Double Taxation Relief (Taxes on Income)

L.N. 192 of 2010

INCOME TAX ACT

(CAP. 123)

Double Taxation Relief (Taxes on Income)

(The Republic of San Marino) (Amendment) Order, 2010

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 Citation.

(Taxes on Income) (The Republic of San Marino) (Amendment)

Order, 2010 and it shall be read and construed as one with the

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

Marino) Order, 2006, hereinafter referred to as “the principal L.N. 270 of 2006.

order”.

Article 2

PROTOCOL

AMENDING THE CONVENTION BETWEEN

MALTA AND THE REPUBLIC OF SAN MARINO

WITH RESPECT TO TAXES ON INCOME

The Government of Malta and the Government of the Republic of San Marino

desiring to amend the Convention between Malta and the Republic of San Marino with

respect to Taxes on Income, with Protocol, signed in Valletta on 3 May, 2005 (hereinafter

referred to as “the Convention”),

Have agreed as follows

ARTICLE I

The text of Article 25 of the Convention is deleted and replaced by the following

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 insofar as the taxation

thereunder is not contrary to the Convention. The exchange of information is not

restricted by Articles 1 and 2.

B

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 such purposes. They may disclose the

information in public court proceedings or in judicial decisions.

It is hereby declared:-

(a) that the amendments to the principal order, as

specified in the Schedule to this order, have been made with

the Government of the Republic of San Marino;

(b) that it is expedient that those amendments should

have effect;

(c) that the Protocol specified in the Schedule to this

order has entered into force on the 15th February, 2010.

B

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).

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.

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.

B

ARTICLE II

Each of the Contracting States shall notify the other, through diplomatic channels, of the

completion of the procedures required by their respective laws for the bringing into force

of this Protocol. The Protocol shall enter into force on the date of the later of these

notifications and its provisions shall have immediate effect.

ARTICLE III

This Protocol, which shall form an integral part of the Convention, shall remain in force

as long as the Convention itself is applicable.

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

Governments, have signed this Protocol.

DONE in duplicate at Rome, on this 10 th day of September 2009, in the English and

Italian languages, both texts being equally authentic.

WALTER BALZAN

BARBARA PARA

FOR THE GOVERNMENT OF

FOR THE GOVERNMENT OF

MALTA

THE REPUBLIC OF SAN MARINO

€0.37