DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER (sl_123.6) | MT

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

Preamble — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER Open official source

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

SUBSIDIARY LEGISLATION 123.06

DOUBLE TAXATION RELIEF ON TAXES ON

INCOME WITH THE FEDERAL REPUBLIC OF

GERMANY ORDER

6th September, 2002

LEGAL NOTICE 254 of 2002, as amended by Legal Notice 383 of 2011.

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

Reg. 1 Citation. — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER Open official source

The title of this Order Double Taxation Relief on Taxes on

Income with the Federal Republic of Germany Order.

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

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AGREEMENT BETWEEN MALTA

AND THE FEDERAL REPUBLIC OF GERMANY

FOR THE AVOIDANCE OF DOUBLE TAXATION WITH

RESPECT TO TAXES ON INCOME AND ON CAPITAL

Malta and the Federal Republic of Germany, desiring to promote their mutual

economic relations by removing fiscal obstacles, have agreed as follows

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, of a Land or a political subdivision or local authority

thereof, 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 and taxes on

capital appreciation.

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

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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 Federal Republic of Germany with a view to

affording relief from double taxation in relation to the

following taxes imposed by the laws of the Federal

Republic of Germany

the income tax Einkommensteuer,

the corporation tax (Korperschaftsteuer),

the capital tax (Vermogensteuer), and

the trade tax (Gewerbesteuer),

including the supplements levied thereon;

(b) that it is expedient that those arrangements should

have effect;

(c) that the Agreement has entered into force on the 27th

December, 2001.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

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

a)

in the Federal Republic of Germany

the income tax (Einkommensteuer),

the corporation tax (Korperschaftsteuer),

the capital tax (Vermogensteuer), and

the trade tax (Gewerbesteuer),

including the supplements levied thereon

(hereinafter referred to as "German tax");

b)

in the Republic of Malta

the income tax

(hereinafter referred to as "Malta tax").

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

Reg. 4 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER Open official source

The Agreement shall apply also to any identical or substantially similar

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

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

shall -if necessary for the application of the Agreement - notify each other of

changes which have been made in their respective taxation laws.

Article 3

GENERAL DEFINITIONS

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

a)

the term "Federal Republic of Germany" means the territory of the

Federal Republic of Germany, as well as the area of the sea-bed, its sub-

soil and the superjacent water column adjacent to the territorial sea,

insofar as the Federal Republic of Germany exercises there sovereign

rights and jurisdiction in conformity with international law and its

national legislation to explore the continental shelf and exploit its

natural resources;

the term "Malta" means the Republic of Malta and, when used in a

geographical sense, means the Island of Malta, the Island of Gozo and

the other islands of the Maltese archipelago including the territorial

waters thereof, as well as any area of the sea-bed, its sub-soil and the

superjacent water column adjacent to the territorial waters, wherein the

Republic of Malta exercises sovereign rights, jurisdiction, or control in

accordance with international law and its national law, including its

legislation relating to the exploration of the Continental Shelf and

exploitation of its natural resources;

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

the Federal Republic of Germany or Malta, as the context requires;

the term "person" includes an individual and a company;

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

treated as a body corporate for tax purposes;

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;

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;

the term "national" means

aa) in respect of the Federal Republic of Germany, any German

within the meaning of the Basic Law of the Federal Republic of

Germany and any legal person, partnership and association

deriving its status as such from the laws in force in the Federal

Republic of Germany;

bb) in respect of Malta, any individual possessing the nationality of

Malta, and any legal person, partnership or association deriving

its status as such from the laws in force in Malta;

the term "competent authority" means

aa) in the case of the Federal Republic of Germany, the Federal

Ministry of Finance or the agency to which it has delegated its

powers;

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

authorised representative.

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

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

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

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

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

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

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

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

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

vital interests);

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

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

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

habitual abode;

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

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

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 company is a resident of

both Contracting States, then it shall be deemed to be a resident of the State in which

its place of effective management is situated.

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment"

means a fixed place of business through which the business of an enterprise is

wholly or partly carried on.

2. The term "permanent establishment" includes especially

a place of management;

a branch;

an office;

a factory;

a workshop, and

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

natural resources including an offshore drilling site.

3. A building site or construction or installation project constitutes a

permanent establishment only if it lasts more than nine months.

4. Notwithstanding the preceding provisions of this Article, the term

"permanent establishment" shall be deemed not to include

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.

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

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Notwithstanding the provisions of paragraphs 1 and 2, where a person -

other than an agent of an independent status to whom paragraph 6 applies - is acting

on behalf of an enterprise and has, and habitually exercises, in a Contracting State an

authority to conclude contracts in the name of the enterprise, that enterprise shall be

deemed to have a permanent establishment in that State in respect of any activities

which that person undertakes for the enterprise, unless the activities of such person

are limited to those mentioned in paragraph 4 which, if exercised through a fixed

place of business, would not make this fixed place of business a permanent

establishment under the provisions of that paragraph.

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

Reg. 6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER Open official source

An enterprise shall not be deemed to have a permanent establishment in a

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

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

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

Laws of Malta — Subsidiary Legislation 123.6 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER

Reg. 7 — DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE FEDERAL REPUBLIC OF GERMANY ORDER Open official source

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

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

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

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

permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

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

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

Contracting State may be taxed in that other State.

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

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

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

equipment and other business assets used in agriculture and forestry, rights to which

the provisions of general law respecting landed property apply, usufruct of

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

working of, or the right to work, 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

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

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 of them as is attributable to that permanent establishment.

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

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

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

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

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

activities under the same or similar conditions and dealing wholly independently

with the enterprise of which it is a permanent establishment.

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

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

permanent establishment, including executive and general administrative expenses

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

elsewhere.

4. Insofar as it has been customary in a Contracting State to determine the

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

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

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

taxed by such an apportionment as may be customary; the method of apportionment

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

principles contained in this Article.

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

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

enterprise.

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

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

unless there is good and sufficient reason to the contrary.

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

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

affected by the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits 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. For the purposes of this Article the term "profits from the operation of ships

or aircraft in international traffic" shall include profits from

a)

the occasional chartering of ships or aircraft, and

b)

the use or hiring out of containers (including trailers and ancillary

equipment used for transporting the containers),

if these activities pertain to the operation of ships or aircraft in international traffic.

3. If the place of effective management of a shipping enterprise is aboard a

ship, then it shall be deemed 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.

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

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

Article 9

ASSOCIATED ENTERPRISES

1. Where

a)

an enterprise of a Contracting State participates directly or indirectly in

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

Contracting State, or

b)

the same persons participate directly or indirectly in the management,

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

enterprise of the other Contracting State,

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

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

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

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

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

accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that

State - and taxes accordingly - profits on which an enterprise of the other

Contracting State has been charged to tax in that other State and the profits so

included are profits which would have accrued to the enterprise of the first-

mentioned State if the conditions made between the two enterprises had been those

which would have been made between independent enterprises, then that other State

shall make an appropriate adjustment to the amount of the tax charged therein on

those profits.In determining such adjustment, due regard shall be had to the other

provisions of this Agreement and the competent authorities of the Contracting States

shall if necessary consult each other.

Article 10

DIVIDENDS

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

resident of the other Contracting State 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 if the beneficial owner of the dividends is a resident of the other

Contracting State the tax so charged shall not exceed

a)

5 per cent of the gross amount of the dividends if the beneficial owner is

a company (other than a partnership) which holds directly at least 10 per

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

cent of the capital of the company paying the dividends;

b)

15 per cent of the gross amount of the dividends in all other cases.

3. In the case of Malta, the provisions of paragraph 2 shall not apply as long as

according to the Malta tax law the tax chargeable on the profits of a company may be

offset against the shareholder’s income tax. In such case the Malta tax on the gross

amount of the dividends paid by a company which is a resident of Malta to a resident

of the Federal Republic of Germany who is the beneficial owner thereof shall not

exceed

a)

that tax which is chargeable on the profits out of which the dividends

are paid; or

b)

15 per cent on the profits out of which the dividends are paid, if the

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.

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

"jouissance" shares or "jouissance" rights, mining shares, founders’ shares or other

income which is subjected to the same taxation treatment as income from shares by

the laws of the State of which the company making the distribution is a resident.The

term "dividends" includes also income derived by a sleeping partner ("stiller

Gesellschafter") from his participation as such or from a "partiarisches Darlehen",

"Gewinnobligationen" or similar payments and distributions on certificates of an

investment fund or investment trust.

5. The provisions of paragraphs 1 to 3 shall not apply if the beneficial owner of

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

Contracting State of which the company paying the dividends is a resident, through a

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

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

which the dividends are paid is effectively connected with such permanent

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

the case may be, shall apply.

6. 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

o n t h e c om pa n y’s u n d i st r ib u t ed p r o f it s, e v en i f t h e d i v i de n ds pa i d o r t he

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

other State.

Article 11

INTEREST

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

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

beneficial owner of the interest.

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

every kind, whether or not secured by mortgage, 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.

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

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

Contracting State in which the interest arises, through a permanent establishment

situated therein, 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.

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

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

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

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

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

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

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

other provisions of this Agreement.

Article 12

ROYALTIES

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

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

beneficial owner of the royalties.

2. The term "royalties" as used in this Article means payments of any kind

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

literary, artistic or scientific work including cinematograph films, any patent, trade

mark, design or model, plan, secret formula or process, or for information

concerning industrial, commercial or scientific experience.

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

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

Contracting State in which the royalties arise, through a permanent establishment

situated therein, 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.

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

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

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

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

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

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

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

regard being had to the other provisions of this Agreement.

Article 13

CAPITAL GAINS

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

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

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

other State.

2. Gains from the alienation of shares and similar rights in a company, the

assets of which consist principally of immovable property situated in a Contracting

State may be taxed in that State.

3. 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 gains from the

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

of such fixed base, may be taxed in that other State.

4. Gains from the alienation of ships or aircraft operated in international traffic

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

taxable only in the Contracting State in which the place of effective management of

the enterprise is situated.

5. Gains from the alienation of any property other than that referred to in

paragraphs 1 to 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 unless he has a fixed base regularly available to him in the other

Contracting State for the purpose of performing his activities or he is present in the

other Contracting State for a period or periods amounting to or exceeding in the

aggregate 183 days in any twelve-month period commencing or ending in the fiscal

year concerned. If he has such a fixed base or remains in that other State for the

aforesaid period or periods the income may be taxed in that other State but only so

much of it as is attributable to that fixed base or is derived in that other State during

the aforesaid period or periods.

2. The term "professional services" includes especially independent scientific,

literary, artistic, educational or teaching activities as well as the independent

activities of physicians, dentists, lawyers, engineers, architects and accountants.

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other

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

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

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

is derived therefrom may be taxed in that other State.

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

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

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

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

commencing or ending in the fiscal year concerned, and

b)

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

resident of the other State, and

c)

the remuneration is not borne by a permanent establishment 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 or aircraft operated in

international traffic may be taxed in the Contracting State in which the place of

effective management of the enterprise which operates the ship or aircraft is situated.

Article 16

DIRECTORS’ FEES

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

State in his capacity as a member of the board of directors of a company which is a

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

Article 17

ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 7, 14 and 15, income derived by

a resident of a Contracting State as an entertainer, such as a theatre, motion picture,

radio or television artiste, or a musician, or as a sportsman, from his personal

activities as such exercised in the other Contracting State, may be taxed in that other

State.

2. Notwithstanding the provisions of Article 12, the income derived by the

persons mentioned in paragraph 1 from their personal activities exercised in the

other Contracting State shall also include remuneration of any kind paid for the use

or the right to use the name, the picture or other personal rights of such persons. The

same applies to income derived from the toleration of the recording and transmission

of artistic and athletic performances by radio and television.

3. Where income as defined in paragraphs 1 and 2 accrues not to the entertainer

or sportsman 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 sportsman are exercised.

4. Paragraphs 1 and 3 shall not apply to income accruing from the exercise of

activities by artistes or sportsmen in a Contracting State where the visit to that State

is financed entirely or mainly from public funds of the other State, a Land, a political

subdivision or a local authority thereof or by an organisation which in that other

State is recognised as a charitable organisation.In such a case the income may be

taxed only in the Contracting State of which the individual is a resident.

Article 18

PENSIONS, ANNUITIES AND SIMILAR PAYMENTS

1. Pensions and similar payments or annuities paid to a resident of a

Contracting State from the other Contracting State shall be taxable only in the first-

mentioned State.

2. Notwithstanding the provisions of paragraph 1, payments received by an

individual being a resident of a Contracting State from the statutory social insurance

of the other Contracting State shall be taxable only in that other State.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

3. Notwithstanding the provisions of paragraph 1, recurrent or non-recurrent

payments made by one of the Contracting States or a political subdivision thereof to

a person resident in the other Contracting State for damages sustained as a result of

war or political persecution or of military or civil service (including restitution

payments) shall be taxable only in the first-mentioned State.

4. The term "annuities" means certain amounts payable periodically at stated

times, for life or for a specified or ascertainable period of time, under an obligation

to make the payments in return for adequate and full consideration in money or

money’s worth.

5. Maintenance payments, including those for children, made by a resident of a

Contracting State to a resident of the other Contracting State shall be exempted from

tax in that other State.This shall not apply where such maintenance payments are

deductible in the first-mentioned State in computing the taxable income of the payer;

tax allowances in mitigation of social burdens are not deemed to be deductions for

the purposes of this paragraph.

Article 19

GOVERNMENT SERVICE

1. Remunerations, other than pensions, paid by a Contracting State, a Land, a

political subdivision or a local authority thereof or some other legal entity under

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

a Land, a political subdivision or a local authority thereof or some other legal entity

under public law shall be taxable only in that State.However, such remuneration

shall be taxable only in the other Contracting State if the services are rendered in

that State and if the individual is a resident of that State and

a)

is a national of that State; or

b)

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

rendering the services.

2. Notwithstanding the provisions of Article 18, pensions paid by a

Contracting State, a Land, a political subdivision or a local authority thereof or some

other legal entity under public law of that State to an individual in respect of services

rendered to that State, a Land, a political subdivision or a local authority thereof or

some other legal entity under public law shall be taxable only in the other

Contracting State if the individual is a resident of that State 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 a business carried on by

a Contracting State, a Land, a political subdivision or a local authority thereof or

some other legal entity under public law of that State.

4. The provisions of paragraph 1 shall likewise apply in respect of

remuneration paid, under a development assistance programme of a Contracting

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

exclusively supplied by that State, Land, political subdivision or local authority, to a

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

that other State.

5. The provisions of paragraph 1 shall likewise apply in respect of

remuneration paid by or for the Goethe Institute of the Federal Republic of

Germany. Corresponding treatment of the remuneration of other comparable

institutions of the Contracting States may be arranged by the competent authorities

by mutual agreement. If such remuneration is not taxed in the State where the

institution was founded, the provisions of Article 15 shall apply.

Article 20

VISITING PROFESSORS, TEACHERS AND STUDENTS

1. An individual who visits a Contracting State at the invitation of that State or

of a university, college, school, museum or other cultural institution of that State or

under an official programme of cultural exchange for a period not exceeding two

years solely for the purpose of teaching, giving lectures or carrying out research at

such institution and who is, or was immediately before that visit, a resident of the

other Contracting State shall be exempt from tax in the first-mentioned State on his

remuneration for such activity, provided that such remuneration is derived by him

from outside that State.

2. Payments which a student or business apprentice who is or was immediately

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

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

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

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

State.

Article 21

OTHER INCOME

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

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

State.

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

from immovable property, 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.

Article 22

CAPITAL

1. Capital represented by immovable property, owned by a resident of a

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

other State.

2. Capital represented by movable property forming part of the business

property of a permanent establishment which an enterprise of a Contracting State has

in the other Contracting State or by movable property pertaining to a fixed base

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

purpose of performing independent personal services, may be taxed in that other

State.

3. Capital represented by ships and aircraft operated in international traffic and

by 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 situated.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

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

taxable only in that State.

Article 23

AVOIDANCE OF DOUBLE TAXATION IN THE STATE OF RESIDENCE

1. Tax shall be determined in the case of a resident of the Federal Republic of

Germany as follows

Unless foreign tax credit is to be allowed under sub-paragraph b), there

shall be exempted from the assessment basis of the German tax any item

of income arising in Malta and any item of capital situated within Malta

which, according to this Agreement, may be taxed in Malta.The Federal

Republic of Germany, however, retains the right to take into account in

the determination of its rate of tax the items of income and capital so

exempted.In the case of items of income from dividends the preceding

provision shall apply only to such dividends as are paid to a company

(not including partnerships) being a resident of the Federal Republic of

Germany by a company being a resident of Malta at least 10 per cent of

the capital of which is owned directly by the German company and

which were not deducted when determining the profits of the company

distributing these dividends.

There shall be exempted from the assessment basis of the taxes on capital any

shareholding the dividends of which, if paid, would be exempted according to the

foregoing sentences.

Subject to the provisions of German tax law regarding credit for foreign

tax, there shall be allowed as a credit against German tax payable in

respect of the following items of income the Malta tax paid under the

laws of Malta and in accordance with this Agreement

aa) dividends not dealt with in sub-paragraph a) above;

bb) items of income that may be taxed in Malta according to paragraph 2 of

Article 13;

cc) directors’ fees;

dd) items of income of artistes and sportsmen.

For the purposes of sub-paragraph b) of this paragraph,

aa) dividends referred to in sub-paragraph b) of paragraph 3 of

Article 10, and

bb) dividends paid out of profits benefiting out of any time-limited

exemption or reduction of tax granted under incentive provisions

contained in the Malta law designed to promote economic

development to the extent that such exemption or reduction is

granted for profits from industrial or manufacturing activities,

agriculture, fishing, tourism (including restaurants and hotels)

and other activities as may be agreed upon by the competent

authorities, provided that the activities have been carried out

within Malta, shall be subject to German tax on the amount after

the deduction of Malta tax paid (if any) on the profits out of

which the dividends are paid under the laws of Malta and in

accordance with this Agreement, and a tax of 20 per cent

calculated on the gross amount of the dividends shall be deemed

to have been paid in Malta.The provisions of this sub-paragraph

shall apply for the first ten years during which this Agreement is

effective.This period may be extended by mutual agreement

between the competent authorities.

The provisions of sub-paragraph b) shall apply instead of the provisions

of sub-paragraph a) to items of income as defined in Articles 7 and 10

and to the assets from which such income is derived if the resident of

the Federal Republic of Germany does not prove that the gross income

of the permanent establishment in the business year in which the profit

has been realised or of the company resident in Malta in the business

year for which the dividends were paid was derived exclusively or

almost exclusively from activities within the meaning of nos.1 to 6 of

paragraph 1 of section 8 of the German Law on External Tax Relations

(Aussensteuergesetz) or from participations within the meaning of

paragraph 2 of section 8 of that Law; the same shall apply to immovable

property used by a permanent establishment (paragraph 4 of Article 6)

and to profits from the alienation of such immovable property

(paragraph 1 of Article 13) and of the movable property forming part of

the business property of the permanent establishment (paragraph 3 of

Article 13).

Where a company being a resident of the Federal Republic of Germany

distributes income derived from sources within Malta, sub-paragraph a)

shall not preclude the compensatory imposition of corporation tax on

such distributions in accordance with the provisions of German tax law.

Notwithstanding the provisions of sub-paragraph a) double taxation

shall be avoided by allowing a tax creditas laid down in sub-paragraph

b) -

aa) if in the Contracting States items of income or capital are placed

under differing provisions of the Agreement or attributed to

different persons (except pursuant to Article 9) and this conflict

cannot be settled by a procedure in accordance with paragraph 3

of Article 25 and if as a result of this difference in placement or

attribution the relevant income or capital would remain untaxed

or be too lowly taxed, or

bb) if after proper consultation and subject to the limitations of its

domestic law a Contracting State notifies the other Contracting

State through diplomatic channels of other income to which it

intends to apply the provisions of this paragraph.The notification

shall not take effect until the first day of the calendar year

following the year in which the notification was made and all

legal requirements under the domestic law of the notifying State

for the notification to take effect have been fulfilled.

2. Tax shall be determined in the case of a resident of Malta 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 the Federal Republic of Germany, the German tax paid on such income shall

be allowed as a credit against Malta tax payable thereon.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

Article 24

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, especially with respect to

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

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

the Contracting States.

2. Stateless persons who are residents of a Contracting State shall not be

subjected in either Contracting State to any taxation or any requirement connected

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

requirements to which nationals of the State concerned in the same circumstances

are or may be subjected.

3. The taxation on a permanent establishment which an enterprise of a

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

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

carrying on the same activities. This provision shall not be construed as obliging a

Contracting State to grant to residents of the other Contracting State any personal

allowances, reliefs and reductions for taxation purposes which it grants only to its

own residents.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 4 of

Article 11, or paragraph 4 of Article 12 apply, interest, royalties and other

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

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

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

resident of the first-mentioned State. 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.

5. Enterprises of a Contracting State, the capital of which is wholly or partly

owned or controlled, directly or indirectly, by one or more residents of the other

Contracting State, shall not be subjected in the first-mentioned State to any taxation

or any requirement connected therewith which is other or more burdensome than the

taxation and connected requirements to which other similar enterprises of the first-

mentioned State are or may be subjected.

Article 25

MUTUAL AGREEMENT PROCEDURE

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

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

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

law of those States, 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 avoidance of double taxation in cases not provided for in the Agreement.

4. If the taxation of income in a Contracting State is effected by way of a

withholding tax at source, and if this taxation is limited by the provisions of this

Agreement, the application of this tax reduction or exemption shall be governed by

the national law of that State in conjunction with the procedures agreed upon for this

purpose between the competent authorities of the two Contracting States.

5. 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.

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 on behalf of the Contracting States, of a

Land or a political subdivision or local authority thereof, insofar as the taxation

thereunder is not contrary to the Agreement. The exchange of information is not

restricted by Articles 1, 2 and paragraph 2 of Article 27.

(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 provisions, the information 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

*as substituted by Protocol reproduced in Legal Notice 383 of 2011.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

(ordre public).

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

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

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

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

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

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

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

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

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

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

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

Article 27

LIMITATION OF BENEFITS

1. This Agreement shall not be interpreted to mean that

a)

a Contracting State is prevented from applying its domestic legal

provisions on the prevention of tax evasion or tax avoidance;

b)

the Federal Republic of Germany is prevented from levying taxes on

amounts which are to be included in the items of income of a resident of

the Federal Republic of Germany under the Fourth Part of the German

Law on External Tax Relations (Aussensteuergesetz).

2. The provisions of this Agreement shall not apply to companies or other

persons enjoying a special fiscal treatment by virtue of the laws or the administrative

practice of either one of the Contracting States. Neither shall they apply to income

derived from such companies or other persons derived by a resident of the other

Contracting State, nor to shares or other rights in such companies owned by such a

resident.

Article 28

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall effect the fiscal privileges of members of a

diplomatic mission, a consular post or an international organisation under the

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

Article 29

APPLICATION OF PROTOCOL

The attached Protocol shall be an integral part of this Agreement.

Article 30

REGISTRATION OF AGREEMENT

Registration of this Agreement with the Secretariat of the United Nations, in

accordance with Article 102 of the Charter of the United Nations, shall be initiated

jointly by both Contracting States, immediately after its entry into force.

Article 31

ENTRY INTO FORCE

1. This Agreement shall be ratified and the instruments of ratification shall be

exchanged at Valletta as soon as possible.

2. This Agreement shall enter into force on the date of exchange of the

instruments of ratification and its provisions shall have effect in both Contracting

in the case of taxes withheld at source, in respect of amounts paid on or

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

which the Agreement entered into force;

in the case of other taxes, in respect of taxes levied for assessment

periods beginning on or after the first day of January of the calendar

year next following that in which the Agreement entered into force.

3. Upon the entry into force of this Agreement, the Agreement between the

Federal Republic of Germany and Malta for the Avoidance of Double Taxation

signed on 17th September 1974 shall expire and shall cease to have effect as from

the date on which the provisions of this Agreement commence to have effect.

Article 32

TERMINATION

This Agreement shall continue in effect indefinitely but either of the

Contracting States may, on or before the thirtieth day of June in any calendar year

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

force, give the other Contracting State, through diplomatic channels, written notice

of termination and, in such event, this Agreement shall cease to have effect

in the case of taxes withheld at source, in respect of amounts paid on or

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

which notice of termination is given;

in the case of other taxes, in respect of taxes levied for assessment

periods beginning on or after the first day of January of the calendar

year next following that in which notice of termination is given.

DONE at Berlin this 8th day of March, 2001 in two originals, each in the German

and English languages, both texts being equally authentic.

For Malta

For the Federal Republic of Germany

Wolfgang Ischinger

Minister of Foreign Affairs

Secretary of State

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

PROTOCOL

Malta and The Federal Republic of Germany have agreed, at the signing at Berlin

on 8 March 2001 of the Agreement between the two States for the avoidance of

double taxation with respect to taxes on income and on capital, upon the following

provisions, which shall form an integral part of the said Agreement

1. With reference to Article 7

Where an enterprise of a Contracting State sells goods or merchandise

or carries on business in the other Contracting State through a

permanent establishment situated therein, the profits of that permanent

establishment shall not be determined on the basis of the total amount

received therefor by the enterprise but only on the basis of the payments

which are attributable to the actual activity of the permanent

establishment for such sales or business.

In the case of contracts, in particular for the survey, supply, installation

or construction of industrial, commercial or scientific equipment or

premises, or of public works, where the enterprise has a permanent

establishment in the other Contracting State, the profits of such

permanent establishment shall not be determined on the basis of the

total amount of the contract, but only on the basis of that part of the

contract which is effectively carried out by the permanent establishment

in the Contracting State in which it is situated. Profits derived from the

supply of goods to that permanent establishment or profits related to the

part of the contract which is carried out in the Contracting State in

which the head office of the enterprise is situated shall be taxable only

in that State.

Payments received as a consideration for technical services, including

studies or surveys of a scientific, geological or technical nature, or for

engineering contracts including blueprints related thereto, or for

consultancy or supervisory services shall be deemed to be payments to

which the provisions of Article 7 or Article 14 of the Agreement apply.

2. With reference to Article 10

The provisions of paragraph 3 of Article 10 shall continue to apply in Malta

as long as Malta operates the full imputation system of taxation of company profits

and of the subsequent distribution of such profits to the company’s shareholders.

Should the present system be changed, the rates referred to in sub-paragraph a) of

paragraph (2) of Article 10 shall apply to dividends distributed by a company which

is a resident of Malta to a resident of the Federal Republic of Germany. However, in

the event of such change, the Contracting States shall consult each other to consider

whether any such change in Malta’s system of taxation would necessitate any

revision of the provisions of Article 10.

3. With reference to Articles 10 and 11

Notwithstanding the provisions of Articles 10 and 11, income derivedin the

Federal Republic of Germany from rights or debt-claims participating in profits

in cl udi ng inco me o f a sleepi ng p art ner ("sti ller Gesell sch aft er ") fr om hi s

participation as such or from a "partiarisches Darlehen" or "Gewinnobligationen"

that is deductible in determining the profits of the debtor may be taxed in the Federal

Republic of Germany according to the laws of the Federal Republic of Germany.

With reference to Article 26

(1) If the requesting competent authority confirms that the requested

information is "foreseeably relevant" to the purposes mentioned in Article 26 of the

Agreement, the requested competent authority shall accept this confirmation

provided that the request satisfies the following requirements

the identity of the person under examination or investigation;

a statement of the information sought including its nature and the form

in which the requesting Contracting State wishes to receive the

information from the requested Contracting State;

the tax purpose for which the information is sought;

grounds for believing that the information requested is held in the

requested Contracting State or is in the possession or control of a person

within the jurisdiction of the requested Contracting State;

to the extent known, the name and address of any person believed to be

in possession of the requested information;

a statement that the request is in conformity with the law and

administrative practices of the requesting Contracting State, that if the

requested information was within the jurisdiction of the requesting

Contracting State then the competent authority of the requesting

Contracting State would be able to obtain the information under the

laws of the requesting Contracting State or in the normal course of

administrative practice and that it is in conformity with this Agreement;

a statement that the requesting Contracting State has pursued all means

available in its own territory to obtain the information, except those that

would give rise to disproportionate difficulties.

(2) The requested information shall also be "foreseeably relevant" in the case of

a request for information where the name of the person is unknown and the

requesting competent authority confirms to the requested competent authority that it

has reasonable grounds for suspecting the existence of criminal tax matters

involving assets situated or persons resident in the Contracting States. For the

purposes of this paragraph the term "criminal tax matters" means tax matters

involving intentional conduct which is liable to prosecution under the criminal laws

of the requesting Contracting State.

(3) Insofar as personal data are supplied under Article 26, the following

additional provisions shall apply

The data-receiving State may use such data only for the stated purpose

and shall be subject to the conditions prescribed by the data-supplying

State.

The data-receiving State shall on request inform the data-supplying

State about the use of the supplied data and the results achieved thereby.

Personal data may be supplied only to the competent authorities. Any

subsequent supply to other authorities may be effected only with the

prior approval of the supplying competent authority.

The data-supplying State shall be obliged to ensure that the data to be

supplied are accurate and that they are foreseeably relevant for and

proportionate to the purpose for which they are supplied. Any bans on

data supply prescribed under applicable domestic law shall be observed.

*as substituted by Protocol reproduced in Legal Notice 383 of 2011.

DOUBLE TAXATION RELIEF ON TAXES ON INCOME

WITH THE FEDERAL REPUBLIC OF GERMANY

If it emerges that inaccurate data or data which should not have been

supplied have been supplied, the data-receiving State shall be informed

of this without delay. That State shall be obliged to correct or erase such

data.

Upon application the person concerned shall be informed of the

supplied data relating to him and of the use to which such data are to be

put. There shall be no obligation to furnish this information if on

balance it turns out that the public interest in withholding it outweighs

the interest of the person concerned in receiving it. In all other respects,

the right of the person concerned to be informed of the existing data

relating to him shall be governed by the domestic law of the Contracting

State in whose sovereign territory the application for the information is

made.

The data-receiving State shall bear liability in accordance with its

domestic laws in relation to any person suffering unlawful damage as a

result of supply under the exchange of data pursuant to this Agreement.

In relation to the damaged person, the data-receiving State may not

plead to its discharge that the damage had been caused by the data-

supplying State.

If the domestic law of the data-supplying State provides for special

provisions for the erasure of the personal data supplied, that State shall

inform the data-receiving State accordingly. Irrespective of such law,

supplied personal data shall be erased once they are no longer required

for the purpose for which they were supplied.

The Contracting States shall be obliged to keep official records of the

supply and receipt of personal data.

The data-supplying and the data-receiving States shall be obliged to

take effective measures to protect the personal data supplied against

unauthorised access, unauthorised alteration and unauthorised

disclosure.

5. With reference to Article 27

It is understood that in the case of Malta the persons who enjoy a special

fiscal treatment referred to in paragraph 2 of Article 27 are the following

persons who are entitled to a special tax benefit under the Malta

Financial Services Centre Act (Cap. 330) except for those persons who

opt under section 41 of the said Act to be subject to the normal

provisions of the Income Tax Act (Cap. 123) and the Income Tax

Management Act, 1994; or

persons who and to the extent to which under the provisions of the

Merchant Shipping Act, 1973 are not subject to tax on the profits

derived from the operation of ships in international traffic; or

persons entitled to any special tax benefit in respect of distributions by a

trust subject to the provisions of the Trusts Act given that a trust as laid

down in that Act is not vested with legal personality and therefore

cannot benefit under this Agreement in its own right; or

persons entitled to any special tax benefit under any substantially

similar law subsequently enacted which is considered in mutual

agreement by the competent authorities of the Contracting States as

special fiscal treatment within the meaning of paragraph 2 of Article 27

of this Agreement.

Protocol

Amending the Agreement of 8 March 2001

between

the Republic of Malta

and

the Federal Republic of Germany

for the Avoidance of Double Taxation

with respect to Taxes on Income and on Capital

The Republic of Malta and the Federal Republic of Germany,

Desiring to conclude a Protocol amending the Agreement of 8 March 2001

between the Federal Republic of Germany and the Republic of Malta for the

Avoidance of Double Taxation with respect to Taxes on Income and on Capital,

Have agreed as follows

Article I

Article 26 of the Agreement shall read as follows

"Article 26

Exchange of Information