S.L. 123.37 Art. 3enterprise of that other Contracting so included are State if would have shall make an 1. resident of the 2. However, which the that State, but: (a) the (i) (ii) (b) to tax This profits out of 3. The term "jouissance" rights, not being corporate rights shares by the resident. 4. The of the dividends

Where a Contracting State includes in the profits of an State, and taxes accordingly, profits on which an enterprise of the State has been charged to tax in that other State and the profits profits which would have accrued to that enterprise of the first-mentioned the conditions made between the two enterprises had been those which been made between independent enterprises, then that other State 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 which is a resident of Luxembourg to a resident of Malta who is the beneficial owner thereof, Luxembourg tax so charged shall not exceed: 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends; 15 per cent of the gross amount of the dividends in all other cases; where the dividends are paid by a company which is a resident of Malta a resident of Luxembourg who is the beneficial owner thereof Malta on the gross amount of the dividends shall not exceed that chargeable on the profits out of which the dividends are paid.

paragraph shall not affect the taxation of the company in respect of the which the dividends are paid.

"dividends" as used in this Article means income from shares, shares or "jouissance" rights, mining shares, founders' shares or other debt-claims, participating in profits, as well as income from other which is subjected to the same taxation treatment as income from laws of the State of which the company making the distribution is a provisions of paragraphs 1 and 2 shall not apply if the beneficial owner being a resident of a Contracting State, carries on business in the Contracting State of which the company paying the dividends is a resident, permanent establishment situated therein, or performs in that other State personal services from a fixed base situated therein, and the holding in the dividends are paid is effectively connected with such permanent fixed base. In such case the provisions of Article 7 or Article 14, as shall apply. a company which is a resident of a Contracting State derives profits the other Contracting State, that other State may not impose any tax paid by the company, except insofar as such dividends are paid to a other State or insofar as the holding in respect of which the dividends effectively connected with a permanent establishment or a fixed base other State, nor subject the company’s undistributed profits to a tax company’s undistributed profits, even if the dividends paid or the profits consist wholly or partly of profits or income arising in such