DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE HELLENIC REPUBLIC ORDER

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE HELLENIC REPUBLIC

SUBSIDIARY LEGISLATION 123.104

DOUBLE TAXATION RELIEF ON TAXES ON

INCOME WITH THE HELLENIC REPUBLIC ORDER

30th August, 2008

LEGAL NOTICE 268 of 2008.

The title of this order is the Double Taxation Relief on

Taxes on Income with the Hellenic Republic Order.

CONVENTION

BETWEEN MALTA AND THE HELLENIC REPUBLIC

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 Hellenic Republic,

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

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 on behalf of 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, and taxes on the total amounts of wages and

salaries paid by enterprises as well as taxes on capital appreciation.

It is hereby declared

(a) that the arrangements specified in the Convention set

out in the Schedule to this Order have been made with

the Hellenic Republic with a view to affording relief

from double taxation in relation to the following taxes

imposed by the laws of the Hellenic Republic

-

the income tax on natural persons; and

-

the income tax on legal persons;

(b) that it is expedient that those arrangements should

have effect;

(c) that the Convention has entered into force on the 30

August, 2008.

The existing taxes to which the Convention shall apply are

a)

in the case of Malta

the income tax;

(hereinafter referred to as "Malta tax");

b) In the case of the Hellenic Republic

i)

the income tax on natural persons;

ii)

the income tax on legal persons;

(hereinafter referred to as "Hellenic 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.

CHAPTER II

DEFINITIONS

Article 3

GENERAL DEFINITIONS

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

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

Malta or the Hellenic Republic, as the context requires;

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 (including the United Nations Convention on the

Law of the Sea -UNCLOS) and its national law, including its legislation

relating to the exploration of the continental shelf and exploitation of its

natural resources;

the term "Hellenic Republic" comprises the territory of the Hellenic

Republic including its territorial sea as well as the part of the sea, the

seabed and its subsoil under the Mediterranean Sea, over which the

Hellenic Republic, in accordance with its internal legislation and

international law (including the United Nations Convention on the Law

of the Sea - UNCLOS), has sovereign rights for the purpose of

exploration, extraction or exploitation of the natural resources of such

areas;

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

of persons;

the term "company" means any body corporate or any entity which is

treated as a body corporate for tax purposes;

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;

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;

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

except when the ship or aircraft is operated solely between places in a

Contracting State;

the term "competent authority" means

i)

in Malta, the Minister responsible for finance or his authorised

representative;

ii)

in the Hellenic Republic, the Minister of Economy and Finance or

his authorised representative.

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

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE HELLENIC REPUBLIC

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.

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

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);

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;

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;

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 Contracting State in which its place of effective management is

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 place of management;

a branch;

an office;

a factory;

a workshop; and

a mine, an oil or gas well, a quarry or any other place of extraction of

natural resources.

3. The term "permanent establishment" likewise encompasses

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;

the furnishing of services, comprising technical assistance and

consultancy services, by an enterprise through employees or other

personnel engaged by the enterprise for such purpose, where the

activities of that nature continue for a period or periods amounting to or

exceeding in the aggregate 120 days in any twelve month period.

4. Notwithstanding the preceding provisions of this Article, the term

"permanent establishment" shall be deemed not to include

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

of goods or merchandise belonging to the enterprise;

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

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

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

enterprise solely for the purpose of processing by another enterprise;

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

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

enterprise;

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;

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

of activities mentioned in subparagraphs a) to e), provided that the

overall activity of the fixed place of business resulting from the

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 8 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.

Notwithstanding the preceding provisions of this Article and the provisions

of Article 14, a person who is a resident of a Contracting State and carries on

activities in connection with preliminary surveys, exploration, extraction or

exploitation of natural resources situated in the other Contracting State shall be

deemed to be carrying on in respect of those activities a business in that other

Contracting State through a permanent establishment or a fixed base situated therein,

unless such activities are carried on for a period or periods not exceeding 30 days in

the aggregate in any twelve-month period. However, for the purposes of this

where an enterprise carrying on activities in the other State is related to

another enterprise and that other enterprise continues as part of the

same project the same activities that are or were being carried on by the

first-mentioned enterprise, and the activities carried on by both

enterprises exceed - when added together - a period of 30 days, then

each enterprise shall be deemed to be carrying on its activities for a

period exceeding 30 days in a twelve-month period;

b)

two enterprises shall be deemed to be related if one is controlled

directly or indirectly by the other, or both are controlled directly or

indirectly by a third person.

An insurance enterprise of a Contracting State shall be deemed to have a

permanent establishment in the other Contracting State if it collects premiums in that

other State through an agent - other than an agent to whom paragraph 8 applies - or

insures risks situated in that other State through such an agent.

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.

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 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.

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 are 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.

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.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits derived from the operation of ships engaged in international traffic

shall be taxable only in the Contracting State in which the ships are registered or by

which they are documented.

2. Subject to the provisions of paragraph 1, income derived by an enterprise of

a Contracting State in the operation of a ship in international traffic shall be taxable

only in that Contracting State.

3. Profits derived from the operation of aircraft in international traffic shall be

taxable only in the Contracting State in which the place of effective management of

the enterprise is situated.

4. The provisions of paragraphs 1, 2 and 3 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.

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. a)

Such dividends, however, 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 if the recipient is the beneficial owner of the

dividends the tax so charged shall not exceed

i)

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

owner is a company (other than partnership) which holds directly

at least 25 per cent of the capital of the company paying the

dividends;

ii)

10 per cent of the gross amount of the dividends in all other cases.

b)

Notwithstanding the provisions of paragraph 2 a) where the dividends

are paid by a company which is a resident of Malta to a resident of the

Hellenic Republic who is the beneficial owner thereof, Malta tax

charged on the gross amount of the dividends, in accordance with its

internal imputation system, shall not exceed that charged 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. The competent

authorities of the Contracting States shall by mutual agreement settle

the mode of application of these limitations.

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

"jouissance" shares or "jouissance" rights, 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 t he c o m pa ny ’s u nd i s t r ib u t e d pr o f i ts , e ve n i f t he d i v id e n d s p a i d o r th e

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 8 per cent of the gross

amount of the interest. The competent authorities of the Contracting State shall by

mutual agreement settle the mode of application of this limitation.

3. 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.

4. 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

ot her C on t rac ti ng St a te i n w h ich t he i nt e r e s t a r ise s , t hr ou gh a p e r ma ne n t

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.

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

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

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 payment shall remain

taxable according to the laws of each Contracting State, due regard being had to the

other provisions of this Convention.

7. The provisions of this Article shall not apply if the debt claim in respect of

which the interest is paid has been created or assigned mainly for the purpose of

taking advantage of this Article and not for valid commercial reasons. In such case

the amount of payments shall be taxed according to the laws of each Contracting

State.

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 recipient is the beneficial

owner of the royalties the tax so charged shall not exceed 8 per cent of the gross

amount of the royalties. The competent authorities of the Contracting States shall by

mutual agreement settle the mode of applications of this limitation.

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 and films or tapes

for television or radio broadcasting or broadcasting by satellite, cables, optical fibers

or similar technology used for broadcasting, magnetic tapes, discs or laser discs, any

patent, trade mark, design or model, plan, secret formula or process, or for the use

of, or the right to use, industrial, commercial, or scientific equipment, 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 St ate in which the ro yalti es 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 effect ively 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 where the payer is

that State itself, a political subdivision, 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 obligation to pay the royalties was incurred

and such royalties are borne by that 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.

7. The provisions of this Article shall not apply if the right or the property

giving rise to the royalties has been created or assigned mainly for the purpose of

taking advantage of this Article and not for valid commercial reasons. In such case

the amount of payments shall be taxable according to the laws of each Contracting

State.

Article 13

CAPITAL GAINS

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 from the alienation of shares or comparable interests in a company the

assets of which consists directly or indirectly principally of immovable property

situated in a Contracting State may be taxed in that State.

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 from the alienation of ships or aircraft operated in international traffic

or movable property pertaining to the operation of such ships or aircraft shall be

taxable only in the Contracting State in which the profits of such ships or aircraft are

taxable according to the provisions of Article 8.

5. 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 an individual who is 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 if

a)

the individual has a fixed base regularly available to him in that other

State for the purpose of performing his activities, or

b)

the individual is present in the other State for a period or periods

exceeding in the aggregate 183 days in any twelve month period

commencing or ending in the fiscal year concerned,

but only so much thereof as is attributable to that fixed base or to services performed

in that 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, may be taxed in the Contracting State in which the profits from

the operation of the ship or aircraft are taxable according to the provisions of Article

8.

4. Notwithstanding the preceding provisions, salaries, wages and other

remuneration derived by a resident of a Contracting State in respect of an

employment connected with activities mentioned in paragraph 6 of Article 5 carried

on through a permanent establishment or a fixed base in the other Contracting State,

may be taxed in that other 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

ARTISTES AND SPORTSPERSONS

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 sportsperson, 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 sportsperson, in his capacity as such accrues not to the entertainer or sportsperson,

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 sportsperson are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from

activities referred to in paragraph 1 performed under cultural agreement or

arrangement between the Contracting States shall be exempt from tax in the

Contracting State in which the activities are exercised if the visit to that State is

wholly or substantially supported by public funds of the other Contracting State.

Article 18

PENSIONS

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.

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

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 other State.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to remuneration and

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

PROFESSORS AND STUDENTS

1. Remuneration which a resident of a Contracting State receives for

undertaking study or research at a high level or for teaching, during a period not

exceeding two years, at a university, research institute or other similar establishment

for highest or higher education in the other Contracting State, shall not be taxable in

that other State, provided that this remuneration is taxed in the first-mentioned State.

2. 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 Contracting 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 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.

CHAPTER IV

METHODS FOR ELIMINATION OF DOUBLE TAXATION

Article 22

ELIMINATION OF DOUBLE TAXATION

1. Where a resident of a Contracting State derives income which, in accordance

with the provisions of this Convention, may be taxed in the other Contracting State,

the first-mentioned State shall allow as a deduction from the tax on the income of

that resident, an amount equal to the income tax paid in that other State.

Such deduction in either case shall not, however, exceed that part of the income

tax, as computed in accordance with the relevant provisions of the internal tax law of

the first-mentioned State before the deduction is given, which is attributable, as the

case may be, to the income which may be taxed in that other State.

2. Where dividends are paid by a company which is resident of Malta to a

resident of the Hellenic Republic, the tax taken into account for the deduction

provided in paragraph 1 shall not exceed that actually paid by the resident of the

Hellenic Republic. In no event, in such a case, the tax payable by the company in

respect of the profits out of which such dividends are paid shall be taken into

account.

3. Where in accordance with any provision of the 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.

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. These provisions shall, notwithstanding the

provisions of Article 1, also apply to persons who are not residents of one or both of

the Contracting States.

2. Stateless persons who are residents of a Contracting State shall not be

subjected in either Contracting State to any taxation or any requirement connected

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

requirements to which national of the State concerned in the same circumstances are

or may be subjected.

3. 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.

4. Except where the provisions of paragraph 1 of Article 9, paragraphs 6 and 7

of Article 11, or paragraphs 6 and 7 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.

5. 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 requirements 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 provision 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

r e s o l v e b y m u t u a l a g r e e m e n t a n y d i ff i c u l t i e s o f d o u b t s a r i s i n g a s t o t h e

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. When it seems advisable in order to reach agreement to have

an oral exchange of opinions, such exchange may take place through a Commission

consisting of representatives of the competent authorities of the Contracting States.

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

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE HELLENIC REPUBLIC

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.

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

on a Contracting State the obligation

to carry out administrative measures at variance with the laws and

administrative practice of that or of the other Contracting State;

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;

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, through diplomatic channels,

that the legal 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 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.

(b) in the Hellenic Republic

in respect of income derived on or after the first day of January of the

calendar year next following that in 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 case to have effect

(a) 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.

(b) in the Hellenic Republic

in respect of income derived on or after the first day of January of the

calendar year next following that in which the notice is given.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed

this Convention.

Done at Athens on 13 October, 2006 in two originals, in the Greek and English

languages, each text being equally authentic, the English text prevailing in case of

MICHAEL FRENDO

DORA BAKOYANNIS

For the Government of

For the Government of

the Hellenic Republic