Serbia - Malta Tax Treaty

B 4953

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 18,645, 14 ta’ Settembru, 2010

Tagsima B

A.L. 431 ta’ 1-2010

ATT DWAR IT-TAXXA FUQ L-INCOME (KAP. 123)

Ordni tal-2010 dwar Helsien minn Taxxa Doppja (Taxxi fuq 1-Income) (Repubblika tas-Serbja)

BIS-SAHHA tas-setghat mogfitija bl-artikolu 76 tal-Att dwar it-Taxxa fuq 1-Jncome, i1-Ministru tal-Finanzi, 1-Ekonomya u Investiment ghamel dan l-ordni li gey:

1. It-titolu ta’ dan l-ordni hu Ordni tal-2010 dwar Helsien minn Taxxa Doppja (Taxxi fuq /ncome) (Repubblika tas-Serbja).

2. B’dan qieghied jigi dikjarat -

(a) illi l-arrangamenti specifikati fil-Ftehim muri fl-Iskeda li tinsab ma’ dan 1-Ordni saru mar-Repubblika tas-Serbja sabiex jaghtu helsien minn taxxa doppja dwar it-taxxi li gejin imposti bil-ligijiet tar-Repubblika tas-Serbyja:

• it-taxxa fuq l-income korporattiva;

• it-taxxa fuq l-income personalt;

(b) illi huwa spedjenti li dawk l-arrangamenti ghandu jkollhom effett;

(6) illil-Ftehim beda jsehhi fis-16 ta’ Gunju, 2010.

Titolu.

Arrangamenti jkollhom effett. B 4954

SKEDA (Artiklu 2)

FTEHIM BEJN MALTA U R-REPUBBLIKA TAS-SERBJA

GHALL-EVITAR TA’ TAXXA DOPPJA DWAR TAXXI FUQ L-INCOME

MALTA U IR-REPUBBLIKA TAS-SERBJA

billi jixtiequ jaghmlu ftehim ghall-evitar ta’ taxxa doppja dwar taxxi fuq l-income, ftehmu kif ge}: Artiklu 1

PERSUNI KOPERTI

Dan il-Ftehim ghandu japplika ghal persuni li jkunu residenti fi Stat Kontraenti wiefied jew fit-tnejn li huma.

Artiklu 2 TAXXI KOPERTI

1. Dan il-ftehim ghandu japplika ghat-taxxi fugq l-income imposti f’isem Stat Kontraenti, irrispettivament mill-mod kif dawn jingabru.

2. Ghandhom jitqiesu bhala taxxi fuq l-income it-taxxi kollha imposti fugq l-income totali, jew fuq elementi ta’ income, inkluzi taxxi fuq kull qliegh mit- trasferiment ta’ proprjeta mobbli jew immobbli, u taxxi fuq l-ammonti totali ta’ pagi u salarji li jithallsu minn imprizi kif ukoll taxxi fuq l-apprezzament kapitali.

3. It-taxxi ezistenti li dwarhom japplika dan il-Ptehim huma: (1) fi-Serbja: (1) it-taxxa fuq l-income korporattiva;

(2) it-taxxa fuq l-income personali B 4955 (hawnhekk izjed ’il quddiem imsejha "it-taxxa tas-Serbja"); (2) f’ Malta: it-taxxa fug l-income. (hawnhekk izjed ’il quddiem imsejha "it-taxxa ta’ Malta”).

4. I[l-Ftehim ghandu japplika wkoll ghal kull taxxa identika jew sostanzjalment simili li jigu imposti wara d-data meta jigi ffirmat dan il-Ftehim b’ zjieda ma’, jew minflok, it-taxxi ezistenti. L-awtoritajiet kompetenti ta’ 1-Istati Kontraenti ghandhom jgharrfu lil xulxin b’kull tibdil sinifikanti li jkun sar fil- ligijiet taghhom dwar it-taxxi.

Artiklu 3 TIFSIRIET GENERALI

1. Ghall-ghanijiet ta’ dan il-Ftehim:

(1) il-frazijiet "Stat Kontraenti" u "I-Istat Kontraenti ]-iehor” ifissru is- Serbja jew Malta, skond ir-rabta tal-kliem;

(2) il-frazi "Serbja” tfisser ir-Repubblika tas-Serbja, u meta tintuza f’sens geografiku tfisser it-territorju tar-Repubblika tas-Serbja;

(3) il-frazi "Malta" tfisser ir-Repubblika ta’ Malta u, meta tintuza f’sens geografiku, tfisser il-Gzira ta’ Malta, il-Gzira ta’ Ghawdex u |-gzejjer I-ohra ta’ 1- arcipelagu Malti inkluzi l-ibhra territorjali taghhom, kif ukoll kull area ta’ qiegh il- bahar, is-sottoswol tieghu u I-kolonna ta’ bahar sovrajacenti li tinsab adjacenti ghall-ibhira territorjali, fejn Malta tezercita drittijiet sovrani, gurisdizzjoni, jew kontroll skond id-dritt internazzjonali u d-dritt nazzjonali taghha, inkluza 1- legislazzjoni taghha ghar-rigward ta’ l-esplorazzjoni tal-blata kontinentali u 1- esplojtazzjoni tar-rizorsi naturali taghha;

(4) il-frazi "¢ittadin”" tfisser: (1) kull individwu li jkollu ¢-cittadinanza ta’ Stat Kontraenti;

(2) kull persuna guridika, socjeta jew assocjazzjoni li jiksbu 1- istatus taghhom bhala tali mil-ligijiet li jkunu fis-sehh fi Stat Kontraenti;

(5) il-frazi "persuna” tinkludi individwu, kumpannija u kull korp ta’ persuni iehor;

(6) il-frazi "kumpannija” tfisser kull korp maghqud jew kull enti li jkun ittrattat bhala korp maghqud ghall-iskopijiet ta’ taxxa;

(7) il-frazijiet "impriza ta’ Stat Kontraenti” u "impriza ta’ |-Istat B 4956

Kontraenti |-iehor” ifissru rispettivament impriza gestita minn residenti ta’ Stat Kontraenti u impriza gestita minn residenti ta’ 1-Istat Kontraenti l-iefior;

(8) il-frazi "traffiku internazzjonali" tfisser kull trasport permezz ta’ bastiment jew b’ingenji ta’ l-ajru imhaddem minn impriza ta’ Stat Kontraenti, hlief meta |-bastiment jew l-ingenji ta’ l-ajru jkunu unikament imhaddma bejn postijiet fl-Istat Kontraenti l-iefior;

(9) il-frazi "awtorita kompetenti” tfisser:

(1) fis-Serbja, il-Ministru tal-Finanzi jew ir-rapprezentant awtorizzat tieghu;

(2) f’Malta, il-Ministru responsabbli ghall-finanzi jew = ir- rapprezentant awtorizzat tieghu.

2. Ghar-rigward ta’ l-applikazzjoni tal-Ftehim f’kull zmien minn Stat Kontraenti, kull frazi li ma tkunx imfissra fih ghandu jkollha, kemm-il darba r- rabta tal-kliem ma tkunx tefitieg xort’ ohra, it-tifsira moghtija lilha f’dak iz-zmien taht il-ligi ta’ dak I-Istat ghall-finijiet tat-taxxi li dwarhom ikun japplika 1-Ftehim, hekk li tifsira taht il-ligijiet tat-taxxa li japplikaw f’dak 1-Istat ghandha tkun tipprevali fuq tifsira moghtija lil dik il-frazi taht ligijiet ofira ta’ dak I-Istat.

Artiklu 4 RESIDENTI

1. Ghall-finijiet ta’ dan il-Ftehim, il-frazi "residenti ta’ Stat Kontraenti” tfisser kull persuna li, tafit il-ligijiet ta’ dak I-Istat, tkun soggetta ghat-taxxa hemmhekk minhabba fid-domicilju taghha, residenza, post tal-manigg jew kull kriterju iehor ta’ xorta bhal dawk, u tinkludi wkoll dak I-Istat jew xi sottodivizjoni jew awtorita lokali tieghu. Din il-frazi, madankollu, ma tinkludix lil xi persuna li tkun soggetta ghat-taxxa f’dak |-Istat ghar-rigward biss ta’ income minn ghejjun f dak 1-Istat.

2. Meta minhabba fid-dispozizzjonijiet tal-paragrafu 1 individwu jkun residenti taz-zewg Stati Kontraenti, allura l-istatus tieghu ghandu jigi stabbilit kif

ge}:

(1) huwa ghandu jitqies li jkun residenti biss ta’ |-Istat li fih ikollu dar permanenti ghad-dispozizzjoni tieghu; jekk huwa jkollu dar permanenti ghad-dispozizzjoni tieghu fiz-zewg Stati, huwa ghandu jitqies li jkun residenti biss ta’ I-Istat li mieghu r-relazzjonijiet personali u ekonomi¢i tieghu jkunu l-aktar marbuta (Centru ta’ interessi vitali);

(2) jekk 1-Istat li fih huwa jkollu ¢-centru ta’ interessi vitali ma jkunx jista’ jigi stabbilit, jew jekk huwa ma jkollux ghad-dispozizzjoni tieghu dar permanenti f’xi Stat wiehed jew l-iehor, huwa ghandu jitqies li B 4957

jkun residenti ta’ 1-Istat li fih ikun soltu jirrisjedi;

(3) jekk huwa soltu jirrisjedi fiz-zewg Stati, jew febda wiehed minnhom, huwa ghandu jitqies li jkun residenti biss ta’ 1-Istat li jkun Cittadin tieghu;

(4) jekk huwa jkun Cittadin taz-zewg Stati jew ta’ l-ebda wiehed minnhom, l-awtoritajiet kompetenti ta’ I-Istati Kontraenti ghandhom jiddeciedu |-kaz bi ftehim bejnithom.

3. Meta minhabba fid-dispozizzjonijiet tal-paragrafu 1 persuna li ma tkunx individwu tkun residenti taz-zewg Stati Kontraenti, allura dak l-individwu ghandu jitqies li jkun residenti biss fl-Istat fejn ikun jinsab il-post ta’ manigg¢ effettiv tieghu.

Artiklu 5 STABBILIMENT PERMANENTI

1. Ghall-finijiet ta’ dan il-Ftehim, il-frazi "stabbiliment permanenti” tfisser post tan-negozju fiss li minnu jitmexxa I-kummerc ta’ dik l-impriza ghalkollox jew f’ parti minnu.

2. Il-frazi "stabbiliment permanenti” b’mod specjali tinkludi:

(1) post ta’ manigg; (2) fergha;

(3) ufficcju;

(4) fabbrika;

(5) hanut tax-xogfiol; u

(6) minjiera, bir taz-zejt jew tal-gass, barriera jew kull post iefhor ta’ estrazzjoni ta’ rizorsi naturali.

3. Il-frazi "stabbiliment permanenti” bl-istess mod tinkludi:

(1) art li tkun geghida tinbena, progett ta’ kostruzzjoni, assemblagg jew stallazzjoni jew attivitajiet ta’ sorveljanza li jkollhom x’jaqsmu ma’ dan, imma biss meta dik l-art, dak il-progett jew dawk I-attivitajiet jibqghu ghaddejin ghal perjodu ta’ aktar minn disa’ xhur;

(2) I-ghoti ta’ servizzi, inkluzi servizzi ta’ konsulenza, minn impriza permezz ta’ impjegati jew persunal iehor imqabbad mill-impriza ghal dak 1- ghan, imma biss meta attivitajiet ta’ dik ix-xorta (ghall-istess progett jew wiehed konness) fi hdan Stat Kontraenti jibqghu ghaddejin ghal perjodu jew B 4958 perjodi li flimkien igibu jew jeccedu s-sitt xhur f’xi perjodu ta’ tnax il-xahar.

4. Minkejja d-dispozizzjonijiet ta’ qabel ta’ dan 1-Artiklu, il-frazi "stabbiliment permanenti” ghandha titqies li ma tinkludix:

(1) 1-uzu ta’ facilitajiet bl-iskop uniku ta’ hzin, wiri jew tqassim ta’ oggetti jew merkanzija li jkunu jappartjenu lill-impriza;

(2) iz-zamma ta’ hazna ta’ oggetti jew ta’ merkanzija li tkun tappartjeni lill-impriza unikament ghall-fini ta’ hzin, wiri jew tqassim;

(3) iz-zamma ta’ hazna ta’ oggetti jew ta’ merkanzija li tkun tappartjeni lill-impriza unikament ghall-fini ta’ ipproCessar minn impriza ohira;

(4) iz-zamma ta’ post fiss ta’ negozju unikament ghall-fini ta’ xiri

ta’ offetti jew ta’ merkanzija jew ta’ gbir ta’ taghrif, ghall-impriza;

(5) iz-zamma ta’ post fiss ta’ negozju unikament ghall-fini li tigi gestita, ghall-impriza, kull attivita ohira ta’ xorta preparatorja jew awziljarja;

(6) iz-Zamma ta’ post fiss ta’ negozju unikament biex tkun tista’ ssir kull kombinazzjoni ta’ attivitajiet imsemmija fis-subparagrafi (1) sa (5), sakemm |-attivita kollha tal-post tan-negozju fiss li tirrizulta minn din il- kombinazzjoni tkun wahda ta’ xorta preparatorja jew awziljarja.

5. Minkejja l-provvedimenti tal-paragrafi | u 2, meta persuna - li ma tkunx agent bi status indipendenti li ghalih japplika I-paragrafu 6 - tkun qeghda tagixxi fisem xi impriza u jkollha, u tkun abitwalment tezercita, fi Stat Kontraenti 1- awtorita li taghmel kuntratti f’isem l-impriza, dik l-impriza ghandha titqies li jkollha stabbiliment permanenti f’dak I-Istat ghar-rigward ta’ kull attivita li dik il- persuna taghmel ghall-impriza, kemm-il darba |-attivitajiet ta’ dik il-persuna ma jkunux limitati ghal dawk imsemmija fil-paragrafu 4 illi, jekk dawn jigu ezerCitati minn go post tan-negozju fiss, ma jkunux jirrendu lil dan il-post tan-negozju fiss bhala stabbiliment permanenti taht il-provvedimenti ta’ dak il-paragrafu.

6. Impriza m’ghandhiex titqies li jkollha stabbiliment permanenti fi Stat Kontraenti unikament ghaliex tkun tiggestixxi negozju f’dak |-Istat permezz ta’ sensal, agent b’kummissjoni generali jew kull agent iehor bi status indipendenti, sakemm dawk il-persuni jkunu geghdin jagixxu fil-kors ordinarju tan-negozju taghhom. Madankollu, meta I-attivitajiet ta’ dak l-agent isiru ghalkollox jew kwazi ghalkollox f?isem dik l-impriza, u jsiru jew jigu imposti kundizzjonijiet bejn dik l-impriza u l-agent fir-relazzjonijiet kummer¢jali u finanzjarji taghhom li jkunu jvarjaw minn dawk li kieku kienu jsiru bejn imprizi indipendenti, huwa ma jitqiesx bhala agent bi status indipendenti fil-kuntest tat-tifsira ta’ dan il-paragrafu.

7. IL-fatt li kumpannija li tkun residenti ta’ Stat Kontraenti tkun tikkontrolla jew tkun kontrollata minn kumpannija li tkun residenti ta’ |-Istat B 4959

Kontraenti l-iehor, jew li tkun tiggestixxi negozju f’dak I-Istat l-iehor (sew permezz ta’ stabbiliment permanenti sew xort’ofira), m’ghandux fih innifsu jikkostitwixxi lil kumpannija wahda jew I-ohra stabbiliment permanenti tal- kumpannija |-ofra.

Artiklu 6 INCOME MINN PROPRJETA IMMOBBLI

1. Income li jinkiseb minn residenti ta’ Stat Kontraenti minn proprjeta immobbli (inkluz income mill-agrikoltura jew hidma fil-boskijiet) li tkun tinsab fl- Istat Kontraenti l-iefor jista’ jigi intaxxat f’dak 1-Istat 1-iefor.

2. Il-frazi "proprjeta immobbli” ghandu jkollha t-tifsira li ghandha taht il-ligi ta’ 1-Istat Kontraenti fejn tkun tinsab il-proprjeta involuta. Il-frazi ghandha f’kull kaz tkun tinkludi proprjeta ac¢essorja ghal proprjeta immobbli, bhejjem f’razzett u taghmir li jintuza fl-agrikoltura u fil-fidma fil-boskijiet, drittijiet li ghalihom japplikaw il-provvedimenti tal-ligi generali dwar il-proprjeta ta’ |-art, 1- uzufrutt tal-proprjeta immobbli u drittijiet dwar hlasijiet varjabbli jew fissi bhala korrispettiv ghal hidma fi, jew id-dritt li jinhadmu, depoziti minerali, ghejjun u rizorsi ohra naturali; bastimenti, dghajjes u ingenji ta’ l-ajru m’ ghandhomx jitqiesu bhala proprjeta immobbli.

3. I[l-provvedimenti tal-paragrafu 1 ghandhom ikunu japplikaw ghal income li jinkiseb mill-uzu dirett, mill-kiri, jew mill-uzu b’kull mod iefhior ta’ proprjeta immobbli.

4. Il-provvedimenti tal-paragrafi 1 u 3 ghandhom japplikaw ukoll ghal income minn proprjeta immobbli ta’ impriza u ghal income minn proprjeta immobbli uzata ghall-ghemil ta’ servizzi personali indipendenti.

Artiklu 7 PROFITTI MINN NEGOZJU

1. Il-profitti ta’ impriza ta’ Stat Kontraenti ghandhom jigu intaxxati biss f’dak 1-Istat kemm-il darba l-impriza ma tkunx tmexxi negozju fl-Istat Kontraenti l-iehor permezz ta’ stabbiliment permanenti li jkun jinsab hemmhekk. Jekk 1- impriza tkun qeghda tmexxi negozju kif hawn aktar qabel imsemmi, il-profitti ta’ l-impriza jistghu jigu intaxxati fl-Istat l-iehor imma biss ghal dik il-parti minnhom daqskemm tkun attribwibbli lil dak 1-istabbiliment permanenti.

2. Bla fisara ghall-provvedimenti tal-paragrafu 3, meta impriza ta’ Stat Kontraenti tkun tmexxi negozju fl-Istat Kontraenti l-iehor permezz ta’ stabbiliment permanenti li jkun qieghed hemmhekk, ghandhom f’kull Stat Kontraenti jigu attribwiti lil dak l-istabbiliment permanenti il-profitti li kien ikun mistenni jaghmel kieku kien impriza distinta u separata li tahdem fl-istess attivitajiet jew ofrajn bhalhom taht I-istess kundizzjonijiet jew ofrajn bhalhom u li taidem ghalkollox indipendentement mill-impriza li tkun stabbiliment permanenti taghha. B 4960

3. Sabiex jigu stabbiliti l-profitti ta’ stabbiliment permanenti, ghandhom ikunu permessi bhala tnaqgis dawk l-ispejjez li jsiru ghall-ghanijiet ta’ 1- istabbiliment permanenti, inkluzi l-ispejjez ezekuttivi u amministrattivi generali li jkunu hekk saru, sew fl-Istat li fih ikun jinsab l-istabbiliment permanenti sew band’ ofira.

4. Sakemm tkun il-konswetudni fi Stat Kontraenti li jistabbilixxi 1-profitti li ghandhom jigu attribwiti lil stabbiliment permanenti minhabba fi tqassim tal- profitti totali ta’ l-impriza lill-partijiet diversi taghha, ebda haga fil-paragrafu 2 m’ghandha tipprekludi lil dak I-Istat Kontraenti milli jistabbilixxi 1-profitti li ghandhom jigu intaxxati b’dak it-tqassim skond ma jista’ jkun konswetudinarju; il-metodu ta’ tqassim li jigi adottat ghandu, madankollu, isir b’tali mod li r-rizultat ikun skond il-principji li jinsabu f’ dan 1-Artiklu.

5. Ebda profitti m’ghandhom jigu attribwiti lil stabbiliment permanenti minfiabba biss fli jsir ix-xiri minn dak |-istabbiliment permanenti ta’ oggetti jew merkanzija ghall-impriza.

6. Ghall-ghanijiet tal-paragrafi precedenti, il-profitti li ghandhom jigu attribwiti lill-istabbiliment permanenti ghandhom jigu stabbiliti bl-istess metodu ghal kull sena kemm-il darba ma jkunx hemm raguni tajba u sufficjenti ghaliex dan m’ ghandux isir.

7. Meta I-profitti jkunu jinkludu oggetti ta’ income li jkunu geghdin jigu trattati separatament f’Artikli ofra ta’ dan il-Ftehim, gfhaldaqshekk il- provvedimenti ta’ dawk |-Artikli m’ ghandhomx jintlaqtu bil-provvedimenti ta’ dan 1-Artiklu.

Artiklu 8 TRAFFIKU INTERNAZZJONALI

1. Il-profitti li jinkisbu minn impriza ta’ Stat Kontraenti mit-thaddim ta’ bastimenti jew ingenji ta’ l-ajru fi traffiku internazzjonali ghandhom jigu intaxxati biss f’ dak |-Istat.

2. Il-provvedimenti tal-paragrafu 1 ghandhom ukoll japplikaw ghal profitti miksubin mill-partecipazzjoni f’pool, negozju bi shab jew agenzija b’ operat internazzjonali.

Artiklu 9 IMPRIZI ASSOCJATI

1. Meta (1) impriza ta’ Stat Kontraenti tippartecipa sew direttament sew

indirettament fit-tmexxija, kontroll jew kapital ta’ impriza ta’ 1-Istat Kontraenti l-iehor, jew B 4961

(2) l-istess persuni jippartecipaw sew direttament sew indirettament fit-tmexxija, kontroll jew kapital ta’ impriza ta’ Stat Kontraenti u ta’ impriza ta’ |-Istat Kontraenti l-iehor,

u f’kull kaz isiru jew jigu imposti kondizzjonijiet bejn iz-zewg imprizi fir- relazzjonijiet kummercjali jew finanzjarji taghhom li ma jkunux jaqblu ma’ dawk li kieku kienu jsiru bejn imprizi indipendenti, f’dak il-kaz il-profitti li, kieku ma kienx ghal dawk il-kondizzjonijiet, kienu jakkumulaw favur xi wahda mill-imprizi, imma, minhabba dawk il-kondizzjonijiet, ma jkunux hekk akkumulaw, jistghu jigu inkluzi fil-profitti ta’ dik l-impriza u intaxxati skond hekk.

2. Meta Stat Kontraenti ikun jinkludi fil-profitti ta’ impriza ta’ dak 1-Istat - u skond hekk jintaxxa - profitti li fuqhom impriza ta’ |-Istat Kontraenti l-iehor tkun giet intaxxata f’dak 1|-Istat l-iehor u l-profitti li jigu hekk inkluzi jkunu profitti li kienu jingalghu mill-impriza ta’ l-ewwel Stat imsemmi li kieku I-kondizzjonijiet maghmulin bejn iz-zewg imprizi kienu dawk li kienu kieku jsiru bejn zewg imprizi indipendenti, ghaldaqshekk dak 1-Istat l-iefior jista’ jaghmel l-aggustament li jmiss fl-ammont tat-taxxa hemmhekk imposta fuq dawk il-profitti. Biex jigi stabbilit dak l-aggustament, ghandhom jitgiesu kif dovut il-provvedimenti l-ohra ta’ dan il- Ftehim u |-awtoritajiet kompetenti ta’ l-Istati Kontraenti ghandhom jekk ikun hekk mehtieg jikkonsultaw lil xulxin.

Artiklu 10 DIVIDENDI

1. Id-dividendi mhallsa minn kumpannija li tkun residenti ta’ Stat Kontraenti lil residenti ta’ 1-Istat Kontraenti l-iefior jistghu jigu intaxxati f’ dak I- Istat 1-iefior.

2. Madankollu, dawk id-dividendi jistghu jigu intaxxati wkoll fl-Istat Kontraenti li |-kumpannija li tkun thallas id-dividendi tkun residenti fih u skond il- ligijiet ta’ dak I-Istat, imma:

(1) meta d-dividendi jithallsu minn kumpannija li tkun residenti fis- Serbja lil residenti f’ Malta li jkun is-sid beneficjarju tad-dividendi, it-taxxa li hekk tintalab mis-Serbja m’ ghandhiex tkun izjed minn:

(i) 5 fil-mija ta’ l-ammont kollu u shih tad-dividendi jekk is- sid benefi¢jarju jkun kumpannija li jkollha direttament mill-inqas 25 fil- mija mill-kapital tal-kumpannija li tkun qeghda thallas id-dividendi;

(i) 10 fil-mija ta’ l-ammont kollu u shih tad-dividendi fil- kazijiet l-ofira kollha;

(2) meta d-dividendi jithallsu minn kumpannija li tkun residenti ta’ Malta lil residenti tas-Serbja li jkun is-sid beneficjarju tad-dividendi, it-taxxa ta’ Malta fuq l-ammont kollu u shih tad-dividendi m’ ghandhiex tkun izjed B 4962 minn dik li tithallas fugq il-profitti li minnhom jithallsu d-dividendi.

Dan il-paragrafu ma jolgotx I-intaxxar tal- kumpannija ghar-rigward tal- profitti li minnhom jithallsu d-dividendi.

3. Il-frazi "dividendi” skond ma tintuza f’dan 1-Artiklu tfisser income minn ishma jew drittijiet ofira, li ma jkunux pretensjonijiet ta’ debitu, il- partecipazzjoni fi profitti, kif ukoll income minn drittijiet korporattivi ofra li jinghiata l-istess trattament ta’ taxxa bhallikieku kien income minn ishma skond il- ligijiet ta’ l-Istat fejn tkun residenti l-kumpannija li tkun gegfda taghmel it- tqassim.

4. [l-provvedimenti tal-paragrafi 1 u 2 m’ ghandhomx japplikaw jekk is-sid benefi¢jarju tad-dividendi, li jkun residenti ta’ Stat Kontraenti, ikun imexxi negozju fl-Istat Kontraenti I-iehor li fih tkun residenti l-kumpannija li thallas id- dividendi, permezz ta’ stabbiliment permanenti li jkun sitwat hemmhekk, jew li jkun jaghmel f’dak |-Istat l-iehor servizzi personali indipendenti minn bazi stabbilita sitwata hemmhekk, u |-holding li dwarhom jkunu mhallsa d-dividendi jkollu effettivament x’jaqsam ma’ dak |l-istabbiliment permanenti jew bazi stabbilita. F’dak il-kaz ghandhom japplikaw il-provvedimenti ta’ 1-Artiklu 7 jew ta’ 1-Artiklu 14, skond il-kaz.

5. Meta kumpannija li tkun residenti ta’ Stat Kontraenti tikseb profitti jew income mill-Istat Kontraenti lI-iehor, dak 1-Istat l-iehor ma jista’ jimponi ebda taxxa fug id-dividendi mhallsa mill-kumpannija, lief sakemm dawk id-dividendi jithallsu lil residenti ta’ dak I-Istat l-iehor jew sakemm il-holding li dwaru jithallsu d-dividendi jkun effettivament konness ma’ stabbiliment permanenti jew ma’ bazi stabbilita sitwati f’dak Istat l-iehor, lanqas ma jista’ jassoggetta |-profitti mhux imqassma tal-kumpannija ghal taxxa fuq il-profitti mhux imqassma_ tal- kumpannija, ukoll jekk id-dividendi mhallsa jew il-profitti mhux imqassma jkunu kollha kemm huma jew f’parti minnhom jikkonsistu fi profitti jew income li jingalgfu f’ dak 1-Istat 1-iefior.

Artiklu 11 MGHAX

1. Meghax li jingala’ fi Stat Kontraenti u jithallas lil residenti ta’ 1-Istat Kontraenti l-iefior jista’ jigi intaxxat f’dak Istat l-iefior.

2. Madankollu, dak 1-imghax jista’ wkoll jigi intaxxat fl-Istat Kontraenti fejn dan jinqala’ u skond il-ligijiet ta’ dak |-Istat, imma jekk is-sid beneficjarju ta’ dak l-imghax ikun residenti tal-Istat Kontraenti l-iefor, it-taxxa hekk mitluba m’ ghandhiex te¢cedi 10 fil-mija ta’ l-ammont kollu u shih ta’ l-imghax.

3. Minkejja l-provvedimenti tal-paragrafu 2, mghax jigi ezentat mit-taxxa fl-Istat Kontraenti fejn dan jingala’ jekk dan jinkiseb u jkollu bhala sid benefi¢jarju tieghu lill-Gvern tal-Istat Kontraenti l-iehor, inkluza kull sottodivizjoni politika B 4963

jew awtorita lokali tieghu, il-Bank Centrali jew xi istituzzjoni finanzjarja li dak il- Gvern ikollu bi proprjeta assoluta.

4. Il-frazi "mghax"” kif tintuza f’dan 1-Artiklu tfisser income minn pretensjonijiet ta’ debitu ta’ kull xorta, sew jekk assikurati b’ipoteka sew jekk le, u sew jekk ikollhomx dritt li jippartecipaw fil-profitti tad-debitur sew jekk le, u b’mod partikolari, income minn titoli tal-Gvern u income minn bonds jew debentures, inkluzi premiums u premijijiet relatati ma dawk it-titoli, bonds jew debentures. Hlasijiet ta’ penali ghal flas tardiv ma jitqiesux bhala mghax ghall- finijiet ta’ dan 1-Artiklu.

5. Il-provvedimenti tal-paragrafi 1, 2 u 3 m’ ghandhomx japplikaw jekk is- sid beneficjarju ta’ |-imghax, li jkun residenti ta’ Stat Kontraenti, ikun ged imexxi negozju fl-Istat Kontraenti l-iefor li fih jinqala’ |-imghax, permezz ta’ stabbiliment permanenti sitwat hemmhekk, jew jaghmel servizzi personali indipendenti f’ dak Istat l-iehor minn bazi stabbilita sitwata hemmhekk, u I-pretensjoni ta’ debitu li dwarha jithallas l-imghax tkun effettivament konnessa ma’ dak |-istabbiliment permanenti jew bazi stabbilita. F’kaz bhal dak ghandhom japplikaw il- provvedimenti ta’ l-Artiklu 7 jew ta’ 1-Artiklu 14, skond il-kaz.

6. Ghandu jitgies li jingala’ mghax fi Stat Kontraenti meta min ihallas ikun residenti ta’ dak I-Istat. Meta, madankollu, l-persuna li tkun ged thallas l-imghax, sew jekk tkun residenti ta’ Stat Kontraenti sew jekk le, ikollha fi Stat Kontraenti stabbiliment permanenti jew bazi stabbilita li f’konnessjoni maghhom tkun inkisbet il-qaghda ta’ debitu li fuqu jithallas l-imghax, u dak l-imghax jingarr minn dak 1-istabbiliment permanenti jew minn dik il-bazi stabbilita, allura dak 1-imghax ghandu jitqies bhala li jingala’ fl-Istat fejn ikunu jinsabu 1I-istabbiliment permanenti jew il-bazi stabbilita.

7. Meta, minhabba f’relazzjoni specjali bejn min ihallas u_ s-sid beneficjarju jew bejn it-tnejn li huma u xi persuna ohra, l-ammont ta’ l-imghax, wara li titqies xi tkun il-pretensjoni ta’ debitu li dwarha jithallas, ikun izjed mill- ammont li kien ikun miftiehem bejn min ifallas u s-sid benefi¢jarju fin-nuqqas ta’ dik ir-relazzjoni, il-provvedimenti ta’ dan 1-Artiklu ghandhom ikunu japplikaw biss ghall-ammont l-ahhar imsemmi. F’kaz bhal dak, il-parti zejda tal-flasijiet tibqa’ taxxabbli skond il-ligijiet ta’ kull Stat Kontraenti, fil-qjies tal-provvedimenti l-ohira ta’ dan il-Ftehim.

Artiklu 12 ROYALTIES

1. Royalties li jingalghu fi Stat Kontraenti u li jithallsu lil residenti ta’ 1- Istat Kontraenti l-iefor jistghu jigu intaxxati f’ dak Istat l-iehor.

2. Madankollu, dawk ir-royalties jistghu jigu intaxxati wkoll fl-Istat Kontraenti fejn jinqalghu u skond il-ligijiet ta’ dak |-Istat, imma jekk ir-ri¢evitur ikun is-sid beneficjarju tar-royalties, it-taxxa hekk imposta m’ ghandhiex tkun izjed B 4964 minn:

(1) 5 fil-mija ta’ l-ammont kollu u shih ta’ royalties fil-kuntest tat- tifsir tas-subparagrafu 1) tal-paragrafu 3 ta’ dan |-Artiklu;

(2) 10 fil-mija ta’ l-ammont kollu u shih ta’ royalties fil-kuntest tat- tifsir tas-subparagrafu 2) tal-paragrafu 3 ta’ dan |-Artiklu.

3. Il-frazi "royalties", skond ma tintuza f’ dan 1-Artiklu, tfisser Nlasijiet ta’ kull xorta li jsiru b’ korrispettiv:

(1) ghall-uzu ta’, jew ghall-jedd ta’ l-uzu, ta’ kull dritt ta’ l-awtur ta’ xoghol letterarju, artistiku jew xjentifiku inkluzi films Cinematografi¢i u films jew tapes ghal xandir bir-radju jew bit-televizjoni; u

(2) hall-uzu ta’, jew ghall-jedd ta’ l-uzu, ta’ kull privattiva, trade mark, disinn jew mudell, pjan, formula jew process sigrieti, jew ghall-uzu ta’, jew id-dritt li jintuza, taghmir industrijali, kummercjali jew xjentifiku, jew ghal informazzjoni dwar konoxxenza industrijali, kummercjali jew xjentifika.

4. [l-provvedimenti tal-paragrafi 1 u 2 m’ ghandhomx japplikaw jekk is-sid benefi¢jarju tar-royalties, li jkun residenti ta’ Stat Kontraenti, ikun qed imexxi negozju fl-Istat Kontraenti l-iehor fejn jingalghu r-royalties, permezz ta’ stabbiliment permanenti sitwat hemmhekk, jew ikun gieghed jaghmel f’ dak Istat 1- iehor servizzi personali indipendenti minn bazi stabbilita li tkun tinsab hemmhekk, u d-dritt jew il-proprjeta li dwarhom jithallsu r-royalties ikunu effettivament konnessi ma’ dak 1-istabbiliment permanenti jew bazi stabbilita. F’dak il-kaz ghandhom japplikaw il-provvedimenti ta’ 1-Artiklu 7 jew ta’ 1-Artiklu 14, skond il- kaz.

5. Ir-royalties ghandhom jitqiesu li jingalghu fi Stat Kontraenti meta min ihallashom ikun residenti ta’ dak I-Istat. Meta, madankollu, il-persuna li thallas ir- royalties, sew jekk tkun residenti ta’ Stat Kontraenti sew jekk ma tkunx, ikollha fi Stat Kontraenti stabbiliment permanenti jew bazi stabbilita li dwarhom ikun ittiehed l-obbligu li jithallsu r-royalties, u dawk ir-royalties ikunu r-responsabbilta ta’ dak 1-istabbiliment permanenti jew bazi stabbilita, allura dawk ir-royalties ghandhom jitqiesu li jingalghu fl-Istat li fih ikun jinsab 1-istabbiliment permanenti jew il-bazi stabbilita.

6. Meta, minhabba fir-relazzjoni specjali bejn min ihallas u_ s-sid beneficjarju jew bejnithom it-tnejn u xi persuna ofira, l-ammont tar-royalties, fil- qies ta’ x’ikun |-uzu, id-dritt jew 1-informazzjoni li jithallsu dwarhom, ikun izjed mill-ammont li kien ikun miftiehem bejn min ihallas u s-sid benefi¢jarju fin- nuqqas ta’ dik ir-relazzjoni, il-provvedimenti ta’ dan 1-Artiklu ghandhom ikunu japplikaw biss ghall-ammont l-ahhar imsemmi. F’dak il-kaz, il-parti zejda tal- hlasijiet ghandha tibqa’ taxxabbli skond il-ligijiet ta’ kull Stat Kontraenti, wara li B 4965 jitqiesu |-provvedimenti l-ofra ta’ dan il-Ftehim.

Artiklu 13 QLIGH MINN PROPRJETA

1. Kull qligh li jinkiseb minn residenti ta’ Stat Kontraenti mit-trasferiment ta’ proprjeta immobbli imsemmi fl-Artiklu 6 u li tkun tinsab fl-Istat Kontraenti 1- iehor jista’ jigi intaxxat f’dak 1-Istat l-iefior.

2. Qligh mit-trasferiment ta’ proprjeta mobbli li taghmel parti mill- proprjeta tan-negozju ta’ stabbiliment permanenti li impriza ta’ Stat Kontraenti jkollha fl-Istat Kontraenti l-iehor jew ta’ proprjeta mobbli li tkun tappartjeni ghal bazi stabbilita li tkun disponibbli ghal residenti ta’ Stat Kontraenti fl-Istat Kontraenti l-iefior bil-ghan li jitwettqu servizzi personali indipendenti, inkluz dak il-qligh mit-trasferiment ta’ dak |-istabbiliment permanenti (wahdu jew flimkien ma’ l-impriza kollha) jew ta’ dik il-bazi stabbilita, jista’ jigi intaxxat f’ dak Istat 1- iehor.

3. Qligh li jinkiseb minn impriza ta’ Stat Kontraenti mit-trasferiment ta’ bastimenti jew ingenji ta’ l-ajru li jkunu gegfidin jithaddmu fi traffiku internazzjonali, jew minn proprjeta mobbli li tkun tappartjeni ghat-thaddim ta’ dawk il-bastimenti jew ingenji ta’ l-ajru, ghandhom jigu intaxxati biss f’ dak 1-Istat.

4. Kull qligh li jinkiseb minn residenti ta’ Stat Kontraenti mit-trasferiment ta’ ishma jew interessi li jixxiebhu f’kumpannija li jkollha l-assi taghha direttament jew indirettament principalment jikkonsistu fi proprjeta immobbli li tkun tinsab fi Stat Kontraenti jista’ jigi intaxxat f’dak 1-Istat.

5. Qligh mit-trasferiment ta’ proprjeta li ma tkunx dik imsemmija fil- paragrafi 1, 2,3 u 4 ghandu jigi intaxxat biss fl-Istat Kontraenti li min jittrasferixxi jkun residenti fih.

Artiklu 14 SERVIZZI PERSONALI INDIPENDENTI

1. Income li jinkiseb minn residenti ta’ Stat Kontraenti ghal servizzi professjonali jew attivitajiet ofira ta’ xorta indipendenti ghandu jigi intaxxat biss f’dak 1-Istat hlief f’dawn ic¢-Cirkostanzi li gejjin, meta dak l-income jista’ jigi intaxxat fl-Istat l-iehor:

(1) jekk l-individwu jkollu bazi stabbilita li tkun regolarment disponibbli ghalih fl-Istat Kontraenti l-iehor bil-ghan li jwettaq l-attivitajiet tieghu; f’dak il- kaz, ikun biss daqstant mill-income daqskemm jista’ jkun attribwibbli ghal dik il- bazi stabbilita li tkun tista’ tithallas taxxa fuqu f’dak |-Istat Kontraenti l-iehor; jew

(2) jekk l-individwu jkun jogghod fl-Istat Kontraenti l-iehor ghal perjodu jew ghal perjodi li jkunu jghoddu jew b’kollox je¢¢edu aktar minn 183 gurnata B 4966

f’perjodu ta’ tnax-il xahar li jibda ghaddej jew itemm fis-sena fiskali in kwistjoni; f’ dak il-kaz, biss daqstant mill-income daqskemm jista’ jinkiseb mill-attivitajiet tieghu mwettqa f’dak |-Istat Kontraenti I-iehor ikun jista’ jigi intaxxat f’dak 1-Istat 1-iehor.

2. Il-frazi “servizzi professjonali"” tinkludi b’mod specjali attivitajiet xjentifici, letterarji, artistici, edukattivi jew ta’ taghlim indipendenti kif ukoll 1- attivitajiet indipendenti ta’ tobba, avukati, inginiera, periti, dentisti u accountants.

Artiklu 15 SERVIZZI PERSONALI DIPENDENTI

1. Bla fisara ghall-provvedimenti ta’ I-Artikli 16, 18 u 19, is-salarji, il-pagi u kull kumpens iehor bhal dak li jinkisbu minn residenti ta’ Stat Kontraenti dwar xi impjieg ghandhom jigu intaxxati biss f’dak 1-Istat kemm-il darba l-impjieg ma jigix ezercitat fl-Istat Kontraenti l-iehor. Jekk l-impjieg jigi hekk ezercitat, dak il- kumpens li jinkiseb minnu jista’ jigi intaxxat f’ dak Istat l-iefior.

2. Minkejja l-provvedimenti tal-paragrafu 1, il-kumpens li jinkiseb minn residenti ta’ Stat Kontraenti dwar xi impjieg li jkun ezercitat fl-Istat Kontraenti 1- iehor ghandu jigi intaxxat biss fl-Istat l-ewwel imsemmi jekk:

(1) min jir¢evih ikun joqghod fl-Istat l-iehor ghal perjodu jew perjodi li b’kollox ma jghoddux aktar minn 183 gurnata f’perjodu ta’ tnax-il xahar li jibda ghaddej jew itemm fis-sena kalendarja involuta, u

(2) il-kumpens jithallas minn, jew f’isem, principal li ma jkunx residenti fl-Istat l-iehor; u

(3) il-kumpens ma jkunx ta’ piz fuq 1-istabbiliment permanenti jew il-bazi stabbilita li l-prin¢ipal ikollu fl-Istat l-iefor.

3. Minkejja l-provvedimenti precedenti ta’ dan 1-Artiklu, il-kumpens li jinkiseb dwar impjieg ezercitat abbord bastiment jew ingenji ta’ l-ajru operati fi traffiku internazzjonali minn impriza ta’ Stat Kontraenti, jista’ jigi intaxxat f’ dak 1- Istat.

Artiklu 16 DRITTIJIET TAD-DIRETTURI

Id-drittijiet tad-diretturi u flasijiet simili ofira li jinkisbu minn residenti ta’ Stat Kontraenti fil-kapacita tieghu ta’ membru tal-bord ta’ diretturi ta’ kumpannija li tkun residenti fl-Istat Kontraenti l-iehor jistghu jigu intaxxati f’dak 1-Istat 1- iehor.

Artiklu 17 ARTISTI U SPORTIVI B 4967

1. Minkejja l-provvedimenti ta’ 1-Artikli 14 u 15, income li jinkiseb minn residenti ta’ Stat Kontraenti bhala persuna li jaghti spettaklu, bhal artist tat-teatru, tal-films Cinematografi¢i, tar-radju jew tat-televizjoni, jew bhala muzicista, jew bhala sportiv, mill-attivitajiet personali tieghu bhala tali li jigu ezercitati fl-Istat Kontraenti l-iefior, jista’ jigi intaxxat f’ dak I-Istat l-iefor.

2. Meta income dwar attivitajiet personali ezercitati minn persuna li taghti spettaklu jew minn sportiv fil-kapacita tieghu bhala tali ma jingabarx favur il- persuna li taghti spettaklu jew l-isportiv innifsu imma favur persuna ofhra, dak I- income jista’, minkejja l-provvedimenti ta’ 1-Artikli 7, 14 u 15, j1gi intaxxat fl-Istat Kontraenti fejn jigu ezercitati l-attivitajiet tal-persuna li taghti spettaklu jew ta’ 1- isportiv.

3. Minkejja l-provvedimenti tal-paragrafi 1 u 2 ta’ dan |-Artiklu, income imsemmi f’dan 1-Artiklu jkun ezenti mit-taxxa fl-Istat Kontraenti fejn tigi ezercitata |-attivita ta’ min jaghti spettaklu jew tal-isportiv sakemm din |-attivita tkun sostanzjalment sostnuta minn fondi pubblici ta’ I-Istat jew sottodivizjoni politika jew awtorita lokali tieghu, jew jekk I-attivita tkun ezercitata taht ftehim kulturali jew sportiv jew arrangament bejn 1|-Istati Kontraenti.

Artiklu 18 PENSJONIJIET

1. Bla hsara ghall-provvedimenti tal-paragrafu 2 ta’ |-Artiklu 19, il- pensjonijiet u kumpens iehor bhal dawk li jithallsu lil residenti ta’ Stat Kontraenti minfiabba f’xi impjieg imghoddi ghandhom jigu intaxxati biss f’ dak I-Istat.

2. Minkejja l-provvedimenti tal-paragrafu 1, il-pensjonijiet u kumpens iehor bhal dawk li jingalghu fi Stat Kontraenti u li jithallsu lil residenti tal-Istat Kontraenti l-iefor minhabba f’impjieg tal-imghoddi jistghu jigu intaxxati fl-Istat 1- ewwel imsemmi dagqstant li dawk il-pensjonijiet u kull rimunerazzjoni ofira bhalhom ma jkunux soggetti ghat-taxxa f dak |-Istat l-iefior.

3. Minkejja |-provvedimenti tal-paragrafu 1, pensjonijiet imhallsa u hlasijiet ohra li jsiru taht il-ligijiet tas-sigurta socjali ta’ Stat Kontraenti ghandhom jigu intaxxati biss f’dak 1-Istat.

Artiklu 19 SERVIZZ TAL-GVERN

l (hd) Salarji, pagi u kull rimunerazzjoni ohra bhal dawk, minbarra pensjoni, mhallsa minn Stat Kontraenti jew minn sottodivizjoni politika jew awtorita lokali tieghu lil xi individwu ghar-rigward ta’ servizzi moghtijin lil dak 1- Istat jew sottodivizjoni jew awtorita ghandhom jigu intaxxati biss f’ dak I-Istat.

(2) Madankollu, kull salarju, paga u rimunerazzjoni ofra bhal dawk ghandhom jigu intaxxati biss f’dak 1|-Istat Kontraenti l-iehor jekk is-servizzi B 4968

jinghataw f’ dak I-Istat u l-individwu jkun residenti f’ dak I-Istat u: (1) ikun Cittadin ta’ dak 1-Istat; jew

(2) ma jkunx sar residenti ta’ dak I-Istat unikament biex jaqdi dawk iS-ServiZZi.

2. (1) Pensjoni mfallsa minn, jew li tohrog minn fond mahluq minn, Stat Kontraenti jew sottodivizjoni politika jew awtorita lokali tieghu lil individwu ghar-rigward ta’ servizzi moghtija lil dak I-Istat jew sottodivizjoni jew awtorita ghandhom jigu intaxxati biss f’dak 1-Istat.

(2) Madankollu, dik il-pensjoni ghandha tigi intaxxata biss fl-Istat Kontraenti l-iehor jekk 1-individwu jkun residenti ta’, u ¢ittadin ta’, dak I-Istat.

3. [l-provvedimenti ta’ 1-Artikli 15, 16, 17 u 18 ghandhom japplikaw ghal salarji, pagi u kull rimunerazzjoni ofra bhal dawk, u ghal pensjonijiet, ghar- rigward ta’ servizzi moghtija f’dak li ghandu x’jaqsam ma’ kummere gestit minn Stat Kontraenti jew sottodivizjoni politika jew awtorita lokali tieghu.

Artiklu 20

STUDENTI Il-filasijiet li student jew apprendist kummercjali li jkun jew kien minnufih qabel ma jzur Stat Kontraenti residenti fl-Istat Kontraenti l-iehor u li jkun joqghod fl-Istat Kontraenti |-ewwel imsemmi unikament ghall-finijiet ta’ 1-edukazzjoni jew it-tahrig tieghu jircievi ghall-finijiet tal-manteniment, |-edukazzjoni jew it-tahrig tieghu m’ ghandhomx jigu intaxxati f dak |-Istat, sakemm dawk il-flasijiet ikunu gejjin minn ghejjun ofira li ma jkunux dak I-Istat.

Artiklu 21 INCOME IEHOR

1. Elementi ta’ income ta’ residenti ta’ Stat Kontraenti, jingalghu minn fejn jingalghu, li ma jkunux ittrattati fl-Artikli ta’ hawn aktar qabel ta’ dan il- Ftehim ghandhom jigu intaxxati biss f’ dak 1-Istat.

2. Il-provvedimenti tal-paragrafu 1 m’ ghandhomx japplikaw ghal income, li ma jkunx income minn proprjeta immobbli kif imfisser fil-paragrafu 2 ta’ I- Artiklu 6, jekk min jircievi dak I-income, ghax ikun residenti ta’ Stat Kontraenti, jiggestixxi negozju fl-Istat Kontraenti l-iehor permezz ta’ stabbiliment permanenti li jkun jinsab f’dak I-Istat, jew iwettaq f’dak Istat l-iehor servizzi personali indipendenti minn bazi stabbilita li tkun tinsab hemmhekk, u d-dritt jew il- proprjeta li dwarhom jithallas l-income ikunu effettivament konnessi ma’ dak 1- istabbiliment permanenti jew bazi stabbilita. F’dak il-kaz ghandhom japplikaw il- provvedimenti ta’ 1-Artiklu 7 jew l-Artiklu 14, skond il-kaz. B 4969

Artiklu 22 ELIMINAZZJONI TA’ TAXXA DOPPJA

1. Meta residenti ta’ Stat Kontraenti jikseb income li, skond il- provvedimenti ta’ dan il-Ftehim, jista’ jkun intaxxat fl-Istat Kontraenti 1-iefior, 1- Istat l-ewwel imsemmi ghandu jippermetti bhala tnaqqis mit-taxxa fuq l-income ta’ dak ir-residenti, ammont daqsinsew it-taxxa fuq l-income li tithallas f’dak 1-Istat 1- iehor. Dak it-tnaqqis, madankollu, m’ghandux je¢¢edi dik il-parti tat-taxxa fuq 1- income, kif din tkun giet mahduma qabel ma jinghata t-tnaqqis, li tkun attribwibbli ghall-income li jista’ jigi intaxxat f’dak 1|-Istat l-iefior.

2. Meta skond xi provvediment tal-Ftehim income li jinkiseb minn residenti ta’ Stat Kontreanti jkun ezenti mit-taxxa f’dak |-Istat, dak 1-Istat jista’ madankollu, meta jigi biex jikkalkula l-ammont ta’ taxxa fuq l-income li jifdal ta’ dak ir-residenti, jiefu kont ta’ l-income li jkun gie ezentat.

Artiklu 23 EBDA DISKRIMINAZZJONI

1. I¢-Cittadini ta’ Stat Kontraenti m’ghandhom jigu assoggettati fl-Istat Kontraenti l-iehor ghal ebda tassazzjoni jew ebda fitiega konnessi ma’ dan, li tkun diversa jew ta’ iktar piz mit-tassazzjoni u htiegiet konnessi li ghalihom Cittadini ta’ dak 1-Istat l-iehor fl-istess Cirkostanzi, b’mod partikolari ghar-rigward ta’ residenza, ikunu jew jistghu jkunu assoggettatii Dawn il-provvedimenti ghandhom, minkejja I-provvedimenti ta’ 1-Artiklu 1, ikunu japplikaw ukoll ghal persuni li ma jkunux residenti ta’ xi wiehed jew iz-zewg Stati Kontraenti.

2. L-intaxxar fuq stabbiliment permanenti li impriza ta’ Stat Kontraenti jkollha fl-Istat Kontraenti l-iehor m’ghandux jingabar b’mod ingas favorevoli f’dak Istat l-iehor mit-tassazzjoni migbura fuq imprizi ta’ dak |-Istat l-iefior li jkun qieghed iwettaq l-istess ativitajiet. Dan il-provvediment m’ghandux jiftiehem bhala li jobbliga lil Stat Kontraenti li jikkon¢edi lil residenti ta’ 1-Istat Kontraenti 1- iehor xi allowances, helsien u tnaqqis personali ghall-ghanijiet ta’ taxxa minhabba fl-istatus Civili jew responsabbiltajiet familjari li jikkon¢edi lir-residenti tieghu.

3. Hlief meta jkunu japplikaw il-provvedimenti tal-paragrafu 1 ta’ 1- Artiklu 9, tal-paragrafu 7 ta’ 1-Artiklu 11, jew tal-paragrafi 6 ta’ 1-Artiklu 12, mghax, royalties u flasijiet ofra li jsiru minn impriza ta’ Stat Kontraenti lil residenti ta’ l-Istat Kontraenti l-iehor ghandhom, ghall-fini li jigu stabbilit x’ikunu l-profitti taxxabbli ta’ dik l-impriza, jigu mmnaqqsa taht l-istess kondizzjonijiet bhallikieku dawn kienu mhallsa lil residenti ta’ |-Istat l-ewwel imsemmi.

4. Imprizi ta’ Stat Kontraenti, li I-kapital taghhom ikun ghalkollox jew f’parti minnu proprjeta jew taht il-kontroll, sew dirett sew mbhux dirett, ta’ residenti wiehed jew iktar ta’ I-Istat Kontraenti l-iehor, ma jkunu assoggettati fl- Istat l-ewwel imsemmi ghal ebda taxxa jewghal ebda fitiega konnessa ma’ dan li B 4970

tkun xort’ohra jew ta’ iktar piz mit-taxxa u htigiet konnessi li ghalihom ikunu jew jistghu jkunu assoggettati l-imprizi ofira bhal dawk ta’ I- Istat l-ewwel imsemmi.

Artiklu 24 PROCEDURA TA’ FTEHIM RECIPROKU

1. Meta persuna jidhrilha li l-azzjonijiet ta’ xi wiehed jew iz-zewg Stati Kontraenti jirrizultawlu jew jistghu jirrizultawlu f’taxxa li ma tkunx skond il- provvedimenti ta’ dan il-Ftehim, tista’, irrispettivament mir-rimedji provduti mil- ligi domestika ta’ dawk I-Istati, tipprezenta I-kaz taghha quddiem l-awtorita kompetenti ta’ |-Istat Kontraenti fejn tkun residenti jew, jekk il-kaz taghha jkun jaqa’ taht il-paragrafu | ta’ 1-Artiklu 23, quddiem dik ta’ I- Stat Kontraenti li tkun cittadin tieghu. Il-kaz ghandu jigi ipprezentat fi zmien tliet snin minn meta ssir I- ewwel avviz ta’ l-azzjoni li tirrizulta f’taxxa li ma tkunx skond il-provvedimenti tal-Ftehim.

2. L-awtorita kompetenti ghandha tipprova, jekk l-oggezzjoni tkun tidhrilha bhala wahda gustifikata u jekk hi nnifisha ma tkunx tista’ tasal ghal soluzzjoni sodisfacenti, tirrisolvi I-kaz bi ftehim reciproku ma’ l-awtorita kompetenti ta’ I-Istat Kontraenti l-iehor, bil-ghan li tigi evitata taxxa li ma tkunx skond il-Ftehim. Meta jintlahaq ftehim, dan ghandu jigi implimentat minkejja kull termini fil-ligi domestika ta’ 1- Stati Kontraenti.

3. L-awtoritajiet kompetenti ta’ I-Istati Kontraenti ghandhom permezz ta’ ftehim reciproku jippruvaw jirrisolvu kull diffikulta jew dubbju li jista’ jirrizulta dwar l-interpretazzjoni jew l-applikazzjoni tal-Ftehim. Dawn jistgiu wkoll jikkonsultaw flimkien dwar l-eliminazzjoni ta’ tassazzjoni doppja f’dawk il- kazijiet li m’-hemm xejn dwarhom fil-Ftehim.

4. L-awtoritajiet kompetenti ta’ |-Istati Kontraenti jistghu jikkomunikaw ma’ xulxin direttament, ukoll permezz ta’ kummissjoni kongunta maghmula minnhom stess jew mir-rapprezentanti taghhom, bl-iskop li jilhqu ftehim fis-sens tal-paragrafi precedenti.

Artiklu 25 SKAMBJU TA’ INFORMAZZJONI

1. L-awtoritajiet kompetenti ta’ |-Istati Kontraenti ghandhom jiskambjaw dik l-informazzjoni li tista’ tkun mefitiega biex jitwettqu l-provvedimenti ta’ dan il-Ftehim jew tal-ligijiet domestici ta’ |-Istati Kontraenti ghar-rigward ta’ taxxi koperti bil-Ftehim sakemm 1|-intaxxar li jsir taithom ma jkunx kuntrarju ghall- Ftehim, partikolarment dwar il-prevenzjoni ta’ frodi jew l-evazjoni ta’ dawk it- taxxi. L-iskambju ta’ informazzjoni mhuwiex ristrett bl-Artiklu 1. Kull informazzjoni li tigi ricevuta mill-Istat Kontraenti ghandha tigi ittrattata bhala wahida sigrieta bl-istess mod bhall-informazzjoni miksuba taht il-ligijiet domesti¢i ta’ dak |-Istat u ghandha tigi zvelata biss lil persuni jew lil awtoritajiet (inkluzi qrati u korpi amministrattivi) li jkollhom x’jaqsmu ma’ |-istima jew fil-gbir ta’, 1- B 4971

infurzar jew prosekuzzjoni dwar, jew id-de¢izjoni ta’ appelli dwar, it-taxxi koperti bil-Ftehim. Dawk il-persuni jew awtoritajiet ghandhom juzaw dik 1l-informazzjoni biss ghal dawk |-ghanijiet. Huma jistghu jizvelaw 1-informazzjoni fi proceduri tal- gorti bil-miftuh jew f’ decizjonijiet gudizzjarji.

2. Febda kaz m’ghandhom il-provvedimenti tal-paragrafu 1 jiftiehmu

bhala li jimponu fug Stat Kontraenti l-obbligu:

(1) li jwettaq mizuri amministrattivi li ma jkunux jaqblu mal-ligijiet u mal-prattika amministrattiva ta’ dak |-Istat Kontraenti jew ta’ 1-Istat Kontraenti |-iefor;

(2) li jaghti informazzjoni li ma tkunx tista’ tinkiseb taht il-ligijiet jew fil-kors normali ta’ l-amministrazzjoni ta’ dak jew ta’ 1-Istat Kontraenti 1-iefhior;

(3) li jaghti informazzjoni li tikxef xi sigriet ta’ sengha, negozju,

industrija, kummerc jew professjoni jew process ta’ kummerc, jew informazzjoni, li meta tigi zvelata din tkun tmur kontra l-ordni pubbliku (ordre public).

Artiklu 26 MEMBRI TA’ MISSJONIJIET DIPLOMATICI U KARIGI KONSULARI

Ebda haga f’ dan il-Ftehim m’ ghandha tolgot il-privileggi fiskali tal-membri ta’ missjonijiet diplomatici jew ta’ karigi konsulari taht ir-regoli generali tad-dritt internazzjonali jew taht il-provvedimenti ta’ kull ftehim specjali.

Artiklu 27 BIDU FIS-SEHH

1. L-Istati Kontraenti ghandhom javzaw lil xulxin, permezz tal-kanali diplomatici, li |-proceduri mehtiega bil-ligijiet domestici taghhom ghall-bidu fis- sehfi ta’ dan il-Ftehim ikunu gew imharsa.

2. Dan il-Ftehim ghandu ghandu jidhol fis-sehh fid-data li tigi 1-iktar tard minn dawn I-avvizi u l-provvedimenti tieghu ghandu jkollhom effett:

(1) fis-Serbja: ghar-rigward ta’ taxxi fugq income miksub f’ kull sena fiskali li tibda fl-ewwel jum ta’ Jannar jew wara tas-sena kalendarja li tahbat minnufih wara s-sena li fiha jibda jsehh il-Ftehim;

(2) f’ Malta: ghar-rigward ta’ taxxi fuq income miksub matul xi sena kalendarja jew perjodu ta’ kontijiet, skond il-kaz, li jibda fl-ewwel jum ta’ Jannar jew wara li jkun jahbat minnufih wara d-data li fiha jibda jsehh il- Ftehim. B 4972

Artiklu 28 TERMINAZZJONI

Dan il-Ftehim ghandu jibqa’ jsehh sakemm jigi terminat minn xi Stat Kontraenti. Kull wiehed mill-Istati Kontraenti jista’ jtemm il-Ftehim, permezz ta’ kanali diplomatici, billi jaghti avviz tat-terminazzjoni mill-inqas sitt xhur qabel it- tmiem ta’ xi sena kalendarja li tibda ghaddejja wara l-iskadenza ta’ perjodu ta’ hames snin minn meta jidhol fis-sehh il-Ftehim. [F’dak il-kaz, dan il-Ftehim m’ ghandux jibqa’ fis-sehh:

(1) fis-Serbja:ghar-rigward ta’ taxxi fuq income miksub f’kull sena fiskali li tibda fl-ewwel jum ta’ Jannar jew wara tas-sena kalendarja li tahbat minnufih wara s-sena li fiha jinghata I- avviz tat-terminazzjoni;

(2) f’ Malta: ghar-rigward ta’ taxxi fugq income miksub matul xi sena kalendarja jew perjodu ta’ kontijiet, skond il-kaz, li jibda fl-ewwel jum ta’ Jannar jew wara li jkun jahbat minnufih wara d-data li fiha jinghata l-avviz.

B’ XIEHDA TA’ DAN is-sottoskritti, awtorizzati kif imiss biex jaghmlu dan, iffirmaw dan il-Ftehim.

MAGHMUL fil-Belt Valletta, illum 9 ta’ Settembru, 2009 f’ zewg originali, fl-ilsien Serb u fl-ilsien Ingliz, kull wiehed miz-zewg testi originali awtentici ndaqs.

TONIO FENECH VUK JEREMIC Ghal Malta Ghar-Repubblika tas-Serbja L.N. 431 of 2010

INCOME TAX ACT (CAP. 123)

DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE REPUBLIC OF SERBIA) ORDER, 2010

IN exercise of the powers conferred by article 76 of the Income Tax Act, the Minister of Finance, the Economy and Investment has made the following order:-

1. The title of this order is the Double Taxation Relief (Taxes on Income) (The Republic of Serbia) Order, 2010.

2. Itis hereby declared:-

(a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Republic of Serbia with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of the Republic of Serbia:

• the corporate income tax;
• personal income tax;

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

(c) that the Convention has entered into force on the 164 June, 2010.

B 4973

Citation.

Arrangements to have effect. B 4974

SCHEDULE (Article 2)

CONVENTION BETWEEN MALTA AND THE REPUBLIC OF SERBIA

FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME

MALTA AND

THE REPUBLIC OF SERBIA

desiring to conclude a Convention for the avoidance of double taxation 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

1. 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.

2. 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, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. B 4975

3. The existing taxes to which the Convention shall apply are: (1) in Serbia:

(1) the corporate income tax;

(2) personal income tax (hereinafter referred to as "Serbian tax"); (2) in Malta:

the income tax.

(hereinafter referred to as "Malta tax").

4. 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 that have been made in their taxation laws.

Article 3 GENERAL DEFINITIONS

1. For the purposes of this Convention:

(1) the terms "a Contracting State" and "the other Contracting State" mean Serbia or Malta, as the context requires;

(2) the term "Serbia" means the Republic of Serbia, and when used in a geographical sense it means the territory of the Republic of Serbia;

(3) 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 seabed, its subsoil 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;

(4) the term "national" means: (1) any individual possessing the nationality of a Contracting State;

(2) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State. B 4976

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

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

(7) 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;

(8) 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;

(9) the term "competent authority" means:

(1) in Serbia, the Ministry of Finance or its authorized representative;

(2) in Malta, the Minister responsible for finance or his authorized representative.

2. 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

1. 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 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.

2. Where by reason of the provisions of paragraph | an individual is a resident of both Contracting States, then his status shall be determined as follows:

(1) 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 B 4977

with which his personal and economic relations are closer (centre of vital interests);

(2) 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;

(3) 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;

(4) 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.

3. Where by reason of the provisions of paragraph | 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.

Article 5 PERMANENT ESTABLISHMENT

1. 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.

2. The term "permanent establishment” includes especially: (1) a place of management; (2) a branch; (3) an office; (4) a factory; (5) a workshop, and

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

3. The term "permanent establishment" likewise encompasses:

(1) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than nine months;

(2) the furnishing of services, including consultancy services, by an B 4978

enterprise through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within a Contracting State for a period or periods aggregating more than six months within any twelve month period.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

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

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

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

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

(5) 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;

(6) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs 1) to 5), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs | and 2, where a person - other than an agent of an independent status to whom paragraph 6 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a 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 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 4 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.

6. Anenterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that 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. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, and conditions are made or imposed between that enterprise and the agent in their commercial and financial relations which differ B 4979

from those which would have been made between independent enterprises, he will not be considered an agent of an independent status within the meaning of this paragraph.

7. 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

1. 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.

2. 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, boats and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph | shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs | and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Article 7 BUSINESS PROFITS

1. 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.

2. 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 B 4980

activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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 INTERNATIONAL TRAFFIC

1. 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.

2. The provisions of paragraph | shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

Article 9 ASSOCIATED ENTERPRISES

1. Where

(1) 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 4981

(2) 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.

2. 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

1. 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.

2. 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:

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

(i) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 25 per cent of the capital of the company paying the dividends;

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

(2) where the dividends are paid by a company which is a resident of Malta to a resident of Serbia 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. B 4982

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

3. 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 by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs | 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, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. 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 or a fixed base 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.

Article 11 INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. 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 10 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest shall be exempted from tax in the Contracting State in which it arises if it is derived and beneficially owned by the Government of the other Contracting State, including any political subdivision or local authority thereof, the Central Bank or any financial institution wholly owned by that Government.

4. 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 B 4983

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.

5. The provisions of paragraphs 1, 2 and 3 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, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

6. 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 or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

7. 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.

Article 12 ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. 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:

(1) 5 per cent of the gross amount of the royalties within the meaning of subparagraph (1) of paragraph 3 of this Article;

(2) 10 per cent of the gross amount of the royalties within the meaning of subparagraph (2) of paragraph 3 of this Article. B 4984

3. The term "royalties" as used in this Article means payments of any kind received as a consideration:

(1) for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films or films or tapes used for radio or television broadcasting; and

(2) for the use of, or the right to use, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience.

4. The provisions of paragraphs | and 2 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, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that 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 or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

6. 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.

Article 13 CAPITAL GAINS

1. 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.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a B 4985

Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.

4. Gains derived by a resident of a Contracting State from the alienation of shares or comparable interests in a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State.

5. 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 INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, where such income may also be taxed in the other Contracting State:

(1) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or

(2) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other Contracting State may be taxed in that other State.

2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. B 4986

Article 15 DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18 and 19, 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.

2. 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:

(1) 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

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

(3) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. 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 16 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 17 ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, 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.

2. 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 B 4987

sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraphs | and 2 of this Article, income mentioned in this Article shall be exempt from tax in the Contracting State in which the activity of the entertainer or sportsman is exercised provided that this activity is supported in a considerable part out of public funds of the State or a political subdivision or a local authority thereof or of the other State or a political subdivision or a local authority thereof, or the activity is exercised under a cultural or sports agreement or arrangement between the Contracting States.

Article 18 PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, 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.

2. Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration arising in a Contracting State and paid to a resident of the other Contracting State in consideration of past employment may be taxed in the first-mentioned State to the extent that such pensions and other similar remuneration are not subject to tax in that other State.

3. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under the social security legislation of a Contracting State shall be taxable only in that State.

Article 19 GOVERNMENT SERVICE

l. () Salaries, wages and other similar remuneration, other than a pension, 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.

(2) 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:

(1) is a national of that State; or

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

2. (1) Any pension paid by, or out of funds created by, a Contracting B 4988

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.

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

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, 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 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

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 22 ELIMINATION OF DOUBLE TAXATION

1. Where a resident of a Contracting State derives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in that other State. Such deduction, however, shall not exceed that part of the income tax, as B 4989

computed before the deduction is given, which is attributable to the income which may be taxed in that other State.

2. Where in accordance with any provision of the Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

Article 23 NON-DISCRIMINATION

1. 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.

2. 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.

3. Except where the provisions of paragraph | of Article 9, paragraph 7 of Article 11, or paragraph 6 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.

4. 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.

5. The provisions of this Article shall apply to the taxes referred to in Article 2. B 4990

Article 24 MUTUAL AGREEMENT PROCEDURE

1. 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 23, 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.

2. 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 this Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

3. 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.

4. 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

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received 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, or the determination of appeals in relation to, the taxes covered by the Convention. 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. B 4991

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

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

(2) 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;

(3) 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).

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 ENTRY INTO FORCE

1. The Contracting States shall notify each other in writing, through diplomatic channels, that the procedures required by their domestic laws for entry into force of this Convention have been complied with.

2. This Convention shall enter into force on the date of the later of these notifications and its provisions shall have effect:

(1) in Serbia: in respect of the taxes on income derived in each fiscal year beginning on or after the first day of January in the calendar year next following the year in which the Convention enters into force;

(2) in Malta: in respect of taxes on income derived during any calendar year or accounting period, as the case may be, beginning on or after the first day of January immediately following the date on which the Convention enters into force.

Article 28 TERMINATION

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year beginning after the expiration of a period of five years from the date of its entry into force. In such event, this Convention shall cease to have B 4992

effect:

(1) in Serbia: in respect of the taxes on income derived in each fiscal year beginning on or after the first day of January in the calendar year next following the year in which the notice of termination has been given;

(2) in Malta: in respect of taxes on income derived during any calendar year or accounting period, as the case may be, beginning on or after the first day of January immediately following the date on which the notice is given.

IN WITNESS whereof the undersigned, being duly authorized thereto, have signed this Convention.

DONE at Valletta this 9° day of September 2009 in two originals, in the Serbian and English languages, both originals being equally authentic.

TONIO FENECH VUK JEREMIC FOR MALTA FOR THE REPUBLIC OF SERBIA

Ippubblikat mid-Dipartiment tal-Informazzjoni (doi.govamt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta Mitbugh fl-Istamperija tal-Gvern fug karta ri¢iklata — Printed at the Government Printing Press on recycled paper ee Cd Prezz/Price €1.86