DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE REPUBLIC OF MAURITIUS) ORDER

DOUBLE TAXATION RELIEF (TAXES ON INCOME)

(THE REPUBLIC OF MAURITIUS)

SUBSIDIARY LEGISLATION 123.161

DOUBLE TAXATION RELIEF (TAXES ON INCOME)

(THE REPUBLIC OF MAURITIUS) ORDER

18th November, 2014

LEGAL NOTICE 409 of 2014, as modified by S.L.123.183.

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

on Income) (The Republic of Mauritius) Order.

Article 2

AGREEMENT BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF MALTA

AND

THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of Malta and the Government of the Republic of

Mauritius, desiring to conclude an agreement for the avoidance of double taxation

and the prevention of fiscal evasion with respect to taxes on income, have agreed as

follows

Article 1

PERSONS COVERED

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

Contracting States.

Article 2

TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of a

Contracting State or of its political subdivisions or local authorities, 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 or salaries

paid by enterprises.

It is hereby declared

(a) that the arrangements specified in the Agreement set

out in the Schedule to this Order (hereinafter referred

to as "the Agreement") have been made with the

Republic of Mauritius with a view to affording relief

from double taxation in relation to the following tax

imposed by the laws of the Republic of Mauritius

-

the income tax;

(b) that it is expedient that those arrangements should

have effect following the entry into force of the

Agreement and in accordance with the relevant

provisions of the Agreement;

(c) that the Agreement shall enter into force on such date

as may be announced by notice in the Gazette * .

*23rd April, 2015 - see Legal Notice 362 of 2015.

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The existing taxes to which this Agreement shall apply are in particular

(a) in Malta, the income tax,

(hereinafter referred to as "Malta tax");

(b) in Mauritius, the income tax,

(hereinafter referred to as "Mauritius tax").

The Agreement shall apply also to any identical or substantially similar

taxes that are imposed after the date of signature of the Agreement 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 that have been made in their

taxation laws.

Article 3

GENERAL DEFINITIONS

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

(a) 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

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with international law and its national law, including its legislation

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

natural resources;

(b)

the term "Mauritius" means the Republic of Mauritius and includes

(i) all the territories and islands which, in accordance with the laws

of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in

accordance with international law has been or may hereafter be

designated, under the laws of Mauritius, as an area, including the

Continental Shelf, within which the rights of Mauritius with

respect to the sea, the sea-bed and sub-soil and their natural

resources may be exercised;

(c)

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

Malta or Mauritius, as the context requires;

(d)

the term "person" includes an individual, a collective investment

scheme, a company, a trust and any other body of persons which is

treated as an entity for tax purposes;

(e)

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

treated as a body corporate for tax purposes;

(f)

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

Contracting State" mean respectively an enterprise carried on by a

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

of the other Contracting 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 "business" includes the performance of professional services

and of other activities of an independent character;

(i)

the term "competent authority" means

(i) in Malta, the Minister responsible for finance or his authorised ;

(ii) in Mauritius, the Minister to whom responsibility for the subject

of finance is assigned or his authorised representative;

(j)

the term "national", in relation to a Contracting State, means

(i) any individual possessing the nationality or citizenship of that

Contracting State;

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

such from the laws in force in that Contracting State;

(k)

the term "tax" means Malta tax or Mauritius tax, as the context requires.

2. As regards the application of the Agreement at any time by a Contracting

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

the meaning that it has at that time under the law of that State for the purposes of the

taxes to which the Agreement 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.

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Article 4

RESIDENT

1. For the purposes of this Agreement, 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, and also includes that State and any political subdivision or local

authority thereof. 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

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

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

to him in both States, he shall be deemed to be a resident only of the

State with which his personal and economic relations are closer (centre

of vital interests);

(b) if the State in which he has his centre of vital interests cannot be

determined, or if he does not have a permanent home available to him in

either State, he shall be deemed to be a resident only of the State in

which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall

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

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

authorities of the Contracting States shall settle the question by mutual

agreement.

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

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

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

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, 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;

(f)

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

natural resources; and

(g) an installation or structure used for the exploration of natural resources.

3. The term "permanent establishment" likewise encompasses

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

supervisory activities in connection therewith only if the site, project or

activity lasts more than 12 months;

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(b) the furnishing of services, including consultancy services, by an

enterprise of a Contracting State through employees or other personnel

engaged in the other Contracting State, provided that such activities

continue for the same or a connected project for a period of more than

12 months.

4. 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 shall not be deemed to have a permanent establishment in a

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

broker, general commission agent or any other agent of an independent status,

provided that such persons are acting in the ordinary course of their business.

The fact that a company which is a resident of a Contracting State controls

or is controlled by a company which is a resident of the other Contracting State, or

which carries on business in that other State (whether through a permanent

establishment or otherwise), shall not of itself constitute either company a

permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

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

property (including income from agriculture or forestry) situated in the other

Contracting State may be taxed in that other State.

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

the law of the Contracting State in which the property in question is situated. The

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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 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.

Article 7

BUSINESS PROFITS

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

that State unless the enterprise carries on business in the other Contracting State

through a permanent establishment situated therein. If the enterprise carries on

business as aforesaid, the profits of the enterprise may be taxed in the other State but

only so much of them as is attributable to that permanent establishment.

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

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

permanent establishment situated therein, there shall in each Contracting State be

attributed to that permanent establishment the profits which it might be expected to

make if it were a distinct and separate enterprise engaged in the same or similar

activities under the same or similar conditions and dealing wholly independently

with the enterprise of which it is a permanent establishment.

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

allowed as deductions expenses which are incurred for the purposes of the

permanent establishment, including executive and general administrative expenses

so incurred, whether in the State in which the permanent establishment is situated or

elsewhere. However, no such deduction shall be allowed in respect of amounts, if

any, paid (otherwise than towards reimbursement of actual expenses) by the

permanent establishment to the head office of the enterprise or any of its other

offices, by way of royalties, fees or other similar payments in return for the use of

patents or other rights, or by way of commission, for specific services performed or

for management, or, except in the case of a banking enterprise, by way of interest on

moneys lent to the permanent establishment. Likewise, no account shall be taken, in

determining the profits of a permanent establishment, of amounts charged (otherwise

than towards reimbursement of actual expenses), by the permanent establishment to

the head office of the enterprise or any of its other offices, by way of royalties, fees

or other similar payments in return for the use of patents or other rights, or by way of

commission for specific services performed or for management, or, except in the

case of a banking enterprise, by way of interest on moneys lent to the head office of

the enterprise or any of its other offices.

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

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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 Agreement, then the provisions of those Articles shall not be

affected by the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

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

ships or aircraft in international traffic and the rental of containers and related

equipment which is incidental to the operation of ships or aircraft in international

traffic shall be taxable only in that State.

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

participation in a pool, a joint business or an international operating agency.

Article 9

ASSOCIATED ENTERPRISES

1. Where

(a) an enterprise of a Contracting State participates directly or indirectly in

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

Contracting State, or

(b) the same persons participate directly or indirectly in the management,

control or capital of an enterprise of a Contracting State and an

enterprise of the other Contracting State,

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

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

between independent enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by reason of those conditions,

have not so accrued, may be included in the profits of that enterprise and taxed

accordingly.

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 Agreement 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 shall, if the recipient is the beneficial owner

of the dividends, be taxable only in that other State.

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

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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 Contracting State of which the company making the

distribution is a resident.

3. The provisions of paragraph 1 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 and the holding in respect of which the

dividends are paid is effectively connected with such permanent establishment. In

such a case, the provisions of Article 7 shall apply.

4. 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 situated in that

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

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

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

Article 11

INTEREST

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

Contracting State shall, if the recipient is the beneficial owner of the interest, be

taxable only in that other State.

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

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

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

securities and income from bonds or debentures, including premiums and prizes

attaching to such securities, bonds or debentures. Penalty charges for late payment

shall not be regarded as interest for the purpose of this Article. The term “interest”

shall not include any item which is treated as a dividend under the provisions of

Article 10 of this Agreement.

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

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

Contracting State in which the interest arises through a permanent establishment

situated therein, and the debt-claim in respect of which the interest is paid is

effectively connected with such permanent establishment. In such a case, the

provisions of Article 7 shall apply.

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

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

interest, having regard to the debt-claim for which it is paid, exceeds the amount

which would have been agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article shall apply only to the

last-mentioned amount. In such a 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 Agreement.

Article 12

ROYALTIES

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

Contracting State shall, if the recipient is the beneficial owner of the royalties, be

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taxable only in that other State.

2. 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 cinematographic films and films, tapes

or discs for radio or television broadcasting), any patent, trade mark, design or

model, computer programme, plan, secret formula or process, or for information

concerning industrial, commercial or scientific experience.

3. The provisions of paragraph 1 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 and the right or property in respect of which the royalties are paid is

effectively connected with such permanent establishment. In such a case, the

provisions of Article 7 shall apply.

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

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

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 a 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 Agreement.

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 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 including such gains from the alienation of such a

permanent establishment (alone or with the whole enterprise), may be taxed in that

other State.

3. Gains derived by an enterprise of a Contracting State from the alienation of

ships or aircraft operated in international traffic, or from movable property

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

State.

4. (a) Gains derived by a resident of a Contracting State from the alienation of

shares deriving more than 50 per cent of their value directly or indirectly

from immovable property situated in the other Contracting State may be

taxed in that other State. However, this paragraph shall not apply to

gains derived from the alienation of shares quoted on a recognized stock

exchange.

(b) For the purposes of this Article, "recognized stock exchange" means

(i) in the case of Malta, the Malta Stock Exchange;

(ii) in the case of Mauritius, the Stock Exchange of Mauritius; and

(iii) any other stock exchange that may be agreed upon by the

competent authorities of the Contracting States.

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

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alienator is a resident.

Article 14

INCOME FROM EMPLOYMENT

1. Subject to the provisions of Articles 15, 17, 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 12-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 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 15

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 16

ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 7 and 14, 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 and 14, be taxed in the Contracting State in which the activities of the

entertainer or sportsman are exercised.

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

activities, referred to in paragraph 1, performed under a 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 funds of either Contracting State, a local

authority or public institution thereof.

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Article 17

PENSIONS

1. Subject to the provisions of paragraph 2 of Article 18, pensions and other

similar payments arising in a Contracting State and paid in consideration of past

employment to a resident of the other Contracting State, shall be taxable only in that

other State.

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

payments made under a public scheme which is part of the social security system of

a Contracting State or a political subdivision or a local authority thereof shall be

taxable only in that State.

Article 18

GOVERNMENT SERVICE

1. (a) Salaries, wages and other similar remuneration, other than a pension,

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

statutory body thereof to an individual in respect of services rendered to

that State, subdivision, authority or body 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) Notwithstanding the provisions of paragraph 1, pensions and other

similar remuneration paid by, or out of funds created by, a Contracting

State or a political subdivision, local authority or statutory body thereof

to an individual in respect of services rendered to that State,

subdivision, authority or body shall be taxable only in that State.

(b) However, such pensions and other similar remuneration 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 14, 15, 16 and 17 shall apply to salaries, wages,

pensions and other similar remuneration, in respect of services rendered in

connection with a business carried on by a Contracting State, or a political

subdivision, a local authority or statutory body thereof.

Article 19

PROFESSORS AND TEACHERS

1. Notwithstanding the provisions of Article 14, a professor or teacher who

makes a temporary visit to one of the Contracting States for a period not exceeding

two years for the purpose of teaching or carrying out research at a university,

college, school or other educational institution in that State and who is, or

immediately before such visit was, a resident of the other Contracting State shall, in

respect of remuneration for such teaching or research, be exempt from tax in the

first-mentioned State, provided that such remuneration is derived by him from

outside that State.

2. The provisions of this Article shall not apply to income from research if

such research is undertaken not in the public interest but wholly or mainly for the

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private benefit of a specific person or persons.

Article 20

STUDENTS AND BUSINESS APPRENTICES

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

before visiting a Contracting State, a resident of the other Contracting State and who

is present in the first-mentioned State solely for the purpose of his education or

training receives for the purpose of his maintenance, education or training shall not

be taxed in that State, provided that such payments arise from sources outside that

State.

Article 21

OTHER INCOME

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

dealt with in the foregoing Articles of this Agreement 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 and the right or

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

permanent establishment. In such case, the provisions of Article 7 shall apply.

Article 22

ELIMINATION OF DOUBLE TAXATION

1. 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 Agreement, there is included in a Malta assessment income from sources

within Mauritius, the Mauritius tax on such income shall be allowed as a credit

against the relative Malta tax payable thereon.

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

(a) Where a resident of Mauritius derives income from Malta the amount of

tax on that income payable in Malta in accordance with the provisions

of this Agreement may be credited against the Mauritius tax imposed on

that resident.

(b) Where a company which is a resident of Malta pays a dividend to a

resident of Mauritius who controls, directly or indirectly, at least 5% of

the capital of the company paying the dividend, the credit shall take into

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

under the provisions of subparagraph (a)) the Malta tax payable by the

first-mentioned company in respect of the profits out of which such

dividend is paid.

Provided that any credit allowed under this paragraph shall not exceed the

Mauritius tax (as computed before allowing any such credit), which is appropriate to

the profits or income derived from sources within Malta.

Article 23

NON-DISCRIMINATION

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

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(THE REPUBLIC OF MAURITIUS)

Contracting State to any taxation or any requirement connected therewith which is

other or more burdensome than the taxation and connected requirements to which

nationals of that other State in the same circumstances, in particular with respect to

residence, are or may be subjected. This provision shall, notwithstanding the

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

the Contracting States.

2. 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 nationals of the State concerned in the same circumstances, in

particular with respect to residence, 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, 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.

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 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.

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

Article 2, apply to taxes of every kind and description.

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 Agreement, 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 this Agreement.

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

Agreement. 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 r d o u b t s a r i s i n g a s t o t h e

DOUBLE TAXATION RELIEF (TAXES ON INCOME)

(THE REPUBLIC OF MAURITIUS)

interpretation or application of the Agreement. They may also consult together for

the elimination of double taxation in cases not provided for in the Agreement.

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

each other directly, including through a joint commission consisting of themselves or

their representatives, for the purpose of reaching an agreement in the sense of the

preceding paragraphs.

Article 25

EXCHANGE OF INFORMATION

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

information as is foreseeably relevant for carrying out the provisions of this

Agreement 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 Agreement. 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. Notwithstanding the

foregoing, information received by a Contracting State may be used for other

purposes when information may be used for such other purposes under the laws of

both States provided that the competent authority of the supplying State authorizes

such use.

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

impose on a Contracting State the obligation

(a) to carry out administrative measures at variance with the laws and

administrative practice of that or of the other Contracting State;

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

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

State;

(c) to supply information which would disclose any trade, business,

industrial, commercial or professional secret or trade process, or

information, the disclosure of which would be contrary to public policy

(ordre public).

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

Article, the other Contracting State shall use its information gathering measures to

obtain the requested information, even though that other State may not need such

information for its own tax purposes. The obligation contained in the preceding

sentence is subject to the limitations of paragraph 3 but in no case shall such

limitations be construed to permit a Contracting State to decline to supply

information solely because it has no domestic interest in such information.

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

Contracting State to decline to supply information solely because the information is

held by a bank, other financial institution, nominee or person acting in an agency or

a fiduciary capacity or because it relates to ownership interests in a person.

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(THE REPUBLIC OF MAURITIUS)

Article 26

ASSISTANCE IN THE COLLECTION OF TAXES

1. The Contracting States shall lend assistance to each other in the collection of

revenue claims. This assistance is not restricted by Articles 1 and 2. The competent

authorities of the Contracting States may by mutual agreement settle the mode of

application of this Article.

2. The term "revenue claim" as used in this Article means an amount owed in

respect of 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 this Agreement or any other instrument to which the

Contracting States are parties, as well as interest, administrative penalties and costs

of collection or conservancy related to such amount.

3. When a revenue claim of a Contracting State is enforceable under the laws

of that State and is owed by a person who, at that time, cannot, under the laws of that

State, prevent its collection, that revenue claim shall, at the request of the competent

authority of that State, be accepted for purposes of collection by the competent

authority of the other Contracting State. That revenue claim shall be collected by

that other State in accordance with the provisions of its laws applicable to the

enforcement and collection of its own taxes as if the revenue claim were a revenue

claim of that other State.

4. When a revenue claim of a Contracting State is a claim in respect of which

that State may, under its law, take measures of conservancy with a view to ensure its

collection, that revenue claim shall, at the request of the competent authority of that

State, be accepted for purposes of taking measures of conservancy by the competent

authority of the other Contracting State. That other State shall take measures of

conservancy in respect of that revenue claim in accordance with the provisions of its

laws as if the revenue claim were a revenue claim of that other State even if, at the

time when such measures are applied, the revenue claim is not enforceable in the

first-mentioned State or is owed by a person who has a right to prevent its collection.

5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim

accepted by a Contracting State for purposes of paragraphs 3 or 4 shall not, in that

State, be subject to the time limits or accorded any priority applicable to a revenue

claim under the laws of that State by reason of its nature as such. In addition, a

revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4

shall not, in that State, have any priority applicable to that revenue claim under the

laws of the other Contracting State.

6. Proceedings with respect to the existence, validity or the amount of a

revenue claim of a Contracting State shall not be brought before the courts or

administrative bodies of the other Contracting State.

7. Where, at any time after a request has been made by a Contracting State

under paragraph 3 or 4 and before the other Contracting State has collected and

remitted the relevant revenue claim to the first-mentioned State, the relevant revenue

claim ceases to be

(a) in the case of a request under paragraph 3, a revenue claim of the first-

mentioned State that is enforceable under the laws of that State and is

owed by a person who at that time, cannot under the laws of that State,

prevent its collection, or

(b) in the case of a request under paragraph 4, a revenue claim of the first-

mentioned State in respect of which that State may, under its laws, take

measures of conservancy with a view to ensure its collection

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(THE REPUBLIC OF MAURITIUS)

the competent authority of the first-mentioned State shall promptly notify the

competent authority of the other State of that fact and at the option of the other State,

the first-mentioned State shall either suspend or withdraw its request.

In no case shall the provisions of this Article 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 carry out measures which would be contrary to public policy (ordre

public);

(c) to provide assistance if the other Contracting State has not pursued all

reasonable measures of collection or conservancy, as the case may be,

available under its laws or administrative practice;

(d) to provide assistance in those cases where the administrative burden for

that State is clearly disproportionate to the benefit to be derived by the

other Contracting State.

Article 27

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

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

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

under the provisions of special agreements.

Article 28

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 Agreement have been

complied with.

2. This Agreement 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 Agreement

enters into force;

(b) in Mauritius, in respect of 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 Agreement

enters into force.

Article 29

TERMINATION

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

Either Contracting State may terminate the Agreement, 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 Agreement shall cease 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 of

termination is given;

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(THE REPUBLIC OF MAURITIUS)

(b) in Mauritius, in respect of 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 of

termination is given.

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

respective Governments, have signed this Agreement.

DONE at New York this 15th day of October, 2014 in two originals in the English

language.

Chris Grima

Milan Jaya Nyamrajsingh Meetarbahn

For the Government of the

For the Government of the

Republic of Malta

Republic of Mauritius