DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH CANADA ORDER

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

SUBSIDIARY LEGISLATION 123.17

DOUBLE TAXATION RELIEF ON TAXES ON

INCOME WITH CANADA ORDER

5th February, 1988

LEGAL NOTICE 12 of 1988,as modified by S.L.123.183.

The title of this Order is Double Taxation Relief on Taxes

on Income with Canada Order.

AGREEMENT

BETWEEN

THE REPUBLIC OF MALTA AND CANADA

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

The Government of the Republic of Malta and the Government of Canada desiring

to conclude an Agreement for the avoidance of double taxation and the prevention of

fiscal evasion with respect to taxes on income and on capital, have agreed as

follows

I.

Scope of the Agreement

ARTICLE 1

Personal Scope

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 and on capital imposed on

behalf of each Contracting State, irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed

on total income, on total capital, or on elements of income or of capital, including

taxes on gains from the alienation of movable or immovable property, taxes on the

total amounts of wages or salaries paid by enterprises, as well as taxes on capital

appreciation.

(3)

The existing taxes to which the Agreement shall apply are, in particular

(a) in the case of Canada

the income taxes imposed by the Government of Canada, (hereinafter

referred to as "Canadian Tax");

(b) in the case of Malta

the income tax, including prepayments of tax whether made by

deduction at source or otherwise, (hereinafter referred to as "Malta

tax").

(4) The Agreement shall apply also to any identical or substantially similar

taxes and to taxes on capital which are imposed after the date of signature of the

Agreement in addition to, or in place of, the existing taxes. The Contracting States

shall notify each other of significant changes which have been made in their

respective taxation laws.

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II.

Definitions

ARTICLE 3

General Definitions

(1)

In this Agreement, unless the context otherwise requires

(a) (i) the term "Canada" used in a geographical sense, means the territory of

Canada, including any area beyond the territorial seas of Canada which, under the

laws of Canada, is an area within which Canada may exercise rights with respect to

the sea-bed and subsoil and their natural resources;

(ii) the term "Malta" means the Republic of Malta and when used in a

geographical sense, the term "Malta" means the Island of Malta, the Island of Gozo

and the other islands of the Maltese archipelago, including the territorial waters

thereof, and any area outside the territorial sea of Malta which, in accordance with

international law, has been or may hereafter be designated, under the law of Malta

concerning the Continental Shelf, as an area within which the rights of Malta with

respect to the seabed and subsoil and their natural resources may be exercised;

(b) the terms "a Contracting State" and "the other Contracting State" mean, as

the context requires, Canada or Malta;

(c) the term "person" includes an individual, an estate, a trust, a company, a

partnership and any other body of persons;

(d) the term "company" means any body corporate or any entity which is treated

as a body corporate for tax purposes; in French, the term "societe" also means a

"corporation" within the meaning of Canadian law;

(e) 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;

(f)

the term "competent authority" means

(i)

in the case of Canada, the Minister of National Revenue or his

authorized representative,

(ii) in the case of Malta, the Minister responsible for finance or his

authorised representative;

(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 "national" means

(i)

in the case of Canada, any individual possessing the nationality of

Canada and any legal person, partnership and association deriving its

status as such from the laws in force in Canada;

(ii) in the case of Malta, any citizen of Malta as provided for in Chapter III

of the Constitution of Malta and in the Maltese Citizenship Act, and any

legal person, partnership and association deriving its status as such from

the law in force in Malta.

(2) As regards the application of the Agreement by a Contracting State any term

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

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

applies.

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ARTICLE 4

Fiscal Domicile

(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.

(2) Where by reason of the provisions of paragraph (1) an individual is a

resident of both Contracting States, then his status shall be determined as follows

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

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

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

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

vital interests);

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

determined, or if he has not a permanent home available to him in either

State, he shall be deemed to be a resident of the State in which he has an

habitual abode;

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

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

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

authorities of the Contracting States shall settle the question by mutual

agreement.

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

individual is a resident of both Contracting States, the competent authorities of the

Contracting States shall endeavour to settle the question by mutual agreement having

regard in particular to its place of effective management, the place where it is

incorporated or otherwise constituted and any other relevant factors. In the absence

of such agreement, such person shall be deemed not to be a resident of either

Contracting State for the purposes of Articles 6 to 22 inclusive and Article 24.

ARTICLE 5

Permanent Establishments

(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; and

(f)

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

natural resources.

(3) A building site or construction or installation project, or an installation or

drilling rig or ship used for the exploration or development of natural resources, or

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supervisory activities connected therewith, constitutes a permanent establishment

but only if such site, project or activity continues for a period or periods aggregating

more than 183 days in any twelve month period, including the period of any

supervisory activity connected therewith.

(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 for 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.

(5) 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.

(6) 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.

(7) 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.

III.

Taxation of Income

ARTICLE 6

Income from Immovable Property

(1) Income derived by a resident of a Contracting State from immovable

property situated in the other Contracting State may be taxed in that other State.

(2)

For the purposes of this Agreement, the term "immovable property" shall

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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, rights to which the provisions of general law

respecting immovable 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 and to profits or

income from the alienation of such 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 or

has carried on business as aforesaid, the profits of the enterprise may be taxed in the

o th er Sta te b u t o nl y so m uch of t he m as i s at tri b ut ab le t o t h at p e r m a n e n t

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

attributable 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 the determination of the profits of a permanent establishment, there shall

be allowed those deductible expenses which are incurred for the purposes of the

permanent establishment including executive and general administrative expenses,

whether incurred in the 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 purpose 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) The provisions of this Article shall not affect the provisions of the law of a

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

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carried on in that State.

(8) 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 derived by an enterprise of a Contracting State from the operation of

ships or aircraft in international traffic shall be taxable only in that State.

(2) For the purposes of this Article, profits from the operation in international

traffic of ships or aircraft include profits derived from the rental on a full or bareboat

basis of ships or aircraft if operated in international traffic by the lessee or if such

rental profits are incidental to other profits described in paragraph (1).

(3) Profits of an enterprise of a Contracting State from the use, maintenance or

rental of containers (including trailers, barges and related equipment for the

transport of containers) used for the transport in international traffic of goods or

merchandise shall be taxable only in that State.

(4) Notwithstanding the provisions of paragraphs (1), (2) and (3) and Article 7,

profits derived from the operation of ships or aircraft used principally to transport

passengers or goods exclusively between places in a Contracting State may be taxed

in that State.

(5) The provisions of paragraphs (1), (3) and (4) shall also apply to profits

referred to in those paragraphs derived by an enterprise of a Contracting State from

its 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 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 tax charged therein on those profits. In

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determining such adjustment, due regard shall be had to the other provisions of this

Agreement.

(3) A Contracting State shall not change the profits of an enterprise in the

circumstances referred to in paragraph (1) after the expiry of the time limits

provided in its national laws and, in any case, after five years from the end of the

year in which the profits which would be subject to such change would have accrued

to an enterprise of that State.

(4) The provisions of paragraphs (2) and (3) shall not apply in the case of fraud,

wilful default or neglect.

ARTICLE 10

Dividends

(1) Dividends paid by a company which is a resident of a Contracting State to a

resident of the other Contracting State may be taxed in that other State.

(2) However, such dividends may also be taxed in the Contracting State of

which the company paying the dividends is a resident, and according to the laws of

that State, but -

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

Canada to a resident of Malta who is the beneficial owner of the

dividends the tax so charged shall not exceed 15 per cent of the gross

amount of the dividends;

(b) where the dividends are paid by a company which is a resident of Malta

to a resident of Canada who is the beneficial owner thereof -

(i)

Malta tax on the gross amount of the dividends shall not exceed

that chargeable on the profits out of which the dividends are paid;

(ii) where such dividends are paid out of profits of a company in

receipt of tax benefits under the provisions of the Aids to

Industries Ordinance, the rate of Malta tax on the dividends shall

be that applicable under the Fifth Schedule of the said Ordinance.

The provisions of this paragraph shall not affect the taxation of the company on

the profits out of which the dividends are paid.

(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 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 paragraph (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 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

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

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

(6) Nothing in this Agreement shall be construed as preventing a Contracting

State from imposing on the earnings of a company attributable to a permanent

establishment in that State, tax in addition to the tax which would be chargeable on

the earnings of a company which is a national of that State, provided that any such

additional tax so imposed shall not exceed 15 per cent of the amount of such

earnings which have not been subjected to such additional tax in previous taxation

years. For the purpose of this provision, the term "earnings" means the profits

attributable to a permanent establishment in a Contracting State in a year and

previous years after deducting therefrom all taxes, other than the additional tax

referred to herein, imposed on such profits by that 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 15 per cent of the gross

amount of the interest.

(3)

Notwithstanding the provisions of paragraph (2) -

(a) interest arising in a Contracting State and paid to the Government or the

Central Bank of the other Contracting State shall be exempt from tax in

the first-mentioned State;

(b) interest arising in Malta and paid to the Export Development

Corporation shall be exempt from Malta tax;

(c) interest arising in Canada and paid to the Malta Development

Corporation shall be exempt from Canadian tax.

(4) The term "interest" as used in this Article means income from debt-claims of

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

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

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

attaching to such securities, bonds or debentures, as well as income which is

subjected to the same taxation treatment as income from money lent by the laws of

the State in which the income arises. However, the term "interest" does not include

income dealt with in Article 10.

(5) The provisions of paragraph (2) shall not apply if the beneficial owner of the

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

Contracting State in which the interest arises through a permanent establishment

situated therein, or performs in that other State independent personal services from a

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

is effectively connected with such permanent establishment or fixed base. In such

case the provisions of Article 7 or Article 14, as the case may be, shall apply.

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

that State itself, a political subdivision, a local authority or a resident of that State.

Where, however, the person paying the interest, whether he is a resident of a

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

fixed base in connection with which the indebtedness on which the interest is paid

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

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

establishment or fixed base is situated.

(7) Where, by reason of a special relationship between the payer and the

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

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

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

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

last mentioned amount. In such case, the excess part of the payments shall remain

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

other provisions of this Agreement.

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 10 per cent of

the gross amount of the royalties.

(3) Notwithstanding the provisions of paragraph (2), copyright royalties and

other like payments in respect of the production or reproduction of any literary,

educational, dramatic, musical or artistic work (but not including royalties in respect

of motion picture films and works on film or videotape for use in connection with

television) arising in a Contracting State and paid to a resident of the other

Contracting State who is subject to tax thereon shall be taxable only in that other

State.

(4) 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, 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, and includes payments of

any kind in respect of motion picture films and works on film or videotape for use in

connection with television.

(5) The provisions of paragraph (2) and (3) shall not apply if the beneficial

owner of the royalties, being a resident of a Contracting State, carries on business in

the other Contracting State in which the royalties arise through a permanent

establishment situated therein, or performs in that other State independent personal

services from a fixed base situated therein, and the right or property in respect of

which the royalties are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of Article 7 or Article 14, as

the case may be, shall apply.

(6) Royalties shall be deemed to arise in a Contracting State when 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 a

fixed base in connection with which the obligation to pay the royalties was incurred,

and such royalties are borne by such permanent establishment or fixed base, then

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such royalties shall be deemed to arise in the State in which the permanent

establishment or fixed base is situated.

(7) Where, by reason of a special relationship between the payer and the

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

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 Agreement.

ARTICLE 13

Capital Gains

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

immovable property situated in the other Contracting State may be taxed in that

other State.

(2) Gains from the alienation of immovable 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 a fixed base, may be taxed in that other State.

(3) Gains from the alienation of ships or aircraft operated in international traffic

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

taxable only in the Contracting State in which such property is taxable according to

paragraph (3) of Article 22.

(4)

Gains from the alienation of -

(a) shares of the capital stock of a company the property of which consists

principally of immovable property situated in a Contracting State, and

(b) an interest in a partnership, trust or estate, the property of which

consists principally of immovable property situated in a Contracting

State,

may be taxed in that State. For the purposes of this paragraph, the term "immovable

property" includes the shares of a company referred to in sub-paragraph (a) or an

interest in a partnership, trust or estate referred to in sub-paragraph (b) but shall not

include property, other than rental property, in which the business of the company,

partnership, trust or estate is carried on.

(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.

(6) The provisions of paragraph (5) shall not affect the right of either of the

Contracting States to levy, according to its law, a tax on gains from the alienation of

any property derived by an individual who is a resident of the other Contracting

State and has been a resident of the first-mentioned State at any time during the six

years immediately preceding the alienation of the property.

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ARTICLE 14

Independent Personal Services

(1) Income derived by an individual who is a resident of a Contracting State

from the performance of professional services or other activities of an independent

character shall be taxable only in that State unless such services are performed in the

other Contracting State and -

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

aggregating more than 90 days in the taxable year concerned, or

(b) the individual has or had a fixed base regularly available to him in that

other State for the purpose of performing his activities, but only so

much of the income as is attributable to that fixed base may be taxed in

such other State, or

(c) the remuneration for his services in the other Contracting State is

derived from residents of that State and exceeds ten thousand Canadian

dollars or the equivalent in Malta currency during the taxable year.

(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 the recipient is

present in the other State for a period or periods not exceeding in the aggregate 183

days in the calendar year concerned, and either -

(a) the remuneration earned in the other Contracting State in the calendar

year concerned does not exceed five thousand Canadian dollars ($

5,000) or its equivalent in Malta currency; or

(b) the remuneration is paid by, or on behalf of, an employer who is not a

resident of the other State, and such 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 in

r e s p e c t o f a n e m p l o y m e n t e x e r c i s e d a b o a r d a sh i p o r a ir c r a f t o pe r a t e d i n

international traffic by an enterprise of a Contracting State, shall be taxable only in

that State.

ARTICLE 16

Directors’ Fees

Directors’ fees and other similar payments derived by a resident of a Contracting

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

State in his capacity as a member of the board of directors or a similar organ of a

company which is a resident of the other Contracting State, may be taxed in that

other State.

ARTICLE 17

Artistes and Athletes

(1) Notwithstanding the provisions of Articles 7, 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 an athlete, 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

an athlete in his capacity as such accrues not to the entertainer or athlete 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

athlete are exercised.

(3) The provisions of paragraph (2) shall not apply if it is established that

neither the entertainer or the athlete nor persons related thereto, participate directly

or indirectly in the profits of the person referred to in that paragraph.

ARTICLE 18

Pensions and Annuities

(1) Pensions and annuities arising in a Contracting State and paid to a resident

of the other Contracting State may be taxed in that other State.

(2) Pensions arising in a Contracting State and paid to a resident of the other

Contracting State may also be taxed in the State in which they arise, and according to

the law of that State. However, in the case of periodic pension payments, the tax so

charged shall not exceed the lesser of -

(a) 15 per cent of the gross amount of the payment, and

(b) the rate determined by reference to the amount of tax that the recipient

of the payment would otherwise be required to pay for the year on the

total amount of the periodic pension payments received by him in the

year, if he were resident in the Contracting State in which the payment

arises and if such total amount were his only income in that year.

(3) Annuities arising in a Contracting State and paid to a resident of the other

Contracting State may also be taxed in the State in which they arise, and according to

the law of that State; but the tax so charged shall not exceed 15 per cent of the

portion thereof that is subject to tax in that State. However, this limitation does not

apply to lump-sum payments arising on the surrender, cancellation, redemption, sale

or other alienation of an annuity, or to payments of any kind under an income-

averaging annuity contract.

(4)

Notwithstanding anything in this Agreement -

(a) war veterans pensions or allowances or war disability benefits received

from a Contracting State shall not be taxable in the other Contracting

State so long as they are not subject to tax in the first-mentioned State;

(b) alimony and other similar payments arising in a Contracting State and

paid to a resident of the other Contracting State who is subject to tax

therein in respect thereof, shall be taxable only in that other State.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

ARTICLE 19

Government Service

(1) (a) 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 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) The provisions of Articles 15, 16 and 17 shall apply to remuneration 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.

(3) Where remuneration is paid under a development assistance programme of a

Contracting State, out of funds exclusively supplied by that State to a specialist or

volunteer seconded to the other Contracting State with the consent of that other

State, such remuneration shall be deemed to have been paid by the first-mentioned

State and shall be taxable only in that State.

ARTICLE 20

Students

Payments which a student, apprentice or business trainee 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) Subject to the provisions of paragraph (2), 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) However, if such income is derived by a resident of a Contracting State from

sources in the other Contracting State, such income may also be taxed in the State in

which it arises, and according to the law of that State. However, in the case of

income from an estate or trust, the tax so charged shall, provided that the income is

taxable in the Contracting State in which the recipient resides, not exceed 15 per cent

of the gross amount of the income.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

IV.

Taxation of Capital

ARTICLE 22

Capital

(1) Capital represented by immovable property owned by a resident of a

Contracting State and situated in the other Contracting State, may be taxed in that

other State.

(2) Capital represented by 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 by 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, may be taxed in that other

(3) Capital represented by ships and aircraft operated by an enterprise of a

Contracting State in international traffic and by movable property pertaining to the

operation of such ships and aircraft, shall be taxable only in that State.

(4) All other elements of capital of a resident of a Contracting State shall be

taxable only in that State.

V.

Methods for Prevention of Double Taxation

ARTICLE 23

Elimination of Double Taxation

(1)

In the case of Canada, double taxation shall be avoided as follows

(a) Subject to the existing provisions of the law of Canada regarding the

deduction from tax payable in Canada of tax paid in a territory outside

Canada and to any subsequent modification of those provisions - which

shall not affect the general principle hereof - and unless a greater

deduction or relief is provided under the laws of Canada, tax payable in

Malta on profits, income or gains arising in Malta shall be deducted

from any Canadian tax payable in respect of such profits, income or

gains.

(b) Subject to the existing provisions of the law of Canada regarding the

determination of the exempt surplus of a foreign affiliate and to any

subsequent modification of those provisions - which shall not affect the

general principle hereof - for the purpose of computing Canadian tax, a

company resident in Canada shall be allowed to deduct in computing its

taxable income any dividend received by it out of the exempt surplus of

a foreign affiliate resident in Malta.

(2) For the purposes of paragraph (1) (a), tax payable in Malta by a resident of

Canada in respect of dividends, interest or royalties received by it from a company

which is a resident of Malta, shall be deemed to include any amount which would

have been payable as Malta tax for any year but for an exemption from, or reduction

of, tax granted for that year or any part thereof under -

(a) the provisions of article 5 of the Aids to Industries Ordinance, so far as

they were in force on, and have not been modified since, the date of

signature of this Agreement, or have been modified only in minor

respect so as not to affect their general character;

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

(b) any other special provisions of the law of Malta designed to promote

investments necessary for the economic development of Malta which

may subsequently be made, granting an exemption or reduction of tax

which is agreed by the competent authorities of the Contracting States

to be of a substantially similar character, if it has not been modified

thereafter or has been modified only in minor respects so as not to affect

its general character,

provided that any deduction from Canadian tax granted in accordance with the

provisions of this paragraph shall not exceed 15 per cent of the gross amount of the

dividends, interest or royalties.

(3)

In the case of Malta, double taxation shall be avoided 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 Canada, or elements of capital situated in Canada, the Canadian tax on such

income or elements of capital, as the case may be, shall be allowed as a credit

against the relative Malta tax payable thereon.

(4) For the purposes of this Article, profits, income or gains of a resident of a

Contracting State which are taxed in the other Contracting State in accordance with

this Agreement shall be deemed to arise from sources in that other State.

VI.

Special Provisions

ARTICLE 24

Non-discrimination

(1) The 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 are or may be subjected.

(2) The taxation on a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State shall not be less favourably

levied in that other State than the taxation levied on enterprises of that other State

carrying on the same activities.

(3) Nothing in this Article shall 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) 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, the capital of which is wholly or partly owned or controlled,

directly or indirectly, by one or more residents of a third State, are or may be

subjected.

(5) In this Article, the term "taxation" means taxes which are the subject of this

Agreement.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

ARTICLE 25

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, address to the competent authority of the Contracting State of

which he is a resident an application in writing stating the grounds for claiming the

revision of such taxation. To be admissible, the said application must be submitted

within two years from the first notification of the action which gives rise to taxation

not in accordance with the Agreement.

(2) The competent authority referred to in paragraph (1) shall endeavour, if the

objection appears to it to be justified and if it is not itself able to arrive at an

appropriate 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 not

in accordance with the Agreement.

(3) A Contracting State shall not, after the expiry of the time limits provided in

its national laws and, in any case, after five years from the end of the taxable period

in which the income concerned has accrued, increase the tax base of a resident of

either of the Contracting States by including therein items of income which have

also been charged to tax in the other Contracting State. This paragraph shall not

apply in the case of fraud, wilful default or neglect.

(4) 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

interpretation or application of the Agreement. In particular, the competent

authorities of the Contracting States may consult together to endeavour to agree

(a) to the same attribution of profits to a resident of a Contracting State and

its permanent establishment situated in the other Contracting State;

(b) to the same allocation of income between a resident of a Contracting

State and any associated person provided for in Article 9.

(5) The competent authorities of the Contracting States may consult together for

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

may also communicate with each other directly for the purpose of applying the

Agreement.

ARTICLE 26

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 Agreement or of

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

Agreement insofar as the taxation thereunder is not contrary to the Agreement. Any

information received by a Contracting State shall be treated as secret in the same

manner as information obtained under the domestic laws of that State and shall be

disclosed only to persons or authorities (including courts and administrative bodies)

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

determination of appeals in relation to, the taxes covered by the Agreement. Such

persons or authorities shall use the information only for such purposes.

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

on a Contracting State the obligation -

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

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

administrative practice of that or of the other Contracting State;

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

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

State;

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

industrial, commercial or professional secret or trade process, or

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

(ordre public).

ARTICLE 27

Diplomatic Agents and Consular Officers

(1) Nothing in this Agreement shall affect the fiscal privileges of diplomatic

agents or consular officers under the general rules of international law or under the

provisions of special agreements.

(2) Notwithstanding Article 4, an individual who is a member of a diplomatic

mission, consular post or permanent mission of a Contracting State which is situated

in the other Contracting State or in a third State shall be deemed for the purposes of

the Agreement to be a resident of the sending State if he is liable in the sending State

to the same obligations in relation to tax on his total income as are residents of that

sending State.

(3) The Agreement shall not apply to International Organizations, to organs or

officials thereof and to persons who are members of a diplomatic mission, consular

post or permanent mission of a third State, being present in a Contracting State and

who are not liable in either Contracting State to the same obligations in relation to

tax on their total income as are residents thereof.

ARTICLE 28

Miscellaneous Provisions

(1) The provisions of this Agreement shall not be construed to restrict in any

manner any exclusion, exemption, deduction, credit, or other allowance now or

hereafter accorded by the laws of a Contracting State in the determination of the tax

imposed by that State.

(2)

Nothing in the Agreement shall be construed as preventing -

(a) Canada from imposing a tax on amounts included in the income of a

resident of Canada according to article 91 of the Canadian Income Tax

Act;

(b) Malta from applying the provisions of Article 12(2) of the Income Tax

Act.

(3) Where the Agreement provides that income arising in a Contracting State

shall be relieved from tax in that State, either in full or in part, and, under the law in

force in the other Contracting State, such income is subject to tax by reference to the

amount thereof which is remitted to or received in that other State and not by

reference to the full amount thereof, then the relief to be allowed in the first-

mentioned State shall apply only to so much of income as is remitted to or received

in the other State.

(4)

This Agreement shall not apply to any company, trust or partnership that is a

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

resident of a Contracting State and is beneficially owned or controlled directly or

indirectly by one or more persons who are not residents of that State, if the amount

of the tax imposed on the income or capital of the company, trust or partnership by

that State is substantially lower than the amount that would be imposed by that State

if all of the shares of the capital stock of the company or all of the interests in the

trust or partnership, as the case may be, were beneficially owned by one or more

residents of that State.

VII.

Final Provisions

ARTICLE 29

Entry into Force

(1) This Agreement shall be ratified and the instruments of ratification shall be

exchanged at Valletta, Malta.

(2) The Agreement shall enter into force 30 days after the exchange of

instruments of ratification and its provisions shall have effect

(a) in Canada

(i)

in respect of tax withheld at the source on amounts paid or

credited to non-residents on or after the first day of January in the

calendar year in which the exchange of instruments of ratification

takes place; and

(ii) in respect of other Canadian tax for taxation years beginning on or

after the first day of January in the calendar year in which the

exchange of instruments of ratification takes place;

(b) in Malta, in respect of taxes which are levied for any year of assessment

beginning on the first day of January in the calendar year immediately

following that in which the exchange of instruments of ratification takes

place.

ARTICLE 30

Termination

This Agreement shall continue in effect indefinitely but either Contracting State

may, on or before June 30 in any calendar year after the year of the exchange of

instruments of ratification, give to the other Contracting State a notice of termination

in writing through diplomatic channels; in such event, the Agreement shall cease to

have effect

(a) in Canada

(i)

in respect of tax withheld at the source on amounts paid or

credited to non-residents on or after the first day of January in the

calendar year immediately following that in which the notice is

given; and

(ii) in respect of other Canadian tax for taxation years beginning on or

after the first day of January in the calendar year immediately

following that in which the notice is given;

(b) in Malta, in respect of taxes which are levied for the year of assessment

beginning on the first day of January in the second year following that

in which the notice is given.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

IN WITNESS WHEREOF the undersigned, duly authorised to that effect, have

signed this Agreement.

DONE in duplicate at Valletta, this 25th day of July, 1986, in the English and

French languages, each version being equally authentic.

(sgd.) Robert J. Stivala

(sgd.) Claude T. Charland

FOR THE GOVERNMENT OF

FOR THE GOVERNMENT OF

THE REPUBLIC OF MALTA

CANADA

It is hereby declared -

(a) that the arrangements specified in the Agreement set

out in the Schedule to this Order have been made with

the Government of Canada with a view to affording

relief from double taxation in relation to the following

taxes imposed by the laws of Canada

the income taxes imposed by the Government of

Canada (hereinafter referred to as "Canadian tax");

(b) that it is expedient that those arrangements should

have effect.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH CANADA

ARTIKOLU 5

Stabbiliment Permanenti

(1) Għall-finijiet ta’ dan il-Ftehim, il-frażi "stabbiliment permanenti" tfisser

post fiss tan-negozju li minnu jiġi mmexxi għal kollox jew f ’parti x-xogħol ta’ l-

impriża.

(2)

Il-frażi "stabbiliment permanenti" tinkludi b’mod speċjali

(a) post ta’ maniġġ;

(b) fergħa;

(`)

uffiċċju;

(d) fabbrika;

(e) ħanut tax-xogħol; u

(f)

minjiera, bir taż-żejt jew tal-gass, barriera jew kull post ieħor ta’

estrazzjoni ta’ riżorsi naturali.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

(3) Sit tal-bini jew proġett ta’ kostruzzjoni jew stallazzjoni, jew stallazzjoni jew

rig tat-tħaffir jew bastiment użat għall-esplorazzjoni jew żvilupp tar-riżorsi naturali,

jew attivitajiet ta’ superviżjoni li għandhom x’jaqsmu magħhom, jikkostitwixxu

stabbiliment permanenti iżda biss jekk is-sit, il-proġett jew l-attività bħal dawn

ikomplu għal żmien jew żminijiet li fit-total ikunu aktar minn 183 jum f’xi perjodu

ta’ tnax-il xahar, inkluż il-perjodu ta’ attività ta’ superviżjoni li għandu x’jaqsam

miegħu.

(4) Minkejja d-disposizzjonijiet ta’ qabel ta’ dan

l-Artikolu,

il-frażi

"stabbiliment permanenti" għandha titqies li ma tinkludix

(a) l-użu ta’ faċilitajiet għall-iskop biss ta’ ħażna, wiri jew tqassim ta’

oġġetti jew merkanzija li jkunu proprjetà ta’ l-impriża;

(b) it-tiżmim ta’ ħażna ta’ oġġetti jew merkanzija li tkun proprjetà ta’ l-

impriża għall-iskop biss ta’ ħażna, wiri jew tqassim;

(`)

it-tiżmim ta’ ħażna ta’ oġġetti jew merkanzija li tkun proprjetà ta’ l-

impriża għall-iskop biss ta’ proċessar minn impriża oħra;

(d) it-tiżmim ta’ post fiss ta’ negozju għall-iskop biss ta’ xiri ta’ oġġetti jew

merkanzija jew ta’ ġbir ta’ tagħrif għall-impriża;

(e) it-tiżmim ta’ post fiss ta’ negozju għall-iskop biss li tagħmel, għall-

impriża, xi attività oħra ta’ xorta preparatorja jew awżiljarja;

(f)

it-tiżmim ta’ post fiss ta’ negozju biss għal kull kombinazzjoni ta’

attivitajiet imsemmija fis-subparagrafi (a) sa (e) iżda li l-attività kollha

tal-post fiss ta’ negozju li toħroġ minn din il-kombinazzjoni tkun ta’

xorta preparatorja jew awżiljarja.

(5) Minkejja d-disposizzjonijiet tal-paragrafi (1) u (2), meta persuna - li ma

tkunx aġent ta’ status indipendenti li għaliha japplika l-paragrafu (6) - taġixxi għan-

nom ta’ mpriża u għandha, u soltu twettaq fi Stat Kontraenti awtorità li tikkonkludi

kuntratti f ’isem l-impriża, dik l-impriża għandha titqies li għandha stabbiliment

permanenti f ’dak l-Istat dwar kull attività li dik il-persuna tagħmel għall-impriża,

sakemm l-attivitajiet ta’ dik il-persuna ma jkunux limitati għal dawk imsemmija fil-

paragrafu (4) li, kieku mwettqa minn post fiss ta’ negozju, ma jagħmlux dan il-post

fiss ta’ negozju stabbiliment permanenti taħt id-disposizzjonijiet ta’ dak il-

paragrafu.

(6) Impriża ma għandhiex titqies li jkollha stabbiliment permanenti fi Stat

Kontraenti għaliex biss tmexxi negozju f ’dak l-Istat permezz ta’ sensal, aġent

ġenerali b’kummissjoni jew xi aġent ieħor bi status indipendenti, sakemm dawk il-

persuni jaġixxu fil-kors ordinarju tan-negozju tagħhom.

(7) Il-fatt li kumpannija li tkun residenti ta’ Stat Kontraenti tikkontrolla jew

tkun kontrollata minn kumpannija li tkun residenti ta’ l-Istat Kontraenti l-ieħor, jew

li tmexxi negozju f’dak l-Istat l-ieħor (sew permezz ta’ stabbiliment permanenti sew

xort’oħra), ma għandux fih innifsu jikkostitwixxi xi waħda mill-kumpanniji

stabbiliment permanenti ta’ l-oħra.

III. Tassazzjoni ta’ Income

ARTIKOLU 6

Income minn Proprjetà Immobiljari

(1) Income miksub minn residenti ta’ Stat Kontraenti minn proprjetà

immobiljari sitwata fl-Istat Kontraenti l-ieħor jista’ jiġi ntaxxat f’dak l-Istat l-ieħor.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

(2) Għall-finijiet ta’ dan il-Ftehim, il-frażi "proprjetà immobiljari" għandu

jkollha l-istess tifsir li għandha taħt il-liġi ta’ l-Istat Kontraenti li fih il-proprjetà li

tkun hija sitwata. Il-frażi għandha f ’kull każ tinkludi proprjetà aċċessorja għal

proprjetà immobiljari, drittijiet li għalihom japplikaw id-disposizzjonijiet tal-liġi

ġenerali dwar proprjetà immobiljari, użufrutt ta’ proprjetà immobiljari u drittijiet

għal ħlasijiet li jvarjaw jew fissi bħala kumpens għall-ħdim ta’, jew għall-jedd li

jinħadmu, depożiti minerali, għejjun u riżorsi oħra naturali; bastimenti, dgħajjes u

inġenji ta’ l-ajru ma għandhomx jitqiesu bħala proprjetà immobiljari.

(3) Id-disposizzjonijiet tal-paragrafu (1) għandhom japplikaw għal income li

jinkiseb mill-użu dirett, kiri, jew użu ta’ kull xort’oħra ta’ proprjetà immobiljari u

għal profitti jew income mill-bejgħ ta’ proprjetà bħal din.

(4) Id-disposizzjonijiet tal-paragrafi (1) u (3) għandhom japplikaw ukoll għal

income minn proprjetà immobiljari ta’ mpriża u għal income minn proprjetà

immobiljari li tkun użata għall-qadi ta’ servizzi personali indipendenti.

ARTIKOLU 7

Profitti minn Negozju

(1) Il-profitti ta’ mpriża ta’ Stat Kontraenti għandhom jiġu ntaxxati biss f’dak l-

Istat kemm-il darba l-impriża ma tmexxix negozju fl-Istat Kontraenti l-ieħor

permezz ta’ stabbiliment permanenti li jkun qiegħed hemmhekk. Jekk l-impriża

tmexxi jew tkun mexxiet negozju kif intqal qabel, il-profitti ta’ l-impriża jistgħu jiġu

ntaxxati fl-Istat l-ieħor iżda biss għal dik il-parti minnhom li jinqalgħu minn dak l-

istabbiliment permanenti.

(2) Bla ħsara għad-disposizzjonijiet tal-paragrafu (3), meta mpriża ta’ Stat

Kontraenti tmexxi negozju fl-Istat Kontraenti l-ieħor permezz ta’ stabbiliment

permanenti li jkun qiegħed hemmhekk, għandhom jiġu attribwiti lil dak l-

istabbiliment permanenti f ’kull Stat Kontraenti l-profitti li kien ikun mistenni

jagħmel kieku kien impriża distinta u separata li taħdem fl-istess attivitajiet jew

oħrajn bħalhom taħt l-istess kundizzjonijiet jew oħrajn bħalhom u li taħdem

indipendentement għal kollox mill-impriża li tagħha hija stabbiliment permanenti.

(3) Biex jiġu stabbiliti l-profitti ta’ stabbiliment permanenti, għandu jkun

permess bħala tnaqqis spejjeż li jsiru għall-iskopijiet ta’ l-istabbiliment permanenti

magħduda l-ispejjeż eżekuttivi u amministrattivi ġenerali li jsiru, sew jekk fl-Istat li

fih l-istabbiliment permanenti jkun qiegħed sew jekk band’oħra.

(4) Safejn ikun soltu li fih Stat Kontraenti jiġu stabbiliti l-profitti li għandhom

jiġu attribwiti lil stabbiliment permanenti fuq il-bażi ta’ tqassim tal-profitti totali ta’

l-impriża fuq il-partijiet diversi tagħha, ebda ħaġa fil-paragrafu (2) ma għandha

ttellef lil dak l-Istat Kontraenti milli jistabbilixxi l-profitti li għandhom jiġu ntaxxati

skond dak it-tqassim kif soltu jsir. Iżda l-mod ta’ tqassim adottat għandu jkun hekk li

r-riżultat ikun skond il-prinċipji li hawn f’dan l-Artikolu.

(5) Ma għandhom jiġu attribwiti ebda profitti lil stabbiliment permanenti

minħabba biss ix-xiri minn dak l-istabbiliment permanenti ta’ oġġetti jew merkanzija

għall-impriża.

(6) Għall-finijiet tal-paragrafi ta’ qabel, il-profitti li għandhom jiġu attribwiti

lill-istabbiliment permanenti għandhom jiġu stabbiliti bl-istess mod minn sena għal

sena kemm-il darba ma jkunx hemm raġuni tajba u biżżejjed biex isir kuntrarju.

(7) Id-disposizzjonijiet ta’ dan l-Artikolu m’għandhomx jolqtu d-

disposizzjonijiet tal-liġi ta’ Stat Kontraenti dwar it-tassazzjoni ta’ profitti fuq in-

negozju ta’ assikurazzjoni li jitwettaq f’dak l-Istat.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

(8) Meta profitti jinkludu oġġetti ta’ income li qed jiġu trattati separatament

f’Artikoli oħra ta’ dan il-Ftehim, allura d-disposizzjonijiet ta’ dawk l-Artikoli ma

jkunux milquta bid-disposizzjonijiet ta’ dan l-Artikolu.

ARTIKOLU 8

Trasport bil-Baħar u bl-Ajru

(1) Profitti miksuba minn impriża ta’ Stat Kontraenti mit-tħaddim ta’ bastimenti

jew inġenji ta’ l-ajru fi traffiku internazzjonali għandhom ikunu ntaxxati biss f’dak

l-Istat.

(2) Għall-għanijiet ta’ dan l-Artikolu, profitti mit-tħaddim ta’ bastimenti jew

inġenji ta’ l-ajru fi traffiku internazzjonali jinkludu profitti derivati mill-kiri ta’

bastimenti jew inġenji ta’ l-ajru fuq bażi full jew bareboat jekk ikunu mħaddma fi

traffiku internazzjonali mill-kerrej jew jekk dawk il-profitti tal-kiri jkunu inċidentali

għal profitti oħrajn deskritti fil-paragrafu (1).

(3) Profitti ta’ mpriża ta’ Stat Kontraenti mill-użu, żamma jew kiri ta’

containers (magħduda karrelli, braken, u apparat li għandu x’jaqsam għat-trasport

t a’ c o n t a i n e r s) u ż a t g ħ at - t r a s p o r t t a ’ l - o ġ ġ e t t i j e w m er k a n z i j a f i t r a ff i k u

internazzjonali għandhom ikunu taxxabbli biss f’dak l-Istat.

(4) Minkejja d-disposizzjonijiet tal-paragrafi (1), (2) u (3) u ta’ l-Artikolu 7,

profitti miksuba mit-tħaddim ta’ bastimenti jew inġenji ta’ l-ajru wżati prinċipalment

għat-trasport ta’ passiġġieri jew oġġetti esklussivament bejn postijiet fi Stat

Kontraenti jistgħu jiġu ntaxxati f’dak l-Istat.

(5) Id-disposizzjonijiet tal-paragrafi (1), (3) u (4) għandhom japplikaw ukoll

għall-profitti msemmija f ’dawk il-paragrafi miksuba minn impriża ta’ Stat

Kontraenti mill-parteċipazzjoni f’pool, negozju joint jew aġenzija internazzjonali ta’

tħaddim.

ARTIKOLU 9

Impriżi Asso`jati

(1)

Meta -

(a) impriża ta’ Stat Kontraenti tipparteċipa direttament jew indirettament

fit-tmexxija, kontroll jew kapital ta’ impriża ta’ l-Istat Kontraenti l-

ieħor, jew

(b) l-istess persuni jipparteċipaw direttament jew indirettament fit-

tmexxija, kontroll jew kapital ta’ mpriża ta’ Stat Kontraenti u ta’ mpriża

ta’ l-Istat Kontraenti l-ieħor,

u f ’kull każ jiġu magħmula jew imposti kundizzjonijiet bejn iż-żewġ impriżi fir-

relazzjonijiet kummerċjali jew finanzjarji ta’ bejniethom li ma jaqblux ma’ dawk li

kienu jiġu magħmula bejn impriżi indipendenti, f’dak il-każ kull profitt li, kieku ma

kienux dawk il-kundizzjonijiet, kienu jakkumulaw għal waħda mill-impriżi, iżda

minħabba dawk il-kundizzjonijiet ma ġewx hekk akkumulati, jistgħu jiġu nklużi fil-

profitti ta’ dik l-impriża u ntaxxati skond hekk.

(2) Meta Stat Kontraenti jinkludi fil-profitti ta’ mpriża ta’ dak l-Istat - u

jintaxxa skond hekk - profitti li fuqhom impriża ta’ l-Istat Kontraenti l-ieħor ġiet

intaxxata f ’dak l-Istat l-ieħor u l-profitti hekk magħduda jkunu profitti li kienu

jinqalgħu mill-impriża ta’ l-ewwel Stat imsemmi kieku l-kundizzjonijiet magħmula

bejn iż-żewġ impriżi kienu dawk li kienu jsiru bejn żewġ impriżi indipendenti, allura

dak l-Istat l-ieħor għandu jagħmel it-tibdil xieraq fl-ammont ta’ taxxa mposta

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

hemmhekk fuq dawk il-profitti. Biex jiġi stabbilit it-tibdil, għandu jittieħed qies

xieraq tad-disposizzjonijiet l-oħra ta’ dan il-Ftehim.

(3) Stat Kontraenti ma għandux ibiddel il-profitti ta’ mpriża fiċ-ċirkostanzi

msemmija fil-paragrafu (1) wara li jgħaddi l-limitu ta’ żmien imsemmi fil-liġijiet

nazzjonali tiegħu u, f’kull każ, wara ħames snin mill-aħħar tas-sena li fiha l-profitti

li jkunu suġġetti għal tibdil bħal dan kienu jkunu miksuba minn impriża ta’ dak l-

Istat.

(4) Id-disposizzjonijiet tal-paragrafi (2) u (3) ma għandhomx japplikaw fil-każ

ta’ frodi, negliġenza jew nuqqas bil-ħsieb.

ARTIKOLU 10

Dividendi

(1) Dividendi mħallsa minn kumpannija li tkun residenti ta’ Stat Kontraenti lil

residenti ta’ l-Istat Kontraenti l-ieħor jistgħu jiġu ntaxxati f’dak l-Istat l-ieħor.

(2) Iżda, dawk id-dividendi jistgħu jiġu ntaxxati wkoll fl-Istati Kontraenti li

tiegħu l-kumpannija li tkun tħallas id-dividendi tkun residenti, u skond il-liġijiet ta’

dak l-Istat, iżda

(a) meta d-dividendi jitħallsu minn kumpannija li tkun residenti l-Kanada

lil residenti ta’ Malta li jkun is-sid benefiċjarju tad-dividendi t-taxxa

hekk imposta m’għandhiex tkun iżjed minn 15 fil-mija ta’ l-ammont

gross tad-dividendi;

(b) meta d-dividendi jitħallsu minn kumpannija residenti ta’ Malta lil

residenti tal-Kanada li jkun is-sid benefiċjarju tagħhom

(i)

it-taxxa ta’ Malta fuq l-ammont gross tad-dividendi ma għandux

ikun iżjed minn dak impost fuq il-profitti li minnhom jitħallsu d-

dividendi;

(ii) meta dividendi bħal dawn jitħallsu minn profitti ta’ kumpannija li

tkun tirċievi benefiċċji ta’ taxxa taħt id-disposizzjonijiet ta’ l-

Ordinanza dwar Għajnuna lill-Industriji, ir-rata tat-taxxa ta’

Malta fuq id-dividendi għandha tkun dik applikabbli taħt il-

Ħames Skeda ta’ l-istess Ordinanza.

Id-disposizzjonijiet ta’ dan il-paragrafu ma għandhomx jolqtu t-tassazzjoni tal-

kumpannija dwar il-profitti li minnhom jitħallsu d-dividendi.

(3) Il-frażi "dividendi" kif użata f’dan l-Artikolu tfisser income minn

azzjonijiet, azzjonijiet "jouissance" jew drittijiet "jouissance", azzjonijiet f’minjieri,

azzjonijiet tal-fondaturi jew drittijiet oħra, li ma jkunux talbiet għal dejn, li

jipparteċipaw fil-profitti, kif ukoll income li huwa meqjus għall-fini tat-taxxa l-istess

bħal income minn azzjonijiet skond il-liġijiet ta’ l-Istat li fih tkun residenti l-

kumpannija li tagħmel it-tqassim.

(4) Id-disposizzjonijiet tal-paragrafu (2) ma għandhomx japplikaw jekk is-sid

benefiċjarju tad-dividendi, li jkun residenti ta’ Stat Kontraenti, imexxi negozju fl-

Istat Kontraenti l-ieħor, li tiegħu tkun residenti l-kumpannija li tħallas id-dividendi,

permezz ta’ stabbiliment permanenti li jkun sitwat hemmhekk, jew li jkun jaqdi

f ’dak l-Istat l-ieħor servizz personali indipendenti minn bażi stabbilit sitwat

hemmhekk, u l-holding li dwarhom id-dividendi jkunu mħallsa jkollu x’jaqsam

effettivament ma’ dak l-istabbiliment permanenti jew bażi stabbilit. F’dak il-każ id-

disposizzjonijiet ta’ l-Artikolu 7 jew l-Artikolu 14, skond il-każ, għandhom

japplikaw.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

(5) Meta kumpannija li tkun residenti ta’ Stat Kontraenti tikseb profitti jew

income mill-Istat Kontraenti l-ieħor, dak l-Istat l-ieħor ma jista’ jimponi ebda taxxa

fuq id-dividendi mħallsa mill-kumpannija, ħlief meta dividendi bħal dawn jitħallsu

lil residenti ta’ dak l-Istat l-ieħor jew safejn il-holding li dwaru jitħallsu d-dividendi

jkollu x’jaqsam effettivament ma’ stabbiliment permanenti jew ma’ bażi stabbilit

sitwat f’dak l-Istat l-ieħor, jew jissuġġetta l-profitti mhux distribwiti tal-kumpannija

għal taxxa fuq il-profitti mhux distribwiti, anki jekk id-dividendi mħallsa jew il-

profitti mhux distribwiti jikkonsistu f’kollox jew f’parti minnhom minn profitti jew

income li jinqalgħu f’dak l-Istat l-ieħor.

(6) L-ebda ħaġa f’dan il-Ftehim ma għandha tiftiehem li ma tħallix Stat

Kontraenti milli jimponi fuq il-qligħ ta’ kumpannija li jkun attribwit għal

stabbiliment permanenti f’dak l-Istat, taxxa b’żieda mat-taxxa li tkun imposta fuq il-

qligħ ta’ kumpannija li tkun nazzjonali ta’ dak l-Istat, kemm-il darba taxxa

addizzjonali bħal din hekk imposta ma għandhiex tkun iżjed minn 15 fil-mija ta’ l-

ammont ta’ dan il-qligħ li ma jkunx ġie suġġett għal taxxa addizzjonali bħal din fi

snin ta’ qabel ta’ tassazzjoni. Għall-finijiet ta’ din id-disposizzjoni, il-frażi "qligħ"

tfisser il-profitti li jkunu attribwiti lil stabbiliment permanenti fi Stat Kontraenti

f ’sena u fi snin ta’ qabel wara li taqta’ minnhom it-taxxi kollha, barra t-taxxa

addizzjonali msemmija hawnhekk, imposta fuq dawn il-profitti minn dak l-Istat.

ARTIKOLU 11

Imgħax

(1) Imgħax li jinqala’ fi Stat Kontraenti u li jitħallas lil residenti ta’ l-Istat

Kontraenti l-ieħor jista’ jiġi ntaxxat f’dak l-Istat l-ieħor.

(2) Iżda, dak l-imgħax jista’ jiġi ntaxxat ukoll fl-Istat Kontraenti fejn jinqala’, u

skond il-liġijiet ta’ dak l-Istat, iżda jekk min jirċevih ikun is-sid benefiċjarju ta’ l-

imgħax it-taxxa hekk imposta m’għandhiex tkun iżjed minn 15 fil-mija ta’ l-ammont

gross ta’ l-imgħax.

(3)

Minkejja d-disposizzjonijiet tal-paragrafu (2) -

(a) imgħax li jinqala’ fi Stat Kontraenti u li jitħallas lill-Gvern jew lill-

Bank ~entrali ta’ l-Istat Kontraenti l-ieħor għandu jkun eżenti mit-taxxa

fl-Istal l-ewwel imsemmi;

(b) imgħax li jinqala’ f’Malta u li jitħallas lill-Export Development

Corporation għandu jkun eżenti mit-taxxa ta’ Malta;

(`)

imgħax li jinqala’ fil-Kanada u li jitħallas lill-Korporazzjoni Maltija ta’

l-lżvilupp għandu jkun eżenti mit-taxxa tal-Kanada.

(4) Il-frażi "imgħax" kif użata f’dan l-Artikolu tfisser income minn drittijiet

għal dejn ta’ kull xorta, sew jekk ipotekati sew jekk le, u sew jekk jagħti l-jedd għal

sehem fil-profitti tad-debitur sew jekk le, u b’mod partikolari, income minn

assikurazzjonijiet tal-Gvern u income minn bonds jew debentures, inklużi premiums

u premjijiet annessi ma’ assikurazzjonijiet, bonds jew debentures bħal dawk, kif

ukoll income li huwa meqjus għall-fini tat-taxxa l-istess bħal income minn flus

mislufa skond il-liġijiet ta’ l-Istat li fih l-income jinqala’. Iżda, il-frażi "imgħax" ma

tinkludix income msemmi fl-Artikolu 10.

(5) Id-disposizzjonijiet tal-paragrafu (2) ma għandhomx japplikaw jekk is-sid

benefiċjarju ta’ l-imgħax, li jkun residenti ta’ Stat Kontraenti, ikun qed imexxi

negozju fl-Istat Kontraenti l-ieħor li fih jinqala’ l-imgħax permezz ta’ stabbiliment

permanenti sitwat hemmhekk, jew jagħmel servizzi personali indipendenti f’dak l-

Istat l-ieħor minn bażi stabbilit sitwat hemmhekk, u d-dritt għal dejn li dwaru

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

jitħallas l-imgħax ikollu effettivament x’jaqsam ma’ dak l-istabbiliment permanenti

jew bażi stabbilit. F’dak il-każ id-disposizzjonijiet ta’ l-Artikolu 7 jew ta’ l-Artikolu

14, skond il-każ, għandhom japplikaw.

(6) L-imgħax għandu jitqies li jinqala’ fi Stat Kontraenti meta min iħallas ikun

dak l-Istat innifsu, sottodiviżjoni politika, awtorità lokali jew residenti ta’ dak l-

Istat. Meta, iżda, il-persuna li tħallas l-imgħax, sew jekk tkun residenti ta’ Stat

Kontraenti sew jekk le, ikollha fi Stat Kontraenti stabbiliment permamenti jew bażi

stabbilit li miegħu jkollu x’jaqsam id-dejn li dwaru jkun tħallas l-imgħax, u dak l-

imgħax ikun piż ta’ dak l-istabbiliment permanenti jew bażi stabbilit, allura dak l-

imgħax għandu jitqies li nqala’ fl-Istat li fih ikun sitwat l-istabbiliment permanenti

jew il-bażi stabbilit.

(7) Meta, minħabba relazzjoni speċjali bejn min iħallas u s-sid benefiċjarju jew

bejniethom it-tnejn u xi persuna oħra, l-ammont ta’ l-imgħax, meta jitqies id-dritt

għal dejn li dwaru jkun tħallas, ikun iżjed mill-ammont li kien ikun miftiehem bejn

min iħallas u s-sid benefiċjarju fin-nuqqas ta’ dik ir-relazzjoni, id-disposizzjonijiet

ta’ dan l-Artikolu għandhom japplikaw biss għall-ammont l-aħħar imsemmi. F’każ

bħal dak, il-parti żejda tal-ħlasijiet tibqa’ taxxabbli skond il-liġijiet ta’ kull Stat

Kontraenti, meqjusa b’mod xieraq id-disposizzjonijiet l-oħra ta’ dan il-Ftehim.

ARTIKOLU 12

Royalties

(1) Royalties li jinqalgħu fi Stat Kontraenti u li jitħallsu lil residenti ta’ l-Istat

Kontraenti l-ieħor jistgħu jiġu ntaxxati f’dak l-Istat l-ieħor.

(2) Iżda, dawn ir-royalties jistgħu jiġu ntaxxati wkoll fl-Istat Kontraenti li fih

jinqalgħu, u skond il-liġijiet ta’ dak l-Istat, iżda jekk min jirċevihom ikun is-sid

benefiċjarju tar-royalties it-taxxa hekk imposta ma għandhiex tkun iżjed minn 10 fil-

mija ta’ l-ammont gross tar-royalties.

(3) Minkejja d-disposizzjonijiet tal-paragrafu 2, royalties għall-copyright u

ħlasijiet oħra bħal dawn dwar il-produzzjoni jew ir-riproduzzjoni ta’ kull xogħol

letterarju, edukattiv, drammatiku, mużikali jew artistiku (iżda li ma jinkludix

royalties dwar films ċinematografiċi u xogħlijiet fuq film jew videotape għall-użu

fuq it-television) li jinqalgħu fi Stat Kontraenti u li jitħallsu lil residenti ta’ l-Istat

Kontraenti l-ieħor li jkun suġġett għat-taxxa fuqhom għandhom ikunu taxxabbli biss

f’dak l-Istat l-ieħor.

(4) Il-frażi "royalties" kif użata f’dan l-Artikolu tfisser ħlasijiet ta’ kwalunkwe

xorta riċevuti bħala kumpens għall-użu ta’ jew għall-jedd ta’ l-użu ta’ kull copyright,

invenzjoni, trade mark, disinn jew mudell, pjan, formula jew proċess sigriet, jew

għall-użu ta’ jew għall-jedd ta’ l-użu ta’ tagħmir industrijali, kummerċjali jew

xentifiku, jew għall-informazzjoni dwar esperjenza industrijali, kummerċjali jew

xjentifika, u tinkludi ħlasijiet ta’ kull xorta dwar films ċinematografiċi u xogħlijiet

fuq film jew videotape għall-użu fuq it-television.

(5) Id-disposizzjonijiet tal-paragrafi (2) u (3) ma għandhomx japplikaw jekk is-

sid benefiċjarju tar-royalties, li jkun residenti ta’ Stat Kontraenti, ikun qed imexxi

negozju fl-Istat Kontraenti l-ieħor li fih ir-royalties jinqalgħu permezz ta’

stabbiliment permanenti sitwat hemmhekk, jew ikun qed jaqdi f’dak l-Istat l-ieħor

servizzi personali indipendenti minn bażi stabbilit sitwat hemmhekk, u d-dritt jew il-

proprjetà li dwarha jitħallsu r-royalties ikollu x’jaqsam effettivament ma’ dak l-

istabbiliment permanenti jew ma’ dak il-bażi stabbilit. F’dak il-każ id-

disposizzjonijiet ta’ l-Artikolu 7 jew ta’ l-Artikolu 14, skond il-każ, għandhom

japplikaw.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

(6) Royalties għandhom jitqiesu li jinqalgħu fi Stat Kontraenti meta min

iħallashom ikun dak l-Istat innifsu, sotto-diviżjoni politika, awtorità lokali jew

residenti ta’ dak l-Istat. Meta, iżda, il-persuna li tħallas ir-royalties, sew jekk tkun

residenti ta’ Stat Kontraenti sew jekk le, ikollha fi Stat Kontraenti stabbiliment

permanenti jew bażi stabbilit li dwaru jkun sar l-obbligu li jitħallsu r-royalties, u

dawk ir-royalties ikunu r-responsabbilità ta’ dak l-istabbiliment permanenti jew bażi

stabbilit, allura dawk ir-royalties għandhom jitqiesu li jinqalgħu fl-Istat li fih ikun

qiegħed l-istabbiliment permanenti jew il-bażi stabbilit.

(7) Meta, minħabba r-relazzjoni speċjali bejn min iħallas u s-sid benefiċjarju

jew bejniethom stess u xi persuna oħra, l-ammont tar-royalties, meta jitqies l-użu, id-

dritt jew l-informazzjoni li għalih ikunu mħallsa, ikun iżjed mill-ammont li kien ikun

miftiehem bejn min iħallas u s-sid benefiċjarju fin-nuqqas ta’ dik ir-relazzjoni, id-

disposizzjonijiet ta’ dan l-Artikolu għandhom japplikaw biss għall-ammont l-aħħar

imsemmi. F’dak il-każ, il-parti żejda tal-ħlasijiet għandha tibqa’ taxxabbli skond il-

liġijiet ta’ kull Stat Kontraenti, meta jitqiesu d-disposizzjonijiet l-oħra ta’ dan il-

Ftehim.

ARTIKOLU 13

Qligħ Kapitali

(1) Qligħ miksub minn residenti ta’ Stat Kontraenti mit-trasferiment ta’

proprjetà immobiljari sitwata fl-Istat Kontraenti l-ieħor jista’ jiġi ntaxxat f ’dak l-

Istat l-ieħor.

(2) Qligħ minn trasferiment ta’ proprjetà mobbli li tkun tifforma parti mill-

proprjetà tan-negozju ta’ stabbiliment permanenti li mpriża ta’ Stat Kontraenti

jkollha fl-Istat Kontraenti l-ieħor jew ta’ proprjetà mobbli li tkun tappartjeni lil bażi

stabbilit li jkun għad-disposizzjoni ta’ residenti ta’ Stat Kontraenti fl-Istat

Kontraenti l-ieħor għall-fini ta’ qadi ta’ servizzi personali indipendenti inkluż dak il-

qligħ mit-tneħħija ta’ dak l-istabbiliment permanenti (waħdu jew ma’ l-impriża

sħiħa) jew ta’ dak il-bażi stabbilit, jista’ jiġi ntaxxat f’dak l-Istat l-ieħor.

(3) Qligħ minn trasferiment ta’ bastimenti jew inġenji ta’ l-ajru fi traffiku

internazzjonali jew minn proprjetà mobbli li tkun tappartjeni lill-operazzjoni ta’

dawk il-bastimenti jew inġenji ta’ l-ajru, għandu jkun taxxabbli biss fl-Istat

Kontraenti li fih dik il-proprjetà tkun taxxabbli skond il-paragrafu (3) ta’ l-Artikolu

22. (4)

Qligħ minn trasferiment ta’ -

(a) ishma tal-capital stock ta’ kumpannija li l-proprjetà tagħha tikkonsisti

prinċipalment fi proprjetà immobiljari sitwata fl-Istat Kontraenti l-

ieħor, u

(b) sehem f’soċjetà, trust jew estate, li l-proprjetà tagħhom tikkonsisti

prinċipalment fi proprjetà immobiljari sitwata fi Stat Kontraenti,

jista’ jiġi ntaxxat f’dak l-Istat. Għall-finijiet ta’ dan il-paragrafu, il-frażi "proprjetà

immobiljari" tinkIudi l-ishma ta’ kumpannija msemmija fis-subparagrafu (a) jew

sehem f’soċjetà, trust jew estate imsemmija fis-subparagrafu (b) iżda ma għandhiex

tinkludi proprjetà, barra minn proprjetà mikrija, li fih in-negozju tal-kumpannija,

soċjetà, trust jew estate ikun immexxi.

(5) Qligħ minn trasferiment ta’ kull proprjetà, barra minn dik imsemmija fil-

paragrafi (1), (2), (3) u (4) ikun taxxabbli biss fl-Istat Kontraenti li tiegħu min ibiegħ

ikun residenti.

(6)

Id-disposizzjonijiet tal-paragrafu (5) ma għandhomx jaffettwaw id-dritt ta’

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

xi wieħed mill-Istati Kontraenti li jagħmel, skond il-liġi tiegħu, taxxa fuq qligħ minn

trasferiment ta’ kull proprjetà miksuba minn individwu li jkun residenti ta’ l-Istat

Kontraenti l-ieħor u li kien residenti ta’ l-Istat l-ewwel imsemmi f’xi żmien matul is-

sitt snin li jiġu immedjatament qabel it-trasferiment tal-proprjetà.

ARTIKOLU 14

Servizzi Personali Indipendenti

(1) Qligħ miksub minn individwu li jkun residenti ta’ Stat Kontraenti mill-qadi

ta’ servizzi professjonali jew attivitajiet oħra ta’ karattru indipendenti jkun taxxabbli

biss f’dak l-Istat kemm-il darba dawk is-servizzi ma jsirux fl-Istat Kontraenti l-ieħor

u -

(a) l-individwu jkun preżenti f’dak l-Istat l-ieħor għall-perijodu jew

perijodi li jammontaw għal aktar minn 90 ġurnata fis-sena taxxabbli

konċernata, jew

(b) l-individwu għandu jew kellu bażi fiss regolari għad-disposizzjoni

tiegħu f’dak l-Istat l-ieħor għall-qadi ta’ l-attivitajiet tiegħu, imma dik

il-parti biss mill-income tiegħu li hu attribwibbli għal dak il-bażi fiss

tista’ tiġi ntaxxata f’dak l-Istat l-ieħor, jew

(`)

ir-rimunerazzjoni għas-servizzi tiegħu fl-Istat Kontraenti l-ieħor tkun

miksuba minn residenti ta’ dak l-Istat u tkun aktar minn għaxart elef

dollaru Kanadiż jew l-ekwivalenti fi flus Maltin matul is-sena taxxabbli.

(2) II-frażi "servizzi professjonali" tinkludi speċjalment attivitajiet indipendenti

xjentifiċi, letterarji, artistiċi, edukattivi jew ta’ tagħlim kif ukoll attivitajiet

indipendenti ta’ tobba, avukati, inġiniera, periti, dentisti u accountants.

ARTIKOLU 15

Servizzi Personali Dipendenti

(1) Bla ħsara għad-disposizzjonijiet ta’ l-Artikoli 16, 18 u 19, salarji, pagi u

kumpens ieħor bħal dan li jinkiseb minn residenti ta’ Stat Kontraenti dwar impieg

għandhom ikunu taxxabbli biss f ’dak l-Istat kemm-il darba l-impieg ma jiġix

eżerċitat fl-Istat Kontraenti l-ieħor. Jekk l-impieg jiġi hekk eżerċitat, dak il-kumpens

li jinkiseb minnu jista’ jiġi ntaxxat f’dak l-Istat l-ieħor.

(2) Minkejja d-disposizzjonijiet tal-paragrafu (1), kumpens li jinkiseb minn

residenti ta’ Stat Kontraenti dwar impieg eżerċitat fl-Istat Kontraenti l-ieħor ikun

taxxabbli biss fl-Istat l-ewwel imsemmi jekk min jirċevih ikun qiegħed fl-Istat l-

ieħor għal żmien jew żminijiet li fit-total ma jkunux aktar minn 183 ġurnata fis-sena

kalendarja li tkun, u jew -

(a) il-kumpens li jinqala’ fl-Istat Kontraenti l-ieħor fis-sena kalendarja li

tkun ma jkunx aktar minn ħamest elef dollaru Kanadiż ($5000) jew l-

ekwivalenti tiegħu fi flus Maltin; jew

(b) il-kumpens ikun imħallas minn, jew f’isem, prinċipal li ma jkunx

residenti ta’ l-Istat l-ieħor, u dak il-kumpens ma jkunx piż fuq l-

istabbiliment permanenti jew bażi stabbilit li l-prinċipal ikollu fl-Istat l-

ieħor.

(3) Minkejja d-disposizzjonijiet ta’ qabel ta’ dan l-Artikolu, kumpens dwar

impieg eżerċitat abbord bastiment jew inġenji ta’ l-ajru mħaddma fi traffiku

internazzjonali minn impriża ta’ Stat Kontraenti, ikun taxxabbli biss f’dak l-Istat.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

ARTIKOLU 16

Drittijiet tad-Diretturi

Id-drittijiet u ħlasijiet simili tad-diretturi li jinkisbu minn residenti ta’ Stat

Kontraenti fil-kariga tiegħu bħala membru tal-bord tad-diretturi jew korp bħal dan

ta’ kumpannija li tkun residenti ta’ l-Istat Kontraenti l-ieħor, jistgħu jiġu ntaxxati

f’dak l-Istat l-ieħor.

ARTIKOLU 17

Artisti u Atleti

(1) B’dak kollu li jinsab fid-disposizzjonijiet ta’ l-Artikoli 7, 14 u 15, income

miksub minn residenti ta’ Stat Kontraenti minn uħud li jagħtu spettaklu, bħal artisti

tat-teatru, tal-films ċinematografiċi, tar-radju jew tat-televiżjoni, jew mużiċista, jew

bħala atleta, mill-attivitajiet personali tiegħu eżerċitati fl-Istat Kontraenti l-ieħor,

jistgħu jiġu ntaxxati f’dak l-Istat l-ieħor.

(2) Meta income dwar l-attivitajiet personali eżerċitati minn wieħed li jagħti

spettaklu jew atleta bħala hekk jinqala’ mhux minn dak li jagħti spettaklu jew atleta

nnifsu imma minn persuna oħra, dak l-income jista’, minkejja d-disposizzjonijiet ta’

l-Artikoli 7, 14 u 15, jiġi ntaxxat fl-Istat Kontraenti fejn l-attivitajiet ta’ dak li jagħti

spettaklu jew l-atleta jiġu eżerċitati.

(3) Id-disposizzjonijiet tal-paragrafu (2) ma għandhomx japplikaw jekk jiġi

stabbilit li la dak li jagħti spettaklu jew l-atleta u anqas xi persuni li għandhom

x’jaqsmu magħhom, jaqsmu direttament jew indirettament fil-profitti tal-persuna

msemmija f’dak il-paragrafu.

ARTIKOLU 18

Pensjonijiet u Ħlasijiet fis-Sena

(1) Pensjonijiet u ħlasijiet fis-sena li jinqalgħu fi Stat Kontraenti u li jitħallsu lil

residenti ta’ l-Istat Kontraenti l-ieħor jistgħu jiġu ntaxxati f’dak l-Istat l-ieħor.

(2) Pensjonijiet li jinqalgħu fi Stat Kontraenti u li jitħallsu lil residenti ta’ l-Istat

Kontraenti l-ieħor jistgħu jiġu ntaxxati wkoll fl-Istat fejn jinqalgħu, u skond il-liġi

ta’ dak l-Istat. Iżda, fil-każ ta’ pagamenti ta’ pensjonijiet perjodiċi, it-taxxa hekk

imposta ma għandhiex tkun iżjed mill-inqas minn -

(a) 15 fil-mija ta’ l-ammont gross tal-pagament, u

(b) ir-rata stabbilita b’referenza għall-ammont ta’ taxxa li dak li jirċievi l-

pagament kien ikollu jħallas għas-sena fuq l-ammont totali tal-

pagamenti tal-pensjonijiet perjodiċi li jkun irċieva f’dik is-sena, li kieku

kien residenti fl-Istat Kontraenti fejn jinqala’ l-pagament u li kieku dak

l-ammont totali kien l-uniku income tiegħu f’dik is-sena.

(3) Ħlasijiet fis-sena li jinqalgħu fi Stat Kontraenti u li jitħallsu lil residenti ta’

l-Istat Kontraenti l-ieħor jistgħu jiġu ntaxxati wkoll fl-Istat fejn jinqalgħu, u skond

il-liġi ta’ dak l-Istat; iżda t-taxxa hekk imposta ma għandhiex tkun iżjed minn 15 fil-

mija ta’ dik il-parti minnha li tkun suġġetta għat-taxxa f ’dak l-Istat. Iżda, din il-

limitazzjoni ma għandhiex tapplika għal ħlasijiet f’somma waħda li jinqalgħu meta

tiġi ċeduta, mħassra, mifdija, mibjugħa jew b’mod ieħor trasferita xi annuity, jew

għal ħlasijiet ta’ kull xorta magħmula taħt kuntratt ta’ income-averaging annuity.

(4)

Minkejja kull ħaġa f’dan il-Ftehim

(a) pensjonijiet u allowances tal-veterani tal-gwerra jew benefiċċji ta’

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

diżabilità minħabba l-gwerra li wieħed jirċievi minn Stat Kontraenti ma

għandhomx ikunu taxxabbli fl-Istat Kontraenti l-ieħor kemm-il darba

ma jkunux suġġetti għat-taxxa fl-Istat l-ewwel imsemmi;

(b) alimony u ħlasijiet oħra bħal dan li jinkisbu fi Stat Kontraenti u li

jitħallsu lil residenti ta’ l-Istat Kontraenti l-ieħor li jkun taxxabbli

hemmhekk dwarhom, għandu jkun taxxabbli biss f’dak l-Istat l-ieħor.

ARTIKOLU 19

Servizz tal-Gvern

(1) (a) Rimunerazzjoni, barra minn pensjoni, imħallsa minn Stat Kontraenti jew

minn sotto-diviżjoni politika jew awtorità lokali tiegħu lil xi individwu dwar servizzi

mogħtija lil dak l-Istat jew sotto-diviżjoni jew awtorità tiegħu tista’ tiġi ntaxxata

biss f’dak l-Istat.

(b) Iżda, dik ir-rimunerazzjoni tkun tista’ tiġi ntaxxata biss fl-Istat Kontraenti l-

ieħor jekk is-servizzi jingħataw f ’dak l-Istat u l-individwu jkun residenti f ’dak l-

Istat li -

(i)

ikun nazzjonali ta’ dak l-Istat; jew

(ii) ma jkunx sar residenti ta’ dak l-Istat sabiex biss jaqdi dawk is-servizzi.

(2) Id-disposizzjonijiet ta’ l-Artikoli 15, 16 u 17 għandhom japplikaw għal

rimunerazzjoni dwar servizzi mogħtija dwar negozju mmexxi minn Stat Kontraenti

jew minn sotto-diviżjoni politika jew minn awtorità lokali tiegħu.

(3) Meta rimunerazzjoni tkun imħallsa taħt programm ta’ assistenza għall-

iżvilupp ta’ Stat Kontraenti, minn fondi maħruġa għal kollox minn dak l-Istat lil

speċjalista jew voluntier sekondat lill-Istat Kontraenti l-ieħor bil-kunsens ta’ dak l-

Istat l-ieħor, rimunerazzjoni bħal din għandha titqies li ġiet imħallsa mill-Istat l-

ewwel imsemmi u għandha tkun taxxabbli biss f’dak l-Istat.

ARTIKOLU 20

Studenti

Ħlasijiet li student, apprendist jew trainee fin-negozju li jkun, jew li minnufih

qabel iżur Stat Kontraenti kien, residenti ta’ l-Istat Kontraenti l-ieħor u li jkun

qiegħed fl-Istat imsemmi l-ewwel għall-fini ta’ l-edukazzjoni jew taħriġ tiegħu biss

jirċievi għall-għan tal-manteniment, edukazzjoni jew taħriġ tiegħu ma għandhomx

jiġu ntaxxati f ’dak l-Istat, sakemm dawk il-ħlasijiet jinqalgħu minn għejjun barra

dak l-Istat.

ARTIKOLU 21

Income Ieħor

(1) Bla ħsara għad-disposizzjonijiet tal-paragrafu (2), oġġetti ta’ income ta’

residenti ta’ Stat Kontraenti, jinqalgħu minn fejn jinqalgħu, li ma humiex trattati fl-

Artikoli ta’ qabel ta’ dan il-Ftehim għandhom ikunu taxxabbli biss f’dak l-Istat.

(2) Iżda, jekk income bħal dan jinkiseb minn residenti ta’ Stat Kontraenti minn

għejjun fl-Istat Kontraenti l-ieħor, dak l-income jista’ jiġi ntaxxat ukoll fl-Istat fejn

jinqala’ u skond il-liġi ta’ dak l-Istat. Iżda, fil-każ ta’ income minn estate jew trust,

it-taxxa hekk imposta ma għandhiex, sakemm l-income ikun taxxabbli fl-Istat

Kontraenti fejn min jirċevih joqgħod, tkun iżjed minn 15 fil-mija ta’ l-ammont gross

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

ta’ l-income.

IV. Tassazzjoni ta’ Kapital

ARTIKOLU 22

Kapital

(1) Kapital rappreżentat bi proprjetà immobbli li s-sid tagħha jkun residenti ta’

Stat Kontraenti u li tkun sitwata fl-Istat Kontraenti l-ieħor, tista’ tiġi ntaxxata f’dak

l-Istat l-ieħor.

(2) Kapital rappreżentat minn proprjetà mobbli li tkun tifforma parti mill-

proprjetà tan-negozju ta’ stabbiliment permanenti li mpriża ta’ Stat Kontraenti

jkollha fl-Istat Kontraenti l-ieħor jew minn proprjetà mobbli li tappartjeni lil bażi

stabbilit li jkun għad-disposizzjoni ta’ residenti ta’ Stat Kontraenti fl-Istat

Kontraenti l-ieħor għall-iskop li jagħmel servizzi personali indipendenti, jista’ jiġi

ntaxxat f’dak l-Istat l-ieħor.

(3) Kapital rappreżentat minn bastimenti u inġenji ta’ l-ajru mħaddma minn

impriża ta’ Stat Kontraenti fi traffiku internazzjonali u minn proprjetà mobbli li

tappartjeni lit-tħaddim ta’ bastimenti u inġenji ta’ l-ajru bħal dawn, għandu jkun

taxxabbli biss f’dak l-Istat.

(4) L-elementi l-oħra kollha tal-kapital ta’ residenti ta’ Stat Kontraenti

għandhom jiġu ntaxxati biss f’dak l-Istat.

V. Metodi Biex Tiġi Evitata Taxxa Doppja

ARTIKOLU 23

Tneħħija ta’ Taxxa Doppja

(1)

Fil-każ tal-Kanada, it-taxxa doppja għandha tiġi evitata kif jidher hawn taħt

(a) Bla ħsara għad-disposizzjonijiet eżistenti tal-liġi tal-Kanada dwar it-

tnaqqis mit-taxxa mħallsa fil-Kanada ta’ taxxa mħallsa f’territorju barra

l-Kanada u ta’ kull tibdil ta’ dawk id-disposizzjonijiet li jsir

sussegwentement - li ma għandux jaffettwa dan il-prinċipju ġenerali - u

kemm-il darba xi tnaqqis jew ħelsien akbar ma jkunx provdut taħt il-

liġijiet tal-Kanada, it-taxxa mħallsa f’Malta fuq il-profitti, l-income u l-

qligħ li jinqala’ f’Malta għandu jitnaqqas minn kull taxxa tal-Kanada

mħallsa dwar profitti, income jew qligħ bħal dan.

(b) Bla ħsara għad-disposizzjonijiet tal-liġi tal-Kanada dwar kif għandu jiġi

determinat is-surplus eżenti ta’ filjali barranija u ta’ kull tibdil ta’ dawk

id-disposizzjonijiet li jsir sussegwentement - li ma għandux jaffettwa

dan il-prinċipju ġenerali - għall-għan li tinħadem it-taxxa tal-Kanada,

kumpannija residenti ġewwa l-Kanada għandha tingħata tnaqqis meta

taħdem l-income taxxabbli tagħha ta’ kull dividend li hi tirċievi mis-

surplus eżenti ta’ filjali barranija residenti f’Malta.

(2) Għall-finijiet tal-paragrafu (1)(a), it-taxxa mħallsa f’Malta minn residenti

fil-Kanada dwar dividendi, mgħax jew royalties li tkun irċeviet minn kumpannija li

tkun residenti f’Malta, għandha titqies li tinkludi kull ammont li kien ikun imħallas

bħala taxxa ta’ Malta għal kull sena li ma kienx għall-eżenzjoni minn, jew tnaqqis

ta’, taxxa li ġiet mogħtija għal dik is-sena jew parti minnha taħt -

(a) id-disposizzjonijiet ta’ l-artikolu 5 ta’ l-Ordinanza dwar l-Għajnuna

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

għall-Industriji, sakemm kienu fis-seħħ, u ma ġewx mibdula, mid-data

ta’ l-iffirmar ta’ dan il-Ftehim, jew ġew mibdula biss f’affarijiet żgħar li

ma jaffettwawx il-karattru ġenerali tagħhom;

(b) xi disposizzjonijiet oħra speċjali tal-liġi ta’ Malta li huma maħsuba li

jħajjru l-investimenti neċessarji għall-iżvilupp ekonomiku ta’ Malta li

jistgħu jsiru ’l quddiem u li jagħtu eżenzjoni jew tnaqqis fit-taxxa li l-

awtoritajiet kompetenti ta’ l-Istati Kontraenti jaqblu li hija ta’ natura li

sostanzjalment tixbaħħom, jekk ma ġietx mibdula wara jew ġiet

mibdula biss f’affarijiet żgħar li ma jaffettwawx il-karattru ġenerali

tagħha;

iżda kull tnaqqis mit-taxxa tal-Kanada li jingħata skond id-disposizzjonijiet ta’ dan

il-paragrafu ma għandux ikun aktar minn 15 fil-mija ta’ l-ammont gross tad-

dividendi, ta’ l-imgħax jew tar-royalties.

(3)

Fil-każ ta’ Malta, it-taxxa doppja għandha tiġi meħlusa kif ġej

Bla ħsara għad-disposizzjonijiet tal-liġi ta’ Malta dwar l-għoti ta’ kreditu kontra t-

taxxa ta’ Malta dwar taxxa ta’ barra minn Malta, meta, skond id-disposizzjonijiet ta’

dan il-Ftehim, ikun hemm magħdud fi stima ta’ Malta income minn għejjun li jkunu

fil-Kanada, jew elementi ta’ kapital li jkunu sitwati fil-Kanada, it-taxxa Kanadiża

fuq income jew elementi ta’ kapital bħal dan, skond il-każ kif ikun, għandha tingħata

bħala kreditu kontra t-taxxa ta’ Malta li titħallas fuqu.

(4) Għall-finijiet ta’ dan l-Artikolu, profitti, income jew qligħ ta’ residenti ta’

Stat Kontraenti li jiġu ntaxxati fl-Istat Kontraenti l-ieħor skond dan il-Ftehim

għandhom jitqiesu li nqalgħu minn għejjun f’dak l-Istat l-ieħor.

VI. Disposizzjonijiet Spe`jali

ARTIKOLU 24

Ebda Diskriminazzjoni

(1) Nazzjonali ta’ Stat Kontraenti ma għandhomx jiġu suġġetti fl-Istat

Kontraenti l-ieħor għal xi tassazzjoni jew xi ħtieġa li għandha x’taqsam magħha, li

ma tkunx jew li tkun ta’ piż aktar mit-tassazzjoni u ħtiġiet li għandhom x’jaqsmu

magħha li għalihom nazzjonali ta’ dak l-Istat l-ieħor fl-istess ċirkostanzi huma jew

jistgħu jkunu suġġetti.

(2) It-tassazzjoni fuq stabbiliment permanenti li mpriża ta’ Stat Kontraenti

jkollha fl-Istat Kontraenti l-ieħor ma għandhiex tinġabar f’dak l-Istat l-ieħor b’mod

inqas favorevoli mit-tassazzjoni miġbura fuq impriżi f’dak l-Istat l-ieħor li jmexxu l-

istess attivitajiet.

(3) Xejn li hemm f’dan l-Artikolu ma għandu jitqies li jorbot Stat Kontraenti li

jagħti lil residenti ta’ l-Istat Kontraenti l-ieħor xi tnaqqis personali, ħelsien jew

tnaqqis għall-finijiet ta’ taxxa minħabba l-istatus ċivili jew ir-responsabbiltajiet tal-

familja li huwa jagħti lir-residenti tiegħu stess.

(4) Impriżi ta’ Stat Kontraenti, li l-kapital tagħhom ikun proprjetà ta’ jew

ikkontrollat minn, għal kollox jew f’parti, direttament jew indirettament, residenti

wieħed jew aktar ta’ l-Istat Kontraenti l-ieħor, ma jkunux suġġetti fl-Istat l-ewwel

imsemmi għal xi tassazzjoni jew xi ħtiġiet li għandhom x’jaqsmu magħha li tkun ta’

piż ieħor jew ta’ aktar piż mit-tassazzjoni u ħtiġiet li għandhom x’jaqsmu magħha li

għalihom impriżi oħra bħalhom ta’ l-Istat l-ewwel imsemmi, li l-kapital tagħhom

ikun proprjetà ta’ jew ikkontrollat minn, għal kollox jew f ’parti, direttament jew

indirettament, residenti wieħed jew aktar ta’ tielet Stat, huma jew jistgħu jkunu

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

suġġetti.

(5) F’dan l-Artikolu, il-frażi "tassazzjoni" tfisser taxxi li għalihom jgħodd dan

il-Ftehim.

ARTIKOLU 25

Pro`edura għal Ftehim Re`iproku

(1) Meta persuna jidhrilha li l-azzjonijiet ta’ l-awtorità kompetenti ta’ wieħed

mill-Istati Kontraenti jew tat-tnejn iwasslu jew jistgħu jwasslu li tiġi ntaxxata mhux

skond id-disposizzjonijiet ta’ dan il-Ftehim, hija tista’, minkejja r-rimedji provduti

bil-liġi domestika ta’ dawk l-Istati, tindirizza lill-awtorità kompetenti ta’ l-Istat

Kontraenti li tiegħu hija residenti applikazzjoni bil-miktub li fiha tgħid ir-raġunijiet

għala qed titlob ir-reviżjoni ta’ kif tiġi ntaxxata. Sabiex tiġi aċċettata, applikazzjoni

bħal din għandha ssir fi żmien sentejn mill-ewwel notifika ta’ l-azzjoni li tagħti lok

għal tassazzjoni li ma tkunx skond il-Ftehim.

(2) L-awtorità kompetenti msemmija fil-paragrafu (1) għandha tara, jekk

jidhrilha li l-oġġezzjoni hija ġustifikata u jekk hi nnifisha ma tkunx tista’ tasal għal

soluzzjoni tajba, li tiddeċiedi l-każ bi ftehim reċiproku ma’ l-awtorità kompetenti ta’

l-Istat Kontraenti l-ieħor, bil-għan li tiġi evitata tassazzjoni li ma tkunx skond dan il-

Ftehim.

(3) Stat Kontraenti ma għandux, wara l-egħluq tal-limiti ta’ żmien provduti fil-

liġijiet nazzjonali tiegħu u, f ’kull każ, wara ħames snin mit-tmiem tal-perijodu

taxxabbli li fih inqala’ l-income konċernat, iżid il-bażi ta’ taxxa ta’ residenti ta’

wieħed mill-Istati Kontraenti billi jinkludi fih oġġetti ta’ income li jkunu ġew

intaxxati wkoll fl-Istat Kontraenti l-ieħor. Dan il-paragrafu ma għandux japplika fil-

każ ta’ frodi, nuqqas bir-rieda jew negliġenza.

(4) L-awtoritajiet kompetenti ta’ l-Istati Kontraenti għandhom jaraw li jirrisolvu

bi ftehim reċiproku xi diffikultajiet jew dubbji li jinqalgħu dwar l-interpretazzjoni

jew l-applikazzjoni tal-Ftehim. L-awtoritajiet kompetenti ta’ l-Istati Kontraenti

jistgħu jikkonsultaw ma’ xulxin biex jaraw li jiftehmu partikolarment

(a) li l-profitti jiġu attribwiti l-istess għal residenti ta’ Stat Kontraenti u l-

istabbiliment permanenti tiegħu sitwat fl-Istat Kontraenti l-ieħor;

(b) li ssir l-istess allokazzjoni ta’ income bejn residenti ta’ Stat Kontraenti u

xi persuna assoċjata kif provdut fl-Artikolu 9.

(5) L-awtoritajiet kompetenti ta’ l-Istati Kontraenti jistgħu jikkonsultaw ma’

xulxin għat-tneħħija ta’ taxxa doppja f’każijiet li mhux provdut għalihom fil-Ftehim.

Huma jistgħu wkoll jikkomunikaw direttament ma’ xulxin bil-għan li jiġi applikat il-

Ftehim.

ARTIKOLU 26

Tibdil ta’ Informazzjoni

(1) L-awtoritajiet kompetenti ta’ l-Istati Kontraenti għandhom jibdlu dik l-

informazzjoni li tkun meħtieġa sabiex jitwettqu d-disposizzjonijiet ta’ dan il-Ftehim

jew tal-liġijiet domestiċi ta’ l-Istati Kontraenti dwar taxxi milquta bil-Ftehim safejn

it-tassazzjoni ma tmurx kontra l-Ftehim. Kull informazzjoni li tasal għand Stat

Kontraenti għandha titqies sigrieta bl-istess mod bħal informazzjoni miksuba taħt il-

liġijiet domestiċi ta’ dak l-Istat u għandha titgħarraf biss lil persuni jew awtoritajiet

(magħduda qrati u korpi amministrattivi) imdaħħla fl-istima jew ġbir ta’, l-infurzar

dwar, jew il-qtugħ ta’ appelli dwar, it-taxxi milquta bil-Ftehim. Dawn il-persuni jew

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

awtoritajiet għandhom jużaw l-informazzjoni għal dawk l-għanijiet biss.

(2) F’ebda każ ma għandhom id-disposizzjonijiet tal-paragrafu (1) jitqiesu li

jimponu fuq Stat Kontraenti l-obbligu -

(a) li jieħu miżuri amministrattivi li ma jaqblux mal-liġijiet jew l-użanza

amministrattiva ta’ dak l-Istat Kontraenti jew ta’ l-ieħor;

(b) li jagħti informazzjoni li ma tkunx tista’ tinkiseb taħt il-liġijiet jew fil-

kors normali ta’ l-użanza amministrattiva ta’ dak l-Istat Kontraenti jew

ta’ l-ieħor;

(`)

li jagħti informazzjoni li tikxef xi sigriet tal-kummerċ, tan-negozju,

industrijali, kummerċjali jew professjonali jew proċess tal-kummerċ,

jew li jagħti informazzjoni li l-kxif tagħha jkun kontra l-ordni pubbliku

(ordre public).

ARTIKOLU 27

Aġenti Diplomati`i u Uffi`jali Konsulari

(1) Ebda ħaġa f’dan il-Ftehim ma għandha tolqot il-privileġġi fiskali ta’ aġenti

diplomatiċi jew ta’ uffiċjali konsulari taħt ir-regoli ġenerali tad-dritt internazzjonali

jew taħt id-disposizzjonijiet ta’ ftehim speċjali.

(2) Minkejja l-Artikolu 4, individwu li jkun membru ta’ missjoni diplomatika,

konsulari jew permanenti ta’ Stat Kontraenti li tkun sitwata fl-Istat Kontraenti l-

ieħor jew fi Stat ieħor jitqies għall-finijiet tal-Ftehim li jkun residenti ta’ l-Istat li

qed jibgħatu jekk ikollu fl-Istat li qed jibgħatu l-istess obbligazzjonijiet dwar taxxa

fuq l-income totali tiegħu li għandhom ir-residenti ta’ dak l-Istat li qed jibgħatu.

(3) Il-Ftehim ma għandux japplika għal organizzazzjonijiet internazzjonali, għal

korpijiet jew uffiċjali tagħhom u għal persuni li jkunu membri ta’ missjoni

diplomatika, konsulari jew permanenti tat-tielet Stat, li jkunu preżenti fi Stat

Kontraenti u li ma jkollhomx l-obbligu fl-ebda Stat Kontraenti għall-istess

obbligazzjonijiet dwar taxxa fuq l-income totali tagħhom bħal ma għandhom ir-

residenti ta’ hemmhekk.

ARTIKOLU 28

Disposizzjonijiet Imħallta

(1) Id-disposizzjonijiet ta’ dan il-Ftehim ma għandhomx jitqiesu li jnaqqsu b’xi

mod xi esklużjoni, eżenzjoni, tnaqqis, kreditu, jew għotja oħra li l-liġijiet ta’ Stat

Kontraenti jipprovdu issa jew ’il quddiem biex tiġi maħduma t-taxxa mposta minn

dak l-Istat.

(2)

Ebda ħaġa f’dan il-Ftehim ma għandha titqies li ma tħallix lil -

(a) Kanada milli timponi taxxa fuq ammonti inklużi fl-income ta’ residenti

tal-Kanada skond l-artikolu 91 ta’ l-Income Tax Act tal-Kanada;

(b) Malta milli tapplika d-disposizzjonijiet ta’ l-artikolu 12(2) ta’ l-Att

dwar it-Taxxa fuq l-Income.

(3) Meta l-Ftehim jipprovdi li l-income li jinqala’ fi Stat Kontraenti għandu jkun

ħieles mit-taxxa f’dak l-Istat, sew f’kollox sew f’parti, u, taħt il-liġi li tkun isseħħ fl-

Istat Kontraenti l-ieħor, dak l-income ikun suġġett għat-taxxa b’riferenza għall-

ammont tiegħu li jintbagħat lil jew li jiġi riċevut f ’dak l-Istat l-ieħor u mhux

b’riferenza għall-ammont kollu tiegħu, allura l-ħelsien li għandu jingħata fl-ewwel

Stat imsemmi jkun japplika biss għal dak l-income li jintbagħat lil jew li jiġi riċevut

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

fl-Istat l-ieħor.

(4) Dan il-Ftehim ma għandux japplika għal xi kumpannija, trust jew soċjetà li

tkun residenti ta’ Stat Kontraenti u li s-sid benefiċjarju jew min jikkontrollha

direttament jew indirettament tkun persuna waħda jew aktar minn waħda li ma tkunx

residenti ta’ dak l-Istat, jekk l-ammont tat-taxxa mposta fuq l-income jew il-kapital

tal-kumpannija, trust jew partnership minn dak l-Istat tkun sostanzjalment anqas

mill-ammont li kellu jkun impost minn dak l-Istat jekk l-ishma kollha ta’ l-istock

kapitali tal-kumpannija jew l-interessi kollha fit-trust jew fis-soċjetà, skond il-każ

kif ikun, kellu jkun is-sid benefiċjarju tagħhom residenti wieħed jew aktar minn

wieħed ta’ dak l-Istat.

VII. Disposizzjonijiet Finali

ARTIKOLU 29

Bidu fis-Seħħ

(1) Dan il-Ftehim għandu jiġi ratifikat u d-dokumenti ta’ ratifika għandhom jiġu

mibdula fil-Belt Valletta, Malta.

(2) Il-Ftehim għandu jibda jseħħ 30 ġurnata wara l-bdil tad-dokumenti ta’

ratifika u d-disposizzjonijiet tiegħu għandhom ikollhom effett

(a) fil-Kanada

(i)

dwar taxxa miżmuma minn ras il-għajn fuq ammonti mħallsa jew

kreditati lil persuni mhux residenti fl-ewwel jew wara l-ewwel ta’

Jannar tas-sena kalendarja li fiha jsir it-tibdil tad-dokumenti ta’

ratifika; u

(ii) dwar taxxa tal-Kanada oħra għal snin ta’ taxxa li jibdew fl-ewwel

jew wara l-ewwel ta’ Jannar tas-sena kalendarja li fiha jsir il-bdil

tad-dokument ta’ ratifika;

(b) f’Malta, dwar taxxi miġbura għal xi sena ta’ stima li tibda fl-ewwel ta’

Jannar tas-sena kalendarja li tiġi immedjatament wara s-sena li fiha jsir

il-bdil tad-dokumenti ta’ ratifika.

ARTIKOLU 30

Terminazzjoni

Dan il-Ftehim għandu jibqa’ jseħħ għal żmien mhux stabbilit iżda kull wieħed

mill-Istati Kontraenti jista’, fit-tletin jew qabel it-tletin ta’ Ġunju ta’ xi sena

kalendarja wara s-sena li fiha jsir it-tibdil tad-dokumenti ta’ ratifika, jagħti lill-Istat

Kontraenti l-ieħor avviż ta’ terminazzjoni bil-miktub permezz ta’ mezzi diplomatiċi;

f’dak il-każ, il-Ftehim ma għandux jibqa’ fis-seħħ -

(a) fil-Kanada

(i)

dwar taxxa miżmuma minn ras il-għajn fuq ammonti mħallsa jew

kreditati lil persuni mhux residenti fl-ewwel jew wara l-ewwel ta’

Jannar tas-sena kalendarja li tiġi immedjatament wara dik li fiha

jingħata l-avviż; u

(ii) dwar taxxa tal-Kanada oħra għal snin ta’ taxxa li jibdew fl-ewwel

jew wara l-ewwel ta’ Jannar tas-sena kalendarja li tiġi

immedjatament wara dik li fiha jingħata l-avviż;

(b) f’Malta, dwar taxxi miġbura għas-sena ta’ stima li tibda fl-ewwel ta’

Jannar tat-tieni sena li tiġi wara dik li fiha jingħata l-avviż.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAL-KANADA

B’XIEHDA TA’ DAN l-hawn taħt iffirmati, awtorizzati kif imiss, iffirmaw dan il-

Ftehim.

MAGĦMUL in duplikat fil-Belt Valletta, illum 25 ta’ Lulju, 1986, fl-ilsien Ingliż

u Franċiż, iż-żewġ testi huma t-tnejn awtentiċi.

Robert J. Stivala

Claude T. Charland

GĦALL-GVERN TAR-REPUBBLIKA

GĦALL-GVERN TAL-KANADA

TA’ MALTA