Cap. 123 Art. 67Payment of dividend out of taxed account or foreign income account.

(1) Where a company pays a dividend to a person resident in Malta out of profits allocated to immovable property account, the Maltese taxed account or the foreign income account and which profits have suffered tax at a rate of tax which is less than the rate of tax chargeable applicable at the time of the distribution, under article 56(6), only by reason of the fact that a different rate of tax was applicable at the time the profits being distributed were chargeable to tax, the company shall deduct tax at a rate equivalent to the difference between the current rate and that actually suffered as aforesaid on the amount of the dividend before deducting any tax which it has suffered on the profits so being distributed: Provided that the provisions of this sub-article shall not apply in respect of such dividend payments to persons who are exempt from tax.

(2) Every amount deducted under sub-article (1) shall be a debt due from such company to the Commissioner payable not later than the fourteenth day following the end of the month in which such dividend was paid and shall be recoverable as such.

(3) The provisions of article 63 to 65 shall apply mutatis mutandis as they apply to distributions from the untaxed account and references in those articles to article 62 shall be construed as references to sub-article (1).

(4) For the purposes of this article a person resident in Malta shall include a non-resident person (including a non-resident company) who is owned and controlled by, directly or indirectly or who acts on behalf of, an individual who is ordinarily resident and domiciled in Malta.