S.L. 123.123 Art. 2Arrangements to have effect. AND FOR THE The desiring to prevention of 1. This of the 2. This hereafter a) by b) by 3. a) b) or 4. Except affect the Article 4 Convention, may, for the accordance 5. The a) Support), Taxation), 24 and Articles 19 (Members of who are residence in,

It is hereby declared:

(a) that the arrangements specified in the Convention set out in the Schedule have been made with the United States of America with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of the United States of America: - the Federal income taxes imposed by the Internal Revenue Code (but excluding social security and unemployment taxes), and the Federal excise taxes imposed with respect to private foundations;

(b) that it is expedient that those arrangements should have effect;

(c) that the Convention has entered into force on the 23rd November, 2010. SCHEDULE (Article 2)

CONVENTION BETWEEN THE GOVERNMENT OF MALTA

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME Government of Malta and the Government of the United States of America, conclude a Convention for the avoidance of double taxation and the fiscal evasion with respect to taxes on income, have agreed as follows: Article 1 GENERAL SCOPE

Convention shall apply only to persons who are residents of one or both Contracting States, except as otherwise provided in the Convention.

Convention shall not restrict in any manner any benefit now or accorded:

the laws of either Contracting State; or any other agreement to which the Contracting States are parties. Notwithstanding the provisions of subparagraph (b) of paragraph 2 of this Article: i) for purposes of paragraph 3 of Article XXII (Consultation) or the General Agreement on Trade in Services, the Contracting States agree that any question arising as to the interpretation or application of this Convention and, in particular, whether a taxation measure is within the scope of this Convention, shall be determined exclusively in accordance with the provisions of Article 25 (Mutual Agreement Procedure) of this Convention; and ii) the provisions of Article XVII of the General Agreement on Trade in Services shall not apply to a taxation measure unless the competent authorities agree that the measure is not within the scope of Article 24 (Non-Discrimination) of this Convention. For the purposes of this paragraph, a "measure" is a law, regulation, rule, procedure, decision, administrative action, or any similar provision action. to the extent provided in paragraph 5, this Convention shall not taxation by a Contracting State of its residents (as determined under (Resident)) and its citizens. Notwithstanding the other provisions of this a former citizen or former long-term resident of a Contracting State period of ten years following the loss of such status, be taxed in with the laws of that Contracting State.

provisions of paragraph 4 shall not affect: the benefits conferred by a Contracting State under paragraph 2 of Article 9 (Associated Enterprises), paragraphs 1 b), 2, and 5 of Article 17 (Pensions, Social Security, Annuities, Alimony, and Child and Articles 18 (Pension Funds), 23 (Relief from Double (Non-Discrimination), and 25 (Mutual Agreement Procedure); b) the benefits conferred by a Contracting State under (Government Service), 20 (Students and Trainees), and 27 Diplomatic Missions and Consular Posts), upon individuals neither citizens of, nor have been admitted for permanent that State.