S.L. 123.14 Art. 2Arrangements to have effect. FOR WITH The Republic desiring and the follows: This Contracting (1) This behalf of each irrespective of the (2) There on total income, taxes on gains total amounts of appreciation. (3) The (a) in the (i) (ii) (iii) (iv) (v) *as

It is hereby declared -

(a) that the arrangements specified in the Agreement set in the Schedule to this Order have been made with the Government of the Republic of France with a view to affording relief from double taxation and preventing fiscal evasion in relation to the following taxes imposed by the laws of the Republic of France:

(i) the income tax;

(ii) the corporation tax; including any withholding tax, prepayment (precompte) or advanced payment with respect to the aforesaid taxes;

(b) that it is expedient that those arrangements should have effect. AND THE GOVERNMENT OF THE FRENCH REPUBLIC THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION RESPECT TO TAXES ON INCOME AND CAPITAL

Government of the Republic of Malta and the Government of the French to conclude an Agreement for the avoidance of double taxation prevention of fiscal evasion with respect to taxes on income have agreed as

CHAPTER I

Scope of the Agreement

ARTICLE 1

Personal Scope Agreement shall apply to persons who are residents of one or both of the States.

* ARTICLE 2

Taxes Covered Agreement shall apply to taxes on income and on capital imposed on Contracting State or of its political subdivisions or local authorities, manner in which they are levied. shall be regarded as taxes on income and on capital all taxes imposed on total capital, or on elements of income or of capital, including from the alienation of movable or immovable property, taxes on the wages or salaries paid by enterprises, as well as taxes on capital existing taxes to which the Agreement shall apply are: case of France: the income tax; the corporation tax; including any withholding tax, prepayment (precompte) or advance payment with respect to the aforesaid taxes; the solidarity tax on wealth; the tax on salaries ("la taxe sur les salaires"); widespread social security contributions (contributions sociales généralisées) and contributions for the reimbursement of the social debt (contributions pour le remboursement de la dette sociale); (hereinafter referred to as "French tax'');

Protocol reproduced in Legal Notice 329 of 2010.

(4) The Agreement shall apply also to any identical or substantially taxes which are imposed after the date of signature of this Agreement or in place of, the existing taxes. The competent authorities of the Contracting shall notify to each other any substantial changes which have been respective taxation laws.

CHAPTER II

Definitions

ARTICLE 3

General Definitions

(1) In this Agreement:

(a) the term "France" means the European and overseas (Guadeloupe, Guyane, Martinque and Reunion) of the French Republic, outside the territorial sea of those departments which is, in accordance international law, an area within which France may exercise rights the sea-bed and subsoil and their natural resources;

(b) the term "Malta" means the Republic of Malta and includes Island of Malta, the Island of Gozo and the other islands of the Maltese together with the territorial waters thereof, and any area outside the Malta which, in accordance with international law, has been or designated, under the law of Malta concerning the Continental within which the rights of Malta with respect to the sea bed and natural resources may be exercised;

(c) the term "person" means an individual, a company and any persons;

(d) the term "company" means any body corporate or any entity as a body corporate for tax purposes;

(e) the terms "enterprise of a Contracting State" and "enterprise Contracting State" mean respectively an enterprise carried on by Contracting State and an enterprise carried on by a resident of the State;

(f) the term "nationals" means:

(i) in respect of France, all individuals possessing the France;

(ii) in respect of Malta all citizens of Malta as provided for the Constitution of Malta and in the Maltese Citizenship

(iii) all legal persons, partnerships and associations deriving such from the law in force in a Contracting State;

(h) the term "international traffic" means any transport by operated by an enterprise which has its place of effective management Contracting State, except when the ship or aircraft is operated solely in the other Contracting State; the case of Malta, the Minister responsible for finance or his authorised representative. regards the application of the Agreement by a Contracting State, any therein shall have the meaning which it has under the laws of that the taxes to which the Agreement applies. The meaning of a term taxation law of that State shall have priority over the meaning provided for other branches of law of that State.

ARTICLE 4

Fiscal Domicile purpose of this Agreement, the term "resident of a Contracting State" person who, under the law of that State, is liable to taxation therein by domicile, residence, place of management or any other criterion of a But this term does not include any person who is liable to tax in that in respect only of income from sources therein or capital situated by reason of the provisions of paragraph (1) an individual is a Contracting States, then his status shall be determined as follows: shall be deemed to be a resident of the Contracting State in which he a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (centre of vital interests); the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to in either Contracting State, he shall be deemed to be a resident of Contracting State in which he has a habitual abode; has a habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question mutual agreement.

by reason of the provisions of paragraph (1) a person other than an resident of both Contracting States, then it shall be deemed to be a Contracting State in which its place of effective management is

ARTICLE 5

Permanent Establishment purposes of this Agreement, the term "permanent establishment" place of business through which the business of an enterprise is carried on. "permanent establishment" shall include especially:

(d) a factory;

(e) a workshop; and

(f) a mine, an oil or gas well, a quarry or any other place natural resources including an offshore drilling site.

(3) A building site or construction or installation project activities in connection therewith shall constitute a permanent provided that such site, project or activities last for more than twelve

(4) Notwithstanding the preceding provisions of this Article, "permanent establishment" shall be deemed not to include -

(a) the use of facilities solely for the purpose of storage, display of goods or merchandise, belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise enterprise solely for the purpose of storage, display or

(c) the maintenance of a stock of goods or merchandise enterprise solely for the purpose of processing by another

(d) the maintenance of a fixed place of business solely for purchasing goods or merchandise, or for collecting information, enterprise;

(e) the maintenance of a fixed place of business solely for carrying on, for the enterprise, any other activity, if it or auxiliary character;

(f) the maintenance of a fixed place of business solely for of activities mentioned in sub-paragraphs (a) to (e) of provided that the overall activity of the fixed place of business from this combination is of a preparatory or auxiliary character.

(5) Notwithstanding the provisions of paragraphs (1) and (2), if than an agent of an independent status to whom paragraph (6) applies behalf of an enterprise and has, and habitually exercises, in a Contracting authority to conclude contracts in the name of the enterprise, that enterprise deemed to have a permanent establishment in that State in respect which that person undertakes for the enterprise, unless the activities are limited to those mentioned in paragraph (4) which, if exercised place of business, would not make this fixed place of business establishment by virtue of that paragraph.

(6) An enterprise shall not be deemed to have a permanent establishment Contracting State merely because it carries on business in that broker, general commission agent or any other agent of an independent such persons are acting in the ordinary course of their business.

(7) The fact that a company which is resident of a Contracting is controlled by a company which is a resident of the other Contracting which carries on business in that other State (whether through establishment or otherwise), shall not itself constitute either company establishment of the other. ARTICLE 6

Income from Immovable Property from immovable property may be taxed in the Contracting State in property is situated.

"immovable property" shall be defined in accordance with the the Contracting State in which the property in question is situated. any case include property accessory to immovable property, rights provisions of general law respecting landed property apply, usufruct of property and rights to variable or fixed payments as consideration for the the right to work, mineral deposits, sources and other natural boats and aircraft shall not be regarded as immovable property. provisions of paragraph (1) shall apply to income derived from the letting, or use in any other form of immovable property. provisions of paragraphs (1) and (3) shall also apply to the income from property of an enterprise and to income from immovable property used performance of professional services.

the ownership of shares or other rights in a company or legal person owner to the enjoyment of immovable property situated in a Contracting that company or legal person, income derived by the owner from letting or use in any other form of his right or enjoyment may be taxed The provisions of this paragraph shall apply notwithstanding the Articles 7 and 14.

ARTICLE 7

Business Profits profits of an enterprise of a Contracting State shall be taxable only in the enterprise carries on business in the other Contracting State permanent establishment situated therein. If the enterprise carries on aforesaid, the profits of the enterprise may be taxed in the other State but them as is attributable to that permanent establishment.

to the provisions of paragraph (3), where an enterprise of a State carries on business in the other Contracting State through a establishment situated therein, there shall in each Contracting State be permanent establishment the profits which it might be expected to a distinct and separate enterprise engaged in the same or similar the same or similar conditions and dealing wholly independently enterprise of which it is a permanent establishment. determination of the profits of a permanent establishment, there shall deductions expenses which are incurred for the purposes of the establishment including executive and general administrative expenses so whether in the State in which the permanent establishment is situated or as it has been customary in a Contracting State to determine the attributed to a permanent establishment on the basis of an principles embodied in this Article.

(5) No profits shall be attributed to a permanent establishment mere purchase by that permanent establishment of goods or merchandise enterprise.

(6) For the purposes of the preceding paragraphs, the profits to the permanent establishment shall be determined by the same method unless there is good and sufficient reason to the contrary.

(7) Where profits include items of income which are dealt with other Articles of this Agreement, then the provisions of those Articles affected by the provisions of this Article.

ARTICLE 8

Shipping and Air Transport

(1) Profits from the operation of ships and aircraft in international be taxable only in the Contracting State in which the place of effective of the enterprise is situated.

(2) If the place of effective management of a shipping enterprise ship, then it shall be deemed to be situated in the Contracting State home harbour is situated, or if there is no such home harbour, in State of which the operator of the ship is a resident.

(3) The provisions of paragraph (1) shall also apply to profits participation in a pool, a joint business or in an international operating

ARTICLE 9

Associated Enterprises Where -

(a) an enterprise of a Contracting State participates directly the management, control or capital of an enterprise Contracting State; or

(b) the same persons participate directly or indirectly in control or capital of an enterprise of a Contracting enterprise of the other Contracting State, and in either case conditions are made or imposed between the two their commercial or financial relations which differ from those which between independent enterprises, then any profits which would, conditions, have accrued to one of the enterprises, but by reason of have not so accrued, may be included in the profits of that enterprise accordingly. other Contracting State may be taxed in that other State. such dividends may be taxed in the Contracting State of which the the dividends is a resident, and according to the law of that State, where the dividends are paid by a company resident of France to a resident of Malta who is the beneficial owner thereof, the French tax so charged shall not exceed 15 per cent of the gross amount of the dividends. However, dividends paid by a company which is a resident of France and beneficially owned by a company which is a resident of Malta which holds directly at least 10 per cent of the capital of the company paying the dividends shall be taxable only in Malta; where the dividends are paid by a company resident of Malta to a resident of France who is the beneficial owner thereof -Malta tax shall not exceed that chargeable on the company paying the dividends in respect of the profits so distributed; notwithstanding the provisions of sub-paragraph (i) Malta tax shall not exceed 15 per cent of the gross amount of the dividends if such dividends are paid out of gains or profits earned in any year in respect of receipt of tax benefits 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. paragraph shall not affect the taxation of the company in respect of the which the dividends are paid. "dividends" as used in this Article means income from shares, shares or "jouissance" rights, mining shares, founders shares or other debt-claims, participating in profits, as well as income treated as a the taxation laws of the Contracting State of which the company distribution is a resident. provisions of paragraphs (1) and (2) shall not apply if the recipient of being a resident of a Contracting State, carries on business in the other of which the company paying the dividends is a resident, through a establishment situated therein, or performs in that other State services from a fixed base situated therein and the holding in respect of dividends are paid is effectively connected with such permanent fixed base. In such a case the provisions of Article 7 or Article 14, be, shall apply. resident of Malta who receives from a company which is a resident dividends which, if received by a resident of France, would entitle such fiscal credit (avoir fiscal), shall be entitled to a payment from the equal to such credit (avoir fiscal) subject to the deduction of the tax sub-paragraph (a) of paragraph (2) of this Article.

Protocol reproduced in Legal Notice 329 of 2010. for the purposes of this sub-paragraph, a company shall control another company when, either alone or together more associated companies it controls directly or indirectly per cent of the voting power of the other company, and shall be deemed to be associated if one is controlled indirectly by the other or both are controlled directly third company in the manner aforesaid.

(c) The provisions of sub-paragraph (a) of this paragraph shall recipient of the payment from the French Treasury provided for under

(a) of this paragraph is not subject to Malta tax in respect of that payment.

(d) Payments from the French Treasury provided for under sub-paragraph this paragraph shall be deemed to be dividends for the purposes of

(6) (a) Where the prepayment (precompte) is levied in respect paid by a company which is a resident of France to a resident of entitled to the payment from the French Treasury referred to in paragraph Article with respect to such dividends, that resident of Malta shall refund of the prepayment, subject to the deduction of tax with refunded amount in accordance with paragraph (2) of this Article.

(b) Amounts refunded under the provisions at sub-paragraph paragraph shall be deemed to be dividends for the purposes of this

(7) Where a company resident of Malta has in France establishment, the profits of this permanent establishment shall, after the French corporation tax, be liable to a tax the rate of which shall per cent, according to the law of France.

(8) The provisions of this Article shall not apply if it was the one of the main purposes of any person concerned with the assignment of the shares or other rights in respect of which the dividend take advantage of this Article by means of that creation or assignment.

ARTICLE 11*

Interest

(1) Interest arising in a Contracting State and paid to a resident Contracting State may be taxed in that other State.

(2) However, such interest may be taxed in the Contracting arises, and according to the law of that State, but if the recipient owner of the interest, the tax so charged shall not exceed 5 per amount of the interest.

(3) Notwithstanding the provisions of paragraph (2), any such mentioned in paragraph (1) shall be taxable only in the Contracting the beneficiary is a resident, if such interest is payable on loans guaranteed by that State or a statutory body thereof.

(4) The term "interest" as used in this Article means income from

*as amended by Protocol reproduced in Legal Notice 329 of 2010. interest for the purpose of this Article. provisions of paragraphs (1) and (2) shall not apply if the recipient of being a resident of a Contracting State, carries on business in the other State in which the interest arises, through a permanent establishment or performs in that other State professional services from a fixed therein, and the debt-claim in respect of which the interest is paid is connected with such permanent establishment or fixed base. In such a provisions of Article 7 or Article 14, as the case may be, shall apply. shall be deemed to arise in a Contracting State when the payer is a political subdivision, a local authority, a statutory body thereof or State. Where, however, the person paying the interest, whether he a Contracting State or not, has in a Contracting State a permanent connection with which the indebtedness on which the interest is incurred, and such interest is borne by such permanent establishment, then shall be deemed to arise in the Contracting State in which the establishment is situated. owing to a special relationship between the payer and the recipient of them and some other person, the amount of the interest paid, to the debt-claim for which it is paid, exceeds the amount which agreed upon by the payer and the recipient in the absence of such provisions of this Article shall apply only to the last-mentioned case, the excess part of the payment shall remain taxable according each Contracting State, due regard being had to the other provisions of provisions of this Article shall not apply if it was the main purpose or purposes of any person concerned with the creation or the the debt-claim in respect of which the interest is paid to take Article by means of that creation or assignment.

* ARTICLE 12

Royalties arising in a Contracting State and paid to a resident of the other may be taxed in that other State. such royalties may be taxed in the Contracting State in which they according to the law of that State, but if the recipient is the beneficial royalties, the tax so charged shall not exceed 10 per cent of the amount

Notwithstanding the provisions of paragraph (2), payments of any kind consideration for the use of, or the right to use, any copyright of or scientific work, including works recorded for broadcasting or be taxable only in the Contracting State of which the beneficiary is a resident is the beneficial owner of the payments. "royalties" as used in this Article means payments of any kind

Protocol reproduced in Legal Notice 329 of 2010. or scientific experience.

(5) The provisions of paragraphs (1), (2) and (3) shall not apply of the royalties, being a resident of a Contracting State, carries on other Contracting State in which the royalties arise, through establishment situated therein, or performs in that other State professional from a fixed base situated therein, and the right or property in respect royalties are paid is effectively connected with such permanent fixed base. In such a case, the provisions of Article 7 or Article 14, be, shall apply.

(6) Royalties shall be deemed to arise in a Contracting State when that State itself, a political subdivision, a local authority, a statutory a resident of that State. Where, however, the person paying the royalties, is a resident of a Contracting State or not, has in a Contracting State establishment with which the right or property in respect of which paid is effectively connected, and such royalties are borne by establishment, then such royalties shall be deemed to arise in the in which the permanent establishment is situated.

(7) Where, owing to a special relationship between the payer or between both of them and some other person, the amount of the having regard to the use, right or information for which they are amount which would have been agreed upon by the payer and the absence of such relationship, the provisions of this Article shall last-mentioned amount. In that case, the excess part of the payments taxable according to the law of each Contracting State, due regard other provisions of this Agreement.

(8) The provisions of this Article shall not apply if it was the one of the main purposes of any person concerned with the assignment of the rights in respect of which the royalty is paid to this Article by means of that creation or assignment.

ARTICLE 13

Capital Gains

(1) Gains from the alienation of immovable property, as defined

(2) of Article 6 or from the alienation of shares or comparable property cooperative or in a company the assets of which consist directly one or more other companies or legal persons principally of immovable may be taxed in the Contracting State in which such property is situated.

(2) Gains from the alienation of movable property forming part property of a permanent establishment which an enterprise of a Contracting in the other Contracting State or of movable property pertaining available to a resident of a Contracting State in the other Contracting purpose of performing professional services, including such alienation of such a permanent establishment (alone or together enterprise) or of such a fixed base, may be taxed in the other State. from the alienation of movable property pertaining to the operation aircraft operated in international traffic shall be taxable only in the in which the place of effective management of the enterprise is situated. or related persons, holds directly or indirectly shares which together per cent or more of the company profits.

from the alienation of any property other than those mentioned in

(2) and (3), shall be taxable only in the Contracting State of which a resident.

ARTICLE 14

Independent Personal Services derived by a resident of a Contracting State in respect of services or other independent activities of a similar character shall be that State. However, such income may be taxed in the other in the following circumstances: has a fixed base regularly available to him in the other Contracting for the purpose of performing his activities (in which case only so much of the income as is attributable to that fixed base may be taxed in other Contracting State); or his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days during any calendar year.

term "professional services" includes, especially, independent literary, artistic, educational or teaching activities as well as the activities of physicians, lawyers, engineers, architects, dentists and

ARTICLE 15

Dependent Personal Services to the provisions of Articles 16, 18 and 19, salaries, wages and other remuneration derived by a resident of a Contracting State in respect of an be taxable only in that State unless the employment is exercised in Contracting State. If the employment is so exercised, such remuneration as therefrom may be taxed in that other State. Notwithstanding the provisions of paragraph (1), remuneration derived by a Contracting State in respect of an employment exercised in the other shall be taxable only in the first-mentioned State if -recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and remuneration is not borne by a permanent establishment or a fixed which the employer has in the other State. Notwithstanding the preceding provisions of this Article, remuneration in employment exercised aboard a ship or aircraft in international traffic the Contracting State in which the place of effective management of Directors’ fees and similar payments derived by a resident of a in his capacity as a member of the board of directors or other similar company which is a resident of the other Contracting State may be taxed State.

ARTICLE 17

Artistes and Athletes

(1) Notwithstanding the provisions of Articles 14 and 15, income entertainers, such as theatre, motion picture, radio or television musicians, and by athletes, from their personal activities as such may Contracting State in which these activities are exercised.

(2) Where income in respect of personal activities as such of athlete accrues not to that entertainer or athlete himself but to another income may, notwithstanding the provisions of Articles 7, 14 and 15, Contracting State in which the activities of the entertainer or athlete

(3) Notwithstanding the provisions of paragraph (1), remuneration and wages, salaries and other similar income derived by entertainers from their personal activities as such in a Contracting State shall be the other Contracting State if their visit to the first Contracting State substantially from the public funds of that other Contracting political subdivisions or local authorities or of a statutory body thereof.

(4) Notwithstanding the provisions of paragraph (2), where income personal activities as such of entertainers and athletes in a Contracting not to that entertainer or athlete himself but to another person, notwithstanding provisions of Articles 7, 14 and 15, that income shall be taxable Contracting State if this person is supported substantially from the that other Contracting State, one of its political subdivisions or local a statutory body thereof, or if this person is a non-profit organisation State.

ARTICLE 18

Pensions

(1) Subject to the provisions of paragraph (2) of Article 19, pensions similar remuneration, and annuities paid to a resident of a Contracting consideration of past employment shall be taxable only in that State.

(2) Notwithstanding the provisions of paragraph (1), pensions payments made under the social security legislation of a Contracting taxable only in that State.

(3) As used in this Article -

(a) the term "pensions and other similar remuneration" payments made after retirement in consideration of past by way of compensation for injuries received in connection employment; ARTICLE 19

Government Service

Remuneration, other than a pension, paid by a Contracting State or a subdivision or a local authority thereof to any individual in respect of rendered to that State or subdivision or local authority thereof shall be that State. such remuneration shall be taxable only in the other Contracting services are rendered in that State and the recipient is a resident of that State who -

is a national of that State; or did not become a resident of that State solely for the purpose of performing the services. Any pension paid by, or out of funds created by, a Contracting State or subdivision or a local authority thereof to any individual in respect of rendered to that State or subdivision or local authority thereof shall be that State.

such pension shall be taxable only in the other Contracting State if a national of and a resident of that State.

provisions of Articles 15, 16 and 18 shall apply to remuneration and respect of services rendered in connection with any business carried on Contracting States or a political subdivision or a local authority

ARTICLE 20

Students which a student or business apprentice who is or was immediately a Contracting State a resident of the other Contracting State and who first-mentioned Contracting State solely for the purpose of his training receives for the purpose of his maintenance, education or be taxed in that State, provided that such payments are made to him outside that State. Remuneration which a student or business apprentice who is or was before visiting a Contracting State a resident of the other Contracting is present in the first-mentioned Contracting State solely for the education or training derives from services rendered in that State shall that State provided that such services are in connection with his training or that the remuneration of such services is necessary to resources available to him for the purpose of his maintenance.

ARTICLE 21

Teachers and Researchers teacher or researcher who is or was immediately before visiting a

(2) This Article shall not apply to income from research if undertaken not in the public interest but primarily for the private benefit person or persons.

ARTICLE 22*

Other Income

(1) Items of income beneficially owned by a resident of a Contracting wherever arising, not dealt with in the foregoing Articles of this Agreement taxable only in that State if such resident is subject to tax in respect income in that State. If that requirement is not met, those items remain taxable in the other Contracting State and according to the State.

(2) The provisions of paragraph (1) shall not apply if the income, being a resident of a Contracting State, carries on business Contracting State through a permanent establishment situated therein, that other State professional services from a fixed base situated therein, or property in respect of which the income is paid is effectively connected permanent establishment or fixed base. In such a case the provisions Article 14, as the case may be, shall apply.

(3) The provisions of this Article shall not apply if it was the one of the main purposes of any person concerned with the assignment of the rights in respect of which the income is paid to this Article by means of that creation or assignment.

CHAPTER IV

Taxation of Capital

ARTICLE 23

Capital

(1) Capital represented by immovable property, as defined in Article 6, may be taxed in the Contracting State in which such property Capital represented by shares or other rights in a company or legal of which consist principally, directly or through one or more other legal person, of immovable property situated in a Contracting State connected with such immovable property may be taxed in that State.

(2) Capital represented by movable property forming part property of a permanent establishment of an enterprise, or by movable pertaining to a fixed base used for the performance of professional taxed in the Contracting State in which the permanent establishment situated.

(3) Ships and aircraft operated in international traffic and movable pertaining to the operation of such ships and aircraft shall be taxable

*as amended by Protocol reproduced in Legal Notice 329 of 2010. CHAPTER V

Elimination of Double Taxation

ARTICLE 24*

Elimination of Double Taxation case of France, double taxation shall be avoided in the following arising in Malta, which may be taxed or shall be taxable only in that accordance with the provisions of this Agreement, shall be taken into computation of the French tax where the beneficiary of such income France and where such income is not exempted from corporation tax French domestic law. In that case, the Malta tax shall not be deductible income, but the beneficiary shall be entitled to a tax credit against French credit shall be equal -the case of income which, according to the provisions of the Agreement, shall be taxable only in Malta, to the amount of French tax attributable to such income; the case of income which, according to the provisions of the Agreement, may be taxed in Malta, to the amount of tax paid in Malta in accordance with the provisions of the Agreement; however, such tax credit shall not exceed the amount of French tax attributable to such income. resident of France who owns capital which may be taxed in Malta provisions of the Agreement may also be taxed in France in respect The French tax shall be computed by allowing a tax credit equal to the tax paid in Malta on such capital. However, such tax credit shall amount of the French tax attributable to such capital. understood that the term ''amount of French tax attributable to such in sub-paragraph (a) means -where the tax on such income is computed by applying a proportional the amount of the net income concerned multiplied by the rate which actually applies to that income; where the tax on such income is computed by applying a progressive scale, the amount of the net income concerned multiplied by the rate resulting from the ratio of the tax actually payable on the total net income taxable in accordance with French law to the amount of that net income.

interpretation shall apply by analogy to the term ''amount of French tax such capital'' as used in sub-paragraph (b).

is understood that the term ''amount of tax paid in Malta'' as used in

Protocol reproduced in Legal Notice 329 of 2010.

(ii) Notwithstanding the provisions of sub-paragraph (i), income referred to in Articles 10, 11 and 12, arising in Malta beneficiary who is a resident of France by a person to whom the Agreement Malta tax shall be deemed to have been paid as follows:

(aa) on dividends, at the rate of 15 per cent as provided 2(b)(ii) of Article 10;

(bb) on interest, at the rate of 5 per cent as provided in Article 11; and

(cc) on royalties, other than those referred to in Article 12, at the rate of 10 per cent as provided of the said Article. Relief from French tax by virtue of this sub-paragraph (ii) a period of ten years only, beginning with the date on which the Protocol of July, 1994, entered into force. This period may, however, agreement between the Contracting States.

(2) In the case of Malta, double taxation shall be eliminated as

Subject to the provisions of the law of Malta regarding the allowance against Malta tax in respect of foreign tax, where, in accordance with of this Agreement, there is included in a Malta assessment income within France, or elements of capital situated in France, the French income or elements of capital, as the case may be, shall be allowed against the relative Malta tax payable thereon.

(3) Where the Agreement provides that income arising in a shall be relieved from tax in that State, either in full or in part, and, force in the other Contracting State, such income is subject to tax by amount thereof which is remitted to or received in that other reference to the full amount thereof, then the relief to be allowed mentioned State shall apply only to so much of the income as received in the other State.

CHAPTER VI

Special Provisions

ARTICLE 25

Non-Discrimination

(1) The nationals of the Contracting State, whether or not they one of the Contracting States, shall not be subjected in the Contracting taxation or any requirement connected therewith which is other or than the taxation and connected requirements to which nationals of in the same circumstances are or may be subjected. It is understood individual, legal person, partnership or association who is a resident State is not placed in the same circumstances as an individual, partnership or association who is not a resident of that State, even legal persons, partnerships or associations, those entities are considered, other State than the taxation levied on enterprises of that other State same activities. shall not be construed as obliging a Contracting State to grant to other Contracting State any personal allowances, reliefs and taxation purposes on account of civil status or family responsibilities to its own residents.

where the provisions of Article 9, paragraph (7) of Article 11, or Article 12, apply interest, royalties and other disbursements paid by a Contracting State to a resident of the other Contracting State shall, of determining the taxable profits of such enterprise, be deductible condition as if they had been paid to a resident of the first-mentioned debts of an enterprise of a Contracting State to a resident of the Contracting State shall, for the purpose of determining the taxable capital of be deductible as if they had been contracted to a resident of the first-

Enterprises of a Contracting State, the capital of which is wholly or partly controlled, directly or indirectly by one or more residents of the other State, shall not be subjected in the first-mentioned Contracting State to any requirement connected therewith which is other or more the taxation and connected requirements to which other similar that first-mentioned State are or may be subjected. Article, the term "taxation" means taxes of every kind and

ARTICLE 26

Mutual Agreement Procedure a resident of a Contracting State considers that the actions of one or Contracting States result or will result for him in taxation not in this Agreement, he may, notwithstanding the remedies provided by of those States, present his case to the competent authority of the of which he is resident or, if his case comes under paragraph (1) of of the Contracting State of which he is a national. This case must within three years of the first notification of the action giving rise to accordance wish the Agreement.

competent authority shall endeavour, if the objection appears to it to be it is not itself able to arrive at an appropriate solution, to resolve the agreement with the competent authority of the other Contracting view to the avoidance of double taxation not in accordance with the agreement reached shall be implemented notwithstanding any time national laws of the Contracting State. competent authorities of the Contracting States shall endeavour to mutual agreement any difficulties arising as to the application of the of an enterprise of the other Contracting State;

(b) to the same allocation of income between a resident State and any associated person referred to in Article 9.

They may also consult together for the elimination of double taxation provided for in the Agreement.

(4) The competent authorities of the Contracting States may communicate each other directly for the purpose of reaching an agreement in preceding paragraphs. When it seems advisable in order to reach agreement an oral exchange of opinions, such exchange may take place through consisting of representatives of the competent authorities of the Contracting

(5) The competent authorities of the Contracting States agreement settle the mode of application of this Agreement and, requirements to which the residents of a Contracting State shall be subjected to obtain the tax reliefs or exemptions provided for by this Agreement.

* ARTICLE 27

Exchange of Information

(1) The competent authorities of the Contracting States shall information as is forseeably relevant for carrying out the provisions Agreement or to the administration or enforcement of the domestic taxes of every kind and description imposed on behalf of the Contracting of their political subdivisions or territorial authorities, insofar thereunder is not contrary to the Agreement. The exchange of information restricted by Article 1.