S.L. 123.32 Art. 2Arrangements to have effect. The to conclude an of fiscal evasion follows: This Contracting (1) This behalf of a irrespective of (2) There on total income, taxes on gains total amounts of appreciation. (3) The (a) in (i) (ii) (iii) (iv) (v) (b) in the (4) This taxes which are or in place of, the of

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 the Republic of Cyprus with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of the Republic of Cyprus:

(i) the income tax;

(ii) the corporate income tax;

(iii) the special contribution;

(iv) the capital gains tax;

(v) the immovable property tax;

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

Government of Malta and the Government of the Republic of Cyprus desiring Agreement for the Avoidance of Double Taxation and the prevention with respect to taxes on income and on capital, 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, the 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 this Agreement shall apply are: Cyprus: the income tax; the corporate income tax; the special contribution; the capital gains tax; the immovable property tax, (hereinafter referred to as ‘Cyprus tax’); Malta: income tax, (hereinafter referred to as `Malta tax’). Agreement shall apply also to any identical or substantially similar imposed after the date of signature of this Agreement in addition to, existing taxes. The competent authorities of the Contracting States article 56 of the Income Tax Act concerning the chargeable income engaged in the production of petroleum produced in Malta.

CHAPTER II

Definitions

ARTICLE 3

General Definitions

(1) For the purposes of this Agreement, unless the context otherwise

(a) the term "Cyprus" means the Republic of Cyprus including territory, the territorial sea, the continental shelf, and any other accordance with international law and the law of the Republic of Cyprus may hereafter be designated as an area within which the Republic exercises sovereign rights or has jurisdiction or any other rights and

(b) the term "Malta", when used in a geographical sense, means Malta, the Island of Gozo and the other islands of the Maltese archipelago the territorial waters thereof, and any area outside the territorial sea in accordance with international law, has been or may hereafter be the law of Malta concerning the Continental Shelf, as an area within of Malta with respect to the sea-bed and subsoil and their natural exercised;

(c) the terms "a Contracting State" and "the other Contracting Republic of Cyprus 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 body corporate for tax purposes;

(f) 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;

(g) the term "national" means:

(i) in the case of Cyprus, individuals possessing the citizenship and any person other than an individual deriving its status the law in force in Cyprus;

(ii) in the case of Malta, any citizen of Malta and any partnership or association deriving its status as such force in Malta;

(h) the term "international traffic" means any transport by a road vehicle operated by an enterprise which has its place of effective in a Contracting State, except when the ship, aircraft or road vehicle solely between places in the other Contracting State;

(i) the term "competent authority" means: application of this Agreement by a Contracting State any term not defined shall, unless the context otherwise requires, have the meaning under the law of that State concerning the taxes to which this applies.

ARTICLE 4

Resident purposes of this Agreement, the term "resident of a Contracting person who, under the laws of that State, is liable to tax 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 only of income from sources in that State or capital situated therein. 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 States, he shall be deemed to be a resident of Contracting State with which his personal and economic relations closer (centre of vital interests); the State in which he has his centre of vital interests cannot be determined, or if he has no permanent home available to him in either State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; has an habitual abode in both States or in neither of them, he shall deemed to be a resident of the Contracting State of which he is a national; 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. 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 purpose of this Agreement the term "permanent establishment" place of business through which the business of an enterprise is carried on. "permanent establishment" includes especially:

place of management; branch;

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

(g) a building site or construction or assembly or installation supervisory activities in connection therewith, where or activity continues for more than six months.

(3) 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 of collecting information, enterprise;

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

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

(4) An enterprise of a Contracting State shall be deemed to have establishment in the other Contracting State if:

(a) it carries on supervisory activities in that other State months in connection with a construction, installation project which is being undertaken in that other State; or

(b) substantial equipment is in that other State being used for or under contract with, the enterprise; or

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

(5) Notwithstanding the provisions of paragraphs (1) and (2) other than an agent of an independent status to whom paragraph acting on behalf of an enterprise and has, and habitually exercises, State an authority to conclude contracts in the name of the enterprise, shall be deemed to have a permanent establishment in that State activities which that person undertakes for the enterprise, unless such person are limited to those mentioned in paragraph (3) which, through a fixed place of business, would not make this fixed place permanent establishment under the provisions of that paragraph.

(6) An enterprise of a Contracting State shall not be deemed permanent establishment in the other Contracting State merely because business in that other State through a broker, general commission agent arm’s length conditions. that a company which is a resident of a Contracting State controls by a company which is a resident of the other Contracting State, or on business in that other State (whether through a permanent or otherwise), shall not of itself constitute either company a establishment of the other.

CHAPTER III

Taxation of Income

ARTICLE 6

Income from Immovable Property derived by a resident of a Contracting State from immovable (including income from agriculture or forestry) situated in the other may be taxed in that other State. "immovable property" shall have the meaning which it has under Contracting State in which the property in question is situated. The case include property accessory to immovable property, livestock used in agriculture and forestry, rights to which the provisions of respecting immovable property apply, usufruct of immovable property variable or fixed payments as consideration for the working of, or the to explore for, mineral deposits, sources and other natural resources; 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 independent personal services.

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 thereof 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 or with other associated which it deals. in respect of amounts, if any, paid (otherwise than towards reimbursement expenses) by the permanent establishment to the head office of the of its other offices, by way of royalties, fees or other similar payments the use of patents or other rights, or by way of commission, for performed or for management, or, except in the case of a banking enterprise, of interest on moneys lent to the permanent establishment. Likewise, shall be taken, in the determination of the profits of a permanent amounts charged (otherwise than towards reimbursement of actual permanent establishment to the head office of the enterprise or offices, by way of royalties, fees or other similar payments in return patents or other rights, or by way of commission for specific services for management, or, except in the case of a banking enterprise by way moneys lent to the head office of the enterprise or any of its other offices.

(4) 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 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.

(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) The provisions of this Article shall not affect the provisions Contracting State regarding the taxation of profits from the business

(8) 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

International Traffic

(1) Profits from the operation of ships, aircraft or road vehicles traffic shall be taxable only in the Contracting State in which the management of the enterprise is situated.

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

(3) The provisions of paragraph (1) shall also apply to participation in a pool, a joint business or an international operating enterprise of a Contracting State participates directly or indirectly in management, control or capital of an enterprise of the other Contracting State, or same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, case conditions are made or imposed between the two enterprises in or financial relations which differ from those which would be made independent enterprises, then any profits which would, but for those accrued to one of the enterprises, but, by reason of those conditions, accrued, may be included in the profits of that enterprise and taxed in this Article shall affect the application of any law of a relating to 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 State, or not practicable to determine the income to be attributed to an provided that that law shall be applied, so far as the information available authority permits, consistently with the principles of this Article.

a Contracting State includes in the profits of an enterprise of that accordingly, profits on which an enterprise of the other Contracting charged to tax in that other State and the profits so included are would have accrued to that enterprise of the first mentioned State if the between the two enterprises had been those which would have been independent enterprises, then that other State shall make an adjustment to the amount of the tax charged therein on those profits. In adjustment, due regard shall be had to the other provisions of this the competent authorities of the Contracting States shall if necessary other.

ARTICLE 10

Dividends Dividends paid by a company which is a resident of a Contracting State to a other Contracting State may be taxed in that other State. such dividends may also be taxed in the Contracting State of company paying the dividends is a resident and according to the laws of where the dividends are paid by a company resident of Cyprus to a resident of Malta who is the beneficial owner thereof, the Cyprus tax so charged shall not exceed 15 per cent of the gross amount of the dividends; where the dividends are paid by a company which is a resident of Malta resident of Cyprus who is the beneficial owner thereof Malta tax on gross amount of the dividends shall not exceed that chargeable on profits out of which the dividends are paid. rights, not being debt-claims, participating in profits, as well as income corporate rights which is subjected to the same taxation treatment shares by the laws of that State of which the company making the resident.

(4) The provisions of paragraphs (1) and (2) shall not apply owner of the dividends, being a resident of a Contracting State, carries in the other Contracting State of which the company paying the 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 such a case the provisions Article 14, as the case may be, shall apply.

(5) Where a company which is a resident of a Contracting State or income from the other Contracting State, that other State may not on the dividends paid by the company except insofar as such dividends resident of that other State or insofar as the holding in respect of which are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed on the company’s undistributed profits, even if the divide undistributed profits consist wholly or partly of profits or income other State.

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 laws of that State, but if the recipient owner of the interest, the tax so charged shall not exceed 10 per amount of the interest.

(3) Notwithstanding the provisions of paragraph (2) interest Contracting State and derived by the Government of the other Contracting including political sub-divisions and local authorities thereof, the any statutory body of that other Contracting State with respect to made or guaranteed by the Government of that other Contracting political sub-divisions and local authorities thereof, the Central statutory body of that other Contracting State shall be exempt from mentioned Contracting State.

(4) The term "interest" as used in this Article means income from every kind, whether or not secured by mortgage and whether or not to participate in the debtor’s profits, and in particular, income from securities and income from bonds or debentures, including premiums attaching to such securities, bonds or debentures. Penalty charges shall not be regarded as interest for the purpose of this Article.

(5) The provisions of paragraphs (1) and (2) shall not apply owner of the interest, being a resident of a Contracting State, carries such case the provisions of Article 7 or Article 14, as the case may be, shall be deemed to arise in a Contracting State when the payer is a political subdivision, a local authority or a resident of that State. however, the person paying the interest, whether he is a resident of a State or not, has in a Contracting State a permanent establishment or connection with which the indebtedness on which the interest is paid and such interest is borne by such permanent establishment or fixed interest shall be deemed to arise in the State in which the permanent fixed base is situated.

by reason of a special relationship between the payer and the or between both of them, and some other person, the amount of the having regard to the debt claim for which it is paid, exceeds the amount have been agreed upon by the payer and the beneficial owner in the relationship, the provisions of this Article shall apply only to the amount. In such case, the excess part of the payments shall remain to the laws of each Contracting State, due regard being had to the of this Agreement.

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 also be taxed in the Contracting State in which according to the laws of that State, but if the recipient is the beneficial royalties the tax so charged shall not exceed 10 per cent of the gross royalties. "royalties" in this Article means payments or credits, whether and however described or computed, to the extent to which they consideration for: use of, or the right to use, any copyright, patent, design or model, secret formula or process, trademark or other like property or right; use of, or the right to use, any industrial, commercial or scientific equipment; supply of scientific, technical, industrial or commercial knowledge information; supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any property or right as is mentioned in sub-paragraph (a), any such equipment as is mentioned in sub-paragraph (b), or any such knowledge information as is mentioned in sub-paragraph (c); use of, or the right to use: motion picture films;

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

(5) Royalties shall be deemed to arise in a Contracting State when that State itself, a political subdivision, a local authority or a resident Where, however, the person paying the royalties, whether he is Contracting State or not, has in a Contracting State a permanent fixed base in connection with which the obligation to pay the royalties and such royalties are borne by such permanent establishment or such royalties shall be deemed to arise in the State in which establishment or fixed base is situated.

(6) Where, by reason of a special relationship between the beneficial owner or between both of them and some other person, royalties, having regard to the use, right or information for which exceeds the amount which would have been agreed upon by the beneficial owner in the absence of such relationship, the provisions shall apply only to the last-mentioned amount. In such case, the excess payments shall remain taxable according to the laws of each Contracting regard being had to the other provisions of this Agreement.

ARTICLE 13

Alienation of Property

(1) Income or gains from the alienation of immovable property, paragraph (2) of Article 6, may be taxed in the Contracting State property is situated.

(2) Income or gains from the alienation of shares or comparable company, the assets of which consist wholly or principally of immovable may be taxed in the Contracting State in which the assets or the principal the company are situated.

(3) Income or gains from the alienation of movable property forming business property of a permanent establishment which an enterprise State has in the other Contracting State or of movable property pertaining base available to a resident of a Contracting State in the other Contracting the purpose of performing independent personal services, including gains from the alienation of such a permanent establishment (alone the whole enterprise) or of such fixed base, may be taxed in the other

(4) Income or gains from the alienation of ships, aircraft and operated in international traffic or movable property pertaining to such means of transportation shall be taxable only in the Contracting the place of effective management of the enterprise is situated. ARTICLE 14

Independent Personal Services derived by a resident of a Contracting State in respect of services or other activities of an independent character shall be taxable However, such income may be taxed in the other Contracting State 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 twelve month period; or the remuneration for his services in the other Contracting State is derived from residents of that State and exceeds five thousand U.S. dollars (US$ 5,000) during the calendar year, notwithstanding that his in that State is for a period or periods amounting in the aggregate to than 183 days during that twelve month period.

"professional services" includes especially independent scientific, educational or teaching activities as well as the independent physicians, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15

Dependent Personal Services to the provisions of Articles 16, 18, 19 and 20, salaries, wages and remuneration derived by a resident of a Contracting State in respect of shall be taxable only in that State unless the employment is exercised Contracting State. If the employment is so exercised, such remuneration 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 any twelve month period, 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 of an employment exercised aboard a ship, aircraft or road vehicle international traffic may be taxed in the Contracting State in which the management of the enterprise is situated. 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

Artistes and Athletes

(1) Notwithstanding the provisions of Articles 14 and 15, income resident of a Contracting State as an entertainer, such as a theatre, radio or television artiste or a musician or as an athlete from his personal as such exercised in the other Contracting State, may be taxed Contracting State.

(2) Where income in respect of personal activities exercised by an athlete in his capacity as such accrues not to the entertainer or athlete to another person, that income, may, notwithstanding the provisions and 15, be taxed in the Contracting State in which the activities of athlete are exercised.

(3) Notwithstanding the provisions of paragraphs (1) and (2) income mentioned in this Article shall be exempt from tax in the Contracting which the activity of the entertainer or athlete is exercised provided is supported in a considerable part out of public funds of this State State or the activity is exercised under a cultural agreement or arrangement the Contracting States.

ARTICLE 18

Pensions

(1) Subject to the provisions of paragraph (2) of Article 19, pensions similar remuneration paid to a resident of a Contracting State in 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 political subdivision or a local authority thereof shall be taxable only

ARTICLE 19

Government Service

(1) (a) Remuneration, other than a pension, paid by a Contracting political subdivision or a local authority thereof to an individual services rendered to that State or subdivision or authority shall be that State.

(b) However, such remuneration shall be taxable only in the State if the services are rendered in that State and the individual is State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for such pension shall be taxable only in the other Contracting State if a resident of, and a national 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 State or a political subdivision or a local authority thereof. 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

Teachers

Remuneration which a professor or teacher who is or was immediately a Contracting State a resident of the other Contracting State and who first-mentioned State for a period not exceeding two years for the carrying out advanced study or research or for teaching at a university, or other educational institution receives for such work shall not be State, provided that such remuneration is derived by him from outside

Article shall not apply to income from research if such research is primarily for the private benefit of a specific person or persons.

ARTICLE 21

Students and Trainees who is resident of a Contracting State immediately before making a Contracting State and is temporarily present in the other State a student at a recognised university, college, school or other similar recognised educational institution in that other State; or a business or technical apprentice; or a recipient of a grant, allowance or award for the primary purpose of study, research or training from the government of either State or from a scientific, educational, religious, or charitable organisation or under a technical assistance programme entered into by the Government of either State, from tax in that other State on: remittances from abroad for the purposes of his maintenance, education, study, research or training; amount of such grant, allowance or award; and remuneration not exceeding six thousand U.S. dollars (US$ 6,000) Other Income

(1) Items of income of a resident of a Contracting State, wherever dealt with in the foregoing Articles of this Agreement shall be taxable State.

(2) The provisions of paragraph (1) shall not apply to income, other from immovable property as defined in paragraph (2) of Article 6, such income, being a resident of a Contracting State, carries on business Contracting State through a permanent establishment situated therein, that other State independent personal services from a fixed base situated the right or property in respect of which the income is paid is effectively with such permanent establishment or fixed base. In such case, Article 7 or Article 14, as the case may be, shall apply.

CHAPTER IV

Taxation of Capital

ARTICLE 23

Capital

(1) Capital represented by immovable property referred to in by a resident of a Contracting State and situated in the other Contracting be taxed in that other State.

(2) Capital represented by movable property forming part property of a permanent establishment which an enterprise of a Contracting in the other Contracting State or by movable property pertaining available to a resident of a Contracting State in the other Contracting purpose of performing independent personal services, may be taxed State.

(3) Capital represented by ships and aircraft operated in international by boats engaged in inland waterways transport, and by movable property to the operation of such ships, aircraft and boats, shall be taxable Contracting State in which the place of effective management of situated.

(4) All other elements of capital of a resident of a Contracting taxable only in that State.

CHAPTER V

Elimination of Double Taxation

ARTICLE 24

Elimination of Double Taxation

(1) In the case of Cyprus double taxation shall be eliminated as payable in respect of that profit, income or gains. Such deduction shall exceed that part of the tax, as computed before the deduction is given, appropriate to such income derived in Malta. case of Malta, double taxation shall be eliminated as follows:

provisions of the law of Malta regarding the allowance of a credit in respect of foreign tax, where, in accordance with the provisions Agreement, there is included in a Malta assessment income from sources the Cyprus tax on such income shall be allowed as a credit against the payable thereon.

payable in a Contracting State mentioned in paragraphs (1) and (2) shall be deemed to include the tax which would have been payable but provisions concerning tax reduction, exemption or other tax incentives the laws of the Contracting State, provided that in the case of interest or royalties any such tax which has been exempted or reduced to have been paid at: per cent of the gross amount of the dividends referred to in Article per cent of the gross amount of the interest referred to in Article 11;

per cent of the gross amount of the royalties referred to in Article 12. under the provisions of this Agreement income is relieved from tax in Contracting States and, under the law in force in the other Contracting in respect of the said income, is subject to tax by reference to the which is remitted to or received in that other Contracting State and to the full amount thereof then the relief to be allowed under this first mentioned Contracting State shall apply only to so much of remitted to or received in the other Contracting State.

CHAPTER VI

Special Provisions

ARTICLE 25

Non-discrimination of a Contracting State shall not be subjected in the other to any taxation or any requirement connected therewith which is burdensome than the taxation and connected requirements to which other State in the same circumstances are or may be subjected. This notwithstanding the provisions of Article 1, also apply to persons residents of one or both of the Contracting States.

taxation on a permanent establishment which an enterprise of a State has in the other Contracting State shall not be less favourably other State than the taxation levied on enterprises of that other State same activities. where the provisions of paragraph (1) of Article 9, paragraph (7) of Contracting State to a resident of the other Contracting State shall, determining the taxable capital of such enterprise, be deductible conditions as if they had been contracted to a resident of the first-mentioned

(4) Enterprises of a Contracting State, the capital of which is owned or controlled, directly or indirectly, by one or more residents Contracting State, shall not be subjected in the first-mentioned State or any requirement connected therewith which is other or more burdensome taxation and connected requirements to which other similar enterprises mentioned State are or may be subjected.

(5) Nothing in this Article shall be construed as obliging a Contracting grant to individuals who are resident of the other Contracting State allowances, reliefs and reductions for tax purposes on account of civil responsibilities or any other personal circumstances which it grants residents.

(6) The provisions of this Article shall, notwithstanding the Article 2, apply to taxes of every kind and description.

ARTICLE 26

Mutual Agreement Procedure

(1) Where a person considers that the actions of one or both of States result or will result for him in taxation not in accordance with of this Agreement, he may, irrespective of the remedies provided law of those States, present his case to the competent authority of State of which he is a resident or, if his case comes under paragraph 24, to that of the Contracting State of which he is a national. The presented within three years from the first notification of the action taxation not in accordance with the provisions of the Agreement.

(2) The competent authority shall endeavour, if the objection appears justified and if it is not itself able to arrive at a satisfactory solution, case by mutual agreement with the competent authority of the other State, with a view to the avoidance of taxation which is not in accordance Agreement. Any agreement reached shall be implemented notwithstanding limits in the domestic law of the Contracting States.

(3) The competent authorities of the Contracting States shall resolve by mutual agreement any difficulties or doubts a interpretation or application of the Agreement. They may also consult the elimination of double taxation in cases not 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 is necessary for carrying out the provisions of this Agreement or of laws of the Contracting States concerning taxes covered by the insofar as the taxation thereunder is not contrary to the Agreement. The information is not restricted by Article 1. Any information received by a State shall be treated as secret in the same manner as information the domestic laws of that State and shall be disclosed only to persons (including courts and administrative bodies) involved in the collection of, the enforcement or prosecution in respect of, or the appeals in relation to, the taxes covered by the Agreement. Such authorities shall use the information only for such purposes. They may information in public court proceedings or in judicial decisions. case shall the provisions of paragraph (1) be construed so as to impose State the obligation: carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; 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; 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).

ARTICLE 28

Diplomatic and Consular Officers

Agreement shall affect the fiscal privileges of diplomatic agents or under the general rules of international law or under the provisions agreements.

CHAPTER VII

Final Provisions

ARTICLE 29

Entry into Force Government of the Contracting States shall notify each other that the requirements for the entry into force of this Agreement have been

Agreement shall enter into force thirty days after the date of the later of referred to in paragraph (1) and its provisions shall have effect:

Cyprus: respect of taxes which are levied on any income or capital which has accrued on or after the first day of January, ARTICLE 30

Termination This Agreement shall remain in force until terminated by a Contracting Either Contracting State may terminate the Agreement, through diplomatic by giving notice of termination at least six months before the end year beginning after the expiration of a period of five years from the into force. In such event, the Agreement shall cease to have effect:

(a) in Cyprus: in respect of taxes for any year of assessment beginning following the year in which the notice of termination has

(b) in Malta: in respect of taxes for any year of assessment beginning first day of January in the second calendar year next which the notice of termination has been given.

IN WITNESS WHEREOF the undersigned, being duly authorised respective Governments, have signed this Agreement. DONE in duplicate at Rome this 22nd day of October, 1993, language.

FOR THE GOVERNMENT OF MALTA FOR THE GOVERNMENT REPUBLIC OF CYPRUS CARMEL J. AQUILINA PEDROS MICHAELIDES AMBASSADOR FOR MALTA CYPRIOT HIGH COMMISSIONER FOR MALTA