Malta - Russia Tax Treaty

CONVENTION BETWEEN

THE GOVERNMENT OF MALTA

AND

THE GOVERNMENT

OF THE RUSSIAN FEDERATION

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of Malta and the Government of the Russian Federation desiring to conclude a Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income have agreed as follows:

Article 1 PERSONS COVERED

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

Article 2 TAXES COVERED

   This Convention shall apply to taxes on income imposed on behalf of a

Contracting State or of its political subdivisions or local
authorities, irrespective of the manner in which they are levied.

   There shall be regarded as taxes  on income  all taxes imposed  on

total income or on elements of income, including taxes on gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises.

   The existing taxes to which this Convention shall apply are in

particular:

(a) in Malta:

the income tax

(hereinafter referred to as "Malta tax");

(b) in Russia:

(i) the tax on profits of organisations;

(ii) the tax on income of individuals

(hereinafter referred to as “ Russian tax”).

   The Convention shall apply also to any identical or substantially

similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities
of the Contracting States shall notify each other of any significant changes
which have been made in their taxation laws.

Article 3 GENERAL DEFINITIONS

   For  the  purposes  of  this  Convention,  unless  the  context

otherwise requires:

(a) the term "Malta" means the Republic of Malta and, when used in a geographical sense, means the Island of Malta, the Island of Gozo and the other islands of the Maltese archipelago including the territorial waters thereof, as well as any area of the sea-bed, its sub-soil and the superjacent water column adjacent to the territorial waters, wherein Malta exercises sovereign rights, jurisdiction, or control in accordance with international law and its national law, including its legislation relating to the exploration of the continental shelf and exploitation of its natural resources;

(b) the term “Russia” means the Russian Federation, when used in geographical sense, means all the territory of the Russian Federation and also its exclusive economic zone and continental shelf, defined according to the UN Convention on the law of the seas (1982);

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

(e) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on
by a resident of the other Contracting State;

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

(h) the term “business” includes the performance of professional services and of other activities of an independent character;

(i) the term "competent authority" means:

(i) in Malta: the Minister responsible for finance or his authorised representative; and,

(ii) in Russia: the Ministry of Finance of the Russian Federation or its authorised representative;

(j) the term “national”, in relation to a Contracting State, means:

(i) any individual possessing the nationality of a Contracting State; and,

(ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.

   As   regards   the   application   of   the   Convention   at   any

time by a Contracting State, any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

Article 4 RESIDENT

   For the purposes of this Convention, the term "resident of a

Contracting State" means any person who, under the laws of that State, is
liable to tax therein by reason of his domicile, residence, place of incorporation,
place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof.
This term, however, does not include any person who is liable to tax in that
State in respect only of income from sources in that State.

   Where  by  reason  of  the  provisions  of  paragraph  1  an

individual is a resident of both Contracting States, then his status shall be
determined as follows:

(a) he shall be deemed to be a resident only of the 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 only of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

   Where by reason of the provisions of paragraph 1 a person other than

an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective
management is situated. Where the place of effective management of a person other than an

individual cannot be determined, the competent authorities of the Contracting States shall endeavour, having regard to all factors they consider relevant, to determine by mutual agreement the place of effective management in
each individual case.

Article 5 PERMANENT ESTABLISHMENT

   For    the    purposes    of    this    Convention,    the    term

"permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

   The term "permanent establishment" includes especially:

(a) a place of management;

(b) a branch;

(d) a factory;

(e) a workshop; and

(f) a mine, an oil or gas well, a quarry or any other place
of extraction of natural resources.

   A  building  site  or  construction  or  installation  project

constitutes a permanent establishment only if it lasts more than twelve months.

   Where  an  enterprise  of  a  Contracting  State  performs  services

in the other Contracting State:

(a) through an individual who is present in that other State
for a period or periods exceeding in the aggregate 183 days in any twelve- month period, and more than 50 % of the gross revenues attributable to active business activities of the enterprise during this period or periods are derived from the services performed in that other State through that individual; or

(b) for a period or periods exceeding in the aggregate 183 days
in any twelve-month period, and these services are performed for the same project or for connected projects through one or more individuals who are present and performing such services in that other State,

the activities carried on in that other State in performing these services shall be deemed to be carried on through a permanent establishment of the enterprise situated in that other State, unless these services are limited to those mentioned in paragraph 5 which, if performed through a fixed place of business,
would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

   Notwithstanding  the  preceding  provisions   of  this  Article,  the

term “permanent establishment” shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for
the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

(e) the maintenance of a fixed place of business solely for
the purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e),
provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

   Notwithstanding the provisions of paragraphs 1 and 2, where a person -

other than an agent of an independent status to whom paragraph 7 applies - is acting in a Contracting State on behalf of an enterprise of the other Contracting State, and has, and habitually exercises, in that Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise
shall be deemed to have a permanent establishment in that Contracting State in respect of any activities which that person undertakes for the enterprise,
unless the activities of such person are limited to those mentioned in paragraph 5 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

   An  enterprise  of  a  Contracting  State  shall  not  be  deemed  to

have a permanent establishment in the other Contracting State merely because
it carries on business in that other State through a broker, general
commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

   The  fact  that  a  company  which  is  a  resident  of  a

Contracting State controls or is controlled by a company which is a resident of the
other Contracting State, or which carries on business in that other State
(whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

   Income  derived  by  a  resident  of  a  Contracting  State  from

immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

   The  term  "immovable  property"  shall  have  the  meaning  which

it has under the law of the Contracting State in which the property in
question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry,
rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed
payments as

consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be
regarded as immovable property.

   The provisions  of paragraph 1 shall apply  to  income derived  from

the direct use, letting, or use in any other form of immovable property.

   The  provisions  of  paragraphs  1  and  3  shall  also  apply  to

the income from immovable property of an enterprise.

Article 7 BUSINESS PROFITS

   The profits of an enterprise of a Contracting State shall be taxable

only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the
enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

   Subject  to  the  provisions  of  paragraph  3,  where  an

enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it
might be expected to make if it were a distinct and separate enterprise
engaged in the same or similar activities under the same or similar conditions and
dealing wholly independently with the enterprise of which it is a
permanent establishment.

   In determining the profits of a permanent establishment,  there shall

be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general
administrative expenses so incurred, whether in the State in which the
permanent establishment is situated or elsewhere.

   Insofar as it has been customary in a Contracting State to determine

the profits to be attributed to a permanent establishment on the basis
of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining
the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result
shall be in accordance with the principles contained in this Article.

   No profits shall be attributed to a permanent establishment by reason

of the mere purchase by that permanent establishment of goods or
merchandise for the enterprise.

   For the purposes of the preceding paragraphs, the profits to be

attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

   Where profits include items of income which are dealt with separately

in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

   Profits  of  an  enterprise  of  a  Contracting  State  from  the

operation of ships or aircraft in international traffic shall be taxable only in that State.

   For  the  purposes  of  this  Article,  profits  derived  from the

operation of ships or aircraft in international traffic include profits derived from the rental of ships or aircraft if such ships or aircraft are operated in international traffic or if such rental profits are incidental to other profits described in
paragraph 1 of this Article.

   The  provisions  of  paragraph  1  shall  also  apply  to  profits

from the participation in a pool, a joint business or an international operating agency.

Article 9 ASSOCIATED ENTERPRISES

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   Where
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(a) an enterprise of a Contracting State participates
directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

(b) the same persons participate directly or indirectly in
the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the
profits of that enterprise and taxed accordingly.

   Where a Contracting State includes in the profits of an enterprise of

that State - and taxes accordingly - profits on which an enterprise of
the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of
the first- mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of
the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the
competent authorities of the Contracting States shall if necessary consult each other.

Article 10 DIVIDENDS

   Dividends paid by a company which is a resident of a Contracting State

to a resident of the other Contracting State may be taxed in that other State.

   However, such dividends may also be taxed in the Contracting State of

which the company paying the dividends is a resident and according to the laws of that State, but

(a) where the dividends are paid by a company which is a resident of Russia to a resident of Malta who is the beneficial owner thereof, the tax so charged in Russia shall not exceed:

(i) 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 and this holding amounts to at least 100,000 Euro;

(ii) 10 per cent of the gross amount of the dividends in all other cases;

(b) where the dividends are paid by a company which is a resident of Malta to a resident of Russia who is the beneficial owner thereof, Malta tax on the gross amount of the dividends shall not exceed
that chargeable on the profits out of which the dividends are paid.

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

   Notwithstanding the  provisions  of  paragraphs  1  and  2,

dividends shall not be taxed in the Contracting State of which the company paying
the dividends is a resident if the beneficial owner of the dividends is a pension fund that is a resident of the other Contracting State, provided that such dividends are derived from the investments which is made out of assets of this pension fund.

   The term “dividends” as used in this Article means income from shares

or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares, as well as income -even paid in the form of interest- which is subjected to the same taxation treatment as income from shares by the tax legislation of the State of which the paying company is a resident. This term also means any payments on units of the mutual investment funds or similar collective investment vehicles or schemes.

   The  provisions  of  paragraphs  1  and  2  shall  not  apply  if

the beneficial owner of the dividends, being a resident of a Contracting State,
carries on business in the other Contracting State of which the company paying
the dividends is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

   Where  a  company  which  is  a  resident  of  a  Contracting  State

derives profits or income from the other Contracting State, that other State
may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

   Reduced tax rates provided for in the paragraphs 2 and 3 of this

Article shall not apply to dividends arising in a Contracting State and paid to the permanent establishment of an enterprise of the other Contracting
State, situated in the third State.

   The provision of this Article shall not apply if it was the main

purpose or one of the main purposes of any person concerned with the
creation or assignment of the shares or other rights in respect of which the dividend is paid to take advantage of this Article by means of that creation or assignment.

Article 11 INTEREST

   Interest arising in a Contracting State and paid to a resident of the

other Contracting State, who is the beneficial owner of such interest, may be taxed in that other State.

   However,  such  interest  may  also  be  taxed  in  the  Contracting

State in which it arises and according to the laws of that State, but if
the beneficial owner of the interest is a resident of the other Contracting State,
the tax so charged shall not exceed 5 per cent of the gross amount of the interest.

   The  term  "interest"  as  used  in  this  Article  means  income

from debt- claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures,
including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. However, the term “interest” shall not include for the purpose of this Article interest regarded as dividends under paragraph 4 of Article 10.

   The provisions of paragraph 1 shall not apply if the beneficial owner

of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a
permanent establishment situated therein and the debt-claim in respect of which
the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

   Where,  by  reason  of  a  special  relationship  between  the payer

and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

   Interest shall be deemed to arise in a Contracting State when the

payer is a resident of that State. Where, however, the person paying the
interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated.

   The reduced tax rate provided for in paragraph 2 of this Article

shall not apply to interest arising in a Contracting State and paid to the
permanent establishment of an enterprise of the other Contracting State,
situated in the third State.

   The provision of this Article shall not apply if it was the main

purpose or one of the main purposes of any person concerned with the
creation or assignment of the debt-claim in respect of which the interest is
paid to take advantage of this Article by means of that creation or assignment.

Article 12 ROYALTIES

   Royalties  arising  in  a  Contracting  State  and  paid  to  a

resident of the other Contracting State, who is the beneficial owner of such royalties, may be taxed in that other State.

   However,  such royalties  may also be taxed in the Contracting State

in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the royalties.

   The term "royalties" as used in this Article means payments of any

kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, any
patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

   The provisions of paragraph 1 shall not apply if the beneficial owner

of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a
permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

   Where,  by  reason  of  a  special  relationship  between  the  payer

and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

   Royalties shall be deemed to arise in a Contracting State when the

payer is a resident of that Contracting State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not,
has in a Contracting State a permanent establishment in connection with which
the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise
in the State in which the permanent establishment is situated.

   The reduced tax rate provided for in paragraph 2 of this Article

shall not apply to royalties arising in a Contracting State and paid to the
permanent establishment of an enterprise of the other Contracting State,
situated in the third State.

   The provisions of this Article shall not apply if it was the main

purpose or one of the main purposes of any person concerned with the
creation or assignment of the rights in respect of which the royalties are paid
to take advantage of this Article by means of that creation or assignment.

Article 13 CAPITAL GAINS

   Gains derived by a resident of a Contracting State from the

alienation of immovable property referred to in Article 6 and situated in
the other Contracting State may be taxed in that other State.

   Gains  from  the  alienation  of  movable  property  forming  part

of the business property of a permanent establishment which an enterprise of
a Contracting State has in the other Contracting State including such gains from the alienation of such a permanent establishment (alone or with the
whole enterprise) may be taxed in that other State.

   Gains  derived   by  an   enterprise   of   a  Contracting   State

from the alienation of ships or aircraft operated in international traffic, or from movable property pertaining to the operation of such ships or aircraft,
shall be taxable only in that State.

   Gains derived by a resident of a Contracting State from the

alienation of shares or other rights deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.

   Gains from the alienation of any property, other than that referred

to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14

INCOME FROM EMPLOYMENT

   Subject to the provisions of Articles 15, 17 and 18, salaries, wages

and other similar remuneration derived by a resident of a Contracting
State in respect of an employment shall be taxable only in that State unless
the employment is exercised in the other Contracting State. If the employment is

so exercised, such remuneration as is derived therefrom may be taxed in that other State.

   Notwithstanding the provisions of paragraph 1, remuneration derived by

a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned, and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and

   Notwithstanding the preceding provisions of this Article,

remuneration derived in respect of an employment exercised aboard a ship or
aircraft operated in international traffic by an enterprise of a Contracting State, may be taxed in that State.

Article 15 DIRECTORS' FEES

Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of
directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 16 ARTISTES AND SPORTSMEN

   Notwithstanding the provisions of Articles 7 and 14, income derived by

a resident of a Contracting State as an entertainer, such as a
theatre, motion picture, radio or television artiste, or a musician, or as a sportsman,
from his personal activities as such exercised in the other Contracting State,
may be taxed in that other State.

   Where   income   in   respect   of   personal   activities

exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

    Notwithstanding the provisions of paragraphs  1 and 2,  income

derived from such activities as are referred to in paragraph 1 performed under a cultural agreement or arrangement between the Contracting States shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to that State is wholly or substantially supported by public or government funds of either Contracting State.

Article 17 PENSIONS

   Subject  to  the  provisions  of  paragraph  2  of  Article  18,

pensions and other similar remuneration paid to a resident of a
Contracting State in consideration of past employment shall be taxable only in that State.

   Notwithstanding the provisions of paragraph 1, pensions paid and other

similar payments made by the Government of a Contracting State or a political subdivision or a local authority thereof under a public welfare scheme of the social security system of that State shall be taxable only in that State.

Article 18 GOVERNMENT SERVICE

   (a)       Salaries,   wages   and   other   similar   remuneration

paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

   (a)       Notwithstanding  the  provisions  of  paragraph  1,

pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

(b) However, such pensions and similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

   The  provisions  of  Articles  14,  15,  16  and  17  shall  apply

to salaries, wages, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.

Article 19

PROFESSORS, TEACHERS AND RESEARCHERS

An individual who visits a Contracting State at the invitation of that State or of a university, college, school, museum or other cultural institution of that State or under an official programme of scientific, research or cultural exchange for a period not exceeding two years for the purpose of teaching, giving lectures or carrying out research at such institution and who is, or was immediately before that visit, a resident of the other Contracting State shall be exempt from tax in the first-mentioned State on his remuneration for such activity, provided that such remuneration is derived by him from the other Contracting State.

Article 20 STUDENTS

Payments which a student or business apprentice who is or
was immediately before visiting a Contracting State a resident of
the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State,
provided that such payments arise from sources outside that State.

Article 21 OTHER INCOME

Items of income of a resident of a Contracting State, arising in the other Contracting State, and not dealt with in the foregoing
Articles of this Convention may be taxed in that other State.

Article 22 ELIMINATION OF DOUBLE TAXATION

   In the case of Malta, double taxation shall be eliminated as follows:

Subject to the provisions of the law of Malta regarding the allowance of a credit against Malta tax in respect of foreign tax, where, in accordance with the provisions of this Convention, there is included in a Malta assessment income from sources within Russia, the Russian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon.

   In the case of Russia, double taxation shall be eliminated as

follows:

Where a resident of Russia derives income from Malta, the amount of tax on that income payable in Malta in accordance with the provisions of this Convention may be credited against the Russian tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Russian tax on that income computed in accordance with the taxation laws and regulations of Russia.

Article 23

NON-DISCRIMINATION

   Nationals  of  a  Contracting  State  shall  not  be  subjected  in

the other Contracting State to any taxation or any requirement connected
therewith which is other or more burdensome than the taxation and
connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

   The  taxation  on  a  permanent  establishment  which  an  enterprise

of a Contracting State has in the other Contracting State shall not be less favourably

levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes
on account of civil status or family responsibilities which it grants to its own residents.

   Except where the provisions of paragraph 1 of Article 9, paragraph 4

of Article 11, or paragraph 4 of Article 12 apply, interest, royalties
and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.

   Enterprises  of  a  Contracting  State,  the  capital  of  which  is

wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

   The  provisions  of  this  Article  shall,  notwithstanding  the

provisions of Article 2, apply to taxes of every kind and description.

Article 24

MUTUAL AGREEMENT PROCEDURE

   Where  a  person  considers  that  the  actions   of  one  or  both

of the Contracting States result or will result for him in taxation not in
accordance with the provisions of this Convention, he may, irrespective of the
remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 22, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance
with the provisions of the Convention.

   The competent authority shall endeavour, if the objection appears to

it to be justified and if it is not itself able to arrive at a
satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall
be implemented notwithstanding any time limits in the domestic law of the Contracting States.

   The competent authorities of the Contracting States shall endeavour to

resolve by mutual agreement any difficulties or doubts arising as to
the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for
in the Convention.

   The competent authorities of the Contracting States  may communicate

with each other directly, including through a joint commission
consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.

Article 25 EXCHANGE OF INFORMATION

   The competent authorities of the Contracting States shall exchange

such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic
laws concerning taxes of every kind and description imposed on behalf of
the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.

   Any information received under paragraph 1 by a Contracting State

shall be treated as secret in the same manner as information obtained
under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the

above. Such persons or authorities shall use the information only
for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

   In no case shall the provisions of paragraphs 1 and 2 be construed so

as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other Contracting State;

(b) to 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;

(c) to 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 (ordre public).

   If  information  is  requested  by  a  Contracting  State  in

accordance with this Article, the other Contracting State shall use its information
gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3
but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in
such information.

     In no case shall the provisions of paragraph 3 be construed to

permit a Contracting State to decline to supply information solely
because the information is held by a bank, other financial institution, nominee
or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

Article 26

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

Article 27 LIMITATION OF BENEFITS

   Notwithstanding the provisions of any other Article of this

Convention, a resident of a Contracting State shall not receive the benefit of any reduction in or exemption from tax provided for in the Convention by the
other Contracting State if the main purpose or one of the main purposes
of such resident or a person connected to such resident was to obtain the benefits of the Convention.

   The foregoing provision shall not apply where a company is engaged in

substantive business operations in Contracting State of which it is a resident and the relief from the taxation claimed from the other Contracting
State is with respect to income that is connected to such operations.

Article 28 ENTRY INTO FORCE

Both Contracting States shall notify each other through diplomatic channels that they have completed the internal legal procedures necessary for the entry into force of this Convention. This Convention shall enter into force on the thirtieth day upon the receipt of the latter notification. This Convention shall be applicable in respect of income derived during the taxable
years beginning on or after the first day of January next following that in which this Convention enters into force.

Article 29 TERMINATION

This Convention shall continue in effect indefinitely but either of
the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give written notice of termination to the other
Contracting State through diplomatic channels. In such event this Convention shall cease to have effect as respects income derived during the taxable years beginning on or after the first day of January in the calendar year next following that in which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, by their respective Governments, have signed this Convention.

DONE at Moscow this 24 day of April, 2013 in duplicate in the English and Russian languages both texts being equally authentic.

Raymond Sarsero Sergey Dmitrievich Shatalov

For the Government For the Government

of Malta of the Russian Federation

PROTOCOL

TO THE CONVENTION BETWEEN THE GOVERNMENT OF MALTA

AND

THE GOVERNMENT OF THE RUSSIAN FEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME

At the moment of signing the Convention between the Government of Malta and the Government of the Russian Federation for the Avoidance
of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as “the Convention”), the undersigned
have agreed upon the following provisions which shall form an integral
part of the Convention.

   The term “political subdivisions” in this Convention means, with

respect to the Russian Federation, subjects of the Russian Federation, defined as such according to its legislation.

   Notwithstanding any provision of Article 23 “Non-Discrimination” of

this Convention it is not prohibited to a Contracting State to apply the provisions of its national tax laws concerning thin «capitalisation rules» or
«controlled foreign company rules».

   Any document received under Article 25 “Exchange of Information” of

this Convention or a certificate of residence issued by the competent authority of a Contracting State or its authorised representative shall
not require legalisation or apostille for the purposes of application in the other Contracting State, including its use in the courts and administrative bodies.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, by their respective Governments, have signed this Protocol.

DONE at Moscow this 24 day of April, 2013 in duplicate in the English and Russian languages both texts being equally authentic.

Raymond Sarsero Sergey Dmitrievich Shatalov

For the Government For the Government

of Malta of the Russian Federation

Malta - Russia Tax Treaty

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