Double Taxation Relief (Taxes on Income) (Ireland) Order,

L.N. 62 of 2009

INCOME TAX ACT

(CAP. 123)

Double Taxation Relief (Taxes on Income) (Ireland) Order,

IN exercise of the powers conferred by article 76 of the Income

Tax Act, the Minister of Finance, the Economy and Investment has

made the following order:-

The title of this order is the Double Taxation Relief (Taxes

on Income) (Ireland) Order, 2009.

FTEHIM BEJN

MALTA U

L-IRLANDA

DWAR ELSIEN MINN TAXXA DOPPJA

U L-PREVENZJONI TA’ EVAJONI FISKALI

DWAR TAXXI FUQ L-INCOME

Il-Gvern ta’ Malta u l-Gvern ta’ l-Irlanda, Billi jixtiequ jagmlu Ftehim dwar elsien

minn taxxa doppja u l-prevenzjoni ta’ evajoni fiskali dwar taxxi fuq l-income,

ftiehmu kif ej

PERSUNI KOPERTI

Dan il-Ftehim gandu japplika gal persuni li jkunu residenti fi Stat Kontraenti

wieed jew fit-tnejn li huma.

Artikolu 2

TAXXI KOPERTI

1. Dan il-Ftehim gandu japplika gat-taxxi fuq l-income imposti f’isem Stat

Kontraenti, irrispettivament mill-mod kif dawn jinabru.

2. Gandhom jitqiesu bala taxxi fuq l-income it-taxxi kollha imposti fuq l-income

totali, jew fuq elementi ta’ income, inklui taxxi fuq dul mill-bejg ta’ proprjetà

mobbli jew immobbli.

It is hereby declared:-

(a) that the arrangements specified in the Convention

set out in the Schedule to this Order have been made with

Ireland with a view to affording relief from double taxation in

relation to the following taxes imposed by the laws of Ireland

-

the income tax;

-

the corporation tax; and

-

the capital gains tax;

(b) that it is expedient that those arrangements should

have effect;

(c) that the Convention has entered into force on the 15

January, 2009.

B

CONVENTION BETWEEN

MALTA

AND

IRELAND

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME

The Government of Malta and the Government of Ireland, desiring to conclude a

Convention for the avoidance of double taxation and the prevention of fiscal evasion

with respect to taxes on income, have agreed as follows

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Article 1

PERSONS COVERED

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

States.

Article 2

TAXES COVERED

1. This Convention shall apply to taxes on income imposed by a Contracting State,

irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income, or on

elements of income, including taxes on gains from the alienation of movable or immovable

property.

The existing taxes to which this Convention shall apply are

(a)

in the case of Ireland

(i)

the income tax;

(ii)

the corporation tax;

(iii)

the capital gains tax;

(hereinafter referred to as "Irish tax");

(b)

in the case of Malta

the income tax;

(hereinafter referred to as "Malta tax").

The Convention shall apply also to any identical or substantially similar taxes which

are imposed after the date of signature of the Convention in addition to, or in place of, the

existing taxes. The competent authorities of the Contracting States shall notify each other

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

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Article 3

GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise requires

(a)

the term “Ireland” includes any area outside the territorial waters of Ireland

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

designated under the laws of Ireland concerning the Continental Shelf, as an area

within which the rights of Ireland with respect to the sea-bed and sub-soil and their

natural resources may be exercised;

(b)

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

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

other islands of the Maltese archipelago including the territorial waters

thereof, as well as any area of the sea-bed, its sub-soil and the superjacent

water column adjacent to the territorial waters, wherein Malta exercises

sovereign rights, jurisdiction, or control in accordance with international law

and its national law, including its legislation relating to the exploration of

the continental shelf and exploitation of its natural resources;

(c)

the terms "a Contracting State" and "the other Contracting State" mean

Ireland or Malta, as the context requires;

(d)

the term "person" includes an individual, a company and any other body of

persons;

(e)

the term "company" means any body corporate or any entity that is treated as

a body corporate for tax purposes;

(f)

the terms "enterprise of a Contracting State" and "enterprise of the other

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

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

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(g)

the term "international traffic" means any transport by a ship or aircraft

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

operated solely between places in the other Contracting State;

(h)

the term "competent authority" means

in Ireland

the Revenue Commissioners or their authorised

(i)

representative;

in Malta: the Minister responsible for finance or his

authorised

(ii)

representative;

(i)

the term " national" means

in relation to Ireland, any citizen of Ireland and any legal person,

(i)

partnership or association deriving its status as such from the laws in force in

Ireland;

in relation to Malta, any individual possessing the nationality of

(ii)

Malta and any legal person, partnership or association deriving its status as

such from the laws in force in Malta.

2. As regards the application of the Convention at any time by a Contracting State, any

term not defined therein shall, unless the context otherwise requires, have the meaning that

it has at that time under the law of that State for the purposes of the taxes to which the

Convention applies, any meaning under the applicable tax laws of that State prevailing over

a meaning given to the term under other laws of that State.

Article 4

RESIDENT

1. For the purposes of this Convention, the term "resident of a Contracting State"

means any person who, under the laws of that State, is liable to tax therein by reason of his

domicile, residence, place of management or any other criterion of a similar nature. This

term, however, does not include any person who is liable to tax in that State in respect only

of income from sources in that State.

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2. Where by reason of the provisions of paragraph 1 an individual is a resident of both

Contracting States, then his status shall be determined as follows

(a)

he shall be deemed to be a resident only of the State in which he has a

permanent home available to him; if he has a permanent home available to him in

both States, he shall be deemed to be a resident only of the State with which his

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

(b)

if the State in which he has his centre of vital interests cannot be determined,

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

deemed to be a resident only of the State in which he has an habitual abode;

(c)

if he has an habitual abode in both States or in neither of them, he shall be

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

(d)

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

authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual

is a resident of both Contracting States, then it shall be deemed to be a resident only of the

State in which its place of effective management is situated.

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term "permanent establishment" means a

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

carried on.

2. The term "permanent establishment" includes especially

(a)

a place of management;

(b)

a branch;

(c)

an office;

(d)

a factory;

(e)

a workshop; and

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

resources.

3. A person carrying on activities offshore in a Contracting State in connection with

the exploration or exploitation of the sea-bed and sub-soil and their natural resources

situated in that Contracting State shall be deemed to be carrying on a business through a

permanent establishment in that Contracting State.

4. A building site, a construction, assembly or installation project or supervisory

activities in connection therewith, constitutes a permanent establishment only if it lasts

more than six months.

Notwithstanding the preceding provisions of this Article, the term "permanent

establishment" shall be deemed not to include

(a)

the use of facilities solely for the purpose of storage, display or delivery of

goods or merchandise belonging to the enterprise;

(b)

the maintenance of a stock of goods or merchandise belonging to the

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

(c)

the maintenance of a stock of goods or merchandise belonging to the

enterprise solely for the purpose of processing by another enterprise;

(d)

the maintenance of a fixed place of business solely for the purpose of

purchasing goods or merchandise, or of collecting information, for the enterprise;

(e)

the maintenance of a fixed place of business solely for the purpose of

carrying on, for the enterprise, any other activity of a preparatory or auxiliary

character;

(f)

the maintenance of a fixed place of business solely for any combination of

activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of

the fixed place of business resulting from this combination is of a preparatory or

auxiliary character.

Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than

an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an

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enterprise and has, and habitually exercises, in a Contracting State an authority to conclude

contracts in the name 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 for the

enterprise, unless the activities of such person are limited to those mentioned in paragraph 5

which, if exercised through a fixed place of business, would not make this fixed place of

business a permanent establishment under the provisions of that paragraph.

An enterprise shall not be deemed to have a permanent establishment in a

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

general commission agent or any other agent of an independent status, provided that such

persons are acting in the ordinary course of their business.

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 Contracting State, or which carries

on business in that other State (whether through a permanent establishment or otherwise),

shall not of itself constitute either company a permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property

(including income from agriculture or forestry) situated in the other Contracting State may

be taxed in that other State.

2. The term "immovable property" shall have the meaning which it has under the law

of the Contracting State in which the property in question is situated. The term shall in any

case include property accessory to immovable property, livestock and equipment used in

agriculture and forestry, rights to which the provisions of general law respecting landed

property apply, usufruct of immovable property and rights to variable or fixed payments as

consideration for the working of, or the right to work, mineral deposits, sources and other

natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use,

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

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

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

performance of independent personal services.

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that State

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

establishment situated therein. If the enterprise carries on business as aforesaid, the profits

of the enterprise may be taxed in the other State but only so much of them as is attributable

to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State

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

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

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

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

conditions and dealing wholly independently with the enterprise of which it is a permanent

establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as

deductions expenses which are incurred for the purposes of the permanent establishment,

including executive and general administrative expenses so incurred, whether in the

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

4. Insofar as it has been customary in a Contracting State to determine the profits to be

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

of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting

State from determining the profits to be taxed by such an apportionment as may be

customary; the method of apportionment adopted shall, however, be such that the result

shall be in accordance with the principles contained in this Article.

5. No profits shall be attributed to a permanent establishment by reason of the mere

purchase by that permanent establishment of goods or merchandise for the enterprise.

B

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

permanent establishment shall be determined by the same method year by year unless there

is good and sufficient reason to the contrary.

7. Where profits include items of income or gains which are dealt with separately in

other Articles of this Convention, then the provisions of those Articles shall not be affected

by the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft

in international traffic shall be taxable only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a

pool, a joint business or an international operating agency.

Article 9

ASSOCIATED ENTERPRISES

1. Where

(a)

an enterprise of a Contracting State participates directly or indirectly in the

management, control or capital of an enterprise of the other Contracting 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 enterprise of the

other Contracting State,

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

commercial or financial relations which differ from those which would be made between

independent enterprises, then any profits which would, but for those conditions, have

accrued to one of the enterprises, but, by reason of those conditions, have not so accrued,

may be included in the profits of that enterprise and taxed accordingly.

B

2. Where a Contracting State includes in the profits of an enterprise of that 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 to the enterprise of the first-mentioned State if the conditions made between the

two enterprises had been those which would have been made between independent

enterprises, then that other State shall make an appropriate adjustment 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

DIVIDENDS

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

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

2. However, such dividends may also be taxed in the Contracting State of which the

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

(a)

where the dividends are paid by a company which is a resident of Ireland to

a resident of Malta who is the beneficial owner thereof, the Irish tax so charged

shall not exceed

(i)

5 per cent of the gross amount of the dividends if the beneficial

owner is a company which holds directly at least 10 per cent of the voting

power of the company paying the dividends;

(ii)

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

(b)

where the dividends are paid by a company which is a resident of

Malta to a resident of Ireland who is the beneficial owner thereof, Malta tax

on the gross amount of the dividend shall not exceed that chargeable on the

profits out of which the dividends are paid.

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

out of which the dividends are paid.

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3. The term "dividends" as used in this Article means income from shares, or other

rights, not being debt-claims, participating in profits, as well as income from other

corporate rights assimilated to income from shares by the taxation laws of the State of

which the company making the distribution is a resident and also includes any other item

which, under the laws of the Contracting State of which the company paying the dividend is

a resident, is treated as a dividend or distribution of a company.

4. The provisions of paragraphs 1 and 2 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 company paying the dividends is a resident, through a

permanent establishment situated therein, or performs in that other State independent

personal services from a fixed base situated therein, and the holding in respect of which the

dividends are paid is effectively connected with such permanent establishment or fixed

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

5. Where a company which is a resident of a Contracting State derives profits or

income from the other Contracting State, that other State may not impose any tax on the

dividends paid by the company, except insofar as such dividends are paid to a resident of

that other State or insofar as the holding in respect of which the dividends are paid is

effectively connected with a permanent establishment or a fixed base situated in that other

State, nor subject the company's undistributed profits to a tax on the company's

undistributed profits, even if the dividends paid or the undistributed profits consist wholly

or partly of profits or income arising in such other State.

Article 11

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting

State shall be taxable only in that other State if such resident is the beneficial owner of the

interest.

2. The term "interest", as used in this Article means income from debt-claims of every

kind, whether or not secured by mortgage and whether or not carrying a right to participate

in the debtor's profits, and in particular, income from government securities and income

from bonds or debentures, including premiums and prizes attaching to such securities,

bonds or debentures. The term “interest” shall not include any item which is treated as a

B

distribution under the provisions of Article 10. Penalty charges for late payment shall not be

regarded as interest for the purpose of this Article.

3. The provisions of paragraph 1 shall not apply if the beneficial owner of the interest,

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

which the interest arises, through a permanent establishment situated therein, or performs in

that other State independent personal services from a fixed base situated therein, and the

debt-claim in respect of which the interest is paid is effectively connected with such

permanent establishment or fixed base. In such case the provisions of Article 7 or Article

14, as the case may be, shall apply.

4. Where, by reason of a special relationship between the payer and the beneficial

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

regard to the debt-claim for which it is paid, exceeds the amount which would have been

agreed upon by the payer and the beneficial owner in the absence of such relationship, the

provisions of this Article shall apply only to the last-mentioned amount. In such case, the

excess part of the payments shall remain taxable according to the laws of each Contracting

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

Article 12

ROYALTIES

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

Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State in which they

arise and according to the laws of that State, but if the beneficial owner of the royalties is a

resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the

gross amount of the royalties.

3. The term "royalties" as used in this Article means payments of any kind received as

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

scientific work including cinematograph films, any patent, trade mark, design or model,

plan, secret formula or process, or for information concerning industrial, commercial or

scientific experience.

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4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the

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

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

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

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

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

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

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

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

resident of a Contracting State or not, has in a Contracting State a permanent establishment

or a fixed base in connection with which the liability to pay the royalties was incurred, and

such royalties are borne by such permanent establishment or fixed base, then such royalties

shall be deemed to arise in the State in which the permanent establishment or fixed base is

situated.

6. Where, by reason of a special relationship between the payer and the beneficial

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

regard to the use, right or information for which they are paid, exceeds the amount which

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

relationship, the provisions of this Article shall apply only to the last-mentioned amount. In

such case, the excess part of the payments shall remain taxable according to the laws of

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

Article 13

GAINS FROM THE ALIENATION OF PROPERTY

1. Gains derived by a resident of a Contracting State from the alienation of immovable

property referred to in Article 6 and situated in the other Contracting State may be taxed in

that other State.

2. Gains derived by a resident of a Contracting State from the alienation of shares or

other corporate rights in a company deriving their value or the greater part of their value

directly or indirectly from immovable property situated in the other Contracting State may

be taxed in that other State. In this paragraph the term “shares” does not include shares

quoted or listed on a recognised Stock Exchange.

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3. Gains from the alienation of movable property forming part of the business property

of a permanent establishment which an enterprise of a Contracting State has in the other

Contracting State 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 personal services, including such gains from the alienation of such a

permanent establishment (alone or with the whole enterprise) or of such fixed base, may be

taxed in that other State.

4. Gains derived by an enterprise of a Contracting State from the alienation of ships or

aircraft operated in international traffic, or from movable property pertaining to the

operation of such ships or aircraft, shall be taxable only in that State.

5. Gains from the alienation of any property other than that referred to in the preceding

paragraphs of this Article shall be taxable only in the Contracting State of which the

alienator is a resident.

6. The provisions of paragraph 5 shall not affect the right of a Contracting State to

levy, according to its law, a tax on gains from the 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 State at any time during the three years immediately preceding the

alienation of the property.

Article 14

INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of professional

services or other 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)

if he has a fixed base regularly available to him in the other Contracting

State for the purpose of performing his activities; in that case, only so much of the

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

State; or

(b)

if his stay in the other Contracting State is for a period or periods amounting

to or exceeding in the aggregate 183 days in any twelve-month period commencing

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or ending in the fiscal year concerned; in that case, only so much of the income as is

derived from the activity exercised in the other Contracting State may be taxed in

that other State.

2. The term "professional services" includes especially independent scientific, literary,

artistic, educational or teaching activities as well as the independent activities of physicians,

lawyers, engineers, architects, dentists and accountants.

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar

remuneration derived by a 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

State. If the employment is so exercised, such remuneration as is derived therefrom may be

taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident

of a Contracting State in respect of an employment exercised in the other Contracting State

shall be taxable only in the first-mentioned State if

(a)

the recipient is present in the other State for a period or periods not

exceeding in the aggregate 183 days in any twelve-month period commencing or

ending in the fiscal year concerned, and

(b)

the remuneration is paid by, or on behalf of, an employer who is not a

resident of the other State, and

(c)

the remuneration is not borne by a permanent establishment or a fixed base

which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in

respect of an employment exercised aboard a ship or aircraft operated in international

traffic by an enterprise of a Contracting State may be taxed in that State.

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Article 16

DIRECTORS' FEES

Directors' fees and other similar payments derived by a resident of a Contracting

State in his capacity as a member of the board of directors of a company which is a resident

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

Article 17

ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident

of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television

artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the

other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or a

sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to

another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15,

be taxed in the Contracting State in which the activities of the entertainer or sportsman are

exercised.

Article 18

PENSIONS, ANNUITIES AND SIMILAR PAYMENTS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar

remuneration paid in consideration of past employment, or any annuity paid, to an

individual who is a resident of a Contracting State shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments

made under the social security legislation of a Contracting State shall be taxable only in that

State.

3. The term “annuity” means a stated sum payable periodically at stated times during

life or during a specified or ascertainable period of time under an obligation to make the

payments in return for adequate and full consideration in money or money’s worth.

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Article 19

GOVERNMENT SERVICE

1. (a)

Salaries, wages and other similar remuneration, other than a pension, paid by

a Contracting State to an individual in respect of services rendered to that State shall

be taxable only in that State.

(b)

However, such salaries, wages and other similar remuneration shall be

taxable only in the other Contracting State if the services are rendered in that State

and the individual is a resident of that State who

(i)

is a national of that State; or

(ii)

did not become a resident of that State solely for the purpose of

rendering the services.

2. (a)

Any pension paid by, or out of funds created by, a Contracting State to an

individual in respect of services rendered to that State shall be taxable only in that

State.

(b)

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

the individual is a resident of, and a national of, that State.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other

similar remuneration, and to pensions, in respect of services rendered in connection with a

business carried on by a Contracting State.

Article 20

STUDENTS

Payments which a student or business apprentice who is or was immediately before

visiting a Contracting State a resident of the other Contracting State and who is present in

the first-mentioned State solely for the purpose of his education or training receives for the

purpose of his maintenance, education or training shall not be taxed in that State, provided

that such payments arise from sources outside that State.

Article 21

OTHER INCOME

1. Items of income of a resident of a Contracting State, wherever arising, not dealt

with in the foregoing Articles of this Convention shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than income from

immovable property as defined in paragraph 2 of Article 6, if the recipient of such income,

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

through a permanent establishment situated therein, or performs in that other State

independent personal services from a fixed base situated therein, and the right or property

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

establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the

case may be, shall apply.

Article 22

ELIMINATION OF DOUBLE TAXATION

1. Subject to the provisions of the laws of Ireland regarding the allowance as a credit

against Irish tax of tax payable in a territory outside Ireland (which shall not affect the

general principle hereof) -

(a)

Malta tax paid under the laws of Malta and in accordance with this

Convention, whether directly or by deduction, on profits, income or gains from

sources within Malta (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 against any

Irish tax computed by reference to the same profits, income or gains by reference to

which Malta tax is computed;

(b)

in the case of a dividend paid by a company which is a resident of Malta to a

company which is a resident of Ireland and which controls directly or indirectly 10

per cent or more of the voting power in the company paying the dividend, the credit

shall take into account (in addition to any Malta tax creditable under the provisions

of subparagraph (a) of this paragraph) Malta tax payable in respect of the profits out

of which such dividend is paid.

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2. Subject to the provisions of the laws of Malta regarding the allowance as a credit

against Malta tax in respect of foreign tax (which shall not affect the general principle

hereof) -

(a)

where, in accordance with the provisions of this Convention, there is

included in a Malta assessment income from sources within Ireland, the Irish tax

paid on such income (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 against the

Malta tax payable thereon;

(b)

where a company which is a resident of Ireland pays a dividend to a

company resident in Malta which controls directly or indirectly at least 10 per cent

of the voting power in the first-mentioned company, the credit shall take into

account (in addition to any Irish tax for which credit may be allowed under

subparagraph (a) of this paragraph) the Irish tax borne in respect of the profits out

of which such dividend is paid.

3. For the purposes of paragraphs 1 and 2 of this Article profits, income or gains of a

resident of a Contracting State which may be taxed in the other Contracting State in

accordance with this Convention shall be deemed to arise from sources in that other State.

4. Where in accordance with any provisions of this Convention income derived by a

resident of a Contracting State is exempt from tax in that State, such State may

nevertheless, in calculating the amount of tax on the remaining income of such resident,

take into account the exempted income.

5. Where, under any provision of this Convention, income or gains is or are wholly or

partly relieved from tax in a Contracting State and, under the laws in force in the other

Contracting State, an individual, in respect of the said income or gains, is subject to tax by

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

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

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

remitted to or received in that other State.

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Article 23

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State

to any taxation or any requirement connected therewith which is other or more burdensome

than the taxation and connected requirements to which nationals of that other State in the

same circumstances, in particular with respect to residence, are or may be subjected. This

provision shall, notwithstanding the provisions of Article 1, also apply to persons who are

not residents of one or both of the Contracting States.

2. The taxation on a permanent establishment which an enterprise of a Contracting

State has in the other Contracting State shall not be less favourably levied in that other State

than the taxation levied on enterprises of that other State carrying on the same activities.

This provision shall not be construed as obliging a Contracting State to grant to residents of

the other Contracting State any personal allowances, reliefs and reductions for tax purposes

on account of civil status or family responsibilities which it grants to its own residents.

3. Except where the provisions of paragraph 1 of Article 9, paragraph 4 of Article 11,

or paragraph 6 of Article 12 apply, interest (other than interest that has been treated as a

dividend under Article 10), royalties and other disbursements paid by an enterprise of a

Contracting State to a resident of the other Contracting State shall, for the purpose of

determining the taxable profits of such enterprise, be deductible under the same conditions

as if they had been paid to a resident of the first-mentioned State.

4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or

controlled, directly or indirectly, by one or more residents of the other Contracting State,

shall not be subjected in the first-mentioned State to any taxation or any requirement

connected therewith which is other or more burdensome than the taxation and connected

requirements to which other similar enterprises of the first-mentioned State are or may be

subjected.

Article 24

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the Contracting States

result or will result for him in taxation not in accordance with the provisions of this

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Convention, he may, irrespective of the remedies provided by the domestic law of those

States, present his case to the competent authority of the Contracting State of which he is a

resident or, if his case comes under paragraph 1 of Article 23, to that of the Contracting

State of which he is a national. The case must be presented within three years from the first

notification of the action resulting in taxation not in accordance with the provisions of the

Convention.

2. The competent authority shall endeavour, if the objection appears to it to be justified

and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual

agreement with the competent authority of the other Contracting State, with a view to the

avoidance of taxation which is not in accordance with the Convention. Any agreement

reached shall be implemented notwithstanding any time limits in the domestic law of the

Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by

mutual agreement any difficulties or doubts arising as to the interpretation or application of

the Convention. They may also consult together for the elimination of double taxation in

cases not provided for in the Convention.

4. The competent authorities of the Contracting States may communicate with each

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

paragraphs.

Article 25

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information

as is foreseeably relevant for carrying out the provisions of this Convention or to the

administration or enforcement of the domestic laws concerning taxes of every kind and

description imposed on behalf of the Contracting States, or of their political subdivisions or

local authorities, insofar as the taxation thereunder is not contrary to the Convention. The

exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 by a Contracting State shall be treated

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

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

bodies) concerned with the assessment or collection of, the enforcement or prosecution in

respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or

the oversight of the above. Such persons or authorities shall use the information only for

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such purposes. They may disclose the information in public court proceedings or in judicial

decisions.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose

on a Contracting State the obligation

(a)

to carry out administrative measures at variance with the laws and

administrative practice of that or of the other Contracting State;

(b)

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

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

(c)

to supply information which would disclose any trade, business, industrial,

commercial or professional secret or trade process, or information the disclosure of

which would be contrary to public policy (ordre public).

4. If information is requested by a Contracting State in accordance with this Article,

the other Contracting State shall use its information gathering measures to obtain the

requested information, even though that other State may not need such information for its

own tax purposes. The obligation contained in the preceding sentence is subject to the

limitations of paragraph 3 but in no case shall such limitations be construed to permit a

Contracting State to decline to supply information solely because it has no domestic interest

in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting

State to decline to supply information solely because the information is held by a bank,

other financial institution, nominee or person acting in an agency or a fiduciary capacity or

because it relates to ownership interests in a person.

Article 26

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Convention shall affect the fiscal privileges of members of

diplomatic missions or consular posts under the general rules of international law or under

the provisions of special agreements.

Article 27

ENTRY INTO FORCE

This Convention shall enter into force after the date of receipt of the last notification in

writing through diplomatic channels by which one Contracting State notifies the other that

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its internal legal requirements for the entry into force of this Convention have been fulfilled

and shall thereupon have effect

(a) in Ireland

(i) as respects income tax and capital gains tax, for any year of assessment

beginning on or after the first day of January in the calendar year next

following the year in which this Convention enters into force;

(ii) as respects corporation tax, for any financial year beginning on or after

the first day of January in the calendar year next following the year in which

this Convention enters into force.

(b) in Malta

in respect of

taxes on income derived during any calendar year or

accounting period, as the case may be, beginning on or after the first day of

January immediately following the date on which the Convention enters into

force.

Article 28

TERMINATION

This Convention shall remain in force until terminated by a Contracting State.

Either Contracting State may terminate the Convention, through diplomatic channels, by

giving notice of termination in writing at least six months before the end of any calendar

year beginning after the expiration of a period of five years from the date of its entry into

force. In such event, the Convention shall cease to have effect

(a) in Ireland

(i) as respects income tax and capital gains tax, for any year of assessment

beginning on or after the first day of January in the calendar year next

following that in which the notice is given;

(ii) as respects corporation tax, for any financial year beginning on or after

the first day of January in the calendar year next following that in which the

notice is given.

(b) in Malta

in respect of taxes on income derived during any calendar year or accounting

period, as the case may be, beginning on or after the first day of January

immediately following the date on which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their

respective Governments, have signed this Convention.

this

day of

,

in duplicate in the English

Walter Balzan

Sean O’Huiginn

For the Government

For the Government

of Ireland

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PROTOCOL

At the time of signing of the Convention between the Government of Malta and the

Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal

Evasion with respect to taxes on income, the undersigned have agreed that the following

shall form an integral part of the Convention

With reference to Article 22(1)(b)

“Malta tax payable” shall mean the difference between the tax paid by the company paying

the dividend and the tax repaid in respect of the distribution to the company which is a

resident of Ireland.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their

respective Governments, have signed this Protocol.

DONE at

this

day of

,

in duplicate in the English

language.

Walter Balzan

Sean O’Huiginn

For the Government

For the Government

of Malta

of Ireland