Cap. 123 ст. 89Relief in respect of Commonwealth income tax.

(1) If any person resident in Malta who has paid, by deduction or otherwise, or is liable to pay, tax under this Act for any year of assessment on any part of his income, proves to the satisfaction of the Commissioner that he has paid, by deduction or otherwise, or is liable to pay, Commonwealth income tax for that year in respect of the same part of his income, he shall be entitled to relief from tax in Malta paid or payable by him on that part of his income at a rate thereon to be determined as follows:

(a) if the Commonwealth rate of tax does not exceed one-

half of the rate of tax appropriate to his case under this

Act in Malta, the rate at which relief is to be given shall be the Commonwealth rate of tax;

(b) in any other case the rate at which relief is to be given shall be half the rate of tax appropriate to his case under this Act.

(2) If any person not resident in Malta who has paid, by deduction or otherwise, or is liable to pay, tax under this Act for any year of assessment on any part of his income, proves to the satisfaction of the Commissioner that he has paid, by deduction or otherwise, or is liable to pay, Commonwealth income tax for that year of assessment in respect of the same part of his income, he shall be entitled to relief from tax paid or payable by him under this Act on that part of his income at a rate thereon to be determined as follows:

(a) if the Commonwealth rate of tax appropriate to his case does not exceed the rate of tax appropriate to his case under this Act, the rate at which relief is to be given shall be one-half of the Commonwealth rate of tax;

(b) if the Commonwealth rate of tax appropriate to his case exceeds the rate of tax appropriate to his case under this Act, the rate at which relief is to be given shall be equal to the amount by which the rate of tax appropriate to his case under this Act exceeds one-half of the Commonwealth rate of tax.

(3) For the purpose of this article, "Commonwealth income tax" means any income tax or tax of a similar nature charged under any law in force in any country of the Commonwealth, other than Malta or the United Kingdom of Great Britain and Northern Ireland, if the legislature of such country has provided for relief in respect of tax charged on income both in that country and in Malta in a manner which appears to the Commissioner to correspond to the relief granted by this article.

(4) For the purposes of this article, the expression "rate of tax" when applied to tax paid or payable under this Act means the rate determined by dividing the amount of tax paid or payable for the year (before the deduction of any relief granted under this article) by the amount of the income in respect of which the tax paid or payable under this Act has been charged for that year, except that where the income which is the subject of a claim to relief under this article is computed by reference to the provisions of this Act on an amount other than the ascertained amount of the actual profits, the rate of tax shall be determined by the Commissioner.

(5) Where a person is for any year of assessment resident both in Malta and in a part, place or territory in which Commonwealth income tax is charged, he shall for the purposes of this article be deemed to be resident where during that year he resides for the longer period.

(6) Any claim for relief under this article shall be made not later than two years after the end of the year of assessment to which the claim refers.

(7) The provisions of this article shall not apply in the case of gains or profits referred to in article 23.