DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC OF CYPRUS ORDER

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

SUBSIDIARY LEGISLATION 123.32

DOUBLE TAXATION RELIEF ON TAXES ON

INCOME WITH THE REPUBLIC OF CYPRUS

ORDER

7th October, 1994

LEGAL NOTICE 139 of 1994, as modified by S.L.123.183.

The title of this Order is Double Taxation Relief on Taxes

on Income with the Republic of Cyprus Order.

FTEHIM BEJN IL-GVERN TA’ MALTA

U L-GVERN TAR-REPUBBLIKA TA’ ĊIPRU

GĦALL-ĦELSIEN MINN TAXXA DOPPJA

U BIEX TIGI EVITATA EVAŻJONI FISKALI

DWAR TAXXI FUQ L-INCOME U FUQ IL-KAPITAL

Il-Gvern ta’ Malta u l-Gvern tar-Repubblika ta’ Ċipru billi jixtiequ jagħmlu

Ftehim għall-Ħelsien minn Taxxa Doppja u biex tiġi evitata evażjoni fiskali dwar

taxxi fuq l-income u l-kapital, ftehmu kif ġej

KAPITOLU I

Għan tal-Ftehim

ARTIKOLU 1

Għan Personali

Dan il-Ftehim għandu japplika għall-persuni li huma residenti ta’ wieħed

mill-Istati Kontraenti jew tat-tnejn.

ARTIKOLU 2

Taxxi Koperti

(1) Dan il-Ftehim għandu japplika għat-taxxi fuq l-income u fuq il-kapital

imposti f ’isem Stat Kontraenti jew is-sottodiviżjonijiet politiċi jew l-awtoritajiet

lokali tiegħu, irrispettivament mill-mod kif dawn jinġabru.

(2) Għandhom jitqiesu bħala taxxi fuq l-income u fuq il-kapital dawk it-taxxi

kollha li jiġu imposti fuq income totali, fuq kapital totali, jew fuq elementi ta’

income jew ta’ kapital, inklużi taxxi fuq kull qligħ li jsir mit-trasferiment ta’

proprjetà mobbli jew immobbli, taxxi fuq l-ammont totali ta’ pagi jew salarji mħallsa

minn impriżi, kif ukoll taxxi fuq apprezzament kapitali.

(3)

It-taxxi eżistenti li għalihom japplika dan il-Ftehim huma

(a) f’Ċipru

(i)

it-taxxa fuq l-income;

(ii)

it-taxxa fuq l-income korporattiva;

(iii)

il-kontribuzzjoni speċjali;

(iv)

it-taxxa fuq qligħ kapitali;

(v)

it-taxxa fuq proprjetà immobbli;

hawnhekk iżjed ’il quddiem imsejħa "it-taxxa ta’ Ċipru");

(b) f’Malta

it-taxxa fuq l-income,

(hawnhekk iżjed ’il quddiem imsejħa "it-taxxa ta’ Malta").

(4) Il-Ftehim għandu japplika wkoll għal kull taxxa bħalhom jew li

sostanzjalment tixbaħhom u għal taxxi fuq il-kapitali li jiġu imposti wara d-data li

fiha dan il-Ftehim jiġi ffirmat b’żieda ma’, jew minflok, it-taxxi eżistenti. L-

awtoritajiet kompetenti ta’ l-Istati Kontraenti għandhom javżaw lil xulxin b’kull

tibdil sinjifikanti li jkun sar fil-liġijiet tagħhom rispettivi li jirrigwardaw it-taxxa.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(5) Minkejja d-disposizzjonijiet l-oħra ta’ dan l-Artikolu dan il-Ftehim ma

japplikax għal taxxa mħallsa jew li titħallas f’Malta bir-rata li hemm provdut dwarha

fis-subartikolu (13) ta’ l-artikolu 56 ta’ l-Att dwar it-Taxxa fuq l-lncome dwar l-

income taxxabbli ta’ persuna li tkun taħdem fil-produzzjoni ta’ żejt petroleum li jiġi

prodott f’Malta.

KAPITOLU II

Tifsiriet

ARTIKOLU 3

Tifsiriet Ġenerali

(1) Għall-għanijiet ta’ dan il-Ftehim, kemm-il darba r-rabta tal-kliem ma

teħtieġx xort’oħra

(a) il-frażi "Ċipru" tfisser ir-Repubblika ta’ Ċipru inkluż it-territorju nazzjonali,

il-baħar territorjali, il-blata kontinentali, u kull żona oħra li skond id-dritt

internazzjonali u l-liġijiet tar-Repubblika ta’ Ċipru kienet jew tista’ minn issa ’l

quddiem tiġi stabbilita bħala żona li fuqha r-Repubblika ta’ Ċipru tkun teżerċita

drittijiet sovrani jew ikollha ġurisdizzjoni jew kull dritt u dmir ieħor;

(b) il-frażi "Malta" meta użata f’sens ġeografiku tfisser il-Gżira ta’ Malta, il-

Gżira ta’ Għawdex u l-gżejjer l-oħra ta’ l-Arċipelagu Malti, flimkien ma’ l-ibħra

territorjali tagħhom, u kull area barra mill-baħar territorjali ta’ Malta li, skond il-liġi

internazzjonali, hi hekk imsemmija jew aktar ’il quddiem tista’ tissejjaħ, taħt il-liġi

ta’ Malta dwar il-Blata Kontinentali, bħala area li fiha d-drittijiet ta’ Malta dwar

qiegħ il-baħar u s-sottoswol u r-riżorsi naturali tagħhom jistgħu jiġu eżerċitati;

(ċ) il-frażijiet "Stat Kontraenti" u "l-Istat Kontraenti l-ieħor" ifissru, skond ma

teħtieġ ir-rabta tal-kliem, ir-Repubblika ta’ Ċipru jew Malta;

(d) il-frażi "persuna" tinkludi individwu, kumpannija u kull korp ieħor ta’

persuni;

(e) il-frażi "kumpannija" tfisser kull għaqda korporata jew kull entità li titqies

bħala għaqda korporata għall-finijiet ta’ taxxa;

(f)

il-frażijiet "impriża ta’ Stat Kontraenti" u "impriża ta’ l-Istat Kontraenti l-

ieħor" ifissru rispettivament impriża li titmexxa minn residenti ta’ Stat Kontraenti u

impriża li titmexxa minn residenti ta’ l-Istat Kontraenti l-ieħor;

(g)

il-frażi "nazzjonali" tfisser

(i)

fil-każ ta’ Ċipru, kull individwu li jkollu ċ-ċittadinanza ta’ Ċipru u kull

persuna li ma tkunx individwu li tikseb l-istat tagħha bħala tali bis-

saħħa tal-liġijiet fis-seħħ f’Ċipru;

(ii) dwar Malta, kull ċittadin ta’ Malta u kull persuna ġuridika, soċjetà jew

assoċjazzjoni li tikseb dak l-istat tagħha bis-saħħa tal-liġijiet fis-seħħ

f’Malta;

(h) il-frażi "traffiku internazzjonali" tfisser kull trasport b’bastiment, b’inġenji

ta’ l-ajru jew b’vettura fuq l-art imħaddma minn impriża li jkollha l-uffiċċju ta’

tmexxija effettiva tagħha fi Stat Kontraenti, barra minn meta l-bastiment, l-inġenji

ta’ l-ajru jew vettura fuq l-art ikunu mħaddma biss bejn postijiet fl-Istat Kontraenti l-

ieħor;

(i)

il-frażi "awtorità kompetenti" tfisser

(i)

fil-każ ta’ Ċipru, il-Ministru tal-Finanzi jew ir-rappreżentant awtorizzat

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

tiegħu;

(ii) fil-każ ta’ Malta, il-Ministru responsabbli għall-finanzi jew ir-

rappreżentant awtorizzat tiegħu.

(2) Fl-applikazzjoni ta’ dan il-Ftehim minn Stat Kontraenti kull frażi li ma

tkunx imfissra fih għandha, kemm-il darba r-rabta tal-kliem ma teħtieġx xort’oħra,

ikollha l-istess tifsir kif mogħti lilha taħt il-liġi ta’ dak l-Istat dwar it-taxxi li dan il-

Ftehim japplika għalihom.

ARTIKOLU 4

Residenti

(1) Għall-finijiet ta’ dan il-Ftehim, il-frażi "residenti ta’ Stat Kontraenti" tfisser

kull persuna li, taħt il-liġijiet ta’ dak l-Istat, hija suġġetta għat-taxxa hemmhekk

minħabba d-domiċilju, ir-residenza, post tal-maniġġ jew xi kriterju ieħor ta’ xorta

bħal din. Iżda din il-frażi ma tinkludix persuna li hi suġġetta għat-taxxa f’dak l-Istat

unikament minħabba fi qligħ minn għejjun f ’dak l-Istat jew kapital li jkun hemm

jinsab.

(2) Fejn minħabba d-disposizzjonijiet tal-paragrafu (1) individwu jkun residenti

taż-żewġ Stati Kontraenti, allura l-Istat tiegħu għandu jiġi determinat kif ġej

(a) huwa għandu jitqies li huwa residenti ta’ l-Istat Kontraenti li fih ikollu

dar permanenti għad-disposizzjoni tiegħu; jekk huwa jkollu dar

permanenti għad-disposizzjoni tiegħu fiż-żewġ Stati, huwa għandu

jitqies li huwa residenti ta’ l-Istat Kontraenti li miegħu ir-relazzjonijiet

personali u ekonomiċi tiegħu jkunu l-aktar marbuta (ċentru ta’ interessi

vitali);

(b) jekk l-Istat li fih huwa jkollu ċ-ċentru ta’ interessi vitali ma jistax jiġi

determinat, jew jekk huwa ma jkollux għad-disposizzjoni tiegħu dar

permanenti fl-ebda Stat, huwa għandu jitqies li jkun residenti ta’ l-Istat

Kontraenti li fih soltu jirrisjedi;

(ċ) jekk huwa s-soltu jirrisjedi fiż-żewġ Stati jew f’ebda wieħed minnhom,

huwa għandu jitqies li jkun residenti ta’ l-Istat Kontraenti li tiegħu jkun

nazzjonali;

(d) jekk huwa jkun nazzjonali taż-żewġ Stati jew ta’ l-ebda wieħed

minnhom, l-awtoritajiet kompetenti ta’ l-Istati Kontraenti għandhom

jiddeċiedu l-każ bi ftehim bejniethom.

(3) Meta minħabba d-disposizzjonijiet tal-paragrafu (1) persuna li ma tkunx

individwu tkun residenti taż-żewġ Stati Kontraenti, din għandha għaldaqstant titqies

bħala residenti ta’ l-Istat Kontraenti fejn ikun jinsab il-post effettiv tal-maniġġ

tagħha.

ARTIKOLU 5

Stabbiliment Permanenti

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

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

(2)

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

(a) post ta’ maniġġ;

(b) fergħa;

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(ċ) uffiċċju;

(d) fabbrika;

(e) ħanut tax-xogħol;

(f)

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

estrazzjoni ta’ riżorsi naturali inkluż sit ta’ drilling fuq il-baħar;

(g) art li tkun qegħda tinbena jew proġett ta’ kostruzzjoni jew stallazzjoni

jew assemblaġġ jew attivitajiet superviżorji li għandhom x’jaqsmu ma’

dan meta dik l-art, proġett jew attività jkomplu għal iktar minn sitt xhur.

(3) 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’

ogġetti 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;

(ċ) 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.

(4) Impriża ta’ Stat Kontraenti titqies li jkollha stabbiliment permanenti fl-Istat

Kontraenti l-ieħor jekk

(a) l-impriża twettaq attivitajiet superviżorji f’dak l-Istat l-ieħor għal iktar

minn sitt xhur li jkollhom x’jaqsmu ma’ proġett ta’ kostruzzjoni,

stallazzjoni jew assemblaġġ li jkun qed isir f’dak l-Istat l-ieħor; jew

(b) ikun qed jintuża jew jiġi stallat tagħmir konsiderevoli f’dak l-Istat l-

ieħor, minn, għal jew b’kuntratt ma’ l-impriża; jew

(ċ) l-impriża twettaq attività superviżorja f’dak l-Istat li jkollha x’taqsam

ma’ l-użu tat-tagħmir imsemmi fis-subparagrafu (6).

(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’ impriża 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 (3) li, kieku mwettqa minn post fiss ta’ negozju, ma jagħmlux dan il-post

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

(6) Impriża ta’ Stat Kontraenti ma għandhiex titqies li jkollha stabbiliment

permanenti fi Stat Kontraenti ieħor għaliex biss tmexxi negozju f ’dak l-Istat ieħor

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. Iżda, meta l-attivitajiet ta’ dak l-aġent ikunu għal kollox jew kważi għal

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

kollox dedikati għal dik l-impriża, huwa ma għandux jitqies bħala aġent bi status

indipendenti jekk it-transazzjonijiet bejn l-aġent u l-impriża ma jkunux saru

f’kundizzjonijiet at arm’s length.

(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 bħala

stabbiliment permanenti ta’ l-oħra.

KAPITOLU III

Tassazzjoni ta’ Income

ARTIKOLU 6

Income minn Proprjetà Immobiljari

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

immobiljari (inkluż income minn xogħol fl-agrikoltura jew fil-boskijiet) sitwata fl-

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

(2) 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, bhejjem u

tagħmir użati fl-agrikoltura jew fil-boskijiet, 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 jew jiġu esplorati, 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.

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

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

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

ARTIKOLU 7

Profitti minn Negozju

(1) Il-profitti ta’ impriża 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 negozju kif intqal qabel, il-profitti ta’ l-impriża jistgħu jiġu ntaxxati fl-Istat

l-ieħor iżda biss għal dik il-parti minnhom li huma attribwibbli għal dak l-

istabbiliment permanenti.

(2) Bla ħsara għad-disposizzjonijiet tal-paragrafu (3), meta impriża 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

jew mill-impriżi oħra assoċjati li tittratta magħhom.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(3) Biex jiġu stabbiliti l-profitti ta’ stabbiliment permanenti, għandhom ikunu

permessi bħala tnaqqis dawk l-ispejjeż li jsiru għall-għanijiet tal-kummerċ ta’ l-

istabbiliment permanenti magħduda l-ispejjeż eżekuttivi u amministrattivi ġenerali li

jsiru, sew fl-Istat li fih l-istabbiliment permanenti jkun jinsab jew band’oħra. Iżda

ebda tnaqqis bħal dak ma għandu jiġi permess dwar ammonti, jekk ikun hemm,

imħallsa (b’mod differenti milli bl-iżbors ta’ spejjeż attwali) mill-istabbiliment

permanenti lill-uffiċċju prinċipali ta’ l-impriża jew xi wieħed mill-uffiċċji l-oħra

tagħha, bħala royalties, drittijiet jew ħlasijiet oħra bħal dawk talli jintużaw patents

jew drittijiet oħra, jew bħala kummissjoni, għal għanijiet speċifiċi imwettqa jew

għat-tmexxija, jew ħlief fil-każ ta’ impriża bankarja, bħala mgħax fuq flejjes mislufa

lill-istabbiliment permanenti. Hekk ukoll, meta jiġu determinati l-profitti ta’

stabbiliment permanenti għal ammonti mitluba (b’mod differenti milli bl-iżbors ta’

spejjeż attwali), mill-istabbiliment permanenti lill-uffiċċju prinċipali ta’ l-impriża

jew lil xi wieħed mill-uffiċċji l-oħra tagħha, bħala royalties, drittijiet jew ħlasijiet

oħra bħal dawk talli jintużaw patents jew drittijiet oħra, jew bħala kummissjoni għal

servizzi speċifiċi imwettqa jew għat-tmexxija, jew, ħlief fil-każ ta’ impriża bankarja

bħala mgħax fuq flejjes mislufa lill-uffiċċju prinċipali ta’ l-impriża jew lil xi wieħed

mill-uffiċċji l-oħra tagħha.

(4) Ebda ħaġa f’dan l-Artikolu ma għandha tolqot l-applikazzjoni ta’ xi liġi ta’

Stat Kontraenti li jkollha x’taqsam ma’ kif jiġi stabbilit kemm persuna għandha

tħallas bħala taxxa, inkluż li jiġi stabbilit kemm għandu jitħallas bl-użu tad-

diskrezzjoni jew bl-għemil ta’ stima mill-awtorità kompetenti ta’ dak l-Istat f’każi li

fihom, mit-tagħrif li l-awtorità kompetenti ta’ dak l-Istat ikollha, ma jkunx possibbli

jew prattiku li jiġu aċċertati xi jkunu l-profitti li kellu stabbiliment permanenti,

kemm-il darba dik il-liġi tiġi applikata, daqskemm ikun jippermetti t-tagħrif li

jkollha l-awtorità kompetenti, b’mod li jkun konsistenti mal-prinċipji ta’ 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.

(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

Traffiku Internazzjonali

(1) Il-profitti mit-tħaddim ta’ bastimenti, inġenji ta’ l-ajru jew vetturi fuq l-art fi

traffiku internazzjonali għandhom ikunu ntaxxati biss fl-Istat Kontraenti fejn ikun

jinsab il-post ta’ tmexxija effettiva ta’ l-impriża.

(2) Jekk il-post ta’ tmexxija effettiva ta’ impriża tat-tbaħħir tkun abbord

bastiment jew opra tal-baħar, dak l-uffiċċju għandu għalhekk jitqies li jkun jinsab fl-

Istat Kontraenti fejn ikun jinsab il-port prinċipali ta’ dak il-bastiment jew opra tal-

baħar, jew, jekk dak il-port prinċipali ma jkunx jeżisti, fl-Istat Kontraenti fejn ikun

joqgħod min iħaddem il-bastiment jew opra tal-baħar.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(3) Id-disposizzjonijiet tal-paragrafu (1) għandhom japplikaw ukoll għall-

profitti miksuba mill-parteċipazzjoni f ’ pool , negozju joint jew aġenzija

internazzjonali ta’ tħaddim.

ARTIKOLU 9

Impriżi Assoċjati

(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’ impriża ta’ Stat Kontraenti u ta’

impriża 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 profitti li, kieku ma

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

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

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

(2) Ebda ħaġa f’dan l-Artikolu ma għandha tolqot l-applikazzjoni ta’ xi liġi ta’

Stat Kontraenti li jkollha x’taqsam ma’ kif jiġi stabbilit kemm għandha titħallas

taxxa bl-użu tad-diskrezzjoni jew bl-għemil ta’ stima mill-awtorità kompetenti ta’

dak l-Istat f’każi li fihom, mit-tagħrif li l-awtorità kompetenti ta’ dak l-Istat ikollha,

ma jkunx possibbli jew prattiku li jiġi stabbilit xi jkunu l-profitti li kellha impriża,

kemm-il darba il-liġi tiġi applikata, daqskemm ikun jippermetti t-tagħrif li jkollha l-

awtorità kompetenti, b’mod li jkun konsistenti mal-prinċipji ta’ dan l-Artikolu.

(3) Meta Stat Kontraenti jinkludi fil-profitti ta’ impriża 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 tat-taxxa imposta

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

xieraq tad-disposizzjonijiet l-oħra ta’ dan il-Ftehim u l-awtoritajiet kompetenti ta’ l-

Istati Kontraenti għandhom jekk iħossu l-bżonn jikkonsultaw lil xulxin.

ARTIKOLU 10

Dividendi

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

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

(2) Iżda, dawk id-dividendi jistgħu jiġu intaxxati 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 residenti f’Ċipru lil

residenti ta’ Malta li jkun is-sid benefiċjarju tad-dividendi, it-taxxa ta’

Ċipru 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

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

residenti ta’ Ċipru li jkun is-sid benefiċjarju tagħhom it-taxxa ta’ Malta

fuq l-ammont gross tad-dividendi ma għandhiex tkun iżjed minn dik

imposta fuq il-profitti li minnhom jitħallsu d-dividendi.

Dan il-paragrafu ma jolqotx it-tassazzjoni ta’ kumpannija għar-rigward tal-

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 minn jeddijiet korporattivi oħra li huwa

meqjus għall-fini tat-taxxa l-istess bħal income minn azzjonijiet skond il-liġijiet ta’

dak l-Istat li fih tkun residenti l-kumpannija li tagħmel it-tqassim.

(4) Id-disposizzjonijiet tal-paragrafi (1) u (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.

(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.

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 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 10 fil-mija ta’ l-

ammont gross ta l-imgħax.

(3) Minkejja d-disposizzjonijiet tal-paragrafu (2) imgħax li jinqala’ fi Stat

Kontraenti u miksub mill-Gvern tal-Istat Kontraenti l-ieħor inklużi sottodiviżjonijiet

politiċi u awtoritajiet lokali tiegħu, il-Bank Ċentrali jew kull korp statutorju ta’ dak

l-Istat Kontraenti l-ieħor dwar self jew kull kreditu magħmul jew garantit mill-Gvern

ta’ dak l-Istat Kontraenti l-ieħor inklużi sottodiviżjonijiet politiċi u awtoritajiet

lokali tiegħu, il-Bank Ċentrali jew kull korp statutorju ta’ dak l-Istat Kontraenti l-

ieħor għandu jkun eżenti mit-taxxa f’dak l-Istat Kontraenti l-ewwel imsemmi.

(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

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

u premjijiet annessi ma’ assigurazzjonijiet, bonds jew debentures bħal dawk. Kull

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

ħlas ta’ penali dovut għal pagament li jsir tard ma għandux jitqies bħala imgħax

għall-għanijiet ta’ dan l-Artikolu.

(5) Id-disposizzjonijiet tal-paragrafi (1) u (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

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 permanenti 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 imħallas, 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) Il-frażi "royalties" f’dan l-Artikolu tfisser ħlasijiet jew krediti, sew jekk

perjodiċi sew jekk le, u b’kull mod kif jiġu deskritti jew maħdumin, sal-limitu li

jsiru bħala kumpens

(a) għall-użu ta’, jew għall-jedd ta’ l-użu, ta’ kull copyright, invenzjoni,

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

kull proprjetà jew jedd ieħor bħal dawk;

(b) għall-użu ta’, jew għall-jedd ta’ l-użu ta’, kull tagħmir industrijali,

kummerċjali jew xjentifiku;

(ċ) għall-għoti ta’ tagħrif jew informazzjoni ta’ xorta xjentifika, teknika,

industrijali jew kummerċjali;

(d) għall-għoti ta’ kull għajnuna li għandha x’taqsam ma’, u hi sussidjarja

għal, u li tingħata bħala mod li tippermetti l-applikazzjoni jew it-

tgawdija ta’, kull proprjetà jew jedd bħal dawk imsemmija fis-

subparagrafu (a), kull tagħmir bħal dak imsemmi fis-subparagrafu (b),

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

jew kull tagħrif jew informazzjoni bħal dawk imsemmija fis-

subparagrafu (ċ);

(e) għall-użu ta’, jew għall-jedd ta’ l-użu ta’

(i) films ċinematografiċi; jew

(ii) films jew video tapes għall-użu fuq it-televiżjoni; jew

(iii) tapes għall-użu tax-xandir bir-radju; jew

(f)

għal tolleranza totali jew parzjali dwar l-użu jew l-għoti ta’ kull

proprjetà jew jedd imsemmija f’dan il-paragrafu.

(4) Id-disposizzjonijiet tal-paragrafi (1) u (2) 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.

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

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

residenti ta’ dak l-Istat. Meta, iżda, il-persuna li tħallas ir-royaltles, 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-responsabbiltà 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.

(6) 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 għandħom 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

Trasferiment ta’ Proprjetà

(1) Income jew qligħ mit-trasferiment ta’ proprjetà immobbli, kif imfissra fil-

paragrafu (2) ta’ l-Artikolu 6, jistgħu jiġu ntaxxati fl-Istat Kontraenti fejn tkun

tinsab dik il-proprjetà.

(2) Income jew qligħ mit-trasferiment ta’ ishma jew interessi komparabbli

f ’kumpannija, li l-assi tagħha jkunu għal kollox jew prinċipalment jikkonsistu fi

proprjetà immobbli, jistgħu jiġu ntaxxati fl-Istat Kontraenti fejn ikunu jinsabu l-assi

jew l-assi prinċipali tal-kumpannija.

(3) Income jew qligħ minn trasferiment ta’ proprjetà mobbli li tkun tifforma

parti mill-proprjetà tan-negozju ta’ stabbiliment permanenti li impriża 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

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(waħdu jew ma’ l-impriża sħiħa) jew ta’ dak il-bażi stabbilit, jista’ jiġi intaxxat fl-

Istat l-ieħor.

(4) Income jew qligħ mit-trasferiment ta’ bastimenti, inġenji ta’ l-ajru u vetturi

fuq l-art fi traffiku internazzjonali jew minn proprjetà mobbli li tkun tappartjeni lill-

operazzjoni ta’ dawk il-mezzi ta’ trasport għandhom ikunu taxxabbli biss fl-Istat

Kontraenti fejn ikun jinsab il-post ta’ tmexxija effettiva ta’ l-impriża.

(5) Income jew 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.

ARTIKOLU 14

Servizzi Personali Indipendenti

(1) Qligħ miksub minn residenti ta’ Stat Kontraenti għal servizzi professjonali

jew attivitajiet oħra ta’ karattru indipendenti jkun taxxabbli biss f’dak l-Istat. Iżda,

dak il-qligħ jista’ fiċ-ċirkostanzi li ġejjin jiġi ntaxxat fl-Istat Kontraenti l-ieħor

(a) jekk ikollu bażi fiss regolari għad-disposizzjoni tiegħu fl-Istat

Kontraenti l-ieħor għall-qadi ta’ l-attivitajiet tiegħu, f’liema każ dik il-

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

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

(b) jekk il-qagħda tiegħu fl-Istat Kontraenti l-ieħor tkun għal żmien jew

żminijiet li fit-total ikunu jġibu jew jaqbżu l-183 ġurnata matul xi

perijodu ta’ tnax-il xahar; jew

(ċ) jekk ir-rimunerazzjoni għas-servizzi tiegħu fl-Istat Kontraenti l-ieħor

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

elef dollaru Amerikan (US $5,000) matul is-sena kalendarja, minkejja li

l-qagħda tiegħu f’dak l-Istat tkun għal żmien jew żminijiet li fit-total

ikunu anqas minn 183 ġurnata matul dak il-perijodu ta’ tnax-il xahar.

(2) Il-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, 19 u 20, 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

(a) min jirċevih ikun qiegħed fl-Istat l-ieħor għal żmien jew żminijiet li fit-

total ma jkunux aktar minn 183 ġurnata f’xi perijodu ta’ tnax-il xahar; u

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

residenti ta’ l-Istat l-ieħor, u

(ċ) dak il-kumpens ma jkunx piż fuq l-istabbiliment permanenti jew bażi

stabbilit li l-prinċipal ikollu fl-Istat l-ieħor.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

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

dwar impieg eżerċitat abbord bastiment, inġenji ta’ l-ajru jew vettura fuq l-art

imħaddma fi traffiku internazzjonali tista’ tkun taxxabbli fl-Istat Kontraenti fejn

ikun jinsab il-post ta’ tmexxija effettiva ta’ l-impriża.

ARTIKOLU 16

Drittijiet tad-Diretturi

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

wieħed mill-Istati Kontraenti fil-kariga tiegħu bħala membru tal-bord tad-diretturi,

jew ta’ korp ieħor bħal dak kif jista’ jkun mod ieħor magħruf, ta’ kumpannija li tkun

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

ARTIKOLU 17

Artisti u Atleti

(1) B’dak kollu li jinsab fid-disposizzjonijiet ta’ l-Artikoli 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 Kontraenti 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) Minkejja d-disposizzjonijiet tal-paragrafi (1) u (2) ta’ dan l-Artikolu income

imsemmi f’dan l-Artikolu jkun eżenti mit-taxxa fl-Istat Kontraenti fejn titwettaq l-

attività ta’ min jagħti spettaklu jew ta’ l-atleta kemm-il darba dik l-attività tkun

mgħejjuna f’parti konsiderevoli tagħha mill-fondi pubbliċi ta’ dak l-Istat jew ta’ l-

Istat l-ieħor jew l-attività titwettaq bis-saħħa ta’ ftehim jew arranġament kulturali

bejn l-Istati Kontraenti.

ARTIKOLU 18

Pensjonijiet

(1) Bla ħsara għad-disposizzjonijiet tal-paragrafu (2) ta’ l-Artikolu 19, kull

pensjoni u rimunerazzjoni oħra simili li titħallas lil residenti ta’ Stat Kontraenti

minħabba f’impieg li kellu qabel għandhom jiġu intaxxati biss f’dak l-Istat.

(2) Minkejja d-disposizzjonijiet tal-paragtafu (1), pensjonijiet u ħlasijiet oħra li

jinħarġu bis-saħħa tal-liġijiet tas-sigurtà soċjali ta’ Stat Kontraenti jew ta’

sottodiviżjoni politika jew ta’ awtorità lokali tiegħu għandhom jiġu intaxxati biss

f’dak l-Istat.

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 intaxxata biss

f’dak l-Istat.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(b) Iżda, dik ir-rimunerazzjoni tkun tista’ tiġi intaxxata 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) (a) Kull pensjoni mħallsa minn, jew li toħroġ minn fond maħluq minn Stat

Kontraenti jew 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 intaxxata biss f’dak l-Istat.

(b) Iżda, dik il-pensjoni tkun tista’ tiġi intaxxata biss fl-Istat Kontraenti l-ieħor

jekk l-individwu jkun residenti u nazzjonali ta’ dak l-Istat.

(3) Id-disposizzjonijiet ta’ l-Artikoli 15, 16 u 18 għandhom japplikaw għal

rimunerazzjoni u pensjonijiet dwar servizzi mogħtija dwar xi negozju mmexxi minn

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

(4) 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

Għalliema

(1) Ir-rimunerazzjoni li professur jew għalliem li hu jew kien residenti minnufih

qabel ma żar Stat Kontraenti ta’ l-Istat Kontraenti l-ieħor u li jkun qiegħed fl-ewwel

Stat għal żmien li ma jaqbiżx is-sentejn bil-għan li jagħmel studji jew riċerka

avvanzati jew bil-għan li jgħallem f ’università, kulleġġ, skola jew xi istituzzjoni

edukattiva oħra jkun irċeva għal dak ix-xogħol ma għandhiex tiġi ntaxxata f’dak l-

Istat, kemm-il darba huwa jkun kiseb dik ir-rimunerazzjoni minn barra dak l-Istat.

(2) Dan l-Artikolu ma japplikax għal income miksub mir-riċerka jekk dik ir-

riċerka ssir bil-għan ewlieni li tkun għall-benefiċċju privat ta’ persuna jew persuni

speċifiċi.

ARTIKOLU 21

Studenti u Trainees

Individwu li jkun residenti ta’ Stat Kontraenti minnufih qabel ma jagħmel

żjara lill-Istat Kontraenti l-ieħor u li jkun għal xi żmien preżenti fl-Istat l-ieħor biss

(a) bħala student f’università, kulleġġ jew skola rikonoxxuti jew

f’istituzzjoni edukattiva oħra rikonoxxuta bħal dawk, f’dak l-Istat l-

ieħor; jew

(b) bħala apprendist kummerċjali jew tekniku; jew

(ċ) bħala wieħed li jirċievi għotja, allowance jew rigal bil-għan ewlieni ta’

studju, riċerka jew taħriġ mingħand il-gvern ta’ xi wieħed mill-Istati

jew minn organizzazzjoni xjentifika, edukattiva, reliġjuża jew

filantropika jew bis-saħħa ta’ programm ta’ assistenza teknika li jkun

għamel il-Gvern ta’ Stat,

jkun eżenti mit-taxxa f’dak l-Istat l-ieħor fuq

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(a) kull ma jirċievi minn barra l-pajjiż għall-finijiet tal-manteniment,

edukazzjoni, studju, riċerka jew taħriġ tiegħu;

(b) is-somma ta’ dik l-għotja, allowance jew rigal; u

(ċ) kull rimunerazzjoni li ma tkunx taqbeż is-sitt elef dollaru Amerikan (US

$6,000) dwar servizzi f’dak l-Istat l-ieħor kemm-il darba dawk is-

servizzi jitwettqu f’dak li għandu x’jaqsam ma’ l-istudju, riċerka jew

taħriġ tiegħu jew ikunu meħtieġa għall-manteniment tiegħu.

ARTIKOLU 22

Income Ieħor

(1) 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) Id-disposizzjonijiet tal-paragrafu (1) ma għandhomx japplikaw għal income,

li ma jkunx income minn proprjetà immobbli kif imfisser fil-paragrafu (2) ta’ l-

Artikolu 6, jekk min jirċievi dak l-income, li jkun residenti ta’ Stat Kontraenti,

jiġġestixxi negozju fl-Istat Kontraenti l-ieħor permezz ta’ stabbiliment permanenti li

jkun jinsab f ’dak l-Istat, jew iwettaq f ’dak l-Istat l-ieħor servizzi personali

indipendenti minn bażi fiss li jkun jinsab f’dak l-Istat, u d-dritt jew il-proprjetà li

dwarhom jitħallas l-income ikollu x’jaqsam b’mod effettiv ma’ dak l-istabbiliment

jew bażi fiss. F’dak il-każ, għandhom japplikaw id-disposizzjonijiet ta’ l-Artikolu 7

jew ta’ l-Artikolu 14, skond il-każ.

KAPITOLU IV

Tassazzjoni fuq il-Kapital

ARTIKOLU 23

Kapital

(1) Il-kapital kif rappreżentat minn proprjetà immobiljari msemmija fl-Artikolu

6, li sidha jkun residenti ta’ Stat Kontraenti u li tkun tinsab fl-Istat Kontraenti l-

ieħor, jista’ jiġi intaxxat f’dak l-Istat l-ieħor.

(2) Il-kapital kif rappreżentat minn proprjetà mobiljari li jagħmel sehem mill-

proprjetà kummerċjali ta’ stabbiliment permanenti li jkollha impriża ta’ Stat

Kontraenti fl-Istat Kontraenti l-ieħor jew minn proprjetà immobiljari li tkun

tappartjeni lil bażi fissa disponibbli lil residenti ta’ Stat Kontraenti fl-Istat

Kontraenti l-ieħor bil-għan li jitwettqu servizzi personali indipendenti, jista’ jiġi

intaxxat f’dak l-Istat l-ieħor.

(3) Il-kapital kif rappreżentat minn bastimenti u inġenji ta’ l-ajru mħaddma fi

traffiku internazzjonali u minn opri tal-baħar li jitħaddmu fit-trasport intern li jsir

fuq l-ilma, u minn proprjetà mobbli li tappartjeni għat-tħaddim ta’ dawk il-

bastimenti, inġenji ta’ l-ajru u opri tal-baħar, għandu jiġi intaxxat biss fl-Istat

Kontraenti fejn ikun jinsab il-post ta’ tmexxija effettiva ta’ l-impriża.

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

għandhom jiġu biss intaxxati f’dak l-Istat.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

KAPITOLU V

Kif Titneħħa t-Taxxa Doppja

ARTIKOLU 24

Tneħħija ta’ Taxxa Doppja

(1)

Fil-każ ta’ Ċipru it-taxxa doppja għandha tiġi evitata kif jidher hawn taħt

Bla ħsara għad-disposizzjonijiet tal-liġi ta’ Ċipru dwar kemm jitħalla bi kreditu

għat-taxxa ta’ Ċipru dwar taxxa mħallsa f’territorju barra minn Ċipru, it-taxxa ta’

Malta li titħallas skond il-liġijiet ta’ Malta, sew direttament jew permezz ta’ kull

tnaqqis għar-rigward ta’ kull profitt, income jew qligħ minn għejjun ġewwa Malta

għandha titħalla bħala kreditu għal xi taxxa ta’ Ċipru li jkollha titħallas għar-rigward

ta’ dak il-profitt, income jew qligħ. Dak it-tnaqqis ma għandux, madankollu, jeċċedi

dak is-sehem mit-taxxa, kif maħduma qabel ma jingħata t-tnaqqis, li tkun tgħodd

għal dak il-qligħ miksub f’Malta.

(2)

Fil-każ ta’ Malta, it-taxxa doppja għandha titneħħa kif jidher hawn taħt

Bla ħsara għad-disposizzjonijiet tal-liġi ta’ Malta dwar l-għoti ta’ kreditu għat-

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

f’Ċipru it-taxxa ta’ Ċipru fuq income bħal dak għandha tingħata bħala kreditu kontra

t-taxxa ta’ Malta li titħallas fuqu.

(3) It-taxxa li titħallas fi Stat Kontraenti imsemmi fil-paragrafi (1) u (2) ta’ dan

l-Artikolu għandha titqies bħala li tinkludi dik it-taxxa li kien ikollha titħallas li ma

kienx għad-disposizzjonijiet legali li għandhom x’jaqsmu mat-tnaqqis jew eżenzjoni

ta’ taxxa jew ta’ kull inċentiv ieħor dwar it-taxxa mogħtija bis-saħħa tal-liġijiet ta’ l-

Istat Kontraenti, kemm-il darba fil-każ ta’ dividendi, imgħax jew royalties kull taxxa

bħal dik li tkun ġiet eżentata jew imnaqqsa għandha titqies li tkun tħallset bi

(a) 15 fil-mija ta’ l-ammont gross tad-dividendi msemmija fl-Artikolu 10;

(b) 10 fil-mija ta’ l-ammont gross ta’ imgħax imsemmi fl-Artikolu 11; u

(ċ) 10 fil-mija ta’ l-ammont gross tar-royalties imsemmija fl-Artikolu 12.

(4) Meta skond id-disposizzjonijiet ta’ dan il-Ftehim xi income jinħeles mit-

taxxa f ’wieħed mill-Istati Kontraenti u, skond il-liġi li tkun fis-seħħ fl-Istat

Kontraenti l-ieħor, persuna, għar-rigward ta’ dak l-income, tkun suġġetta għat-taxxa

b’riferenza għall-ammont tiegħu li jingħata lil jew li jiġi riċevut f ’dak l-Istat

Kontraenti l-ieħor u mhux b’riferenza għall-ammont sħiħ tiegħu għaldaqshekk il-

ħelsien li jiġi permess b’dan il-Ftehim fl-Istat Kontraenti l-ewwel imsemmi għandu

jkun japplika biss għal daqstant mill-income li jingħata lura jew jiġi riċevut fl-Istat

Kontraenti l-ieħor.

KAPITOLU VI

Disposizzjonijiet Speċjali

ARTIKOLU 25

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

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

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

jistgħu jkunu suġġetti. Din id-disposizzjoni għandha, minkejja d-disposizzjonijiet ta’

l-Artikolu 1, tapplika wkoll għal dawk il-persuni li ma jkunux residenti ta’ xi wieħed

minn, jew taż-żewġ Stati Kontraenti.

(2) It-tassazzjoni fuq stabbiliment permanenti li impriża 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) Ħlief meta d-disposizzjonijiet tal-paragrafu (1) ta’ l-Artikolu 9, tal-

paragrafu (7) ta’ l-Artikolu 11, jew tal-paragrafu (6) ta’ l-Artikolu 12 ikunu

japplikaw, kull imgħax, royalties u ħlasijiet oħra li jsiru minn impriża ta’ Stat

Kontraenti lil residenti ta’ l-Istat Kontraenti l-ieħor għandhom bil-għan li jiġi

stabbilit il-qligħ taxxabbli ta’ dik l-impriża, jitnaqqsu taħt l-istess kundizzjonijiet

daqslikieku kienu tħallsu lil residenti ta’ l-Istat l-ewwel imsemmi. Bl-istess mod,

kull dejn ta’ impriża ta’ Stat Kontraenti lil residenti ta’ l-Istat Kontraenti l-ieħor

għandu, bil-għan li jiġi stabbilit il-kapital taxxabbli ta’ dik l-impriża, jitnaqqas

skond l-istess kundizzjonijiet bħallikieku jkun ġie kuntrattat lil residenti ta’ l-Istat l-

ewwel imsemmi.

(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

oħra jew ta’ aktar piż mit-tassazzjoni u ħtiġiet li għandhom x’jaqsmu magħha li

impriżi oħra bħalhom ta’ dak l-Istat l-ewwel imsemmi huma jew jistgħu jkunu

suġġetti għalihom.

(5) Xejn li hemm f’dan l-Artikolu ma għandu jitqies li jorbot Stat Kontraenti li

jagħti lil individwi li jkunu residenti ta’ l-Istat Kontraenti l-ieħor xi tnaqqis

personali, ħelsien jew tnaqqis għall-finijiet ta’ taxxa minħabba l-istatus ċivili, ir-

responsabbiltajiet tal-familja jew kull ċirkostanza personali oħra li huwa jagħti lir-

residenti tiegħu stess.

(6) Id-disposizzjonijiet ta’ dan l-Artikolu għandhom, minkejja d-

disposizzjonijiet ta’ l-Artikolu 2, ikunu japplikaw għal taxxi ta’ kull sura u għamla.

ARTIKOLU 26

Proċedura għal Ftehim Reċiproku

(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, tippreżenta l-każ tagħha lill-awtorità kompetenti

ta’ l-Istat Kontraenti li tiegħu hija residenti jew, jekk il-każ tagħha jkun jaqa’ taħt il-

paragrafu (1) ta’ l-Artikolu 24, lill-awtorità kompetenti ta’ l-Istat Kontraenti li

tagħha tkun nazzjonali. Il-każ għandu jiġi preżentat fi żmien tliet snin mill-ewwel

n o t i f i k a t a ’ l - a z z j o n i l i t a g ħ t i l o k g ħ a l t a s sa z z j o n i l i m a t k un x sk o n d i d -

disposizzjonijiet tal-Ftehim.

(2) L-awtorità kompetenti 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. Kull ftehim milħuq

għandu jitwettaq minkejja kull terminu ta’ żmien li jkun hemm fil-liġi domestika ta’

l-Istat Kontraenti.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

(3) L-awtoritajiet kompetenti ta’ l-Istat Kontraenti għandhom jaraw li jirrisolvu

bi ftehim reċiproku xi diffikultajiet jew dubbji li jinqalgħu dwar l-interpretazzjoni

jew l-applikazzjoni tal-Ftehim. Huma jistgħu jikkonsultaw ma’ xulxin dwar it-

tneħħija ta’ taxxa doppja f ’dawk il-każijiet fejn m’hemmx provdut dwarhom fil-

Ftehim.

(4) L-awtoritajiet kompetenti ta’ l-Istat Kontraenti jistgħu jikkomunikaw

direttament ma’ xulxin bil-għan li jintlaħaq ftehim dwar kif hemm fil-paragrafi ta’

qabel. Meta jkun jidher rakkomandabbli sabiex jintlaħaq ftehim li għandu jsir

skambju verbali ta’ fehmiet, dak l-iskambju jkun jista’ jsir permezz ta’ Kummissjoni

li tkun komposta minn rappreżentanti ta’ l-awtoritajiet kompetenti ta’ l-Istati

Kontraenti.

ARTIKOLU 27

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. It-tibdil ta’ informazzjoni mhuwiex ristrett

bl-Artikolu 1. 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 jew prosekuzzjoni dwar,

jew il-qtugħ ta’ appelli dwar, it-taxxi milquta bil-Ftehim. Dawn il-persuni jew

awtoritajiet għandhom jużaw l-informazzjoni għal dawk l-għanijiet biss. Jistgħu

jikxfu dik l-informazzjoni fi proċedimenti li jsiru f’qorti pubblika jew f’sentenzi tal-

qorti.

(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;

(ċ) 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 28

Aġenti Diplomatiċi u Uffiċjali Konsulari

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’ kull ftehim speċjali.

EŻENZJONI MILL-ĦLAS TA’ TAXXA DOPPJA

FUQ L-INCOME MAR-REPUBBLIKA TA’ ĊIPRU

KAPITOLU VII

Disposizzjonijiet Finali

ARTIKOLU 29

Bidu fis-Seħħ

(1) Il-Gvernijiet ta’ l-Istati Kontraenti għandhom jagħtu avviż lil xulxin li jkunu

twettqu l-ħtiġiet kostituzzjonali għall-bidu fis-seħħ ta’ dan il-Ftehim.

(2) Il-Fteħim għandu jibda jseħħ tletin ġurnata wara d-data ta’ l-aħħar mill-

avviżi msemmija fil-paragrafu (1) u d-disposizzjonijiet tiegħu għandu jkollhom

effett

(a) f’Ċipru

dwar taxxi li jinġabru fuq kull income jew kapital li jkun inġemgħa fl-

ewwel jew wara l-ewwel ta’ Jannar;

(b) f’Malta

dwar taxxi għal sena ta’ stima li tibda fl-ewwel jew wara l-ewwel ta’

Jannar fis-sena kalendarja li tiġi minnufih wara s-sena meta l-Ftehim

jiġi ffirmat.

ARTIKOLU 30

Terminazzjoni

Dan il-Ftehim għandu jibqa’ jseħħ sakemm jiġi terminat minn Stat

Kontraenti. Kull wieħed mill-Istati Kontraenti jista’ jtemm il-Ftehim, permezz ta’

kanali diplomatiċi, billi jagħti avviż tat-terminazzjoni mill-anqas sitt xhur qabel it-

tmiem ta’ xi sena kalendarja li tibda wara li jintemm perijodu ta’ ħames snin minn

meta l-Ftehim ikun beda jseħħ. F’dak il-każ, il-Ftehim ma għandux jibqa’ fis-seħħ

(a) f’Ċipru

dwar taxxi għal sena ta’ stima li tkun li tibda fis-sena li tiġi minnufih

wara s-sena meta jingħata l-avviż tat-terminazzjoni;

(b) f’Malta

dwar taxxi għal sena ta’ stima li tkun li tibda fl-ewwel jew wara l-ewwel

ta’ Jannar fit-tieni sena kalendarja li tiġi wara s-sena meta jkun ingħata

l-avviż tat-terminazzjoni.

B’XIEHDA TA’ DAN is-sottoskritti awtorizzati kif imiss biex jagħmlu dan mill-

Gvernijiet rispettivi tagħbom, iffrmaw dan il-Ftehim.

MAGĦMUL in duplikat f’Ruma, illum 22 ta’ Ottubru, 1993, fl-ilsien Ingliż.

GĦALL-GVERN TA’ MALTA

GĦALL-GVERN TAR-REPUBBLIKA

TA’ ĊIPRU

CARMEL J. AQUILINA

PEDROS MICHAELIDES

Ambaxxatur ta’ Malta

Kummissarju Għoli ta’ Ċipru għal Malta

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 the Republic of Cyprus with a view

to affording relief from double taxation in relation to

the following taxes imposed by the laws of the

Republic of Cyprus

(i)

the income tax;

(ii)

the corporate income tax;

(iii)

the special contribution;

(iv)

the capital gains tax;

(v)

the immovable property tax;

(b) that it is expedient that those arrangements should

have effect.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

AGREEMENT BETWEEN THE GOVERNMENT OF MALTA

AND THE GOVERNMENT OF THE REPUBLIC OF CYPRUS

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME

AND ON CAPITAL

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

CHAPTER 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 a Contracting State or of its political subdivisions or local authorities,

irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income 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 this Agreement shall apply are

(a) in Cyprus

(i)

the income tax;

(ii)

the corporate income tax;

(iii)

the special contribution;

(iv)

the capital gains tax;

(v)

the immovable property tax,

(hereinafter referred to as ‘Cyprus tax’);

(b) in Malta

the income tax,

(hereinafter referred to as `Malta tax’).

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

taxes which are imposed after the date of signature of this Agreement in addition to,

or in place of, the existing taxes. The competent authorities of the Contracting States

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

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

respective taxation laws.

(5) Notwithstanding the other provisions of this Article this Agreement shall not

apply to tax paid or payable in Malta at the rate provided for in sub-article (13) of

article 56 of the Income Tax Act concerning the chargeable income of any person

engaged in the production of petroleum produced in Malta.

CHAPTER II

Definitions

ARTICLE 3

General Definitions

(1)

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

(a) the term "Cyprus" means the Republic of Cyprus including the national

territory, the territorial sea, the continental shelf, and any other area which in

accordance with international law and the law of the Republic of Cyprus has been or

may hereafter be designated as an area within which the Republic of Cyprus

exercises sovereign rights or has jurisdiction or any other rights and duties;

(b) the term "Malta", when used in a geographical sense, means the Island of

Malta, the Island of Gozo and the other islands of the Maltese archipelago including

the territorial waters thereof, 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 sea-bed and subsoil and their natural resources may be

exercised;

(c) the terms "a Contracting State" and "the other Contracting State" mean the

Republic of Cyprus or Malta as the context requires;

(d) the term "person" includes an individual, a company and any other body of

persons;

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

as a body corporate for tax purposes;

(f)

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

Contracting State" mean, respectively, an enterprise carried on by a resident of a

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

State;

(g)

the term "national" means

(i)

in the case of Cyprus, individuals possessing the citizenship of Cyprus

and any person other than an individual deriving its status as such from

the law in force in Cyprus;

(ii) in the case of Malta, any citizen of Malta and any legal person,

partnership or association deriving its status as such from the law in

force in Malta;

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

road vehicle operated by an enterprise which has its place of effective management

in a Contracting State, except when the ship, aircraft or road vehicle is operated

solely between places in the other Contracting State;

(i)

the term "competent authority" means

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

(i)

in the case of Cyprus, the Minister of Finance or his authorised

representative;

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

authorised representative.

(2) In the application of this Agreement by a Contracting State any term not

otherwise defined shall, unless the context otherwise requires, have the meaning

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

Agreement applies.

ARTICLE 4

Resident

(1) For the purposes of this Agreement, the term "resident of a Contracting

State" means any person who, under the laws of that State, is liable to tax therein by

reason of his domicile, residence, place of management or any other criterion of a

similar nature. But this term does not include any person who is liable to tax in that

State in respect only of income from sources in that State or capital situated therein.

(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 Contracting 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 Contracting 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 no permanent home available to him in either

State, he shall be deemed to be a resident of the Contracting 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 Contracting State of which he is a

national;

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

authorities of the Contracting States shall settle the question by mutual

agreement.

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

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

resident of the Contracting State in which its place of effective management is

situated.

ARTICLE 5

Permanent Establishment

(1) For the purpose 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;

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

(c) an office;

(d) a factory;

(e) a workshop;

(f)

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

natural resources including an offshore drilling site;

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

supervisory activities in connection therewith, where such site, project

or activity continues for more than six months.

(3) Notwithstanding the preceding provisions of this Article, the term

"permanent establishment" shall be deemed not to include

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

of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the

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

(c) the maintenance of a stock of goods or merchandise belonging to the

enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of

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

enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of

carrying on, for the enterprise, any other activity of a preparatory or

auxiliary character;

(f)

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

of activities mentioned in sub-paragraphs (a) to (e), provided that the

overall activity of the fixed place of business resulting from this

combination is of a preparatory or auxiliary character.

(4) An enterprise of a Contracting State shall be deemed to have a permanent

establishment in the other Contracting State if

(a) it carries on supervisory activities in that other State for more than six

months in connection with a construction, installation or assembly

project which is being undertaken in that other State; or

(b) substantial equipment is in that other State being used or installed by,

for or under contract with, the enterprise; or

(c) it carries on supervisory activities in that State in connection with the

use of equipment referred to in sub-paragraph (b).

(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 (3) 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 of a Contracting State shall not be deemed to have a

permanent establishment in the other Contracting State merely because it carries on

business in that other State through a broker, general commission agent or any other

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

agent of an independent status, where such persons are acting in the ordinary course

of their business. However, when the activities of such an agent are devoted wholly

or almost wholly on behalf of the enterprise, he shall not be considered an agent of

an independent status if the transactions between the agent and the enterprise were

not made under arm’s length conditions.

(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.

CHAPTER III

Taxation of Income

ARTICLE 6

Income from Immovable Property

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

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

Contracting State may be taxed in that other State.

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

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

term shall in any case include property accessory to immovable property, livestock

and equipment used in agriculture and forestry, rights to which the provisions of

general law respecting 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 or to explore for, mineral deposits, sources and other natural resources;

ships, boats and aircraft shall not be regarded as immovable property.

(3) The provisions of paragraph (1) shall apply to income derived from the

direct use, letting, or use in any other form of immovable property.

(4) The provisions of paragraphs (1) and (3) shall also apply to the income from

immovable property of an enterprise and to income from immovable property used

for the performance of independent personal services.

ARTICLE 7

Business Profits

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

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

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

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

only so much thereof as is attributable to that permanent establishment.

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

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

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

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

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

activities under the same or similar conditions and dealing wholly independently

with the enterprise of which it is a permanent establishment or with other associated

enterprises with which it deals.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

(3) In the determination of the profits of a permanent establishment, there shall

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

bu s i n e s s o f t h e pe r m a n e n t es ta bl i s h m e n t i nc lu d in g e x e c u t iv e an d g e ne ra l

administrative expenses so incurred, whether in the State in which the permanent

establishment is situated or elsewhere. However, no such deduction shall be allowed

in respect of amounts, if any, paid (otherwise than towards reimbursement of actual

expenses) by the permanent establishment to the head office of the enterprise or any

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

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

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

of interest on moneys lent to the permanent establishment. Likewise, no account

shall be taken, in the determination of the profits of a permanent establishment for

amounts charged (otherwise than towards reimbursement of actual expenses), by the

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

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

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

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

moneys lent to the head office of the enterprise or any of its other offices.

(4) Nothing in this Article shall affect the application of any law of a

Contracting State relating to the determination of the tax liability of a person,

including the determination of such liability by the exercise of discretion or the

making of an estimate by the competent authority of that State in cases in which,

from the information available to the competent authority of that State, it is not

possible or not practicable to ascertain the profits to be attributed to a permanent

establishment, provided that that law shall be applied, so far as the information

available to the competent authority permits, consistently with the principles of this

Article.

(5) No profits shall be attributed to a permanent establishment by reason of the

mere purchase by that permanent establishment of goods or merchandise for the

enterprise.

(6) For the purposes of the preceding paragraphs, the profits to be attributed to

the permanent establishment shall be determined by the same method year by year

unless there is good and sufficient reason to the contrary.

(7) 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.

(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

International Traffic

(1) Profits from the operation of ships, aircraft or road vehicles in international

traffic shall be taxable only in the Contracting State in which the place of effective

management of the enterprise is situated.

(2) If the place of effective management of a shipping enterprise is aboard a

ship or boat, then it shall be deemed to be situated in the Contracting State in which

the home harbour of the ship or boat is situated, or, if there is no such home harbour,

in the Contracting State of which the operator of the ship or boat is a resident.

(3) The provisions of paragraph (1) shall also apply to profits from the

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

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

ARTICLE 9

Associated Enterprises

(1)

Where -

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

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

Contracting State, or

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

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

enterprise of the other Contracting State,

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

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

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

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

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

accordingly.

(2) Nothing in this Article shall affect the application of any law of a

Contracting State relating to the determination of such liability by the exercise of a

discretion or the making of an estimate by the competent authority of that State in

cases which, from the information available to the competent authority of that State,

it is not possible or not practicable to determine the income to be attributed to an

enterprise, provided that that law shall be applied, so far as the information available

to the competent authority permits, consistently with the principles of this Article.

(3) 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 that enterprise of the first mentioned State if the

conditions made between the two enterprises had been those which would have been

made between independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein on those profits. In

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

Agreement and the competent authorities of the Contracting States shall if necessary

consult each other.

ARTICLE 10

Dividends

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

resident of the other Contracting State 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 resident of Cyprus to a

resident of Malta who is the beneficial owner thereof, the Cyprus 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 Cyprus who is the beneficial owner thereof Malta tax on

the gross amount of the dividends shall not exceed that chargeable on

the profits out of which the dividends are paid.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE REPUBLIC OF CYPRUS

This paragraph shall not affect the taxation of the company in respect of 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 from other

corporate rights which is subjected to the same taxation treatment as income from

shares by the laws of that State of which the company making the distribution is a

resident.

(4) The provisions of paragraphs (1) and (2) shall not apply if the beneficial

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

in the other Contracting State of which the company paying the dividends is a

resident, through a permanent establishment situated therein, or performs in that

other State independent personal services from a fixed base situated therein, and the

holding in respect of which the dividends are paid is effectively connected with such

permanent establishment or fixed base. In such a case the provisions of Article 7 or

Article 14, as the case may be, shall apply.

(5) Where a company which is a resident of a Contracting State derives profits

or income from the other Contracting State, that other State may not impose any tax

on the dividends paid by the company except insofar as such dividends are paid to a

resident of that other State or insofar as the holding in respect of which the dividends

are paid is effectively connected with a permanent establishment or a fixed base

situated in that other State, nor subject the company’s undistributed profits to a tax

on t h e co m p a ny ’s u n di s tr i b u t e d pr o f i t s , e ve n i f t h e d i vi d e n d s p a i d o r t h e

undistributed profits consist wholly or partly of profits or income arising in such

other State.

ARTICLE 11

Interest

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

Contracting State may be taxed in that other State.

(2) However, such interest may 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 10 per cent of the gross

amount of the interest.

(3) Notwithstanding the provisions of paragraph (2) interest arising in a

Contracting State and derived by the Government of the other Contracting State

including political sub-divisions and local authorities thereof, the Central Bank or

any statutory body of that other Contracting State with respect to loans or credits

made or guaranteed by the Government of that other Contracting State including

political sub-divisions and local authorities thereof, the Central Bank or any

statutory body of that other Contracting State shall be exempt from tax in the first-

mentioned Contracting State.

(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. Penalty charges for late payment

shall not be regarded as interest for the purpose of this Article.

(5) The provisions of paragraphs (1) and (2) shall not apply if the beneficial

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

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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

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

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 paid 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) The term "royalties" in this Article means payments or credits, whether

periodical or not, and however described or computed, to the extent to which they

are made as consideration for

(a) the use of, or the right to use, any copyright, patent, design or model,

plan, secret formula or process, trademark or other like property or

right;

(b) the use of, or the right to use, any industrial, commercial or scientific

equipment;

(c) the supply of scientific, technical, industrial or commercial knowledge

or information;

(d) the supply of any assistance that is ancillary and subsidiary to, and is

furnished as a means of enabling the application or enjoyment of, any

such property or right as is mentioned in sub-paragraph (a), any such

equipment as is mentioned in sub-paragraph (b), or any such knowledge

or information as is mentioned in sub-paragraph (c);

(e) the use of, or the right to use

(i)

motion picture films;

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(ii) films or video tapes for use in connection with television; or

(iii) tapes for use in connection with radio broadcasting; or

(f)

total or partial forbearance in respect of the use or supply of any

property or right referred to in this paragraph.

(4) The provisions of paragraphs (1) and (2) shall not apply if the beneficial

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

the other Contracting 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.

(5) 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

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

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

establishment or fixed base is situated.

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

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

royalties, having regard to the use, right or information for which they are paid,

exceeds the amount which would have been agreed upon by the payer and the

beneficial owner in the absence of such relationship, the provisions of this Article

shall apply only to the last-mentioned amount. In such case, the excess part of the

payments shall remain taxable according to the laws of each Contracting State, due

regard being had to the other provisions of this Agreement.

ARTICLE 13

Alienation of Property

(1) Income or gains from the alienation of immovable property, as defined in

paragraph (2) of Article 6, may be taxed in the Contracting State in which such

property is situated.

(2) Income or gains from the alienation of shares or comparable interests in a

company, the assets of which consist wholly or principally of immovable property,

may be taxed in the Contracting State in which the assets or the principal assets of

the company are situated.

(3) Income or gains from the alienation of movable property forming part of the

business property of a permanent establishment which an enterprise of a Contracting

State has in the other Contracting State or of movable property pertaining to a fixed

base available to a resident of a Contracting State in the other Contracting State for

the purpose of performing independent personal services, including such income or

gains from the alienation of such a permanent establishment (alone or together with

the whole enterprise) or of such fixed base, may be taxed in the other State.

(4) Income or gains from the alienation of ships, aircraft and road vehicles

operated in international traffic or movable property pertaining to the operation of

such means of transportation shall be taxable only in the Contracting State in which

the place of effective management of the enterprise is situated.

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(5) Income or gains from the alienation of any property other than that referred

to in paragraphs (1), (2), (3) and (4), shall be taxable only in the Contracting State of

which the alienator is a resident.

ARTICLE 14

Independent Personal Services

(1) Income derived by a resident of a Contracting State in respect of

professional services or other activities of an independent character shall be taxable

only in that State. However, such income may be taxed in the other Contracting State

in the following circumstances

(a) if he has a fixed base regularly available to him in the other Contracting

State for the purpose of performing his activities (in which case only so

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

that other Contracting State); or

(b) if his stay in the other Contracting State is for a period or periods

amounting to or exceeding in the aggregate 183 days during any twelve

month period; or

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

derived from residents of that State and exceeds five thousand U.S.

dollars (US$ 5,000) during the calendar year, notwithstanding that his

stay in that State is for a period or periods amounting in the aggregate to

less than 183 days during that twelve month period.

(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, 19 and 20, salaries, wages and

other similar remuneration derived by a resident of a Contracting State in respect of

an employment shall be taxable only in that State unless the employment is exercised

in the other Contracting State. If the employment is so exercised, such remuneration

as is derived therefrom may be taxed in that other State.

(2) Notwithstanding the provisions of paragraph (1), remuneration derived by a

resident of a Contracting State in respect of an employment exercised in the other

Contracting State shall be taxable only in the first-mentioned State if

(a) the recipient is present in the other State for a period or periods not

exceeding in the aggregate 183 days in any twelve month period, and

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

resident of the other State, and

(c) the remuneration is not borne by a permanent establishment or a fixed

base which the employer has in the other State.

(3) Notwithstanding the preceding provisions of this Article, remuneration

derived in respect of an employment exercised aboard a ship, aircraft or road vehicle

operated in international traffic may be taxed in the Contracting State in which the

place of effective management of the enterprise is situated.

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ARTICLE 16

Directors’ Fees

Directors’ fees and similar payments derived by a resident of one of the

Contracting States in his capacity as a member of the board of directors, or other

comparable body however described, 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 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

Contracting 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) Notwithstanding the provisions of paragraphs (1) and (2) of this Article

income mentioned in this Article shall be exempt from tax in the Contracting State in

which the activity of the entertainer or athlete is exercised provided that this activity

is supported in a considerable part out of public funds of this State or of the other

State or the activity is exercised under a cultural agreement or arrangement between

the Contracting States.

ARTICLE 18

Pensions

(1) Subject to the provisions of paragraph (2) of Article 19, pensions and other

similar remuneration paid to a resident of a Contracting State in consideration of

past employment shall be taxable only in that State.

(2) Notwithstanding the provisions of paragraph (1), pensions and other

payments made under the social security legislation of a Contracting State or a

political subdivision or a local authority thereof shall be taxable only in that State.

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 purposes of

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rendering the services.

(2) (a) Any pension paid by, or out of funds created by a Contracting State or

a political subdivision or a local authority thereof to an individual in respect of

services rendered to that State or subdivision or authority shall be taxable only in

that State.

(b) However, such pension shall be taxable only in the other Contracting State if

the individual is a resident of, and a national of, that State.

(3) The provisions of Articles 15, 16 and 18 shall apply to remuneration and

pensions in respect of services rendered in connection with any business carried on

by a Contracting State or a political subdivision or a local authority thereof.

(4) 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

Teachers

(1) Remuneration which a professor or teacher 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 for a period not exceeding two years for the

purpose of carrying out advanced study or research or for teaching at a university,

college, school or other educational institution receives for such work shall not be

taxed in that State, provided that such remuneration is derived by him from outside

that State.

(2) This Article shall not apply to income from research if such research is

undertaken primarily for the private benefit of a specific person or persons.

ARTICLE 21

Students and Trainees

An individual who is resident of a Contracting State immediately before making a

visit to the other Contracting State and is temporarily present in the other State

solely

(a) as a student at a recognised university, college, school or other similar

recognised educational institution in that other State; or

(b) as a business or technical apprentice; or

(c) as a recipient of a grant, allowance or award for the primary purpose of

study, research or training from the government of either State or from a

scientific, educational, religious, or charitable organisation or under a

technical assistance programme entered into by the Government of

either State,

shall be exempt from tax in that other State on

(a) all remittances from abroad for the purposes of his maintenance,

education, study, research or training;

(b) the amount of such grant, allowance or award; and

(c) any remuneration not exceeding six thousand U.S. dollars (US$ 6,000)

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in respect of services in that other State provided the services are

performed in connection with his study, research or training or are

necessary for the purpose of his maintenance.

ARTICLE 22

Other Income

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

dealt with in the foregoing Articles of this Agreement shall be taxable only in that

State.

(2) The provisions of paragraph (1) shall not apply to income, other than income

from immovable property as defined in paragraph (2) of Article 6, if the recipient of

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

Contracting State through a permanent establishment situated therein, or performs in

that other State independent personal services from a fixed base situated therein, and

the right or property in respect of which the income is paid is effectively connected

with such permanent establishment or fixed base. In such case, the provisions of

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

CHAPTER IV

Taxation of Capital

ARTICLE 23

Capital

(1) Capital represented by immovable property referred to in Article 6, 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

State.

(3) Capital represented by ships and aircraft operated in international traffic and

by boats engaged in inland waterways transport, and by movable property pertaining

to the operation of such ships, aircraft and boats, shall be taxable only in the

Contracting State in which the place of effective management of the enterprise is

situated.

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

taxable only in that State.

CHAPTER V

Elimination of Double Taxation

ARTICLE 24

Elimination of Double Taxation

(1)

In the case of Cyprus double taxation shall be eliminated as follows

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Subject to the provisions of the law of Cyprus regarding the allowance as a credit

against Cyprus tax of tax payable in a territory outside Cyprus, Malta tax payable

under the laws of Malta, whether directly or by deductions in respect of profits,

income or gains from sources within Malta shall be allowed as a credit against any

Cyprus tax payable in respect of that profit, income or gains. Such deduction shall

not, however, exceed that part of the tax, as computed before the deduction is given,

which is appropriate to such income derived in Malta.

(2)

In the case of Malta, double taxation shall be eliminated as follows

Subject to the provisions of the law of Malta regarding the allowance of a credit

against Malta tax in respect of foreign tax, where, in accordance with the provisions

of this Agreement, there is included in a Malta assessment income from sources

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

relative Malta tax payable thereon.

(3) The tax payable in a Contracting State mentioned in paragraphs (1) and (2)

of this Article shall be deemed to include the tax which would have been payable but

for the legal provisions concerning tax reduction, exemption or other tax incentives

granted under the laws of the Contracting State, provided that in the case of

dividends, interest or royalties any such tax which has been exempted or reduced

shall be deemed to have been paid at

(a) 15 per cent of the gross amount of the dividends referred to in Article

10;

(b) 10 per cent of the gross amount of the interest referred to in Article 11;

and

(c) 10 per cent of the gross amount of the royalties referred to in Article 12.

(4) Where under the provisions of this Agreement income is relieved from tax in

one of the Contracting States and, under the law in force in the other Contracting

State, a person, in respect of the said income, is subject to tax by reference to the

amount thereof which is remitted to or received in that other Contracting State and

not by reference to the full amount thereof then the relief to be allowed under this

Agreement in the first mentioned Contracting State shall apply only to so much of

the income as is remitted to or received in the other Contracting State.

CHAPTER VI

Special Provisions

ARTICLE 25

Non-discrimination

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

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

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

nationals of that other State in the same circumstances are or may be subjected. This

provision shall, notwithstanding the provisions of Article 1, also apply to persons

who are not residents of one or both of the Contracting States.

(2) 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)

Except where the provisions of paragraph (1) of Article 9, paragraph (7) of

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Article 11, or paragraph (6) of Article 12 apply, interest, royalties and other

disbursements paid by an enterprise of a Contracting State to a resident of the other

Contracting State shall, for the purpose of determining the taxable profits of such

enterprise, be deductible under the same conditions as if they had been paid to a

resident of the first-mentioned State. Similarly, any debts of an enterprise of a

Contracting State to a resident of the other Contracting State shall, for the purpose of

determining the taxable capital of such enterprise, be deductible under the same

conditions as if they had been contracted to a resident of the first-mentioned State.

(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 that first-

mentioned State are or may be subjected.

(5) Nothing in this Article shall be construed as obliging a Contracting State to

grant to individuals who are resident of the other Contracting State any personal

allowances, reliefs and reductions for tax purposes on account of civil status, family

responsibilities or any other personal circumstances which it grants to its own

residents.

(6) The provisions of this Article shall, notwithstanding the provisions of

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

ARTICLE 26

Mutual Agreement Procedure

(1) Where a person considers that the actions of one or both of the Contracting

States result or will result for him in taxation not in accordance with the provisions

of this Agreement, he may, irrespective of the remedies provided by the domestic

law of those States, present his case to the competent authority of the Contracting

State of which he is a resident or, if his case comes under paragraph (1) of Article

24, to that of the Contracting State of which he is a national. The case must be

presented within three years from the first notification of the action resulting in

taxation not in accordance with the provisions of the Agreement.

(2) The competent authority shall endeavour, if the objection appears to it to be

justified and if it is not itself able to arrive at a satisfactory solution, to resolve the

case by mutual agreement with the competent authority of the other Contracting

State, with a view to the avoidance of taxation which is not in accordance with the

Agreement. Any agreement reached shall be implemented notwithstanding any time

limits in the domestic law of the Contracting States.

(3) The competent authorities of the Contracting States shall endeavour to

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

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

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

(4) The competent authorities of the Contracting States may communicate with

each other directly for the purpose of reaching an agreement in the sense of the

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

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

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

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ARTICLE 27

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. The

exchange of information is not restricted by Article 1. Any information received by a

Contracting State shall be treated as secret in the same manner as information

obtained under the domestic laws of that State and shall be disclosed only to persons

or authorities (including courts and administrative bodies) involved in the

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

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

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

disclose the information in public court proceedings or in judicial decisions.

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

on a Contracting State the obligation

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

administrative practice of that or of the other Contracting State;

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

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

State;

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

industrial, commercial or professional secret or trade process, or

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

(ordre public).

ARTICLE 28

Diplomatic and Consular Officers

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.

CHAPTER VII

Final Provisions

ARTICLE 29

Entry into Force

(1) The Government of the Contracting States shall notify each other that the

constitutional requirements for the entry into force of this Agreement have been

complied with.

(2) The Agreement shall enter into force thirty days after the date of the later of

the notifications referred to in paragraph (1) and its provisions shall have effect

(a) in Cyprus

in respect of taxes which are levied on any income or capital which has

accrued on or after the first day of January,

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(b) in Malta

in respect of taxes for any year of assessment beginning on or after the

first day of January in the year immediately following the year of the

signature.

ARTICLE 30

Termination

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

Either Contracting State may terminate the Agreement, through diplomatic channels,

by giving notice of termination at least six months before the end of any calendar

year beginning after the expiration of a period of five years from the date of its entry

into force. In such event, the Agreement shall cease to have effect

(a) in Cyprus

in respect of taxes for any year of assessment beginning in the year

following the year in which the notice of termination has been given;

(b) in Malta

in respect of taxes for any year of assessment beginning on or after the

first day of January in the second calendar year next following that in

which the notice of termination has been given.

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

respective Governments, have signed this Agreement.

DONE in duplicate at Rome this 22nd day of October, 1993, in the English

FOR THE GOVERNMENT OF MALTA

FOR THE GOVERNMENT OF THE

REPUBLIC OF CYPRUS

CARMEL J. AQUILINA

PEDROS MICHAELIDES

AMBASSADOR FOR MALTA

CYPRIOT HIGH COMMISSIONER

FOR MALTA