S.L. 123.35 Art. 2Arrangements to have effect. The Britain and avoidance of taxes on income This Contracting (1) The (a) in (i) (ii) (iii) (b) in the (2) This taxes which are or in place of, the shall notify each respective (3) not apply to tax article (13) of any person substantially Convention. requires: Ireland, w

It is hereby declared -

(a) that the arrangements specified in the Convention set out in the Schedule to this Order have been made with the Government of the United Kingdom of Great Britain and Northern Ireland with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of the United Kingdom of Great Britain and Northern Ireland:

(i) the income tax;

(ii) the corporation tax; and

(iii) the capital gains tax;

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

*https://cfr.gov.mt/en/inlandrevenue/itu/Documents/Malta%20-%20UK%20DTA%20(synthesised%20text).pdf AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS

Government of Malta and the Government of the United Kingdom of Great Northern Ireland, desiring to conclude a new Convention for the double taxation and the prevention of fiscal evasion with respect to and capital gains, have agreed as follows:

CHAPTER I

Scope of the Convention

ARTICLE 1

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

ARTICLE 2

Taxes Covered existing taxes to which this Convention shall apply are: the case of the United Kingdom: the income tax; the corporation tax; and the capital gains tax; (hereinafter referred to as "United Kingdom tax"); the case of Malta: income tax, (hereinafter referred to as "Malta tax"). Convention shall apply also to any identical or substantially similar imposed after the date of signature of this Convention in addition to, existing taxes. The competent authorities of the Contracting States other of any significant changes which have been made in their taxation laws. Notwithstanding the other provisions of this Article this Convention shall paid or payable in Malta in accordance with the provisions of sub-article 56 of the Income Tax Act concerning the chargeable income of engaged in the production of petroleum produced in Malta or any similar provision which is imposed after the date of signature of this

General Definitions

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

(a) The term "United Kingdom" means Great Britain and Northern including any area outside the territorial sea of the United Kingdom accordance with international law has been or may hereafter be designated, laws of the United Kingdom concerning the Continental Shelf, as which the rights of the United Kingdom with respect to the sea bed their natural resources may be exercised;

(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 seabed and subsoil and their natural exercised;

(c) the terms "a Contracting State" and "the other Contracting United Kingdom or Malta as the context requires;

(d) the term "person" comprises an individual and -

(i) in relation to the United Kingdom, also a company or persons but does not include a partnership;

(ii) in relation to Malta, also a company and any other body

(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 relation to the United Kingdom, any British citizen, subject not possessing the citizenship of any other country or territory, provided he has the right of abode Kingdom; and any legal person, partnership, association deriving its status as such from the law in force in the

(ii) in relation to Malta, any citizen of Malta and any partnership, association or other entity deriving its status the law in force in Malta;

(h) the term "international traffic" means any transport by a operated by an enterprise of a Contracting State, except when the operated solely between places in the other Contracting State;

(i) the term "competent authority" means:

(i) in the case of the United Kingdom, the Commissioners Revenue or their authorised representative; under the laws of that State concerning the taxes to which this applies.

ARTICLE 4

Resident purposes of this Convention, 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 or capital gains from sources therein.

by reason of the provisions of paragraph (1) of this Article an resident of both Contracting States, then his status shall be follows: shall be deemed to be a resident solely of the Contracting State in which he has 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 solely of the Contracting State with which his personal and economic relations are closer (centre of vital interests); the Contracting State in which he has his centre of vital interests cannot be determined, or if he has no permanent home available to him either Contracting State, he shall be deemed to be a resident solely of Contracting State in which he has an habitual abode; has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident solely of the Contracting State which he is a national; 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) of this Article a person individual is a resident of both Contracting States, then it shall be resident solely of the Contracting State in which its place of effective situated.

ARTICLE 5

Permanent Establishment purposes of this Convention 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; office;

(g) a mine, an oil or gas well, a quarry or any other place natural resources;

(h) a building site or construction or assembly project activities in connection therewith, where such site, project 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) of provided that the overall activity of the fixed place of business from this combination is of a preparatory or auxiliary character.

(4) Notwithstanding the provisions of paragraphs (1) and (2) where a person - other than an agent of an independent status to whom of this Article applies - is acting on behalf of an enterprise and has, exercises, in a Contracting State an authority to conclude contracts enterprise, that enterprise shall be deemed to have a permanent establishment State in respect of any activities which that person undertakes for unless the activities of such person are limited to those mentioned of this Article which, if exercised through a fixed place of business, this fixed place of business a permanent establishment under the provisions paragraph.

(5) 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 agent of an independent status, where such persons are acting in the of their business. However, if the activities of such an agent are carried almost wholly for the enterprise (or for the enterprise and other enterprises controlled by it or have a controlling interest in it or are subject to the control) and the conditions made or imposed between them in their financial relations differ from those which would have been made had not been the case, that agent shall not be considered to be independent status for the purposes of this paragraph.

(6) The fact that a company which is a resident of a Contracting or is controlled by a company which is a resident of the other Contracting 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 and 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 or landed property apply, usufruct of immovable rights to variable or fixed payments as consideration for the working to work or to explore for, mineral deposits, sources and other natural boats and aircraft shall not be regarded as immovable property. provisions of paragraph (1) of this Article shall apply to income derived use, letting, or use in any other form of immovable property. provisions of paragraphs (1) and (3) of this Article shall also apply to from immovable property of an enterprise and to income from property used for the 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 them as is attributable to that permanent establishment. to the provisions of paragraph (3) of this Article, where an Contracting State carries on business in the other Contracting State permanent establishment situated therein, there shall in each Contracting attributed to that permanent establishment the profits which it might be if it were a distinct and separate enterprise engaged in the same or activities under the same or similar conditions and dealing wholly with the enterprise of which it is a permanent establishment or with which are controlled by the first-mentioned enterprise or have a interest in it or are subject to the same common control.

determination of the profits of a permanent establishment, there shall deductions expenses of the enterprise, being expenses which are purposes of the permanent establishment (including executive and administrative expenses so incurred) and which would be deductible if the establishment were an independent entity which paid those expenses, in the Contracting State in which the permanent establishment is

(5) 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.

(6) The provisions of this Article shall not affect the application provisions of the law of a Contracting State regarding the taxation of business of insurance.

(7) Where profits include items of income or capital gains which separately in other Articles of this Convention, then the provisions shall not be affected by the provisions of this Article.

ARTICLE 8

Shipping and Air Transport

(1) Profits derived by a resident of a Contracting State from ships or aircraft in international traffic shall be taxable only in that

(2) For the purposes of this Article, profits from the operation aircraft in international traffic include:

(a) income from the rental on a bareboat basis of ships or

(b) profits from the use, maintenance or rental of containers trailers and related equipment for the transport of containers) the transport of goods or merchandise; where such rental or such use, maintenance or rental, as the incidental to the operation of ships or aircraft in international traffic.

(3) Where profits within paragraphs (1) and (2) of this Article resident of a Contracting State from participation in a pool, a joint international operating agency, the profits attributable to that taxable only in the Contracting State of which he is a resident.

ARTICLE 9

Associated Enterprises

(1) 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 by a Contracting State in the enterprise and taxed accordingly. made between the two enterprises had been those which would have between 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 the United Kingdom to a may be taxed in Malta.

individual who is a resident of Malta and who receives a dividend from a is a resident of the United Kingdom, shall, subject to the provisions and provided that he is the beneficial owner of that dividend, be tax credit in respect thereof of an amount equal to the tax credit to which an individual resident in the United Kingdom would have been entitled had he received that dividend (in this Article referred to as "the resident’s tax credit") less 15 per cent of the aggregate of the amount or value of that dividend and the amount of the resident’s tax credit, and payment of any amount by which the tax credit to which he is entitled virtue of sub-paragraph (a) exceeds his liability to tax in the United Kingdom. Dividends paid by a company which is a resident of Malta to a resident of Kingdom may be taxed in the United Kingdom. Such dividends may also Malta and according to the laws of Malta, but if the recipient is the of the dividends the tax so charged shall not exceed that chargeable of which the dividends are paid. "dividends" as used in this Article means income from shares, or being debt-claims, participating in profits, as well as income from rights assimilated to income from shares by the taxation laws of the the company making the distribution is a resident and also includes which, under the laws of the Contracting State of which the company dividend is a resident, is treated as a dividend or distribution of a provisions of paragraph (2) or, as the case may be, (3) of this Article if the beneficial owner of the dividends, being a resident of a State, carries on business in the other Contracting State of which the the dividends is a resident, through a permanent establishment or performs in that other State independent personal services from a situated therein, and the holding in respect of which the dividends are effectively connected with such permanent establishment or fixed base. In provisions of Article 7 or Article 14 of this Convention, as the case apply. a company which is a resident of a Contracting State derives profits on undistributed profits, even if the dividends paid or the undistributed consist wholly or partly of profits or income arising in that 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 also be taxed in the Contracting it arises and according to the laws of that State, but if the recipient owner of the interest and subject to tax in respect of the interest Contracting State the tax so charged shall not exceed 10 per cent of of the interest.

(3) 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. The term "interest" include any item which is treated as a distribution under the provisions of this Convention.

(4) The provisions of paragraphs (1) and (2) of this Article shall beneficial owner of the interest, being a resident of a Contracting business in the other Contracting State in which the interest arises, permanent establishment situated therein, or performs in that other personal services from a fixed base situated therein, and the debt-claim which the interest is paid is effectively connected with such permanent or fixed base. In such case the provisions of Article 7 or Article Convention, as the case may be, shall apply.

(5) Interest 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 interest, whether he is Contracting State or not, has in a Contracting State a permanent fixed base in connection with which the indebtedness on which the was incurred, and such interest is borne by such permanent establishment base, then such interest 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, interest paid exceeds, for whatever reason, the amount which would agreed upon by the payer and the beneficial owner in the absence relationship, the provisions of this Article shall apply only to the amount of interest. In such case, the excess part of the payments shall according to the laws of each Contracting State, due regard being provisions of this Convention.

(7) The provisions of this Article shall not apply if it was the one of the main purposes of any person concerned with the creation the debt-claim in respect of which the interest is paid to take advantage thereof or any agency or instrumentality of that Government or local

Notwithstanding the provisions of Article 7 of this Convention and of this Article, interest arising in a Contracting State which is paid to owned by a resident of the other Contracting State shall be exempt first-mentioned Contracting State if it is paid in respect of a loan or insured, or any other debt-claim or credit guaranteed or insured beneficially owned by the Government of the Contracting State or instrumentality of that Government.

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 and subject to tax in respect of the royalties in the State of resident, 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; supply of scientific, technical, industrial or commercial knowledge information (know-how); supply of any assistance in the State of which the payer of the royalties is resident that is ancillary and subsidiary to, and is furnished a means of enabling the application or enjoyment of any such property or right as is mentioned in sub-paragraph (a), or any such knowledge or information as is mentioned in sub-paragraph (b); or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph. provisions of paragraphs (1) and (2) of this Article shall not apply if the of the royalties, being a resident of a Contracting State, carries on other Contracting State in which the royalties arise, through a establishment situated therein, or performs in that other Contracting State personal services from a fixed base situated therein, and the right or respect of which the royalties are paid is effectively connected with such establishment or fixed base. In such case the provisions of Article 7 or Convention, 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 or a resident of that State. 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 exceeds, for whatever reason, the amount which would upon by the payer and the beneficial owner in the absence of such provisions of this Article shall apply only to the last-mentioned case, the excess part of the payments shall remain taxable according each Contracting State, due regard being had to the other provisions Convention.

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

ARTICLE 13

Alienation of Property

(1) Income or gains derived by a resident of a Contracting alienation of immovable property referred to in Article 6 of this situated in the other Contracting State may be taxed in that other State.

(2) Income or gains derived by a resident of a Contracting alienation of:

(a) shares, other than shares quoted on an approved deriving their value or the greater part of their value indirectly from immovable property situated in the other State, or

(b) an interest in a partnership or trust the assets of principally of immovable property situated in the other State, or of shares referred to in sub-paragraph (a) above, may be taxed in that other State.

(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 enterprise) or of such fixed base, may be taxed in that other State.

(4) Income or gains derived by a resident of a Contracting alienation of ships or aircraft operated in international traffic by an Contracting State or movable property pertaining to the operation aircraft, shall be taxable only in that Contracting State.

(5) Income or gains from the alienation of any property other to in paragraphs (1), (2), (3) and (4) of this Article shall be taxable Contracting State of which the alienator is a resident provided that gains are subject to tax in that Contracting State. the five years immediately preceding the alienation of the property.

ARTICLE 14

Independent Personal Services derived by a resident of a Contracting State in respect of services or activities of an independent character shall be taxable only such income may be taxed in the other Contracting State in the 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.

"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, and 19 of this Convention, and other similar remuneration derived by a resident of a Contracting of an employment shall be taxable only in that State unless the exercised in the other Contracting State. If the employment is so remuneration as is derived therefrom may be taxed in that other

Notwithstanding the provisions of paragraph (1) of this Article, derived by a resident of a Contracting State in respect of an exercised in the other Contracting State shall be taxable only in the State if:

recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days within any period of twelve months; 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 respect of an employment exercised aboard a ship or aircraft operated in traffic may be taxed in the Contracting State of which the enterprise ship or aircraft is 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

Artistes and Sportsmen

(1) Notwithstanding the provisions of Articles 14 and 15 of income derived by a resident of a Contracting State as an entertainer theatre, motion picture, radio or television artiste or a musician, or from his personal activities as such exercised in the other Contracting taxed in that other State.

(2) Where income in respect of personal activities exercised by a sportsman in his capacity as such accrues not to the entertainer himself but to another person, that income may, notwithstanding Articles 7, 14 and 15 of this Convention, be taxed in the Contracting the activities of the entertainer or sportsman are exercised.

ARTICLE 18

Pensions

(1) Subject to the provisions of paragraph (2) of Article 19 of pensions and other similar remuneration paid in consideration of past or any annuity paid, to an individual who is a resident of a Contracting taxable only in that State.

(2) The term "annuity" means a stated sum payable periodically during life or during a specified or ascertainable period of time under to make the payments in return for adequate and full consideration money’s worth.

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 rendering the services.

(2) (a) Any pension paid by, or out of funds created by, a Contracting political subdivision or a local authority thereof to an individual services rendered to that State or subdivision or authority shall be provisions of Articles 15, 16 and 18 of this Convention shall apply to and pensions in respect of services rendered in connection with any on by a Contracting State or a political subdivision or a local

ARTICLE 20

Students and Trainees who is or was a resident of a Contracting State immediately before the other Contracting State and is present in the other State solely: 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 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; and amount of such grant, allowance or award.

ARTICLE 21

Other Income income of a resident of a Contracting State, wherever arising, dealt with in the foregoing Articles of this Convention, other than of trusts or the estates of deceased persons in the course of and which are subject to tax in that State shall be taxable only in that provisions of paragraph (1) of this Article shall not apply to income, income from immovable property as defined in paragraph (2) of Article 6 Convention, if the recipient of such income, being a resident of a Contracting business in the other Contracting State through a permanent situated therein, or performs in that other State independent personal fixed base situated therein, and the right or property in respect of is paid is effectively connected with such permanent establishment In such case, the provisions of Article 7 or Article 14 of this the case may be, shall apply. provisions of this Article shall not apply if it was the main purpose or purposes of any person considered with the creation or assignment respect of which the income is paid to take advantage of this Article creation or assignment.

CHAPTER IV

(1) Subject to the provisions of the law of the United Kingdom allowance as a credit against United Kingdom tax of tax payable outside the United Kingdom (which shall not affect the general principle

(a) Malta tax payable under the laws of Malta and in accordance Convention, whether directly or by deduction, on profits, chargeable gains from sources within Malta (excluding dividend, tax payable in respect of the profits out of which is paid) shall be allowed as a credit against any United computed by reference to the same profits, income, or by reference to which the Malta tax is computed;

(b) in the case of a dividend paid by a company which is a to a company which is resident of the United Kingdom controls directly or indirectly at least 10 per cent of the the company paying the dividend, the credit shall take addition to any Malta tax for which credit may be allowed provisions of sub-paragraph (a) of this paragraph) the by the company in respect of the profits out of which paid.

(2) Subject to the provisions of the law of Malta regarding the credit against Malta tax of tax payable in a territory outside Malta, accordance with the provisions of this Convention, there is included assessment profits, income or chargeable gains from sources within Kingdom, the United Kingdom tax payable, whether directly or respect of those sources (excluding in the case of a dividend, tax payable of the profits out of which the dividend is paid) shall be allowed as any Malta tax payable in respect of those profits, income or chargeable

(3) For the purposes of paragraphs (1) and (2) of this Article, and capital gains owned by a resident of a Contracting State which the other Contracting State in accordance with this Convention shall arise in that other Contracting State.

(4) Subject to paragraphs (5) and (6) of this Article, for paragraph (1) of this Article the term "Malta tax payable" shall be deemed any amount which would have been payable as Malta tax for any deduction allowed in computing taxable income, or an exemption or granted for that year or any part thereof, under any of the following Malta law:

(a) the provisions of:

(i) article 3 and, where a deduction is allowed in computing income by way of investment allowance, article Industries Ordinance;

(ii) articles 7, 8 and 9 (so far as it provides for exemption dividends paid out of the gains or profits, or part company which are relieved from income tax under of article 7), 19, 20, 23 and 36 (5) of the Industrial Act; certified that any such exemption from or reduction of Malta tax given under these articles has been granted in order to promote industrial, commercial, scientific, educational or other development in Malta and the gains or profits of the company, or any part thereof, were not exempt from Malta tax for the year in question, or part thereof, under provisions of Articles 4 or 5 of the Industrial Development Act, and competent authority of the United Kingdom has accepted that such exemption or reduction has been granted for such purpose; or other provision which may subsequently be enacted allowing a deduction in computing taxable income, or granting an exemption or reduction of tax, which is agreed by the competent authorities of the Contracting States to be of a substantially similar character to any of the provisions referred to in sub-paragraph (a)(i) or (ii) of this paragraph, far as it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character, and subject always to certification and acceptance having taken place as provided under sub-paragraph (a) of this paragraph. from United Kingdom tax by virtue of paragraph (4) of this Article a period of ten years only, beginning with the date on which this entered into force.

period referred to in paragraph (5) of this Article may be extended by between the Contracting States.

ARTICLE 23

Limitation of Relief under any provision of this Convention any income is relieved from Contracting State and, under the law in force in the other Contracting State a at that income, is subject to tax by reference to the amount thereof to or received in that other Contracting State and not by reference amount thereof, then the relief to be allowed under this Convention in the Contracting State shall apply only to so much of the income as is Contracting State. provisions of this Convention shall not apply to persons entitled to any benefit under: law of either one of the Contracting Sates which has been identified in Exchange of Notes between the Contracting States; or substantially similar law subsequently enacted.

ARTICLE 24

Partnerships under any provision of this Convention, a partnership is entitled, as a Malta, to exemption from tax in the United Kingdom on any income or that provision shall not be construed as restricting the right of the to tax any partner who is a resident of the United Kingdom on his a resident of Malta to a tax credit in respect of dividends paid to the company which is a resident of the United Kingdom; but any resident of Malta shall be treated for the purposes of the said Article paragraph as having been paid a dividend of an amount corresponding those dividends by the company which is a resident of the United Kingdom.

CHAPTER V

Special Provisions

ARTICLE 25

Non-discrimination

(1) Nationals of a Contracting State shall not be subjected Contracting State to any taxation or any requirement connected therewith other or more burdensome than the taxation and connected requirements nationals of that other State in the same circumstances are or may be

(2) The taxation on a permanent establishment which an Contracting State has in the other Contracting State shall not be levied in that other State than the taxation levied on enterprises of carrying on the same activities.

(3) Except where the provisions of paragraph (1) of Article 9, Article 11, or paragraph (6) of Article 12 of this Convention apply and other disbursements paid by an enterprise of a Contracting State the other Contracting State shall, for the purpose of determining the of such enterprise, be deductible under the same conditions as if they to a resident of the first-mentioned State.

(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 residents 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 apply to the taxes which of this Convention.

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 Convention, he may, irrespective of the remedies provided it is not itself able to arrive at a satisfactory solution to resolve the agreement with the competent authority of the other Contracting view to the avoidance of taxation which is not in accordance with the competent authorities of the Contracting States shall endeavour to tual agreement any difficulties or doubts arising as to the application of the Convention. competent authorities of the Contracting States may communicate with directly for the purpose of reaching an agreement in the sense of the paragraphs.

ARTICLE 27

Exchange of Information competent authorities of the Contracting States shall exchange such is necessary for carrying out the provisions of this Convention or of laws of the Contracting States concerning taxes covered by the insofar as the taxation thereunder is not contrary to the Convention. Any received by a Contracting State shall be treated as secret in the same information obtained under the domestic laws of that State and shall he persons or authorities (including courts and administrative bodies) assessment or collection of, the enforcement or prosecution in determination of appeals in relation to, the taxes covered by the Such persons or authorities shall use the information only for such may disclose the information in public court proceedings or in decisions. case shall the provisions of paragraph (1) of this Article be construed on a Contracting 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.

ARTICLE 28

Diplomatic and Consular Officials Convention shall affect the fiscal privileges of diplomatic agents officials under the general rules of international law or under the special agreements. diplomatic channel the completion of the procedures required by bringing into force of this Convention. This Convention shall enter date of the later of these notifications and shall thereupon have effect:

(a) in the United Kingdom:

(i) in respect of income tax and capital gains tax, assessment beginning on or after 6 April in the calendar following that in which the Convention enters into

(ii) in respect of corporation tax, for any financial year or after 1 April in the calendar year next following the Convention enters into force;

(b) in Malta: in respect of income tax, for any year of assessment after the first day of January in the calendar year next which the Convention enters into force.

(2) The Arrangement between Her Majesty’s Government and of Malta for the Avoidance of Double Taxation and the Prevention with respect to Taxes on Income as amended by the Agreement signed 29th November 1974 (hereinafter referred to as "the 1961 Arrangement") terminate and cease to be effective from the date upon which this effect in respect of the taxes to which this Convention applies in accordance provisions of paragraph (1) of this Article.

(3) Where any provision of the 1961 Arrangement would have greater relief from tax than is due under this Convention, any such aforesaid shall continue to have effect:

(a) in the United Kingdom, for any year of assessment, chargeable period; and

(b) in Malta, for any year of assessment beginning in either case, before the entry into force of this Convention.

ARTICLE 30

Termination This Convention shall remain in force until terminated by one of States. Either Contracting State may terminate the Convention, diplomatic channel, by giving notice of termination at least six months end of any calendar year. In such event, the Convention shall cease

(a) in the United Kingdom:

(i) in respect of income tax and capital gains tax, assessment beginning on or after 6 April in the calendar following that in which the notice is given;

(ii) in respect of corporation tax, for any financial year or after 1 April in the calendar year next following the notice is given;

(b) in Malta: whereof the undersigned, being duly authorised thereto by their Governments, have signed this Convention.

London, this 12 day of May, 1994, in the English language.

JOSEF BONNICI STEPHEN DORELL GOVERNMENT OF MALTA FOR THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND Your Excellency I have the honour to refer to the Convention between the Government United Kingdom of Great Britain and Northern Ireland and the Government for the Avoidance of Double Taxation and the Prevention of Fiscal respect to Taxes on Income and Capital Gains which has been signed propose on behalf of the Government of the United Kingdom of Great Northern Ireland that:

(a) with reference to Articles 7 and 9, it is understood contained therein shall affect the application of any law State relating to the determination of the tax liability including the determination of such liability by discretion or the making of an estimate by the competent that State in cases in which, from the information competent authority of that State, it is not possible ascertain the profits to be attributed to a permanent provided that that law shall be applied, so far as available to the competent authority permits, consistently principles of the said two Articles;

(b) with reference to paragraph (9) of Article 11, it is understood relevant institution, agency or instrumentality shall in United Kingdom be the Export Credits Guarantee Department in the case of Malta be the Export Credit Guarantee Company

(c) with reference to paragraph (6) of Article 22, it is understood request of one competent authority both Contracting into discussions about extending the period referred to at any time so that, in the event of an agreement to extend being reached, there should be no discontinuity in the Article;

(d) with reference to paragraph (2) of Article 23, the provisions Convention shall not apply:

(i) to persons who are entitled to a special tax benefit Malta Financial Services Centre Act except for those opt under article 41 of the said Act to be subject provisions of the Income Tax Act; or

(ii) to persons who and to the extent to which under the Merchant Shipping Act are not subject to tax derived from the operation of ships in international

(iii) to persons entitled to any special tax benefit distributions by a trust subject to the provisions given that a trust as laid down in that Act is not personality and therefore cannot benefit under the its own right; or

(iv) to persons entitled to any special tax benefit substantially similar law subsequently enacted agreed by the competent authorities of the Contracting included within the terms of paragraph (2) of Article shall enter into force at the same time as the entry into force of this of this opportunity to extend to Your Excellency the assurance of consideration.

J.S. BUCK for the Secretary of State for Foreign and Commonwealth Affairs I have the honour to acknowledge receipt of Your Excellency’s which reads as follows: "I have the honour to refer to the Convention between the Government United Kingdom of Great Britain and Northern Ireland and the Government for the Avoidance of Double Taxation and the Prevention of Fiscal respect to Taxes on Income and Capital Gains which has been signed propose on behalf of the Government of the United Kingdom of Great Northern Ireland that:

(a) with reference to Articles 7 and 9, it is understood contained therein shall affect the application of any law State relating to the determination of the tax liability including the determination of such liability by discretion or the making of an estimate by the competent that State in cases in which, from the information competent authority of that State, it is not possible ascertain the profits to be attributed to a permanent provided that that law shall be applied, so far as available to the competent authority permits, consistently principles of the said two Articles;

(b) with reference to paragraph (9) of Article 11, it is understood relevant institution, agency or instrumentality shall in United Kingdom be the Export Credits Guarantee Department in the case of Malta be the Export Credit Guarantee Company

(c) with reference to paragraph (6) of Article 22, it is understood request of one competent authority both Contracting into discussions about extending the period referred to at any time so that, in the event of an agreement to extend being reached, there should be no discontinuity in the Article;

(d) with reference to paragraph (2) of Article 23, the provisions Convention shall not apply:

(i) to persons who are entitled to a special tax benefit Malta Financial Services Centre Act except for those opt under article 41 of the said Act to be subject provisions of the Income Tax Act; or

(ii) to persons who and to the extent to which under the Merchant Shipping Act are not subject to tax derived from the operation of ships in international

(iii) to persons entitled to any special tax benefit distributions by a trust subject to the provisions given that a trust as laid down in that Act is not personality and therefore cannot benefit under the its own right; or

(iv) to persons entitled to any special tax benefit substantially similar law subsequently enacted agreed by the competent authorities of the Contracting included within the terms of paragraph (2) of Article shall enter into force at the same time as the entry into force of this proposals being acceptable to the Government of Malta, I have the confirm that Your Excellency’s Note and this Reply shall be regarded as agreement between the two Governments in the matter which shall at the same time as the entry into force of this Convention.

of this opportunity to extend to Your Excellency the assurance of consideration.

VINCENT GALEA Commissioner of Inland Revenue For the Government of Malta