ghandhiex tingabar rdak 1- l sl ~t I-iehor b'mod

inqas (avorevoli mit- Iassazzjoni migbura fuq impriti rdak I-b lal I-ichor li jmenu 1-

iSless allivitajicl.

(3) "Iief mela d-dispotizzjonijiet tal-paragrafu (I) la' I-A rlik lu 9, lal·paragrafu

(6) la' ]· Aniklu I1 Jew tal- paragrafu (6) ta' I·A rt iklu 12 ta' dan il-Ftehirn ikunu

japplikaw, kull mghax , roya/tits u hlasijiet oh ra Ii jsiru minn imprita ta' Stat Kontraenti

IiI residenti ta l- Istat Kon traen li I-iehor ghandhom bil'ghan li jigi slabbilit il-qliegh

laxxabbli la' dik I·imprita, jitnaqqsu taht I-isless kundizzjonijiet daqslikieku kienu

thall5u lil residen ti ta' 1· lstat l-ewwel imsemmi.

(4) Impriti ta' Slal Kon traenti , li I-kapilal taghho m ikun proprjetll la' jew

ikkontrollal minn , ghal kollox jew fpan i, direttarnen t Jew indirella ment , residenli

wiehed Jew aktar ta ' l- Istall-iehor, ma jkunux suggetti n· lslat I-ewwel imsemmi ghal xi

lassazzjoni Jew xi hl iega li ghandhom x'jaqsmu rnaghhD li tk un ohra jew ta ' aktar pi t rni l-

tassazzjoni u h!igie! li ghandhom x'jaqsmu rnaghha li impriti ohn bhalhorn ta' dak 1-

ISlall·ewwe l imscmmi huma jew jistghu jkunu suggetti ghal ihom,

(5) Xcjll li hcmm f dan I-Arliklu ma gha ndu j i (qi ~s I! jorbo~ Slat ~ ontracn li )i

jaghl i lil indi vidwi li jkullu residenti ta' H stat Kontraen l1l- te hor XI tnaqql s personal!.

l'Ie lsien Jew Inaqqis ghall.finijiel la' tau lI min habba I·islalu$ Civili. iT -respo nsabbiltajie t

tal ·fa milja Je w k 1,111 t irkosl anza personal i ohra li huwa jaghli li T-reside nti tieghu Sless.

(6)

Id-di spoziujo nijiet la' dan I-Artiklu ghan dhom japplikaw gha t dawk it-tani

li hemm fiI-qo fol ta' dan il·Fl ehim .

ARTIKLU 26

Proeedura ghal Flehim RU iproku

(I) Mela pcrsuna jidhrilh a li ]-azzjonijict ta ' l-awloril1l ko mpel en li ta' wiehed

mill -bl ati Ko ntrae nti Je w tat -tllejn iwasslu Jew jistghu jwassh.1 li tigi nlnxala mhux

skond id.dispotizzjonijiet la' dan it· Ftehim. hija lista ', mink ejja r -rimedji provdu ti bil-

ligi dom cslika la' dawk 1-!slatL lipprctcnla I-kat laghha liII -awtoril~ ko mpetenli ta'l-

ISlal Kontracnll II lieghu hlja resident i jew, jekk il-kat laghha jkun jaqa' laht 11-

paragrafu ( I) ta ' l-Artiklu 2S la' dan il, Flehim liII-awtorit~ kompelcn tl ta ' I-islal

Kontracnti Ii taghha Ikun nazzjona li.

(2) L-a ww ril il ko mpetenti ghandha lara, jckk 1-oU;eujoni lidhrilha li tkun

wahdll gusli rikata u jekk hi nnifisha ma Ikunx IISla' lasa l ghal sol uzzjoni sodisfai:e nli, li

tiddccicdi I-kat bi ftehim reti proku ma ' I -awloril~ kompetcnti la' I-blal Kontracnli 1-

iehor, bil-ghan li ligi evilala lassazzjoni mhu)( skond dan iJ-Ftchim _

(3) L-awtorilaj iel kompet cnl i ta' l-istal Konlraen li ghandhom jamw li jirrisolvu

bi flehim rctiproku xi diffiku ltajlet jcw dubbji li jinqalghu dwa r I-inlcrprelazzjoni jew I_

applikazzjoni lal-Ftehim _

(4) L-awlorilajie l kompelcnli la' ]-islal Konlraenti jistghu jik komun ikaw

diretlam cnl ma' xulxi n ba-ghan li jinllah aq ftehim dwar kif hemm fil -paragrafi ta'

qabe l.

AR1lKLU 27

Tibdil 10' IfI/ormolljofli

(1 ) L-awl orilajicl kompelent i la' 1-ISlali Konlraenli ghandhom jibdlu dik I_

informazzjoni li tkun mehticga sablex jitwcn qu d-d ispotiujonijiet ta' dan il-Flchim jew

taJ-ligijicl domcstiti la' I·!slali Kontrae nll dwar tau i milqula bil-Flehim safejn it-

lassanjoni ma ImurJ[ kontra I-Flchim _ Kull informazzjoni li tasal ghand Stat Konlraenli

gha ndha litqies sigrie ta bl-isless mod bhal informazzjoni miksuba la ht il· ligijiel

domestiti ta ' dak I-!slal u ghandha litgharrafbiss lil persuni jcw awtoritajict (magl'lduda

qrali u korpi amm inislmlli vi) imdahhla n-i5lima jcw gbir ta'_ I-infurzar je ....

prosekuzzjoni dwar , Jew il-qlugll ta' appelli dwar, it- taui li jaqghu lahl il-Ftehim .

Dawn jJ.persuni jcw awtorilajiet ghandhom jutaw I. informazzjoni gha l dawk I-ghan ijict

biss. Humaj istgllu jikxfu dik l- informazzjoni fi proi:edime nt i li jsiru rqorti pubblika jcw

rsenl cnzi tal-qorli.

(2) F'c:bda kat ma ghandhom id-dispotizzjon ijicl tal-paragrafu (1 ) la' dan 1-

Aniklu jilqicsu li jimponu ftlq Slal Konlrac:nli l-obbligu

(a) li jit hu mizuri amministrattivj I; ma jaqblux mal.tigijict jew 1·uia nza

amminislraltivl la' dak 1-lsll l Konttaen!i Jew la' I-ichor;

(b) I; jaghti informazzjoni 1i ma Ikuox lista' tinkiseb lahl it.ligij ic! jew fiI· kors

normali ta' 1-u1anza amminislratlivl la' d a k 1·ls131 Konlrae nli Jew ta ' j·icho r;

(t ) 1i jaghti informaujoni li tikxd xi sigrie! tal-kumm ert. tan-ncgozj u.

industrijali, kummertjali jew professjona li Jew process lal-kumm ert. Jew li jagl'lli

informazzjoni li I-bif laghha jkun ko nlra l-ordni pubbliku .

ARTlKLU 28

AgM/; Diplomlltic; u U/fit ja/i KOfUu/ari

Ebda haga rdan il-Flehim ma ghandha tolqol il -privileggi fiskal i ta ' age nli

diplomalio Jew la' uffitjali ko nsulari ta ht ir-regoli gen e rali tad-drin inle rnaujonali

Jew taht id-dispoiiujonijiet la' kull ftehim spet jali .

A RTIKLU 29

Bidu {u-Sehh

( I) Kull wiehed mill- ISlali Kontraenti gha ndu javta lill-iehor perme~:t ta '

skambju di plo mal iku bit-le mma lal-pro(:eduri mchticga bil-ligij icI ti eghu sa biex

dan il-Fte him jigieb fis-se hh. Dan il-Fle him gl'landu jibda jschh fid-data Ii ligi I,

aktar lard minn dawn in-nOlifiki u wara dan ikoll u effel t

(a) fir- Renju Unit

(i) ghar-rigward lat-Iaxxa fuq I-income u tau a fuq qligh bpilali , ghal

sena ta' 51ima li tkun li tibda fis-6 ta' April Jew wara fi s-se na kalendarja Ii ligi

minnufih wara dik is-sena li fiha I-Ftehim jibda jsel'lh;

(ii) ghar-rigward tal-taxxa korporattiva. ghal sena fin a nzjarja li tk un li

tilxla fl- I la' Apri l jew wara fis-sena kalendarja li tigi minnufih wara dik is-se na

li fiha I-Ftehimjilxlajsehh;

fMalla

(b)

gha r-rigward tat-laxxa fuq I-income , ghal se na ta' stima li tkun li tibda n-

e wwel jum la' Jannar Jew wara fis-se na kalendarja li tigi minnufih wara dik is-

sena li fiha I-Ftehim jibda jsehh.

(2) L-Arra nga menl bej n il-Gve rn lal-Maestlt T aghha u I-Gve rn la' Malta biex ligi

Evilata I-Taxxa Doppja u biex ma Tithalliex li ssir Evatjoni Fiskali dwar Taui fuq 1-

Income, kif eme ndata bil-Ftehi m iffirmal fil-Belt Vallett3 fid-29 la' Novembru , 1974

(hawnhekk iijed 'il quddiem imsejjah " I-Arrangamc nlla' 1- 1961 ") ghandu jte mm u

jieqaf milli jibqa' jkollu sehh mid-data min n meta dan iI-Fte him ik o llu sel'lh ghaT-

rigward tat-taxxi li dan il-Ftc him japplika ghalihom s kond id-di spoi iujonijiet lal-

paTagrafu (I) ta' dan I-Arliklu .

""

(3) Meta xi dispotiujonijicl ta' j·Arranjamcnl la' 1-1961 kie nellaghli hclsien

ikbar rn il·tana minn dak dovu l tahl dan jI· Flchim. dik id.dispoti.zzjoni mscmmija

ghandha tko mpli ssehh

(a) fir-Rtnju Unit . ,l'Ial kull se na la 'Slima , sena finanzjarja, jew pcrijodu

taxxabbli; u

(b) rMalla , ghal tull se na ta' 51ima li f'kull kat Ik un lilxla qabcl il-bidu fis.

sehh la' dan il-Flehim .

ARTIKLU 30

Trrmina zz;oni

Dan il-Ftchim gh andu jibqa' jsehh sa kcmm jigl terminal minn wiehcd mill-

bl81i Konlraenli. Kull wiehed mill· ISlali Kontraenl i jista' jlcmm il· Flchim,

pcrmezz la' skambju diplomaliku . billi jag"!i amt tlt-tcrminazzjoni mill-anqas

sin xhur qabcl it-tmicm la' xi seOI kalcndarja . F'dak i1-ka1. iI-Flchim rna ghandux

jibqa' jsehh

(a)

fi r. Rc nju U nit

(i) dwar iHuxa ruq j·iDeQIM' u tuu ruq qligh hpitali , ghalsena la'

slima li libda ris.(i la' April jew war. ris-SC'na Inlendarja li ligi minnurih wan.

di k is-sena li rilla jinghata I-avvit

(ii) dwar iHaua ko rporalliVl_ ghal kul1 SC' na rinanzjarja li tibda n · 1 la'

April Jew wara ris·sena kalend.rj. Ii liji minnurih wan. dik is-SC'na li rilla

jinghala l-a¥Vit

(b)

rMalta

dwar it·taua fuq I-incomt. ghal kull se na ta ' sli ma li libda f1-ewwel jum

la' Ja nn ar Jew wara fis-se na kalcndarja li liti min nu fih wara dik is,sena li filla

jinghata l-aVYit.

B'xiehd a la' dan is·$Ottoskritti. aWloriuati kif imiss biex jaghmlu dan mill-

Gvemijiet ri spcl1ivi taghhom , iffi rmaw dan il- Flehim.

MAGI'tM UL gewwa Londra ilium il· 12 la' Mcjj u. 1994 n -ilsien lngli i .

STEPHEN DORELL

JOSEF BONNICI

Ghall-Gvem tar-Rcnju Unit

Ghal1 -Gvcrn la' Malta

tal-Gra n Briuanja u 1, Irlanda ta' Fuq

B

SKAMBJU TA' NOTI

Londra

121a' Mcjj u, 1994

Ettel1clWl

Ghandi I-unur nirrcferi ghall- Fte him bejn il-Gve m lar-Re nju U nit tal-Gran

Briltanja u I-Irlanda ta' Fuq u I-Gvcm ta' Malla ghBII-Helsicn min n Taua Doppja u

Biel Tigi Evitata Evatjoni fiskali dwarTaxxi fuq l- Inco~ u Oligh Ka pitali li gie ffirmal

ilium u li nipproponi fisem il-Gvern tar-Reo; u Unit tal-Gran Brittanja u I-lrlanda la'

Fuq iIIi

(a) b'rt!ft'renZil glwlf-Anikli 7 u 9, huwa milhum 1i cbda l'Ia&a li tinsab fda wk

I-artildi ma ghandha !olqa l I-applikazzjoni la' xi ligi ta ' Slal Kontraenti li jkollha

x'taqsam mad-detitjoni li titti ehed dwar jckk persuna ghandhiex Ih allaos tana ,

inkluta d-deaijoni dwar dan billi jsir uiu minn diskrezzjoni Jew billi tintghame l

51ima mill-awtoritA kompetenti ta' dak 1· lslal rk ati;icl 1i fi hom, mil-Iagh rif li 1-

awtorittl kompele nli la' dak I-blat ikollha, ma tkunx haga possibbli jew prattika li

jigu actertati xi jkunu I-profitli li jkollhom jigu atlribwili lil stabbilimenli

permanenti, kemm-il darba dik il-ti gi liti applikata, sakemm it-taghrif I; I-awtoritll

kompetenli ikollha jkun jippermetli, b' mod konsistenti mal-prinCi pji ta' daw k i:.l:-

kwg Artikli ;

(b) b'rrf~mlzQ ghQl/'fXlragrafu (9) ID' I-Arlitlu 11 , huwa mi lllu m li 1-

istituzzjoni, agenzija Je w instrum entalit li relevanti ghandh a fil-kai. ta r-Renju Unil

tkun I-Expor' C,~dits Guafanftt Dtpar,mt nt u ghandha fil -kai ta ' Malta tkun 1-

Export C,~Ji' GuorOnltt Company Lld;

(t) b'r~ferenw ghaJl-fXlrogrQfu (6) /Q' /-Artiklu 22, huwa mifhum li fuq talba

la' :t:i aWlOritl kompelenli t -kwg Slali Kontrae nli ghandhom jibdew

diskussjonijiet dwar l-eslensjoni lal-pe rijodu msemmi fiI-paragrafu (5) fku ll tmien

sabie:c, fil- kai li jintlahaq flehim dwat l-estensjoni ta ' dak il-perijodu, ma ghandu

jkun hemm ebda nuqqa.s ta' kontinwitli n-a pplikattjoni ta ' I-Artiklu;

(d) b'nftrtnUl ghall'paragrafu (2) ID ' l-Arfiklu 21, id-dispoZizzjonijiel ta'

dan il-Ftehim ma ghandhom:t: japplikaw ghal

(1) persuni 1i huma inlitolali ghal bcnefiftju la' taua specjal; bis-sahh a

la' I-All ta' 1-1988 dw ar Attivitajiet Kummertjali Intemazzjonali ta ' Malta

htief dawk i1-persuni li jaghtlu skond I-Artikolu 41 ta' dak I-All li jkunu

suggetli ghad-dispotizzjonijiel norm ali ta' I-All dwar il-Tana fuq J-Inomt

(Kap, 123) ;jew

(t1) persuni Ii u sal-limilu Ii bih bis-sahha tad-dispotizzjo nijiella' I-All

ta' 1-1973 dwar il-Basti ment i Merkant ili mhumielt suggelli ghat-lll)[lta fuq il-

profitli miksubin mil-th addim ta ' baslimenti fi Iraffiku inlemazzjonali; Jew

persuni inlitolati ghal xi bcnefictju la' l3X)[a speCjali gliar-rigward

,

i minn I I'IUI bla hsa ra ghad-dispoiizzjonijiet ta ' l-

'd.;,

Trusts meta jilqies Ii fl'lUt kif stabbilita rdak 1-

Atl mhijiex veslita b'personalitli gurid ika u g,halhekk ma lislll)[ tibbc nefika

mill-Ftehim b' kull jedd li jappartjeni li1ha ; Jew

(iv) persuni inlilolali ghat xi bencfittju la' tau. speCjali laht xi lip ol'lra

SOSla nljalmenl aimili li Ikun tic l legisla ta 5ussegwentement u li jkun sar ftehlm

dwarha mill-Iwtoritajiet kompe tenti ta' l-lstati Konlraenti bhall inkluta

$kond il-provvedimcnti lal-paragrafu (2) ta' \-Artiklu 23 la' dan il-Ftehim .

Jekk dawn il. proposd huma a(:tenabbli ghall-Gvem la' Malla, &handi ]-unur

nissuggerixxi Ii din in-Noli flimkic n mar. risposta ta' I_F ..... elh::nu Ticghek dwarha

glIandhom jilqiesu bhala li jik kostitwiuu qbil bejn it-tew! Gve m ijiel (uq din il·hata, u

dan ghandu jibda jsebh n· isless tmien bhalma jibda jsehh dan iI·Flchim .

Niehu din l-opportu nitA sabiclI: inwusallill-EHdle~a Tic:ghek ]-assiguraujoni la'

l-oghla Slim. lieghi.

J .S. BUC K

ghas.Segrctarju Statali

&hall. Affarijic:t £Ste rni u tal-Commonwealth .

A orianll

12 t a' Mejju , 1994

Ettcllcnza

Ghandi l-unuT nirrik onoxxi Ji waslitli n-NOII!. ta ' I-Ettellenza Tieghek li ggib id-

data ta ' llum u li tiddikjara dan 1; gej

MGlIaodi l-unuT nirreferi gI'Iall-Fle him bejn il-Gvc m tar-Re nju Unit tal-Gnn

Brinanja u I-Irlanda ta ' Fuq u J-Gvem ta' Malta ghall. Hclsien minn Taxxa Doppja u

Biel Tigi Evitata Evaijoni FiskaJi dwar Taw fuq 1· lncome u Olig.h Ka pitali li tie

ffirmat ilium u li nipproponi risem iI-Gvem tar. Renju U nit tal·Gran Brillanja u 1-

Irlanda ta ' Fuq illi

(a) b 'rt/ ertntA ghaJl.Artikli 7 u 9. huwa mifbum li ebda haga li tinsa b r dawk

J-artikli ma ghandha tolqot ' -applikazzjoni la ' xi ligi ta ' Slat Ko ntrac: nti Ii jko llha

x' laqsam mad-detitjoni Ii titticbed dwa r jc kk persuna ghandhicx Ihallas laJl.u,

inkl uta d-detii:joni dwaT dan billi jisir utu minn dis krczzjon i jcw billi tinlghamd

51ima mill·awtoril! kompelenli la' dak ' , lslal rkaiijiel li fihom , mi l-tagh rif li I-

awt orilA kompelenli la' dak ' , lslal ikollha, ma tk uru: haga possibbli jew prallika li

jigu ateenati xi jkunu I' profi lli li jkollhom jigu allribwiti lil Slabbilime nl

permanenti , kemm -il darba dik if-ligi ligi applikBla , sak em m it-taghrif li I-awloril!

kompetenti ikollha ;kun jippermelti, b'mod konsislent i mal-prin~pji la' daw k ii-

tcwgAnik1i ;

(b) b 'rrfl!rrtlUl g/uJlI-parQgrafu (9) la' I-Aniklu 11 , huwa mifhum li 1-

istiluujoni , agemija Jew instrumentalil! relevanli gbandha m-kat lar-Renju Unit

tkun I-Expon Crrdits G uorQtltu Dtpartmtnt u ghandha m-kat la' Malta Ikun 1-

Expon Crrdit GuarQtllu Compatly Lld;

(") b'rtftmna ghall-paragrafu (6) la'l-Arfiklu 22, huwa mifhu m li fuq lalba

ta' xi awtoril<li kompetenli i-iewg Stati Kontraenti gh3nd hom iibdew

diskussjonijiet dwar l-estensjoni tal-perijodu msemmi l'iI-paragrafu (5) rkull i mien

sabiu, fiI-kat li jintlahaq ftehim dwar l-eslensjoni la' da k il-pe rijodu, ma ghand u

jkun hemm ebda nuqqasl a' kon tinwit! fl ,applikazzjoni la'I-Ani kl u;

(d) b'rqtrtnUl ghal/'paragrafu (2) Ill ' I-A rt;1clu 23, id-dispotizzjonijiet la'

dan il-Ftehirn rna ghandhomx japptikaw ghal

Ci> persun; Ii huma jlltilolal; ghat benefittju la' taua speqali bis-sahha

la' I-All la' 1-1988 dwar Allivitajiet Kumm er"jali Inlernaujonali la' Malla

hlie! ghaJ dawk il-persuni li jagbZlu skond I-Artikolu 41 ta' dak I-Allli jkunu

sU&&elti gbad-dispoWjonijiet nonnali ta' I-All dwar il-Taua fuq I-Itl omt

( Kap, 123) ; jew

(ii) persuni li u sal-limitu li bih bis-sah ha tad-dispotizzjonijiel la' I-Att

la' 1-1973 dwar il-Baslimenti Merk antil i mhumiex suggetti ghal-Iaxxa fuq il-

profitti miksubin miHhaddim ta' bastimenti fi traffiku inlemazzjonali ; Jew

(iii) pc rsun; inlit olati ghal xi bendi""ju la' laxxa spe"jali ghar-rigward

lad-dislribuzzjonijiel Ji jSiTU minn trust bla hsara ghad-dispozizzjonijiel ta']-

All la' 1-1988 dwar I,Offshort Trusts mela jitqies li /rUSt kif stabbili ta rdak 1-

All mhijiCll vestila b'personalitA gurid ika u ghalhe kk ma tistax tibbe nefika

mill-Ftehim b'kull jedd li jappanjeni lil ha; Jew

(iv) persuni intitolRti ghal xi benertCtju la' laxxI spetjaJi taf'lt xi lip of'lra

sostanzjaimenl slm;l; li Ikun tiet legislata sussegwentement u li jlr:un sarftehim

dwarha mill-awtoritajiet kompetenli la' j·!stati Konlraenli bhala inltlu!a

s kond il-provvedimenti tal-pa ragrafu (2) ta ' l-Aniklu 23 la' dan il·Fle him.

Jekk dawn il-proposti huma a~ltabbli ghall-Gvem ta' Malta , gbandi I-unur

niss uggeriui li din in-Nota f1imkien mar-risposta la' I-Ftte lle nu Tiegl'lck dwarha

gf'landhom jitqies u bha[a 1i jikkostitwixxu qbil bein it-tewg Gvemijiet fuq din iI. f'l aga, U

dan ghandu jibda jselih f1-istess i:mien bhalma jibda jsehl'l dan il-Ftehim".

Dawn il-proposti huma attetlabbli gI'lall-Gvcm ta' Malta, u ghandi !·unur

nikkon fenna li n-Nota ta' l-ECCellem:a Tieghek u din ir-RiSp05t3 gf'landhom jilqiesu

bhala li jikkostitwixxu qbil bejn iz-zewg GYemijiel fuq din il-f'laga , u dan gf'l andu jibda

jsehh n-isless zmien bhalma jibda jsehh dan il-Ftehim.

Niehu din l-opponun ilA sabiex inwassal li11-Ettel1enza Tieghek l-assigurazzjoni ta'

l-ogf'll a stima lieghi.

VINCENT GALEA

Kummissarju tal-Taxxi Inlemi

Ghall-Gvem ta' Malta