S.L. 123.15 Art. 2Arrangements to have effect. THE Malta and double taxation have agreed as This Contracting (1) The (a) in the (b) in the (2) This taxes which are this Agreement after the end of State shall substantial taxes to which (1) In this (a) the term in a geographical or of the said being in force or of a St

It is hereby declared -

(a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of Australia with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of Australia: the Australian income tax, including the additional tax upon the undistributed amount of the distributable income of a private company;

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

*https://cfr.gov.mt/en/inlandrevenue/itu/Documents/Malta%20-%20Aus-tralia%20DTA%20(synthesised%20text).pdf AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Australia desiring to conclude an Agreement for the avoidance of and the prevention of fiscal evasion with respect to taxes on income, follows:

CHAPTER I

Scope of the Agreement

ARTICLE 1

Personal Scope

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

ARTICLE 2

Taxes Covered existing taxes to which this Agreement shall apply are: Australia: Australian income tax, including the additional tax upon the undistributed amount of the distributable income of a private company; Malta: income tax, including prepayments of tax whether made by deduction at source or otherwise. Agreement shall also apply to any identical or substantially similar imposed by either Contracting State after the date of signature of in addition to, or in place of, the existing taxes. As soon as possible each calendar year, the competent authority of each Contracting notify the competent authority of the other Contracting State of any changes which have been made in the laws of his State relating to the this Agreement applies.

CHAPTER II

Definitions

ARTICLE 3

General Definitions Agreement, unless the context otherwise requires: "Australia" means the Commonwealth of Australia and, when used sense, includes:

(iv) the Territory of Ashmore and Cartier Islands;

(v) the Coral Sea Islands Territory; and

(vi) any area adjacent to the territorial limits of Australia Territories in respect of which there is for the time consistently with international law, a law of Australia part of Australia or of a Territory aforesaid dealing with of any of the natural resources of the sea-bed and continental shelf:

(b) the term "Malta" means the Republic of Malta and geographical sense, means the Island of Malta, the Island of Gozo islands of the Maltese archipelago, including the territorial waters area outside the territorial sea of Malta which in accordance with has been or may hereafter be designated under the law of Malta continental shelf, as an area within the rights of Malta with respect and subsoil and their natural resources may be exercised;

(c) the terms "Contracting State", "one of the Contracting States" Contracting State" mean Australia or Malta, as the context requires;

(d) the term "person" includes an individual, a company and any persons;

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

(f) the terms "enterprise of one of the Contracting States" and other Contracting State" mean an enterprise carried on by a resident an enterprise carried on by a resident of Malta, as the context requires;

(g) the term "international traffic" means any transport by a except where the ship or aircraft is operated solely between Contracting State;

(h) the term "tax" means Australian tax or Malta tax, as the context

(i) the term "Australian tax" means tax imposed by Australia, which this Agreement applies by virtue of Article 2;

(j) the term "Malta tax" means tax imposed by Malta, being Agreement applies by virtue of Article 2;

(k) the term "competent authority" means, in the case of Commissioner of Taxation or his authorised representative, and in the the Minister responsible for finance or his authorised representative.

(2) In this Agreement, the terms "Australian tax" and "Malta tax" any penalty or interest imposed under the law of either Contracting the taxes to which this Agreement applies by virtue of Article 2.

(3) In the application of this Agreement by a Contracting State, defined in this Agreement shall, unless the context otherwise requires, meaning which it has under the laws of that State relating to the taxes Agreement applies. States: the case of Australia, subject to the provisions of paragraph (2), if the person is a resident of Australia for the purposes of Australian tax; and the case of Malta, if the person is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. A person is not a resident of Malta if he is liable to tax in Malta in respect only of income from sources therein. relation to income from sources in Malta, a person who is subject to income which is from sources in Australia shall not be treated as a Australia unless the income from sources in Malta is subject to Australian income is exempt from Australian tax, it is so exempt solely because it Malta tax. by reason of the preceding provisions of this Article an individual is both Contracting States, then his status shall be determined in the following rules: shall be deemed to be a resident solely of the Contracting State in which he has a permanent home available to him; has a permanent home available to him in both Contracting States, if he does not have a permanent home available to him in either of them, he shall be deemed to be a resident solely of the Contracting State which his personal and economic relations are the closer. determining for the purposes of paragraph (3) the Contracting State with individual’s personal and economic relations are the closer, the matters to may be had shall include the citizenship of the individual.

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 the Contracting State in which its place of effective management is

ARTICLE 5

Permanent Establishment purposes of this Agreement, the term "permanent establishment", in enterprise, means a fixed place of business through which the business is wholly or partly carried on. "permanent establishment" shall include especially: place of management; branch; office; factory; workshop; mine, an oil or gas well, a quarry or any other place of extraction of natural resources; by reason of -

(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 activities which have a preparatory or auxiliary character enterprise, such as advertising or scientific research.

(4) An enterprise shall be deemed to have a permanent establishment the Contracting States and to carry on business through that permanent if -

(a) it carries on supervisory activities in that State for more in any twelve-month period in connection with a building construction, installation or assembly project which is in that State;

(b) there is being used in that State by, for or under contract enterprise substantial equipment including, but not installation, drilling rig or ship used for, or in activities the exploration for or exploitation of natural resources;

(c) it carries on supervisory activities in that State in connection use of equipment referred to in sub-paragraph (b).

(5) A person acting in one of the Contracting States on behalf of the other Contracting State - other than an agent of an independent paragraph (6) applies - shall be deemed to be a permanent establishment enterprise in the first-mentioned State -

(a) in respect of his activities in that behalf, if he has, exercises in that State, an authority to conclude contracts the enterprise, unless his activities are limited to those paragraph (3) and are such that, if exercised through business, would not make that fixed place of business establishment under the provisions of that paragraph; or

(b) if, in so acting, he manufactures or processes in that enterprise goods or merchandise belonging to the enterprise.

(6) An enterprise of one of the Contracting States shall not be permanent establishment in the other Contracting State merely because business in that other State through a broker, general commission agent agent of an independent status, where that person is acting in the ordinary his business as such a broker or agent.

(7) The fact that a company which is a resident of one of the Contracting principles set forth in the preceding paragraphs of this Article shall be determining for the purposes of this Agreement whether there is a establishment outside both Contracting States; and whether an enterprise, enterprise of one of the Contracting States, has a permanent one of the Contracting States.

CHAPTER III

Taxation of Income

ARTICLE 6

Income from Real Property from real property may be taxed in the Contracting State in which is situated. Article the term "real property" -the case of Australia, has the meaning which it has under the laws of Australia, and shall also include -a lease of land and any other interest in or over land, whether improved or not; and a right to receive variable or fixed payments as consideration for the working of, or the right to work or to explore for, mineral deposits, oil or gas wells, quarries or other places of extraction or exploitation of natural resources; and the case of Malta, means immovable property according to the laws Malta, and shall also include: property accessory to immovable property; rights to which the provisions of the general law respecting landed property apply; usufruct of immovable property; and rights to variable or fixed payments in respect of the operation of mines or quarries or of the exploitation of or exploration for any natural resources.

and aircraft shall not be regarded as real property. of land, any other interest in or over land and any right referred to in sub-paragraphs of paragraph (2) shall be regarded as situated where the deposits, oil or gas wells, quarries or natural resources, as the case may or the exploration may take place. provisions of paragraph (1) shall apply to income derived from the or use in any other form of real property. provisions of paragraphs (1), (3) and (4) shall also apply to the income property of an enterprise and to income from real property used for the professional services. only in that State unless the enterprise carries on business in the other State through a permanent establishment situated therein. If the enterprise business as aforesaid, the profits of the enterprise may be taxed in the only so much of them as is attributable to that permanent establishment.

(2) Subject to the provisions of paragraph (3), where an enterprise Contracting States carries on business in the other Contracting permanent establishment situated therein, there shall in each Contracting attributed to that permanent establishment the profits which it might make if it were a distinct and separate enterprise engaged in the activities under the same or similar conditions and dealing wholly with the enterprise of which it is a permanent establishment or with with which it deals.

(3) In the determination of the profits of a permanent establishment, be allowed as deductions expenses of the enterprise, being expenses incurred for the purposes of the permanent establishment (including general administrative expenses so incurred) and which would be permanent establishment were an independent entry which paid whether incurred in the Contracting State in which the permanent situated or elsewhere.

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

(5) Nothing in this Article shall affect the application of Contracting State relating to the determination of the tax liability including the determination of such liability by the exercise of a making of an estimate by the competent authority of that State in from the information available to the competent authority of that possible or not practicable to ascertain the profits to be attributed establishment, provided that that law shall be applied, so far as available to the competent authority permits, consistently with the Article.

(6) For the purposes of the preceding paragraphs of this Article, attributed to the permanent establishment shall be determined by year by year 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.

(8) Nothing in this Article shall affect the operation of any law State relating to taxation of profits from insurance with non-residents if the relevant law in force in either Contracting State at the date of Agreement is varied (otherwise than in minor respects so as not to character) the Contracting States shall consult with each other agreeing to any amendment of this paragraph that may be appropriate. States shall be taxable only in that State. Notwithstanding the provisions of paragraph (1), such profits may be taxed Contracting State where they are profits from operations of ships or solely to places in that other State. provisions of paragraphs (1) and (2) shall apply in relation to the share from the operation of ships or aircraft derived by a resident of one of States through participation in a pool service, in a joint transport organization or in an international operating agency. purposes of this Article, profits derived from the carriage by ships or passengers, livestock, mail, foods or merchandise shipped in a State for discharge at another place in that State shall be treated as operations of ships or aircraft confined solely to places in that State.

Notwithstanding the provisions of this Article, profits from the operation of international traffic derived by a company which is a resident of Malta may Australia unless the company proves that such profits are not relieved under the provisions of the Merchant Shipping Act, or under any similar provisions. The foregoing sentence, however, shall not apply if proves that not more than 25 per cent of its capital is owned, directly or persons who are not residents of Malta.

ARTICLE 9

Associated Enterprises -

enterprise of one of the Contracting States participates directly or indirectly in the management, control or capital of an enterprise of the Contracting State; or same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the Contracting States and enterprise of the other Contracting State, conditions operate between the two enterprises in their commercial relations which differ from those which might be expected to operate independent enterprises dealing wholly independently with one another, which, but for those conditions, might have been expected to accrue enterprises, but, by reason of those conditions, have not so accrued, in the profits of that enterprise and taxed accordingly. in this Article shall affect the application of any law of a State relating to the determination of the tax liability of a person, determination of such liability by the exercise of a discretion or the estimate by the competent authority of that State in cases in which, information available to the competent authority of that State, it is not practicable to determine the income to be attributed to an enterprise, that law shall be applied, so far as the information available to the authority permits, consistently with the principles of this Article. profits on which an enterprise of one of the Contracting States has between independent enterprises dealing wholly independently with then the first-mentioned State shall make an appropriate adjustment tax charged on those profits in the first-mentioned State. In determining adjustment, due regard shall be had to the other provisions of this relation to the nature of the income and for this purpose the competent the Contracting States shall if necessary consult each other.

ARTICLE 10

Dividends

(1) Dividends paid by a company which is a resident of one of States for the purposes of its tax, being dividends to which a resident Contracting State is beneficially entitled, may be taxed in that State.

(2) Such dividends may be taxed in the Contracting State of which paying the dividends is a resident for the purposes of its tax, and law of that State, but -

(a) in the case of tax charged by Australia: that tax shall not exceed 15 per cent of the gross dividends;

(b) in the case of tax charged by Malta:

(i) such tax on the gross amount of the dividends that chargeable on the profits out of which the dividends

(ii) where such dividends are paid out of profits of are subject to tax at a reduced rate of tax under special designed to promote investments necessary for development of Malta, the rate of Malta tax on the not exceed such reduced rate.

The provisions of this paragraph shall not affect the taxation of the profits out of which the dividends are paid.

(3) The term "dividends" in this Article means income from income assimilated to income from shares by the taxation law of State of which the company making the distribution is a resident for its tax.

(4) The provisions of paragraph (2) shall not apply if the person entitled to the dividends, being a resident of one of the Contracting business in the other Contracting State of which the company paying a resident, through a permanent establishment situated therein, or other State independent personal services from a fixed base situated holding in respect of which the dividends are paid is effectively connected permanent establishment or fixed base. In any such case the provisions or Article 14, as the case may be, shall apply.

(5) Dividends paid by a company which is a resident of one of States, being dividends to which a person who is not a resident Contracting State is beneficially entitled, shall be exempt from tax except insofar as the holding in respect of which the dividends are paid ARTICLE 11

Interest arising in one of the Contracting States, being interest to which a other Contracting State is beneficially entitled, may be taxed in that interest may be taxed in the Contracting State in which it arises, and law of that State, but the tax so charged shall not exceed 15 per cent amount of the interest. term "interest" in this Article includes interest from Government from bonds or debentures, whether or not secured by mortgage and carrying a right to participate in profits, and interest from any other indebtedness as well as all other income assimilated to income from money taxation law of the Contracting State in which the income arises. provisions of paragraph (2) shall not apply if the person beneficially interest, being a resident of one of the Contracting States, carries on other Contracting State, in which the interest arises, through a establishment situated therein, or performs in that other State independent from a fixed base situated therein, and the indebtedness in respect interest is paid is effectively connected with such permanent fixed base. In such a case, the provisions of Article 7 or Article 14, be, shall apply. shall be deemed to arise in a Contracting State when the payer is or a political subdivision or local authority of that State or a person of that State for the purposes of its tax. Where, however, the person interest, whether he is a resident of one of the Contracting States or not, Contracting States or outside both Contracting States a permanent fixed base in connection with which the indebtedness on which the was incurred, and such interest is borne by such permanent fixed base, then such interest shall be deemed to arise in the State in permanent establishment or fixed base is situated.

owing to a special relationship between the payer and the person entitled to the interest, or between both of them and some other person, the interest paid, having regard to the indebtedness for which it is amount which might have been expected to have been agreed upon the person so entitled in the absence of such relationship, the Article shall apply only to the last-mentioned amount. In that case, of the amount of the interest paid shall remain taxable according to Contracting State, but subject to the other provisions of this

ARTICLE 12

Royalties arising in one of the Contracting States, being royalties to which a other Contracting State is beneficially entitled, may be taxed in that

(3) The term "royalties" in this Article means payments or periodical or not, and however described or computed, to the extent are made as consideration for:

(a) the use of, or the right to use, any copyright, patent, plan, secret formula or process, trademark or other right;

(b) the use of, or the right to use, any industrial, commercial equipment;

(c) the supply of scientific, technical, industrial or commercial or information;

(d) the supply of any assistance that is ancillary and subsidiary furnished as a means of enabling the application or enjoyment such property or right as is mentioned in sub-paragraph equipment as is mentioned in sub-paragraph (b) or any or information as is mentioned in sub-paragraph (c);

(e) the use of, or the right to use -

(i) motion picture films;

(ii) films or video tapes for use in connection with television;

(iii) tapes for use in connection with radio broadcasting;

(f) total or partial forbearance in respect of the use or property or right referred to in this paragraph.

(4) The provisions of paragraph (2) shall not apply if the person entitled to the royalties, being a resident of one of the Contracting business in the other Contracting State, in which the royalties permanent establishment situated therein, or performs in that other personal services from a fixed base situated therein, and the property respect of which the royalties are paid or credited is effectively connected permanent establishment or fixed base. In such a case, the provisions Article 14, as the case may be, shall apply.

(5) Royalties shall be deemed to arise in a Contracting State when that State itself or a political subdivision or local authority of that who is a resident of that State for the purposes of its tax. Where, however, paying the royalties, whether he is a resident of one of the Contracting has in one of the Contracting States or outside both Contracting States establishment or fixed base in connection with which the liability to was incurred, and the royalties are borne by the permanent establishment base, then the royalties shall be deemed to arise in the State in which establishment or fixed base is situated.

(6) Where, owing to a special relationship between the payer beneficially entitled to the royalties, or between both of them and some the amount of the royalties paid or credited, having regard to what credited for, exceeds the amount which might have been expected agreed upon by the payer and the person so entitled in the relationship, the provisions of this Article shall apply only to the amount. ARTICLE 13

Alienation of Property or gains from the alienation of real property may be taxed in the in which the real property is situated. or gains from the alienation of shares or comparable interests in a assets of which consist wholly or principally of real property, may be Contracting State in which the assets or the principal assets of the situated. purposes of this Article -

term "real property" has the same meaning that it has in Article 6;

lease, interest or right referred to in any sub-paragraph of paragraph of that Article shall be regarded as situated where the land, mineral deposits, oil, or gas wells, quarries or natural resources, as the case may are situated or the exploration may take place.

ARTICLE 14

Independent Personal Services derived by an individual who is a resident of one of the Contracting of professional services or other independent activities of a similar taxable only in that State. However, if such an individual -

a fixed base regularly available to him in the other Contracting State the purpose of performing his activities; or a year of income or in the year immediately preceding a year of assessment, as the case may be, stays in the other Contracting State for a period or periods aggregating more than 183 days for the purpose of performing his activities; or derives, in a year of income or in the year immediately preceding a year assessment, as the case may be, from residents of the other Contracting State gross remuneration exceeding twelve thousand five hundred Australian dollars or its equivalent in Malta liri from performing his activities in that State, income derived by him as is attributable to activities so performed the other State. Treasurer of Australia and the Minister responsible for finance in Malta letters exchanged for the purpose to variations in the amount specified

(c) of paragraph (1) and any variations so agreed shall have effect tenor of the letters.

"professional services" includes services performed in the exercise scientific, literary, artistic, educational or teaching activities, as well exercise of independent activities of physicians, lawyers, engineers, dentists and accountants. similar remuneration derived by an individual who is a resident Contracting States in respect of an employment shall be taxable unless the employment is exercised in the other Contracting State. If is so exercised, such remuneration as is derived from that exercise that other State.

(2) Notwithstanding the provisions of paragraph (1), remuneration individual who is a resident of one of the Contracting States employment exercised in the other Contracting State shall be taxable first-mentioned State if:

(a) the recipient is present in that other State for a period exceeding in the aggregate 183 days in the year of income immediately preceding the year of assessment, as the that other State; and

(b) the remuneration is paid by, or on behalf of, an employer resident of that other State; and

(c) the remuneration is not deductible in determining taxable permanent establishment or a fixed base which the employer other State; and

(d) the remuneration is, or upon the application of this subject to tax in the first-mentioned State.

(3) Notwithstanding the preceding provisions of this Article, respect of an employment exercised aboard a ship or aircr international traffic by a resident of one of the Contracting States that State.

ARTICLE 16

Directors’ Fees Directors’ fees and similar payments derived by a resident Contracting States in his capacity as a member of the board of directors, comparable body however described, of a company which is a resident Contracting State may be taxed in that other State.

ARTICLE 17

Entertainers

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

(2) Where income in respect of the personal activities of an entertainer accrues not to that entertainer but to another person, tha notwithstanding the provisions of Articles 7, 14 and 15, be taxed in State in which the activities of the entertainer are exercised. Contracting States shall be taxable only in that State. "annuity" means a stated sum payable periodically at stated times during a specified or ascertainable period of time under an obligation payments in return for adequate and full consideration in money or

Notwithstanding anything in this Agreement, any pension or allowance that the Contracting States in respect of wounds, disabilities or death or in respect of war service, and is exempt from tax under the law of resident of the other Contracting State shall be exempt from tax in

ARTICLE 19

Government Service Remuneration, other than a pension or annuity, paid by one of the States or a political sub-division or local authority of that State to any respect of services rendered in the discharge of governmental be taxable only in that State. However, such remuneration shall be the other Contracting State if the services are rendered in that other recipient is a resident of that other State who -

citizen of that State; or not become a resident of that State solely for the purpose of performing the services.

provisions of paragraph (1) shall not apply to remuneration in respect of in connection with any trade or business carried on by one of the States or a political sub-division or local authority of that State. In such provisions of Article 15 or Article 16, as the case may be, shall apply. remuneration is paid under a development assistance programme of a State, out of funds exclusively supplied by that State, to a specialist or seconded to the other Contracting State with the consent of that other remuneration shall be deemed to have been paid by the first-mentioned be taxable only in that State.

ARTICLE 20

Students student, who is a resident of one of the Contracting States or who was a State immediately before visiting the other Contracting State and temporarily present in that other State solely for the purpose of his education college, school or other similar educational institution, receives sources outside that other State for the purpose of his maintenance those payments shall be exempt from tax in that other State. expressly mentioned in the foregoing Articles of this Agreement only in that State.

(2) However, any such income derived by a resident of one of States, from sources in the other Contracting State, may also be taxed State.

(3) The provisions of paragraph (1) shall not apply to income resident of one of the Contracting States where that income is effectively with a permanent establishment or fixed base situated in the other Contracting In such a case, the provisions of Article 7 or Article 14, as the case apply.

ARTICLE 22

Sources of Income Income derived by a resident of one of the Contracting States one or more of Articles 6 to 8, Articles 10 to 19 and Article 21, may other Contracting State shall, for the purposes of Article 23 and of law of that other State, be deemed to be income from sources in that

CHAPTER IV

Methods of Elimination of Double Taxation

ARTICLE 23

(1) Subject to the provisions of the law of Australia from time which relate to the allowance of a credit against Australian tax country outside Australia (which shall not affect the general principle tax paid under the law of Malta and in accordance with this Agreement, directly or by deduction, in respect of income derived by a person of Australia from sources in Malta (not including, in the case of a dividend, in respect of the profits out of which the dividend is paid) shall be allowed against Australian tax payable in respect of that income.

(2) A company which is a resident of Australia is, in accordance provisions of the taxation law of Australia in force at the date of Agreement, entitled to a rebate in its assessment at the average rate the company in respect of dividends that are included in its taxable received from a company which is a resident of Malta. However, should force be amended so that the rebate in relation to the dividends allowable under that law, Australia shall immediately advise Malta enter into negotiations with Malta in order to establish new provisions the credit to be allowed by Australia against its tax on the dividends.

(3) For the purposes of paragraph (1) and of the income tax law

(a) a resident of Australia deriving income from sources in of dividends to which sub-paragraph (2)(b)(ii) of Article interest to which Article 11 applies or royalties to applies, being income in respect of which Malta tax general character, or under any other provisions which may subsequently be agreed by the Contracting States in letters exchanged the purpose through the diplomatic channel to be of a substantially similar character, shall be deemed to have paid Malta tax in an amount, the Malta tax paid shall be deemed to have been increased by an amount, equal to the amount by which the Malta tax that otherwise would have been payable (which tax, in the case of dividends, shall not exceed 15 per cent and, in the case of royalties or interest, 10 per cent of gross amount thereof) is reduced by the exemption or reduction granted; and amount of the said dividends, interests or royalties shall be deemed be the amount that would have been the amount of the dividends, interest or royalties if no Malta tax had been paid, increased by the amount by which the tax that otherwise would have been payable is reduced by the said exemption or reduction.

Paragraph (3) shall not apply in relation to income derived in any year of year of income that ends on 30 June 1989 or on any later date that the Contracting States in letters exchanged for this purpose. Subject to the provisions of the law of Malta from time to time in force the allowance of a credit against Malta tax of tax paid in a country (which shall not affect the general principle hereof), Australian tax law of Australia and in accordance with this Agreement, whether deduction, in respect of income derived by a person who is a resident sources in Australia (not including, in the case of a dividend, tax paid profits out of which the dividend is paid) shall be allowed as a credit payable in respect of that income. a company which is a resident of Australia pays a dividend to a is a resident of Malta and which controls directly or indirectly at of the voting power in the first-mentioned company, the credit shall (in addition to any Australian tax for which credit may be allowed sub-paragraph (a)) the Australian tax payable by that first-mentioned company profits out of which such dividend is paid. under this Agreement income is to be relieved from tax in one of the States and, under the law in force in the other Contracting State a respect of the said income, is subject to tax by reference to the amount remitted to or received in that other State and not by reference to the thereof, then the relief to be allowed under this Agreement in the first-shall apply only to so much of the income as is remitted to or other State. Mutual Agreement Procedure

(1) Where a resident of one of the Contracting States considers of the competent authority of one or both of the Contracting States result for him in taxation not in accordance with this Agreement, notwithstanding the remedies provided by the national laws of those his case to the competent authority of the Contracting State of which The case must be presented within three years from the first notification giving rise to taxation not in accordance with this Agreement.

(2) The competent authority shall endeavour, if the claim appears justified and if it is not itself able to arrive at an appropriate solution, case with the competent authority of the other Contracting State, with avoidance of taxation not in accordance with this Agreement. reached shall be implemented notwithstanding any time limits in the the Contracting States.

(3) The competent authorities of the Contracting States shall to resolve any difficulties or doubts arising as to the interpretation this Agreement.

(4) The competent authorities of the Contracting States may communicate each other directly for the purpose of giving effect to the provisions Agreement.

ARTICLE 25

Exchange of Information

(1) The competent authorities of the Contracting States shall information as is necessary for the carrying out of this Agreement or laws of the Contracting States concerning the taxes to which this Agreement insofar as the taxation thereunder is not contrary to this Agreement. information is not restricted by Article l. Any information received authority of a Contracting State shall be treated as secret in the information obtained under the domestic laws of that State and shall only to persons or authorities (including courts and administrative bodies) with the assessment or collection of, enforcement or prosecution in determination of appeals in relation to, the taxes to which this Agreement and shall be used only for such purposes.

(2) In no case shall the provisions of paragraph (1) be construed on a Contracting State the obligation -

(a) to carry out administrative measures at variance with administrative practice of that or of the other Contracting

(b) to supply particulars which are not obtainable under the normal course of the administration of that or of the State;

(c) to supply information which would disclose any industrial, commercial or professional secret or trade supply information the disclosure of which would be contrary Diplomatic and Consular Officials in this Agreement shall affect the fiscal privileges of diplomatic or under the general rules of international law or under the provisions international agreements. Notwithstanding Article 4, an individual who is a member of a diplomatic post or permanent mission of one of the Contracting States which other Contracting State or in a third State shall be deemed for the Agreement to be a resident of the sending state if he is liable in the the same obligations in relation to tax on his total income as are sending State. Agreement shall not apply to International Organizations, to organs or or to persons who are members of a diplomatic mission, consular permanent mission of a third State, being present in a Contracting State and liable in either Contracting State to the same obligations in relation to income as are residents thereof.

CHAPTER VI

Final Provisions

ARTICLE 27

Entry into Force

Agreement shall enter into force on the date on which the Contracting States through the diplomatic channel notifying each other that the last of been done as is necessary to give this Agreement the force of law in Malta, as the case may be, and thereupon this Agreement shall have

Australia: in respect of withholding tax on income that is derived by a non-resident, in relation to income derived on or after 1 January in the calendar year next following that in which the Agreement enters into force; in respect of other Australian tax, in relation to income of any year of income beginning on or after 1 July in the calendar year next following that in which the Agreement enters into force; Malta: relation to taxes which are levied for the year of assessment beginning on 1 January in the second calendar year following that in which the Agreement enters into force and for any subsequent year of assessment.

ARTICLE 28

Termination Agreement shall continue in effect indefinitely, but either of the Contracting

(a) in Australia:

(i) in respect of withholding tax on income that is resident, in relation to income derived on or after calendar year next following that in which termination is given;

(ii) in respect of other Australian tax, in relation to year of income beginning on or after 1 July in next following that in which the notice of termination

(b) in Malta: in relation to taxes which are levied for the year beginning on 1 January in the second calendar year which the notice of termination is given and for subsequent assessment.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, this Agreement.

DONE in duplicate at Valletta, Malta, this ninth day of one thousand and eighty-four in the English language.

FOR MALTA FOR AUSTRALIA

(sgd.) A. SCEBERRAS TRIGONA (sgd.) N. ROSS