DOUBLE TAXATION RELIEF ON SHIPS AND AIRCRAFT WITH THE SWISS FEDERATION ORDER

DOUBLE TAXATION RELIEF ON SHIPS AND AIRCRAFT

WITH THE SWISS FEDERATION

SUBSIDIARY LEGISLATION 123.18

DOUBLE TAXATION RELIEF ON SHIPS AND

AIRCRAFT WITH THE SWISS FEDERATION

ORDER

30th March, 1987

LEGAL NOTICE 31 of 1988.

The title of this Order is Double Taxation Relief on Ships

and Aircraft with the Swiss Federation Order.

AGREEMENT BETWEEN

THE SWISS FEDERAL COUNCIL

AND

THE GOVERNMENT OF THE REPUBLIC OF MALTA

1. Profits derived by an enterprise of a Contracting State from the operation of

ships or aircraft in international traffic shall be exempt from any tax on income or on

profits in the other Contracting State. This exemption shall also apply to profits from

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

2. Capital of an enterprise of a Contracting State represented by ships and

aircraft and by movable property pertaining to the operation of such ships and

aircraft in international traffic shall be exempt from any tax on capital in the other

Contracting State.

It is hereby declared that -

(a) the Schedule to this Order has been agreed and made

with the Swiss Federal Council with a view to

affording relief from double taxation in relation to the

taxation of shipping and aviation companies in Malta

and in Switzerland, hereinafter referred to as "a

Contracting State" and "the other Contracting State" as

the context requires; and

(b) reference to the tax levied in Switzerland includes

federal, cantonal and communal tax.

DOUBLE TAXATION RELIEF ON SHIPS AND AIRCRAFT

WITH THE SWISS FEDERATION

The term "enterprise of a Contracting State" means an enterprise which is

effectively managed and controlled in that State. The term shall be deemed to

include any enterprise in which the Contracting State has a share or which is carried

on by the Contracting State.

The term "operation of ships or aircraft" means the business of transporting

persons or cargo by the owner, hirer or charterer of ships or aircraft.

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.

The exemption provided for in paragraphs 1 and 2 hereof shall be granted

with respect to any tax levied in either Contracting State for any year of assessment

beginning after 31st December, 1977.

Each Contracting State reserves the right to withdraw the present declaration

at the end of a calendar year after six months’ prior notice; in such an event the

exemption provided for in paragraphs 1 and 2 shall apply for the last time to any tax

levied in either Contracting State for the year of assessment commencing on 1st

January of the year immediately following that calendar year.