S.L. 123.77 Art. 2Arrangements to have effect. The desiring to through the prevention of This the Contracting 1. This Contracting the manner in 2. There income, or on movable or 3. The (a) in (b) in 4. The taxes which are or in place Contracting been made in 1. For the any area law as an area in the Island the Maltes

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

(i) the corporate income tax;

(ii) the percentage of the net profits of shareholding companies payable to the Kuwait Foundation for Advancement of Science (KFAS);

(iii) the Zakatg; and

(iv) the tax subjected according to the supporting of national employee law;

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

(c) that the Convention has entered into force on the 19th March, 2004. SCHEDULE

C O N V E N T I O N BETWEEN THE GOVERNMENT OF MALTA AND THE GOVERNMENT OF THE STATE OF KUWAIT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Government of Malta and the Government of The State of Kuwait, promote their mutual economic relations by removing fiscal obstacles conclusion of a convention for the avoidance of double taxation and the fiscal evasion with respect to taxes on income, have agreed as follows: Article 1 PERSONAL SCOPE

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

Article 2 TAXES COVERED Convention shall apply to taxes on income imposed on behalf of a State, a political subdivision or a local authority thereof, irrespective of which they are levied. shall be regarded as taxes on income all taxes imposed on total elements of income, including taxes on gains from the alienation of immovable property, as well as taxes on capital appreciation.

taxes to which this Convention shall apply are: Kuwait:

(i) the corporate income tax;

(ii) the percentage of the net profits of shareholding companies payable to the Kuwait Foundation for Advancement of Science (KFAS);

(iii) the Zakatg; and

(iv) the tax subjected according to the supporting of national employee lawg; (hereinafter referred to as "Kuwaiti tax"); Malta: the 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, of, the taxes referred to above. The competent authorities of the States shall notify each other of any substantial changes which have their respective taxation laws.

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

(a) the term "Kuwait" means the State of Kuwait and includes beyond the territorial sea which in accordance with international has been or may be designated under the laws of Kuwait which Kuwait may exercise sovereign rights or jurisdiction;

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

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

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

(e) the term "national" means:

(i) all individuals possessing the nationality of a Contracting

(ii) all legal persons, partnerships and associations status as such from the law in force in a Contracting

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

(g) 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;

(h) the term "international traffic" means any transport by a road vehicle operated by an enterprise of a Contracting when the ship, aircraft or road vehicle is operated solely in the other Contracting State;

(i) the term "tax" means Kuwaiti tax or Malta tax, as the context

(j) the term "competent authority" means:

(i) in Kuwait: the Minister of Finance or his representative;

(ii) in Malta: the Minister responsible for finance or representative.