S.L. 123.6 Art. 2Arrangements to have effect. FOR Malta and economic This Contracting 1. This behalf of a thereof, 2. There on total taxes on gains capital 3. The a) in b) in 4. The taxes which or in place of, shall -if changes which 1. For the a) its sub- territorial sea, sovereign law and its exploit its used in a

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 Federal Republic of Germany with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of the Federal Republic of Germany: the income tax Einkommensteuer, the corporation tax (Korperschaftsteuer), the capital tax (Vermogensteuer), and the trade tax (Gewerbesteuer), including the supplements levied thereon;

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

(c) that the Agreement has entered into force on the 27th December, 2001. SCHEDULE

AGREEMENT BETWEEN MALTA AND THE FEDERAL REPUBLIC OF GERMANY THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

the Federal Republic of Germany, desiring to promote their mutual relations by removing fiscal obstacles, have agreed as follows:

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, of a Land or a political subdivision or local authority irrespective of the manner in which they are levied. shall be regarded as taxes on income and on capital all taxes imposed income, on total capital, or on elements of income or of capital, including from the alienation of movable or immovable property and taxes on appreciation. existing taxes to which this Agreement shall apply are in particular:

the Federal Republic of Germany: the income tax (Einkommensteuer), the corporation tax (Korperschaftsteuer), the capital tax (Vermogensteuer), and the trade tax (Gewerbesteuer), including the supplements levied thereon (hereinafter referred to as "German tax"); the Republic of Malta: the income tax (hereinafter referred to as "Malta tax"). Agreement shall apply also to any identical or substantially similar are imposed after the date of signature of the Agreement in addition to, the existing taxes. The competent authorities of the Contracting States necessary for the application of the Agreement - notify each other of have been made in their respective taxation laws.

Article 3 GENERAL DEFINITIONS purposes of this Agreement, unless the context otherwise requires:

the term "Federal Republic of Germany" means the territory of the Federal Republic of Germany, as well as the area of the sea-bed, soil and the superjacent water column adjacent to the insofar as the Federal Republic of Germany exercises there rights and jurisdiction in conformity with international national legislation to explore the continental shelf and natural resources; b) the term "Malta" means the Republic of Malta and, when geographical sense, means the Island of Malta, the Island the other islands of the Maltese archipelago including waters thereof, as well as any area of the sea-bed, its sub-soil superjacent water column adjacent to the territorial waters, Republic of Malta exercises sovereign rights, jurisdiction, accordance with international law and its national law, legislation relating to the exploration of the Continental exploitation of its natural resources; c) the terms "a Contracting State" and "the other Contracting the Federal Republic of Germany or Malta, as the context d) the term "person" includes an individual and a company; e) the term "company" means any body corporate or any treated as a body corporate for tax purposes; f) the terms "enterprise of a Contracting State" and "enterprise Contracting State" mean respectively an enterprise carried resident of a Contracting State and an enterprise carried on of the other Contracting State; g) the term "international traffic" means any transport by a operated by an enterprise which has its place of effective in a Contracting State, except when the ship or aircraft solely between places in the other Contracting State; h) the term "national" means: aa) in respect of the Federal Republic of Germany, within the meaning of the Basic Law of the Federal Germany and any legal person, partnership and deriving its status as such from the laws in force Republic of Germany; bb) in respect of Malta, any individual possessing the Malta, and any legal person, partnership or association its status as such from the laws in force in Malta; i) the term "competent authority" means: aa) in the case of the Federal Republic of Germany, Ministry of Finance or the agency to which it has powers; bb) in the case of Malta, the Minister responsible for authorised representative.