Double Taxation Relief (Taxes on Income)

L.N. 501 of 2010

INCOME TAX ACT

(CAP. 123)

Double Taxation Relief (Taxes on Income)

(The Hashemite Kingdom of Jordan) 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 (Taxes Citation.

on Income) (The Hashemite Kingdom of Jordan) Order, 2010.

(Article 2)

CONVENTION

Between

The Government of Malta

and

The Government of The Hashemite Kingdom of Jordan

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 The Hashemite Kingdom

of Jordan, 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

Chapter I

Scope of The Convention

Article 1

PERSONAL SCOPE

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

the Contracting States.

Article 2

TAXES COVERED

1. The existing taxes to which this Convention shall apply are

a.

in Jordan

the income tax;

(hereinafter referred to as "Jordan tax");

b.

in Malta

the income tax;

(hereinafter referred to as "Malta tax").

2. 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.

It is hereby declared

Arrangements to

have effect.

(a)

that the arrangements specified in the Agreement set

out in the Schedule have been made with the Government of

The Hashemite Kingdom of Jordan with a view to affording

relief from double taxation in relation to the following tax

imposed by the laws of The Hashemite Kingdom of Jordan

-

income tax;

(b) that it is expedient that those arrangements should

have effect;

(c)

that the Convention has entered into force on the

th

13 October 2010.

Notwithstanding the other provisions of this Article, the Convention

shall not apply to tax paid or payable in a Contracting State, concerning the

chargeable income of any person engaged in the production of petroleum or gas

produced in either of the two Contracting States.

Chapter II

Definitions

Article 3

GENERAL DEFINITIONS

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

requires

a.

the term "Jordan" means the territories of the Hashemite

Kingdom of Jordan, the territorial waters of Jordan, and the seabed and

subsoil of the territorial waters, and includes any area extending beyond the

limits of the territorial waters of Jordan, and the seabed and subsoil of any

such area, which has been or may hereafter be designated, under the laws of

Jordan, and in accordance with international law as an area over which

Jordan has sovereign rights for the purposes of exploring and exploiting the

natural resources, whether living or non-living;

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, and any area outside the territorial waters of Malta which has been or

may hereafter be designated, in accordance with international law and under

the law of Malta concerning the continental shelf, as an area within which the

rights of Malta with respect to the seabed and subsoil and their natural

resources may be exercised;

c.

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

mean Jordan 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

which 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 State;

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

(i) in Jordan: the Minister of Finance or his authorised

representative;

(ii) in Malta: the Minister responsible for finance or his

authorised representative;

i.

the term "national" means

(i)

any individual possessing the nationality of a Contracting

State;

(ii) any legal person, partnership or association deriving its

status as such from the laws in force in a Contracting State.

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

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

meaning which it has under the law of that State concerning the taxes to which the

Convention applies.

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. But this term does not include any person who is liable to tax in

that State in respect only of income from sources in that State.

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 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 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 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 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 of the State in which its place of effective management is situated.

Article 5

PERMANENT ESTABLISHMENT

1. For the purpose 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 including an offshore drilling site.

3. The term "permanent establishment" likewise encompasses

a.

a building site, a construction, assembly or installation project or

supervisory activities in connection therewith, but only where such site,

project or activities continue for a period of more than six months;

b.

the furnishing of services, including consultancy services, by an

enterprise through employees or other personnel engaged by the enterprise

for such purpose, but only where activities of that nature continue (for the

same or a connected project) within a Contracting State for a period or

periods aggregating more than one month within any 12-month period.

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 6 applies - is

acting on behalf of an 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 4 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 of a Contracting State shall not be deemed to have a

permanent establishment in the other Contracting State merely because it carries

on business in that other State through a broker, general commission agent or any

other agent of an independent status, provided that such persons are acting in the

ordinary course of their business. However, when the activities of such an agent

are devoted wholly or almost wholly on behalf of that enterprise, he will not be

considered an agent of an independent status within the meaning of this paragraph.

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.

Chapter III

Taxation of Income

Article 6

INCOME FROM IMMOVABLE PROPERTY

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

property (including income from agriculture) 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, 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, or to explore for, 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.

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.

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 or with other

associated enterprises with which it deals.

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.

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 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.

The provisions of this Article shall not affect the provisions of the law

of a Contracting State regarding the taxation of profits from the business of

insurance.

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 derived 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.

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.

3. The provisions of paragraph 2 shall not apply in the case of tax fraud.

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

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

tax so charged shall not exceed 10 per cent of the gross amount of the

dividends;

b.

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

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

on the gross amount of the dividends 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.

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

mining shares, founders' shares or other rights, not being debt-claims, participating

in profits, as well as income from other corporate rights which is subjected to the

same taxation treatment as income from shares by the laws of the State of which

the company making the distribution is a resident.

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 may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in

which it arises and according to the laws of that State, but if the recipient is the

beneficial owner of the interest the tax so charged shall not exceed 10 per cent of

the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest arising in a

Contracting State shall be exempt from tax in that State if it is derived by the

Government of the other Contracting State or a local authority thereof or any

agency wholly owned and controlled by that Government or local authority.

4. 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. Penalty charges for

late payment shall not be regarded as interest for the purpose of this Article.

5. The provisions of paragraphs 1 and 2 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.

6. Interest shall be deemed to arise in a Contracting State when the payer is

that State itself, a political sub-division, a local authority or a resident of that State.

Where, however, the person paying the interest, 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 indebtedness on which the interest is paid

was incurred, and such interest is borne by such permanent establishment or fixed

base, then such interest shall be deemed to arise in the State in which the

permanent establishment or fixed base is situated.

7. 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 it arises and according to the laws of that State, but if the recipient is the

beneficial owner of the royalties the tax so charged shall not exceed 10 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.

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 that State itself, a political sub-division, a local authority or a resident of that

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

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

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

ALIENATION OF PROPERTY

1. Income or 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. Income or gains from the alienation of shares or comparable interests in

a company, the assets of which consist wholly or principally of immovable

property, may be taxed in the Contracting State in which the assets or the principal

assets of the company are situated.

3. Income or 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 income or 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. Income or gains from the alienation of ships or aircraft operated in

international traffic by an enterprise of a Contracting State, or movable property

pertaining to the operation of such ships or aircraft shall be taxable only in that

State.

5. Income or gains from the alienation of any property other than that

referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State

of which the alienator is a resident.

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 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; or

c.

if the remuneration for his activities in the other Contracting State

is paid by a resident of that Contracting State or is borne by a permanent

establishment or a fixed base situated in that Contracting State and exceeds in

the fiscal year the equivalent of 10,000 United States dollars.

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.

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

ENTERTAINERS 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 AND SOCIAL SECURITY PAYMENTS

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

other similar remuneration paid to a resident of a Contracting State in

consideration of past employment 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.

Article 19

GOVERNMENT SERVICES

1. a.

Salaries, wages and other similar remuneration, other than a

pension, paid by a Contracting State or a political subdivision or a local authority

thereof to an individual in respect of services rendered to that State or subdivision or

authority 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 or a a political subdivision or a local authority thereof to an individual in

respect of services rendered to that State or subdivision or authority 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 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 or a political

subdivision or a local authority thereof.

Article 20

STUDENTS AND BUSINESS APPRENTICES

A student or business apprentice who is present in a Contracting State solely

for the purpose of his education or training and who is, or immediately before

being so present was, a resident of the other Contracting State shall be exempt

from tax in the first-mentioned State on payments received from outside that first-

mentioned State for the purposes of his maintenance, education or training.

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 may be taxed 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.

Chapter IV

Elimination of Double Taxation

Article 22

ELIMINATION OF DOUBLE TAXATION

1. In the case of Jordan double taxation shall be eliminated as follows

Subject to the provisions of the law of Jordan regarding the allowance

of a credit against Jordan tax in respect of foreign tax, where, in accordance with

the provisions of this Convention, there is included in a Jordan assessment income

from sources within Malta, the Malta tax on such income shall be allowed as a

credit against the relative Jordan tax payable thereon. The credit shall not,

however, exceed the amount of the tax in Jordan on that income computed in

accordance with its taxation laws.

2. In the case of Malta, double taxation shall be eliminated as follows

Subject to the provisions of the law of Malta regarding the allowance of

a credit against Malta tax in respect of foreign tax, where, in accordance with the

provisions of this Convention, there is included in a Malta assessment income

from sources within Jordan, the Jordan tax on such income shall be allowed as a

credit against the relative Malta tax payable thereon.

Chapter V

Special Provisions

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 those nationals 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 taxation 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 4 of Article 12 apply, interest, 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.

5. The provisions of this Article shall, notwithstanding the provisions of

Article 2, apply to taxes of every kind and description which are the subject of this

Convention.

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 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 paragraph.

Article 25

EXCHANGE OF INFORMATION

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

information as is necessary for carrying out the provisions of this Convention or of

the domestic laws of the Contracting States concerning taxes covered by the

Convention insofar as the taxation thereunder is not contrary to the Convention.

The exchange of information is not restricted by Article 1. Any information

received 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)

involved in the assessment or collection of, the enforcement or prosecution in

respect of, or the determination of appeals in relation to, the taxes covered by the

Convention. 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 but only for the purposes of this Convention.

2. In no case shall the provisions of paragraph 1 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).

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.

Chapter VI

Final Provisions

Article 27

ENTRY INTO FORCE

1. The Contracting States shall notify each other that the constitutional

requirements for the entry into force of this Convention have been complied with.

2. This Convention shall enter into force thirty days after the date of the

later of the notifications referred to in paragraph 1 and its provisions shall have

effect

a.

in Jordan, 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;

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 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 Jordan, 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;

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.

DONE at Amman this 16 th day of April, 2009 in duplicate in the English and

the Arabic languages, both texts being equally authentic.

Tonio Borg

Bassem Salem

For the Government of

For the Government of

Malta

The Hashemite Kingdom of Jordan

€1.86