DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE KINGDOM OF NORWAY) ORDER (thekingdomofnorway)

DOUBLE TAXATION RELIEF

(TAXES ON INCOME) (THE KINGDOM OF NORWAY)

SUBSIDIARY LEGISLATION 123.08

DOUBLE TAXATION RELIEF (TAXES ON INCOME)

(THE KINGDOM OF NORWAY) ORDER

8th March, 2013

LEGAL NOTICE 118 of 2013, as modified by S.L.123.183.

The title of this Order is Double Taxation Relief (Taxes on

Income) (The Kingdom of Norway) Order.

(Article 2)

CONVENTION

BETWEEN

MALTA

AND

THE KINGDOM OF NORWAY

FOR

THE AVOIDANCE OF DOUBLE TAXATION

AND

THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON

INCOME

The Government of Malta and the Government of the Kingdom of Norway,

desiring to conclude a Convention for the Avoidance of Double Taxation and the

Prevention of Fiscal Evasion with respect to taxes on income,

have agreed as follows

Chapter 1

Scope of the Convention

Article 1

Persons Covered

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

Contracting States.

Article 2

Taxes Covered

1. This Convention shall apply to taxes on income imposed on behalf of a

Contracting State or of its political subdivisions or local authorities, irrespective of

the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total

income or on elements of income, including taxes on gains from the alienation of

movable or immovable property, and taxes on the total amounts of wages or salaries

paid by enterprises.

It is hereby declared -

(a) that the arrangements specified in the Convention set

out in the Schedule to this Order have been made with

The Kingdom of Norway with a view to affording

relief from double taxation in relation to the following

taxes imposed by the laws of The Kingdom of

Norway

(i) the national tax on income (inntektsskatt til

staten);

(ii) the county municipal tax on income

(inntektsskatt til fylkeskommunen);

(iii) the municipal tax on income (inntektsskatt til

kommunen);

(iv) the national tax relating to income from the

exploration for and the exploitation of

submarine petroleum resources and activities

and work relating thereto, including pipeline

transport of petroleum produced (skatt til staten

vedrorende

inntekt

i

forbindelse

med

undersokelse etter og utnyttelse av undersjoiske

petroleumsforekomster

og

dertil

knyttet

virksomhet

og

arbeid,

herunder

rorledningstransport av utvunnet petroleum);

and

(v) the national tax on remuneration to non-resident

artistes (skatt til staten på honorar til

utenlandske artister);

(b) that it is expedient that those arrangements should

have effect;

(c) that the Convention has entered into force on the 14

February 2013.

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The existing taxes to which the Convention shall apply are in particular

in the case of Norway

(i) the national tax on income (inntektsskatt til staten);

(ii) the county municipal tax on income (inntektsskatt til

fylkeskommunen);

(iii) the municipal tax on income (inntektsskatt til kommunen);

(iv) the national tax relating to income from the exploration for and

the exploitation of submarine petroleum resources and activities

and work relating thereto, including pipeline transport of

petroleum produced (skatt til staten vedrorende inntekt i

forbindelse med undersokelse etter og utnyttelse av undersjoiske

petroleumsforekomster og dertil knyttet virksomhet og arbeid,

herunder rorledningstransport av utvunnet petroleum); and

(v) the national tax on remuneration to non-resident artistes (skatt til

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staten på honorar til utenlandske artister);

(hereinafter referred to as "Norwegian tax");

in the case of Malta

the income tax;

(hereinafter referred to as "Malta tax").

The Convention shall apply also to any identical or substantially similar

taxes that are imposed after the date of signature of the Convention in addition to, or

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

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

taxation laws.

Chapter 2

Definitions

Article 3

General Definitions

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

the term "Norway" means the Kingdom of Norway, and includes the

land territory, internal waters, the territorial sea and the area beyond the

territorial sea where the Kingdom of Norway, according to Norwegian

legislation and in accordance with international law, may exercise her

rights with respect to the seabed and subsoil and their natural resources;

the term does not comprise Svalbard, Jan Mayen and the Norwegian

dependencies ("biland");

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

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

Norway or Malta, as the context requires;

the term "person" includes an individual, a company and any other body

of persons;

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

treated as a body corporate for tax purposes;

the term "enterprise" applies to the carrying on of any business;

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,

except when the ship or aircraft is operated solely between places in a

Contracting State;

the term "business" includes the performance of professional services

and of other activities of an independent character;

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j)

the term "competent authority" means

(i) in Norway, the Minister of Finance or the Minister’s authorised

representative;

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

representative;

k)

the term "national", in relation to a Contracting State, means

(i) any individual possessing the nationality of that Contracting

State; and

(ii) any legal person, partnership or association deriving its status as

such from the laws in force in that Contracting State.

2. As regards the application of the Convention at any time by a Contracting

State, any term not defined therein shall, unless the context otherwise requires, have

the meaning that it has at that time under the law of that State for the purposes of the

taxes to which the Convention applies, any meaning under the applicable tax laws of

that State prevailing over a meaning given to the term under other laws of that State.

Article 4

Resident

1. For the purposes of this Convention, 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, and also includes that State and any political subdivision or local

authority thereof. This term, however, does not include any person who is liable to

tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident

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

a)

he shall be deemed to be a resident only 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 only of the

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

of vital interests);

b)

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

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

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

has an habitual abode;

c)

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

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

d)

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

authorities of the Contracting States shall settle the question by mutual

agreement.

2. 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 only of the State in which its place of effective management is situated.

Article 5

Permanent Establishment

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

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

wholly or partly carried on.

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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.

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

permanent establishment only if it lasts more than 12 months.

4. Notwithstanding the provisions of paragraphs 1, 2 and 3, where an enterprise

of a Contracting State performs services in the other Contracting State

through an individual who is present in that other State for a period or

periods exceeding in the aggregate 183 days in any twelve month

period, and more than 50 per cent of the gross revenues attributable to

active business activities of the enterprise during this period or periods

are derived from the services performed in that other State through that

individual, or

for a period or periods exceeding in the aggregate 183 days in any

twelve month period, and these services are performed for the same

project or connected projects through one or more individuals who are

present and performing such services in that other State

the activities carried on in that other State in performing these services shall be

deemed to be carried on through a permanent establishment of the enterprise situated

in that other State, unless these services are limited to those mentioned in paragraph

5 which, if performed through a fixed place of business, would not make this fixed

place of business a permanent establishment under the provisions of that paragraph.

For the purposes of this paragraph, services performed by an individual on behalf of

one enterprise shall not be considered to be performed by another enterprise through

that individual unless that other enterprise supervises, directs or controls the manner

in which these services are performed by the individual.

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;

the maintenance of a stock of goods or merchandise belonging to the

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

the maintenance of a stock of goods or merchandise belonging to the

enterprise solely for the purpose of processing by another enterprise;

the maintenance of a fixed place of business solely for the purpose of

purchasing goods or merchandise or of collecting information, for the

enterprise;

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;

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

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

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overall activity of the fixed place of business resulting from this

combination is of a preparatory or auxiliary character.

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

other than an agent of an independent status to whom paragraph 7 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 5 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.

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.

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

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

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

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

permanent establishment of the other.

Chapter 3

Taxation of Income

Article 6

Income from Immovable Property

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

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

Contracting State may be taxed in that other State.

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

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

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

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

general law respecting 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, mineral deposits, sources and other natural resources; ships 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. In the determination of the income from immovable property which a

resident of a Contracting State has in the other Contracting State expenses (including

interest on debt claims) which are incurred for the purposes of such property shall be

allowed as deductions on the same conditions as are provided for residents of that

other State.

5. The provisions of paragraphs 1 and 3 shall also apply to the income from

immovable property of an enterprise.

Article 7

Business Profits

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

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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. 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.

5. 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.

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

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

affected by the provisions of this Article.

Article 8

Shipping and Air Transport

1. Profits of an enterprise of a Contracting State from the operation of ships or

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

2. For the purposes of this Article, profits derived from the operation of ships

or aircraft in international traffic include profits derived from the rental of ships or

aircraft if such ships or aircraft are operated in international traffic or if such rental

profits are incidental to other profits described in paragraph 1 of this Article.

3. The provisions of paragraphs 1 and 2 shall also apply to profits from the

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

4. The provisions of paragraphs 1, 2 and 3 shall apply to profits derived by the

joint Norwegian, Danish and Swedish air transport consortium Scandinavian

Airlines System (SAS), but only insofar as profits derived by SAS Scandinavian

Airlines Norge AS, the Norwegian partner of the Scandinavian Airlines System

(SAS), are in proportion to its share in that organisation.

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,

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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 Convention and the competent authorities of the Contracting

States shall if necessary consult each other.

Article 10

Dividends

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

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

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

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

that State, but

a)

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

Norway to a resident of Malta who is the beneficial owner thereof, the

tax so charged in Norway shall not exceed

(i) 0 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 cent of the capital of the company paying

the dividends on the date the dividends are paid and has done so

or will have done so for an uninterrupted 24-month period in

which that date falls;

(ii) 15 per cent of the gross amount of the dividends in all other cases;

b)

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

to a resident of Norway who is the beneficial owner thereof, Malta tax

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

the profits out of which the dividends are paid.

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

profits out of which the dividends are paid.

3. Where dividends are derived and beneficially owned by the Government of a

Contracting State, such dividends shall be taxable only in that State. For the

purposes of this paragraph, the term "Government of a Contracting State" shall

include

a)

In the case of Norway

(i) the Central Bank of Norway;

(ii) the Government Pension Fund Global; and

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(iii) a statutory body or any institution wholly or mainly owned by the

Government of Norway as may be agreed from time to time

between the competent authorities of the Contracting States;

b)

In the case of Malta

(i) the Central Bank of Malta;

(ii) a statutory body or any institution wholly or mainly owned by the

Government of Malta as may be agreed from time to time between

the competent authorities of the Contracting States.

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

other rights, not being debt-claims, participating in profits, as well as income from

other corporate rights that 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.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner

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

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

through a permanent establishment situated therein, and the holding in respect of

which the dividends are paid is effectively connected with such permanent

establishment. In such case the provisions of Article 7 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 situated in that

other State, nor subject the company's undistributed profits to a tax on the company's

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

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

7. The provisions of this Article shall not apply if it was the main purpose or

one of the main purposes of any person concerned with the creation or assignment of

the shares or other rights in respect of which the dividend is paid to take advantage

of this Article by means of that creation or assignment.

In the event that a resident of a Contracting State is denied relief from

taxation in the other Contracting State by reason of the provisions of the first

sentence of this paragraph, the competent authority of that other State shall notify

the competent authority of the first-mentioned State.

Article 11

Interest

1. Interest arising in a Contracting State and beneficially owned by a resident

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

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

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

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

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

attaching to such securities, bonds or debentures. Penalty charges for late payment

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

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, and the debt-claim in respect of which the interest is paid is

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effectively connected with such permanent establishment. In such case the

provisions of Article 7 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 Convention.

Article 12

Royalties

1. Royalties arising in a Contracting State and beneficially owned by a resident

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

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, and the right or property in respect of which the royalties are paid is

effectively connected with such permanent establishment. In such case the

provisions of Article 7 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 Convention.

Article 13

Capital Gains

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

immovable property referred to in Article 6 and situated in the other Contracting

State may be taxed in that other State.

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, including such gains from the alienation of such a

permanent establishment (alone or with the whole enterprise), may be taxed in that

other State.

3. Gains derived by an enterprise of a Contracting State from the alienation of

ships or aircraft operated in international traffic, or from movable property

pertaining to the operation of such ships or aircraft shall be taxable only in that

State.

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

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shares deriving more than 50 per cent of their value directly or indirectly from

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

other State.

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

preceding paragraphs shall be taxable only in the Contracting State of which the

alienator is a resident.

Article 14

Income from employment

1. Subject to the provisions of Articles 15, 17 and 18, 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 which the

employer has in that other State.

3. Paragraph 2 of this Article shall not apply to remuneration derived by a

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

Contracting State and paid by, or on behalf of, an employer who is not resident of

that other State if

a)

the recipient renders services in the course of that employment to a

person other than the employer and that person, directly or indirectly,

supervises, directs or controls the manner in which those services are

performed; and

b)

those services constitute an integral part of the business activities

carried on by that person.

4. Notwithstanding the preceding provisions of this Article, remuneration

derived in respect of an employment exercised aboard a ship or aircraft operated in

international traffic by an enterprise of a Contracting State may be taxed in that

State.

5. Where a resident of a Contracting State derives remuneration in respect of

an employment exercised aboard an aircraft operated in international traffic by the

Scandinavian Airline System (SAS) consortium, such remuneration shall be taxable

only in that State.

Article 15

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 or of a similar organ of a

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

State.

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Article 16

Artistes and Sportsmen

1. Notwithstanding the provisions of Articles 7 and 14, 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. Where income in respect of personal activities exercised by an entertainer or

a sportsman in his capacity as such accrues not to the entertainer or sportsman

himself but to another person, that income may, notwithstanding the provisions of

Articles 7 and 14, be taxed in the Contracting State in which the activities of the

entertainer or sportsman are exercised.

3. The provisions of paragraphs 1 and 2 shall not apply to income derived from

activities performed in a Contracting State by entertainers or sportsmen if the visit to

that State is wholly or mainly supported by public funds of one or both of the

Contracting States or political subdivisions or local authorities thereof. In such a

case, the income is taxable only in the Contracting State in which the entertainer or

the sportsman is a resident.

Article 17

Pensions, Annuities, Social Security Payments and Alimony

1. Pensions, including payments under a social security system, and annuities

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

may be taxed in the first-mentioned State, but the tax so charged shall not exceed 15

per cent.

2. The term "annuities" as used in this Article means a stated sum paid

periodically at stated times during a specified number of years, or for life, under an

obligation to make the payments in return for adequate and full consideration.

3. Alimony and other maintenance payments paid to a resident of a Contracting

State shall be taxable only in that State. However, any alimony or other maintenance

payments paid by a resident of a Contracting State to a resident of the other

Contracting State shall, to the extent it is not allowable as a relief to the payer, be

taxable only in the first-mentioned State.

Article 18

Government Service

1. a)

Salaries, wages and other similar remuneration, other than a pension,

paid by a Contracting State or a political subdivision or a local authority

thereof to an individual in respect of services rendered to that State or

subdivision or authority shall be taxable only in that State.

b)

However, such salaries, wages and other similar remuneration shall be

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

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

(i) is a national of that State; or

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

rendering the services.

2. The provisions of Articles 14, 15, and 16 shall apply to salaries, wages and

other similar remuneration other than pensions in respect of services rendered in

connection with a business carried on by a Contracting State or a political

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subdivision or a local authority thereof.

Article 19

Students

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 20

Offshore Activities

1. The provisions of this Article shall apply notwithstanding any other

provision of this Convention.

2. A person who is a resident of a Contracting State and carries on activities

offshore in the other Contracting State in connection with the exploration or

exploitation of the seabed or subsoil or their natural resources situated in that other

State shall, subject to paragraphs 3 and 4 of this Article, be deemed in relation to

those activities to be carrying on business in that other State through a permanent

establishment situated therein.

3. The provisions of paragraph 2 and sub-paragraph b) of paragraph 5 shall not

apply where the activities are carried on for a period or periods not exceeding 30

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

year concerned. However, for the purposes of this paragraph

a)

activities carried on by an enterprise associated with another enterprise

shall be regarded as carried on by the enterprise with which it is

associated if the activities in question are substantially the same as

those carried on by the last-mentioned enterprise;

b)

two enterprises shall be deemed to be associated if

(i) 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

(ii) the same person or persons participate directly or indirectly in the

management, control or capital of both enterprises.

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

transportation of supplies or personnel to a location, or between locations, where

activities in connection with the exploration or exploitation of the seabed or subsoil

or their natural resources are being carried on in a Contracting State, or from the

operation of tugboats and other vessels auxiliary to such activities, shall be taxable

only in the Contracting State of which the enterprise is a resident.

5. a)

Subject to sub-paragraph b) of this paragraph, salaries, wages and

similar remuneration derived by a resident of a Contracting State in

respect of an employment connected with the exploration or exploitation

of the seabed or subsoil or their natural resources situated in the other

Contracting State may, to the extent that the duties are performed

offshore in that other State, be taxed in that other State. However, such

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

employment is carried on offshore for an employer who is not a resident

of the other State and provided that the employment is carried on for a

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period or periods not exceeding in the aggregate 30 days in any twelve

month period commencing or ending in the fiscal year concerned.

Salaries, wages and similar remuneration derived by a resident of a

Contracting State in respect of an employment exercised aboard a ship

or aircraft engaged in the transportation of supplies or personnel to a

location, or between locations, where activities connected with the

exploration or exploitation of the seabed or subsoil or their natural

resources are being carried on in the other Contracting State, or in

respect of an employment exercised aboard tugboats or other vessels

operated auxiliary to such activities, may be taxed in the State of which

the enterprise carrying on such activities is a resident.

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

exploration or exploitation rights; or

property situated in the other Contracting State and used in connection

with the exploration or exploitation of the seabed or subsoil or their

natural resources situated in that other State; or

shares deriving their value or the greater part of their value directly or

indirectly from such rights or such property or from such rights and

such property taken together,

may be taxed in that other 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 Convention shall be taxable only in that

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

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

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

Contracting State through a permanent establishment situated therein and the right or

property in respect of which the income is paid is effectively connected with such

permanent establishment. In such case the provisions of Article 7 shall apply.

Chapter 4

Methods for Elimination of Double Taxation

Article 22

Elimination of Double Taxation

1. Subject to the provisions of the laws of Norway regarding the allowance as a

credit against Norwegian tax of tax payable in a territory outside Norway (which

shall not affect the general principle of this Article) -

Where a resident of Norway derives income which, in accordance with

the provisions of this Convention, may be taxed in Malta, Norway shall

allow as a deduction from the tax on the income of that resident, an

amount equal to the income tax paid in Malta on that income.

Such deduction in either case shall not, however, exceed that part of the

income tax, as computed before the deduction is given, which is

attributable, as the case may be, to the income which may be taxed in

Malta.

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b)

Where in accordance with any provision of the Convention income

derived by a resident of Norway is exempt from tax in Norway, Norway

may nevertheless include such income in the tax base, but shall allow as

a deduction from the Norwegian tax on income that part of the income

tax which is attributable to the income derived from Malta.

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

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

a credit against Malta tax in respect of foreign tax, where, in accordance

with the provisions of this Convention, there is included in a Malta

assessment income from sources within Norway, the Norwegian tax on

such income shall be allowed as a credit against the relative Malta tax

payable thereon.

Chapter 5

Special Provisions

Article 23

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, in particular 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 residents of 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, in

particular with respect to residence, 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 on account of civil status or

family responsibilities which it grants 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.

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.

6. The provisions of this Article shall, notwithstanding the provisions of

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

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Article 24

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 Convention, 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 23,

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 Convention.

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

Convention. 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 Convention. They may also consult together for

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

4. The competent authorities of the Contracting States may communicate with

each other directly, including through a joint commission consisting of themselves or

their representatives, for the purpose of reaching an agreement in the sense of the

preceding paragraphs.

Article 25

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

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

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

of their political subdivisions or local authorities, insofar as the taxation thereunder

is not contrary to the Convention. The exchange of information is not restricted by

Article 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;

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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 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 26

Assistance in the Collection of Taxes

1. The Contracting States shall lend assistance to each other in the collection of

revenue claims. This assistance is not restricted by Articles 1 and 2. The competent

authorities of the Contracting States may by mutual agreement settle the mode of

application of this Article.

2. The term "revenue claim" as used in this Article means an amount owed in

respect of taxes of every kind and description imposed on behalf of the Contracting

States, or of their political subdivisions or local authorities, insofar as the taxation

thereunder is not contrary to this Convention or any other instrument to which the

Contracting States are parties, as well as interest, administrative penalties and costs

of collection or conservancy related to such amount.

3. When a revenue claim of a Contracting State is enforceable under the laws

of that State and is owed by a person who, at that time, cannot, under the laws of that

State, prevent its collection, that revenue claim shall, at the request of the competent

authority of that State, be accepted for purposes of collection by the competent

authority of the other Contracting State. That revenue claim shall be collected by

that other State in accordance with the provisions of its laws applicable to the

enforcement and collection of its own taxes as if the revenue claim were a revenue

claim of that other State that met the conditions allowing that other State to make a

request under this paragraph.

4. When a revenue claim of a Contracting State is a claim in respect of which

that State may, under its law, take measures of conservancy with a view to ensure its

collection, that revenue claim shall, at the request of the competent authority of that

State, be accepted for purposes of taking measures of conservancy by the competent

authority of the other Contracting State. That other State shall take measures of

conservancy in respect of that revenue claim in accordance with the provisions of its

laws as if the revenue claim were a revenue claim of that other State even if, at the

time when such measures are applied, the revenue claim is not enforceable in the

first-mentioned State or is owed by a person who has a right to prevent its collection.

5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim

accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that

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State, be subject to the time limits or accorded any priority applicable to a revenue

claim under the laws of that State by reason of its nature as such. In addition, a

revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4

shall not, in that State, have any priority applicable to that revenue claim under the

laws of the other Contracting State.

6. Proceedings with respect to the existence, validity or the amount of a

revenue claim of a Contracting State shall not be brought before the courts or

administrative bodies of the other Contracting State.

7. Where, at any time after a request has been made by a Contracting State

under paragraph 3 or 4 and before the other Contracting State has collected and

remitted the relevant revenue claim to the first-mentioned State, the relevant revenue

claim ceases to be

a)

in the case of a request under paragraph 3, a revenue claim of the first-

mentioned State that is enforceable under the laws of that State and is

owed by a person who, at that time, cannot, under the laws of that State,

prevent its collection, or

b)

in the case of a request under paragraph 4, a revenue claim of the first-

mentioned State in respect of which that State may, under its laws, take

measures of conservancy with a view to ensure its collection

the competent authority of the first-mentioned State shall promptly notify the

competent authority of the other State of that fact and, at the option of the other

State, the first-mentioned State shall either suspend or withdraw its request.

8. In no case shall the provisions of this Article 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 carry out measures which would be contrary to public policy (ordre

public);

c)

to provide assistance if the other Contracting State has not pursued all

reasonable measures of collection or conservancy, as the case may be,

available under its laws or administrative practice;

d)

to provide assistance in those cases where the administrative burden for

that State is clearly disproportionate to the benefit to be derived by the

other Contracting State.

Article 27

Members of Diplomatic Missions and Consular Posts

1. Nothing in this Convention shall affect the fiscal privileges of members of

diplomatic missions or consular posts under the general rules of international law or

under the provisions of special agreements.

2. Insofar as, due to fiscal privileges granted to members of diplomatic

missions and consular posts under the general rules of international law or under the

provisions of special international agreements, income is not subject to tax in the

receiving State, the right to tax shall be reserved to the sending State.

Article 28

Limitation of relief

1. This Convention shall not be interpreted to mean that a Contracting State is

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prevented from applying its domestic legal provisions on the prevention of tax

evasion or tax avoidance.

2. Where under any provision of this Convention any income is relieved from

tax in a Contracting State and, under the law in force in the other Contracting State,

a person, in respect of that income, is subject to tax by reference to the amount

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

reference to the full amount thereof, then the relief to be allowed under this

Convention in the first-mentioned State shall apply only to so much of the income as

is taxed in the other Contracting State.

3. The provisions of this Convention shall not apply to persons entitled to any

special tax benefits under

a)

a law of either one of the Contracting States which has been identified

in the Protocol to this Convention between the Contracting States; or

b)

any substantially similar law subsequently enacted.

Chapter 7

Final Provisions

Article 29

Entry into Force

1. The Contracting States shall notify each other in writing, through diplomatic

channels, that the legal requirements for the entry into force of this Convention have

been complied with.

2. The Convention shall enter into force on the date of receipt of the later of

these notifications and shall thereupon have effect in both Contracting States in

respect of taxes on income relating to the calendar year (including accounting

periods beginning in any such year) next following that in which the Convention

enters into force and subsequent years.

3. The Convention between the Republic of Malta and the Kingdom of Norway

for the avoidance of double taxation signed at Oslo on 2 June 1975, shall cease to

have effect from the date on which this Convention becomes effective in accordance

with paragraph 2 of this Article.

Article 30

Termination

This Convention shall remain in force indefinitely, but either of the Contracting

States may, on or before 30 June in any calendar year beginning after the expiration

of a period of five years from the date of its entry into force, give to the other

Contracting State, through diplomatic channels, written notice of termination. In

such event, the Convention shall cease to have effect in both Contracting States in

respect of taxes on income relating to the calendar year (including accounting

periods beginning in such year) next following that in which the notice is given.

IN WITNESS WHEREOF the undersigned, duly authorised thereto by their

respective Governments, have signed this Convention.

DONE in duplicate at Valletta this 30 day of March 2012, in the English language.

John Paul Grech

Bjorn T. Grydeland

For Malta

For the Kingdom of Norway

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PROTOCOL

At the time of signing of the Convention between Malta and the Kingdom of

Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion

with respect to Taxes on Income, the undersigned have agreed that the following

shall form an integral part of the Convention

With reference to Article 28(3), the provisions of this Convention shall not apply

to persons who are entitled to

(i)

an exemption or any other special tax benefit under the provisions of the

Merchant Shipping Act, 1973, as amended. However, this does not

apply to income that is subject to the normal Malta income tax; or

(ii) any special tax benefit in respect of distributions by a trust subject to

the provisions of the Trusts and Trustees Act given that a trust as laid

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

cannot benefit under the Convention in its own right, or

(iii) any special tax benefit under any substantially similar law subsequently

enacted and which is agreed by the competent authorities of the

Contracting States as included within the terms of Article 28(3).

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

respective Governments, have signed this Protocol.

DONE in duplicate at Valletta this 30 day of March 2012, in the English language.

John Paul Grech

Bjorn T. Grydeland

For Malta

For the Kingdom of Norway