Double Taxation Relief (Taxes on Income)

L.N. 238 of 2013

INCOME TAX ACT

(CAP. 123)

Double Taxation Relief (Taxes on Income)

(Grand Duchy of Luxembourg) (Amendment) Order, 2013

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) (Grand Duchy of Luxembourg) (Amendment) Order,

2013 and this Order shall be read and construed as one with the

Double Taxation Relief (Taxes on Income) (Grand Duchy of S.L. 123.37

Luxembourg) Order, hereinafter referred to as "the principal order".

Article 2

PROTOCOL

TO AMEND THE CONVENTION BETWEEN

MALTA

AND

THE GRAND DUCHY OF LUXEMBOURG

FOR THE AVOIDANCE OF DOUBLE TAXATION AND

THE PREVENTION OF FISCAL EVASION WITH RESPECT

TO TAXES ON INCOME AND ON CAPITAL,

SIGNED AT LUXEMBOURG ON 29 APRIL 1994

The Government of the Grand Duchy of Luxembourg and the Government of

Malta

Desiring to conclude a Protocol to amend the Convention between the Grand

Duchy of Luxembourg and Malta for the avoidance of double taxation and the

prevention of fiscal evasion with respect to taxes on income and on capital, signed

at Luxembourg on 29 April 1994, (hereinafter referred to as "the Convention"),

Have agreed as follows

ARTICLE 1

Article 26 (EXCHANGE OF INFORMATION) of the Convention shall be

deleted and replaced by the following

"Article 26

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 such

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

judicial decisions.

It is hereby declared

Amemdments to

have effect.

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

specified in the Protocol set out in the Schedule to this Order

(hereinafter referred to as "the Protocol"), have been made with

the Government of the Grand Duchy of Luxembourg;

(b) that it is expedient that those amendments should

have effect following the entry into force of the Protocol and in

accordance with the relevant provisions of the Protocol;

(c)

that the Protocol shall enter into force on such date

as may be announced by notice in the Gazette.

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 upon request 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 2

1. This Protocol shall be subjected to ratification in accordance with the

applicable procedures in Luxembourg and in Malta. The Contracting States shall

notify each other in writing, through diplomatic channels, when their respective

applicable procedures have been satisfied.

2. The Protocol shall enter into force on the date of the latter of the

notifications referred to in paragraph 1. The provisions of this Protocol shall have

effect with regard to tax years beginning on or after 1 January of the calendar year

next following the year of the entry into force of this Protocol.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have

signed this Protocol.

DONE in duplicate at Brussels on 30 November 2011, in the French and

English languages, both texts being equally authentic.

Tonio Fenech

Luc Frieden

For the Government of

For the Government of

Malta

Grand Duchy of Luxembourg

Brussels, the 30th November 2011

His Excellency

Mr Tonio Fenech

Minister of Finance of Malta

Excellency,

I have the honour to refer to the Convention between the Grand Duchy of

Luxembourg and Malta for the avoidance of double taxation and the prevention of

fiscal evasion with respect to taxes on income and on capital, signed at

Luxembourg on 29 April 1994, (hereinafter referred to as "the Convention") and to

propose on behalf of the Government of the Grand Duchy of Luxembourg the

following understandings

1. It is understood that the competent authority of the requested State shall

provide upon request by the competent authority of the requesting State

information for the purposes referred to in Article 26.

2. The competent authority of the applicant State shall provide the

following information to the competent authority of the requested State when

making a request for information under the Convention to demonstrate the

foreseeable relevance of the information to the request

a)

the identity of the person under examination or investigation;

b)

a statement of the information sought including its nature and the

form in which the applicant State wishes to receive the information from the

requested State;

c)

the tax purpose for which the information is sought;

d)

grounds for believing that the information requested is held in the

requested State or is in the possession or control of a person within the

jurisdiction of the requested State;

e)

to the extent known, the name and address of any person believed

to be in possession of the requested information;

f)

a statement that the applicant State has pursued all means

available in its own territory to obtain the information, except those that

would give rise to disproportionate difficulties.

If the foregoing understandings meet with the approval of the Government of

Malta, I have the further honour to propose that this Note and your affirmative

Note in reply shall constitute an agreement between our Governments which shall

become an integral part of the Convention on the date of entry into force of the

Protocol.

Accept, Your Excellency, the expression of my highest consideration.

Luc Frieden

Brussels, 30 November, 2011

His Excellency

Mr. Luc Frieden

Minister of Finance of

the Grand Duchy of Luxembourg

Excellency,

I have the honour to acknowledge the receipt of Your Excellency’s Note of

today’s date which reads as follows

"I have the honour to refer to the Convention between the Grand Duchy of

Luxembourg and Malta for the avoidance of double taxation and the prevention of

fiscal evasion with respect to taxes on income and on capital, signed at

Luxembourg on 29 April 1994, (hereinafter referred to as "the Convention") and to

propose on behalf of the Government of the Grand Duchy of Luxembourg the

following understandings

1. It is understood that the competent authority of the requested State shall

provide upon request by the competent authority of the requesting State

information for the purposes referred to in Article 26.

2. The competent authority of the applicant State shall provide the

following information to the competent authority of the requested State when

making a request for information under the Convention to demonstrate the

foreseeable relevance of the information to the request

a)

the identity of the person under examination or investigation;

b)

a statement of the information sought including its nature and the

form in which the applicant State wishes to receive the information from the

requested State;

c)

the tax purpose for which the information is sought;

d)

grounds for believing that the information requested is held in the

requested State or is in the possession or control of a person within the

jurisdiction of the requested State;

e)

to the extent known, the name and address of any person believed

to be in possession of the requested information;

f)

a statement that the applicant State has pursued all means

available in its own territory to obtain the information, except those that

would give rise to disproportionate difficulties.

If the foregoing understandings meet with the approval of the Government of

Malta, I have the further honour to propose that this Note and your affirmative

Note in reply shall constitute an agreement between our Governments which shall

become an integral part of the Convention on the date of entry into force of the

Protocol.".

I have further the honour to accept the understandings contained in Your

Excellency’s Note, on behalf of the Government of Malta. Therefore Your

Excellency’s Note and this Note shall constitute an agreement between our

Governments which shall become an integral part of the Convention on the date of

entry into force of the Protocol.

Accept, Your Excellency, the expression of my highest consideration.

Tonio Fenech

Minister of Finance,

the Economy and Investment

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