DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM OF BELGIUM ORDER

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE KINGDOM OF BELGIUM

SUBSIDIARY LEGISLATION 123.05

DOUBLE TAXATION RELIEF ON TAXES ON

INCOME WITH THE KINGDOM OF BELGIUM

ORDER

20th August, 1976

13th September, 2013 *

LEGAL NOTICE 108 of 1976, as amended by Legal Notice 83 of 2003

and 274 of 2013, as modified by S.L.123.183.

The title of this Order is Double Taxation Relief Double

Taxation Relief on Taxes on Income with the Kingdom of Belgium

Order.

Amended by

L.N. 83 of 2003;

L.N. 274 of 2013.

AGREEMENT

BETWEEN THE STATE OF MALTA AND

THE KINGDOM OF BELGIUM

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

The Government of the State of Malta and the Government of the Kingdom of

Belgium, desiring to conclude an Agreement for the avoidance of double taxation

and the prevention of fiscal evasion, have agreed as follows

I.

Scope of the Agreement

ARTICLE 1

Personal scope

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

Contracting States.

ARTICLE 2

Taxes covered

(1) This Agreement shall apply to taxes on income and on capital imposed on

behalf of each Contracting State or its political subdivisions or local authorities,

irrespective of the manner in which they are levied.

(2) The existing taxes to which this Agreement shall apply are in particular: 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 and salaries paid by enterprises, as well as taxes an capital

appreciation.

(3)

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

(a) in Belgium

(i)

the individual income tax;

(ii)

the corporate income tax;

(iii)

the income tax on legal entities;

(iv)

the income tax on non-residents;

(v)

the special levy assimilated to the individual income tax;

including the prepayments, the surcharges on these taxes and

prepayments, and the supplements to the individual income tax,

(hereinafter referred to as "Belgian tax")

(b) in Malta

the income tax, including prepayments of tax whether made by

deduction at source or otherwise,

(hereinafter referred to as "Malta tax").

(4) This Agreement shall also apply 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

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

taxation laws.

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

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

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

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

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

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

received in the other State.

II.

Definitions

ARTICLE 3

General definitions

(1)

In this Agreement, unless the context otherwise requires

(a) the term "Belgium", when used in a geographical sense, means the Kingdom

of Belgium, including the territorial waters thereof, and any area outside the

territorial sea of Belgium which, in accordance with international law, has been or

may hereafter be designated, under the laws of Belgium concerning the continental

shelf, as an area within which the rights of Belgium with respect to the sea-bed and

subsoil and their natural resources may be exercised;

(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 laws 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

Belgium or Malta as the context requires;

(d) the term "person" comprises 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 respect of Belgium any individual possessing the nationality of

Belgium and any legal person, partnership and association deriving its

status as such from the law in force in Belgium;

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

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

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

the law in force in Malta;

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

operated by an enterprise which has its place of effective management in a

Contracting State, except when the ship or aircraft is operated solely between places

in the other Contracting State;

(i)

the term "competent authority" means

(i)

in the case of Belgium, the Minister responsible for 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 Contracting State relating to the taxes which are

the subject of this Agreement.

ARTICLE 4

Fiscal Domicile

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

State" means any person, whose income is subject to tax in that State, by reason of

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

nature, but does not include any person who is liable to tax in that Contracting State

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

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

resident of both Contracting States, then his case shall be determined in accordance

with the following rules

(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 Contracting States, he shall be deemed to be a

resident of the Contracting State with which his personal and economic

relations are closest (centre of vital interests).

(b) If the Contracting 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 Contracting 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 Contracting 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 Contracting 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 purposes of this Agreement the term "permanent establishment"

means a fixed place of business in which the business of the enterprise is wholly or

partly carried on.

(2)

The term "permanent establishment" shall include especially

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f)

a mine, quarry or other place of extraction of natural resources;

(g) a building site or construction or assembly project which exists for more

than twelve months.

(3)

The term "permanent establishment" shall not be deemed to include

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

of goods or merchandise belonging to the enterprise;

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

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

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

enterprise solely for the purpose of processing by another enterprise;

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

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

enterprise;

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

advertising, for the supply of information, for scientific research or for

similar activities which have a preparatory or auxiliary character, for

the enterprise.

(4) A person acting in a Contracting State on behalf of an enterprise of the other

Contracting State - other than an agent of an independent status to whom paragraph

(5) applies - shall be deemed to be a permanent establishment in the first-mentioned

State if he has, and habitually exercises in that State, an authority to conclude

contracts in the name of the enterprise, unless his activities are limited to the

purchase of goods or merchandise for the enterprise.

(5) 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

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

of their business.

(6) 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 make either company a permanent

establishment of the other.

III.

Taxation of Income

ARTICLE 6

Income from immovable property

(1) Income from immovable property may be taxed in the Contracting State in

which such property is situated.

(2) The term "immovable property" shall be defined in accordance with the law

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

in any case include property accessory to immovable property, rights to which the

provisions of general law respecting immovable property apply, usufruct of

immovable property and rights to variable or fixed payments as consideration for the

working of, or the right to work, mineral deposits, sources and other natural

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

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

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

(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 professional services.

ARTICLE 7

Business profits

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

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

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

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

only so much of them as 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 and the same or similar conditions and dealing wholly independently with

the enterprise of which it is a permanent establishment.

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

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

permanent establishment including executive and general administrative expenses so

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

elsewhere.

(4) In so far as it has been customary in a Contracting State to determine the

profits to be attributed to a permanent establishment on the basis of an

apportionment of the total profits of the enterprise to its various parts, nothing in

paragraph (2) shall preclude that Contracting State from determining the profits to be

taxed by an apportionment as may be customary. The method of apportionment

adopted shall, however, be such that the result shall be in accordance with the

principles laid down in this Article.

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

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

enterprise. For the purposes of the preceding paragraphs, the profits to be attributed

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

year unless there is good and sufficient reason to the contrary.

(7) Where profits include items of income which are dealt with separately in

other Articles of this Agreement, then the provisions of these Articles shall not be

affected by the provisions of this Article.

ARTICLE 8

Shipping and air transport

(1) Profits from the operation of ships or aircraft 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, then it shall be decided to be situated in the Contracting State in which the

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

Contracting State of which the operator of the ship is a resident.

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

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

ARTICLE 9

Associated enterprises

Where -

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

the arrangement, 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.

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 be taxed in the Contracting State of which the

company paying the dividends is a resident and according to the law of that State,

but -

(a) where dividends are paid by a company resident of Belgium to a

resident of Malta who is the beneficial owner thereof, the tax so charged

shall not exceed 15 per cent of the gross amount of the dividends; this

provision shall not affect the taxation of the Belgian company in respect

of the profits out of which the dividends are paid;

(b) where dividends are paid by a company resident of Malta to a resident

of Belgium who is the beneficial owner thereof -

(i)

Malta tax shall not exceed that chargeable on the company paying

the dividends in respect of the profits so distributed;

(ii) notwithstanding the provisions of sub-paragraph (i) hereof, Malta

tax shall not exceed 15 per cent of the dividends if such dividends

are paid out of gains or profits earned in any year in respect of

which the company is in receipt of any benefit under the

provisions regulating aids to industries in Malta, and the

shareholder submits returns and accounts to the taxation

authorities of Malta in respect of his income liable to Malta tax

for the relative year of assessment.

(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 taxation treatment as income from shares by the taxation law of the

State of which the Company making the distribution is a resident. This term means

also income, even when paid in the form of interest, which is taxable under the head

of income on capital invested by the members of a company other than a company

with share capital, which is a resident of Belgium.

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

services from a fixed base situated therein and the holding in respect of which the

dividends are paid is effectively connected with such permanent establishment or

fixed base. In such case, the dividends may be taxed by that other State in

accordance with its law.

(5) Where a company which is a resident of one of the Contracting States

derives profits or income from the other Contracting State, that other State may not

impose any tax on the dividends paid by the company to residents of the first

mentioned State, or subject the company’s undistributed profits to a tax on

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

wholly or partly of profits or income arising in that other State; this provision shall

not prevent that other State from taxing dividends relating to a holding which is

effectively connected with a permanent establishment maintained in that other State

by a resident of the first-mentioned State.

ARTICLE 11

Interest

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

Contracting State may be taxed in that other State.

(2) However, such interest may also be taxed in the Contracting State in which

it arises, and according to the law 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 amount

of the interest.

(3)

Notwithstanding the provisions of paragraph (2) -

(a) interest arising in Belgium and paid to the State of Malta, the Central

Bank of Malta or any other institution the capital of which is wholly

owned by the State of Malta shall be exempt from Belgian tax;

(b) interest arising in Malta and paid to the Kingdom of Belgium, the

National Bank of Belgium or any other institution the capital of which

is wholly owned by the Kingdom of Belgium shall be exempt from

Malta tax;

(c) interest on commercial debt-claims - including debt-claims represented

by negotiable instruments - resulting from deferred payments for goods,

merchandise or services supplied by an enterprise of a Contracting State

shall be exempt from tax in the other 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 bonds or debentures, as well as income assimilated to or taxed in the

same way as income from money lent by the taxation law of the State in which the

income arises. However, the term "interest" does not include for the purpose of this

Article, penalty charges far late payment nor interest treated as dividends under

paragraph (3) of Article 10.

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

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

Contracting State in which the interest arises through a permanent establishment

situated therein or performs in that other State professional 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 a

case, the provisions of Article 7 or Article 14 of this Agreement, 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 in

connection with which the indebtedness of which the interest is paid was incurred,

and such interest is borne by such permanent establishment, then such interest shall

be deemed to arise in the Contracting State in which the permanent establishment is

situated.

(7) Where, owing to a special relationship between the payer and the recipient

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 recipient in the absence of such

relationship, the provisions of this Article shall apply only to the last mentioned

amount. In that case, the excess part of the payments shall remain taxable according

to the law of each Contracting State, due regard being had to the other provisions of

this Agreement.

ARTICLE 12

Royalties

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

Contracting State shall be taxable only in that other State if such resident is the

beneficial owner of the royalties and the royalties consist of payments of any kind

received as a consideration for the use of, or the right to use, any copyright of

literary, artistic or scientific work, including cinematographic films or tapes for

television or broadcasting.

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

Contracting State may be taxed in that other Contracting State if the royalties consist

of payments of any kind received as a consideration for the use of, or the right to use,

any patent, trade mark, design, model, plan, secret formula or process, industrial,

commercial or scientific equipment, or information concerning industrial,

commercial or scientific experience. However, such royalties may also be taxed in

the Contracting State in which they arise, and according to the law 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 such royalties.

(3) The provisions of paragraphs (1) and (2) of this Article shall not apply if the

recipient 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 professional 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 a case, the provisions of Article 7 or Article 14 of this

Agreement, as the case may be, shall apply.

(4) 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 in

connection with which the contract under which the royalties are paid was

concluded, and such royalties are borne by such permanent establishment, then such

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

establishment is situated.

(5) Where, owing to a special relationship between the payer and the recipient,

or between both of them and some other person, the amount of the royalties paid

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 recipient in the

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

last-mentioned amount. In that case, the excess paid of the payments shall remain

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

other provisions of this Agreement.

ARTICLE 13

Capital gains

(1) 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) 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 professional services, including such gains from the

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

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

from the alienation of moveable property of the kind referred to in paragraph (3) of

Article 22 shall be taxable only in the Contracting State in which such movable

property is taxable according to the said Article.

(3) Gains from the alienation of any property other than those mentioned in

paragraphs (1) and (2) shall be taxable only in the Contracting State of which the

alienator is a resident.

ARTICLE 14

Independent personal services

(l)

Income derived by a resident of a Contracting State in respect of

professional services or other independent activities of a similar character shall be

taxable only in that State unless he has a fixed base regularly available to him in the

other Contracting State for the purpose of performing his activities. If he has such a

fixed base, the income may be taxed in the other Contracting State but only so much

of it as is attributable to that fixed base.

(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 13, 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 the calendar year concerned, and

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

resident of the other State, and

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

base which the employer has in the other State.

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

respect of an employment exercised aboard a ship or aircraft in international traffic,

may be taxed in the Contracting State in which the place of effective management of

the enterprise is situated.

ARTICLE 16

Company Managers

(1) Directors’ fees and other similar payments derived by a resident of a

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

organ of a company which is a resident of the other Contracting State may be taxed

in that other State.

This provision shall also apply to payment derived in respect of the

discharge of functions which, under the law of the Contracting State of which the

company is a resident, are regarded as functions of a similar nature as those

performed by a person referred to in the said provision.

(2) Remuneration derived by a person referred to in paragraph (1) from the

company in respect of the discharge of day-to-day functions of a managerial or

technical nature and remuneration received by a resident of a Contracting State in

respect of his personal activity as a partner of a company, other than a company with

share capital, which is a resident of the other Contracting State, may be taxed in

accordance with the provisions of Article 15, as if the remuneration were

remuneration of an employee in respect of an employment and as if references to the

employer were references to the company.

ARTICLE 17

Artistes and athletes

(1) Notwithstanding the provisions of Articles 14 and 15, income derived by

public entertainers, such as theatre, motion picture, radio or television artistes, and

musicians, and by athletes, from their personal activities as such may be taxed in the

Contracting State in which these activities are exercised.

(2) Where income in respect of personal activities as such of an entertainer or

athlete accrues not to that 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.

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) However, pensions and other allowances, periodic or non periodic, paid

under the social security legislation of a Contracting State or under a public scheme

organised by a Contracting State in order to supplement the benefits of that

legislation shall be taxed 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 any individual in respect of

services rendered in that State or subdivision or local authority thereof 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 recipient is a resident of that

other Contracting State who

(i)

is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of

performing 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 any individual in respect of

services rendered to that State or subdivision or local authority thereof shall be

taxable only in that State.

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

State if the recipient is a national of and a resident of that State.

(3) The provisions of paragraph (1) shall likewise apply in respect of

remuneration paid under a development assistance programme of a Contracting

State, a political subdivision or a local authority thereof, out of funds exclusively

supplied by that State, those political subdivisions or local authorities thereof, to a

specialist or volunteer seconded to the other Contracting State with the consent of

that other State.

(4) 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.

ARTICLE 20

Teachers, students and trainees

(1) Remuneration which a professor or teacher who is, or immediately before

was, a resident of a Contracting State and who visits the other Contracting State for a

period not exceeding two years for the purpose of carrying out advanced study or

research or for teaching at a university or any other recognized educational

institution receives for such work shall not be taxed in that other State.

(2) An individual who was a resident of a Contracting State immediately before

visiting the other Contracting State and is temporarily present in that other State

solely as a student at a university or any other recognized educational institution in

that other State or as a business apprentice shall, from the date of his first arrival in

that other State in connection with that visit, be exempt from tax in that other State

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

education or training; and

(b) for a period not exceeding in the aggregate four years, on any

remuneration not exceeding 120,000 Belgian Francs or the equivalent in

Malta currency, for each calendar year for personal services rendered in

that other Contracting State with a view to supplementing the resources

available to him for such purposes.

(3) An individual who was a resident of a Contracting State immediately before

visiting the other Contracting State and is temporarily present in that other State

solely for the purpose of study, research or training as a recipient of a grant,

allowance or award f rom a scientific, educati onal, r elig ious o r ch arit able

organisation or under a technical assistance programme entered into by the

Government of a Contracting State shall, from the date of his first arrival in that

other State in connection with that visit, be exempt from tax in that other State

(a) on the amount of such grant, allowance or award: and

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

education or training.

ARTICLE 21

Other income

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

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

State.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE KINGDOM OF BELGIUM

(2) The provisions of paragraph (1) shall not apply if the recipient of the

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 professional 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 a case, the provisions of Article 7 or

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

IV.

Taxation of Capital

ARTICLE 22

(1) Capital represented by immovable property, as defined in paragraph (2) of

Article 6, may be taxed in the Contracting State in which such property is situated.

(2) Capital represented by movable property forming part of the business

property of a permanent establishment of an enterprise, or by moveable property

pertaining to a fixed base used for the performance of professional services, may be

taxed in the Contracting State in which the permanent establishment or fixed base is

(3) Ships and aircraft operated in international traffic, and movable property

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

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

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

taxable only in that State.

V.

Elimination of Double Taxation

ARTICLE 23

(1)

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

(a) Where a resident of Belgium derives income or owns items of capital

which may be taxed in Malta in accordance with the provisions of this

Agreement, other than those of subparagraph (b) of paragraph (2) of

Article 10, of paragraphs (2) and (7) of Article 11 and of paragraphs (2)

and (5) of Article 12, Belgium shall exempt such income or such items

of capital from tax but may, in calculating the amount of tax on the

remaining income or capital of that resident, apply the rate of tax which

would have been applicable if such income or items of capital had not

been exempted.

(b) (i) Subject to the provisions of the Belgian law regarding the allowance

as a credit against Belgian tax of taxes paid abroad, when a resident of

Belgium derives items of his aggregate income for Belgian tax purposes

which are dividends taxable in accordance with paragraph (2)(b) of

Article 10, not exempt from Belgian tax in accordance with

subparagraph (c) hereof, or interest taxable in accordance with

paragraphs (2) or (7) of Article 11, or royalties taxable in accordance

with paragraphs (2) or (5) of Article 12, the Malta tax levied on that

income shall be allowed as a credit against Belgian tax relating to such

income.

(ii) Belgium shall also allow the credit provided for in (i) of this

subparagraph in respect of tax chargeable on dividends or interest

derived from direct investment which are taxable in Malta by virtue of

the Agreement and the general law of Malta where such tax is

temporarily remitted or reduced under special provisions designed to

promote the economic development of Malta.

Such credit shall apply for the first five years for which the

Supplementary Agreement is effective; however the competent

authorities of the Contracting States may consult each other to

determine whether this period of time shall be extended or not.

The term ''dividends or interest derived from direct investment'' means

dividends paid in respect of shares or interest paid in respect of debt-

claims which are directly and durably connected with industrial or

commercial development projects in Malta..

(c) Where a company which is a resident of Belgium owns shares in a

company which is a resident of Malta, dividends which are paid to it by

the latter company and which may be taxed in Malta in accordance with

subparagraph (b) of paragraph (2) of Article 10, shall be exempt from

the corporate income tax in Belgium under the conditions and within the

limits provided for in Belgian law.

(d) When, in accordance with Belgian law, losses of a Belgian enterprise

attributable to a permanent establishment situated in Malta have been

effectively deducted from the profits of that enterprise for its taxation in

Belgium, the exemption provided in sub-paragraph (a) shall not apply in

Belgium to the profits of other taxable periods attributable to that

establishment to the extent that those profits have also been exempted

from tax by Malta by reason of compensation for the said losses.

(2)

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

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

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

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

within Belgium or elements of capital situated in Belgium, the Belgian tax on such

income or elements of capital shall be allowed as a credit against Malta tax payable

VI.

Special Provisions

ARTICLE 24

Non-discrimination

(1) Notwithstanding the provisions of Article 1, the nationals of a Contracting

State, whether or not they are residents of one of the Contracting States, shall not be

subjected in the other Contracting State to any taxation or any requirement

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

connected requirements to which nationals of that other State in the same

circumstances are or may be subjected.

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

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

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

carrying on the same activities.

This provision shall not be construed as obliging a Contracting State to grant to

residents of the other Contracting State any personal allowances, reliefs and

reductions for taxation purposes on account of civil status or family responsibilities

which it grants to its own residents.

(3) Except where the provisions of Article 9, or paragraph (7) of Article 11, or

paragraph (5) 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 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 Contracting 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 preventing Belgium

(a) from taxing the total amount of the profits attributable to a permanent

establishment in Belgium of a company being a resident of Malta or of

an association having its place of effective management in Malta at the

rate of tax provided by the Belgian law, but this rate may not exceed the

maximum rate applicable to the whole or a portion of the profits of

companies which are residents of Belgium;

(b) from imposing the movable property prepayment on dividends derived

from a holding which is effectively connected with a permanent

establishment or a fixed base maintained in Belgium by a company

which is a resident of Malta or by an association which has its place of

effective management in Malta and is taxable as a body corporate in

Belgium.

(6)

In this Article the term ''taxation'' means taxes of every kind and description.

ARTICLE 25

Mutual agreement procedure

(1) Where a resident of a Contracting State considers that the actions of one or

both of the Contracting States result or will result for him in taxation not in

accordance with this Agreement, he may, saving the remedies provided by the

national laws of those States, present his case to the competent authority of the

Contracting State of which he is a resident. This case must be presented within three

years of the first notification of the action which gives rise to taxation not in

accordance with 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 an appropriate solution, to resolve the

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

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

Agreement.

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

resolve by mutual agreement any difficulties or doubts arising as to the application

of the Agreement.

(4) The competent authorities of the Contracting States shall agree on

administrative measures necessary to carry out the provisions of the Agreement,

particularly on the proofs to be furnished by residents of either Contracting State in

order to benefit in the other Contracting State from the exemptions and reductions

provided for in the Agreement.

(5) The competent authorities of the Contracting States shall communicate

directly with each other for the application of the Agreement.

ARTICLE 26

Exchange of information

(1) The competent authorities of the Contracting States shall exchange such

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

Agreement or to the administration or enforcement of the domestic laws concerning

taxes of every kind and description imposed by or on behalf of the Contracting

States, insofar as the taxation thereunder is not contrary to the Agreement. The

exchange of information is not restricted by Articles 1 and 2.

(2) Any information received under paragraph 1 by a Contracting State shall be

treated as secret in the same manner as information obtained under the domestic laws

of that State and shall be disclosed only to persons or authorities (including courts

and administrative bodies) concerned with the assessment or collection of, the

enforcement or prosecution in respect of, the determination of appeals in relation to

the taxes referred to in paragraph 1, or the oversight of the above. Such persons or

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

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

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

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

of both States and the competent authority of the supplying State authorises such

use.

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

impose on a Contracting State the obligation

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

administrative practice of that or of the other Contracting State;

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

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

State;

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

industrial, commercial or professional secret or trade process, or

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

(ordre public).

(4) If information is requested by a Contracting State in accordance with the

provisions of this Article, the other Contracting State shall use its information

gathering measures to obtain the requested information, even though that other State

may not need such information for its own tax purposes. The obligation contained in

the preceding sentence is subject to the limitations of paragraph 3 of this Article but

in no case shall such limitations be construed to permit a Contracting State to decline

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

(5) In no case shall the provisions of paragraph 3 of this Article be construed to

permit a Contracting State to decline to supply information solely because the

information is held by a bank, other financial institution, trust, foundation, nominee or

person acting in an agency or a fiduciary capacity or because it relates to ownership

interests in a person. In order to obtain such information the tax administration of the

requested Contracting State shall have the power to ask for the disclosure of information

and to conduct investigations and hearings notwithstanding any contrary provisions in its

domestic tax laws.ARTICLE 27

Diplomatic and Consular Officials

(1) Nothing in this Agreement shall affect diplomatic or consular privileges

under the general rules of international law or under the provisions of special

agreements.

(2) For the purposes of this Agreement, persons who are members of a

diplomatic or consular mission of a Contracting State in the other Contracting State

or in a third State and who are nationals of the sending State, shall be deemed to be

residents of the sending State if they are subjected therein to the same obligations in

respect of taxes on income and capital as are residents of that State.

VII.

Final Provisions

ARTICLE 28

Entry into force

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

exchanged at Brussels as soon as possible.

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

instruments of ratification, and its provisions shall have effect -

(a) in Belgium

(i)

in respect of taxes due at source on income credited or payable on

or after the first day of January in the calendar year immediately

following that in which the instruments of ratification have been

exchanged;

(ii) in respect of taxes other than taxes due at source, on income of

any accounting period ending on or after the 31st day of

December in the calendar year in which the instruments of

ratification have been exchanged;

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

beginning on or after the first day of January in the calendar year

immediately following that in which the instruments of ratification have

been exchanged.

ARTICLE 29

Termination

This Agreement shall remain in force indefinitely but either of the Contracting

States may, on or before the thirteenth day of June in any calendar year from the

third year following that in which the instruments of ratification have been

exchanged, give to the other Contracting State, through diplomatic channels, written

notice of termination and, in such event, the Agreement shall cease to have effect -

(a) in Belgium

(i)

in respect of taxes due at source on income credited or payable

after the 31st day of December of the calendar year in which the

notice of termination is given;

(ii) in respect of taxes other than taxes due at source, on income of

any accounting period ending after the 30th day of December of

the calendar year in which the notice of termination is given;

(b) in Malta: in respect of texes which are levied for the year of assessment

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

following that in which the notice of termination is given and for

subsequent years of assessment.

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

respective Governments, have signed this Agreement.

DONE at Brussels this 28th day of June, 1974, in duplicate in the English

language.

For the Government of

For the Government of

The Kingdom of Belgium

The State of Malta

R. VAN ELSLANDE

J. ATTARD KINGSWELL

PROTOCOL

At the signing of the Agreement between the Kingdom of Belgium and the State of

Malta for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion,

the undersigned have agreed that the following provisions shall form an integral part

of the Agreement

Notwithstanding the provisions of Article 8 of the Agreement, profits from the

operation of a ship in international traffic derived by a company which is a resident

of Malta having more than 25 per cent of its capital owned, directly or indirectly, by

persons not residents of Malta, may be taxed in Belgium unless the company proves

that the profits derived from the operation of such ship are subject to Malta tax

without regard to any relief therefrom as provided for in article 88 of the Merchant

Shipping Act, or in any identical or similar provision.

DONE at Brussels this 28th day of June, 1974, in duplicate in the English

language.

For the Government of

For the Government of

The Kingdom of Belgium

The State of Malta

R. VAN ELSLANDE

J. ATTARD KINGSWELL

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 Kingdom of Belgium with a

view to affording relief from double taxation and

preventing fiscal evasion in relation to the following

taxes imposed by the laws of the Kingdom of Belgium

(i)

individual income tax;

(ii)

corporate income tax;

(iii)

income tax on legal entities;

(iv)

income tax on non-residents;

including the prepayments, the surcharges on these

taxes and prepayments, and the communal supplement

to the individual income tax; and

(b) that it is expedient that those arrangements should

have effect.

*Came into force by Legal Notice 60 of 2020.