DTC agreement between Serbia and Malta

8/2/2019 DTC agreement between Serbia and Malta

1/40

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

Taqsima B

____________________________________________________________________

A.L. 431 ta l-2010

ATT DWAR IT-TAXXA FUQ L-INCOME

(KAP. 123)

Ordni tal-2010 dwarelsien minn Taxxa Doppja

(Taxxi fuq l-Income)

(Repubblika tas-Serbja)

BIS-SAA tas-setgat mogtija bl-artikolu 76 tal-Att dwarit-Taxxa fuq l-Income, il-Ministru tal-Finanzi, l-Ekonomija u

Investiment gamel dan l-ordni li ej:

Titolu.1. It-titolu ta dan l-ordni hu Ordni tal-2010 dwar elsienminn Taxxa Doppja (Taxxi fuq Income) (Repubblika tas-Serbja).

Arranamentijkollhom effett.

2. Bdan qieged jii dikjarat -

(a) illi l-arranamenti speifikati fil-Ftehim muri fl-Iskeda litinsab ma dan l-Ordni saru mar-Repubblika tas-Serbja sabiex jagtuelsien minn taxxa doppja dwar it-taxxi li ejin imposti bil-liijiettar-Repubblika tas-Serbja:

- it-taxxa fuq l-income korporattiva;

- it-taxxa fuq l-income personali;

(b) illi huwa spedjenti li dawk l-arranamenti gandujkollhom effett;

() illi l-Ftehim beda jse fis-16 ta unju, 2010.

B 4953


2/40

B 4954

SKEDA(Artiklu 2)

F T E H I MBEJN

MALTAU

R-REPUBBLIKA TAS-SERBJA

GALL-EVITAR TA TAXXA DOPPJA DWAR TAXXI FUQ L-INCOME

MALTA

UIR-REPUBBLIKA TAS-SERBJA

billi jixtiequ jagmlu ftehim gall-evitar ta taxxa doppja dwar taxxi fuq l-income,

ftehmu kifej:

Artiklu 1PERSUNI KOPERTI

Dan il-Ftehim gandu japplika gal persuni li jkunu residenti fi StatKontraenti wieed jew fit-tnejn li huma.

Artiklu 2TAXXI KOPERTI

1. Dan il-ftehim gandu japplika gat-taxxi fuq l-income imposti fisemStat Kontraenti, irrispettivament mill-mod kif dawn jinabru.

2. Gandhom jitqiesu bala taxxi fuq l-income it-taxxi kollha imposti fuql-income totali, jew fuq elementi ta income, inklui taxxi fuq kull qlieg mit-trasferiment ta proprjet mobbli jew immobbli, u taxxi fuq l-ammonti totali ta

pagi u salarji li jitallsu minn imprii kif ukoll taxxi fuq l-apprezzament kapitali.

3. It-taxxi eistenti li dwarhom japplika dan il-Ftehim huma:

(1) fi-Serbja:

(1) it-taxxa fuq l-income korporattiva;

(2) it-taxxa fuq l-income personali


3/40

B 4955

(hawnhekk ijed il quddiem imseja "it-taxxa tas-Serbja");

(2) f Malta:

it-taxxa fuq l-income.

(hawnhekk ijed il quddiem imseja "it-taxxa ta Malta").

4. Il-Ftehim gandu japplika wkoll gal kull taxxa identika jewsostanzjalment simili li jiu imposti wara d-data meta jii ffirmat dan il-Ftehimbjieda ma, jew minflok, it-taxxi eistenti. L-awtoritajiet kompetenti ta l-IstatiKontraenti gandhom jgarrfu lil xulxin bkull tibdil sinifikanti li jkun sar fil-liijiet taghom dwar it-taxxi.

Artiklu 3TIFSIRIET ENERALI

1. Gall-ganijiet ta dan il-Ftehim:

(1) il-fraijiet "Stat Kontraenti" u "l-Istat Kontraenti l-ieor" ifissru is-Serbja jew Malta, skond ir-rabta tal-kliem;

(2) il-frai "Serbja" tfisser ir-Repubblika tas-Serbja, u meta tintua fsenseografiku tfisser it-territorju tar-Repubblika tas-Serbja;

(3) il-frai "Malta" tfisser ir-Repubblika ta Malta u, meta tintua fsensgeografiku, tfisser il-Gira ta Malta, il-Gira ta Gawdex u l-gejjer l-ora ta l-aripelagu Malti inklui l-ibra territorjali taghom, kif ukoll kull area ta qieg il-baar, is-sottoswol tiegu u l-kolonna ta baar sovrajaenti li tinsab adjaentigall-ibra territorjali, fejn Malta teerita drittijiet sovrani, urisdizzjoni, jewkontroll skond id-dritt internazzjonali u d-dritt nazzjonali tagha, inklua l-leislazzjoni tagha gar-rigward ta l-esplorazzjoni tal-blata kontinentali u l-esplojtazzjoni tar-riorsi naturali tagha;

(4) il-frai "ittadin" tfisser:

(1) kull individwu li jkollu -ittadinanza ta Stat Kontraenti;(2) kull persuna uridika, sojet jew assojazzjoni li jiksbu l-

istatus taghom bala tali mil-liijiet li jkunu fis-sehh fi Stat Kontraenti;

(5) il-frai "persuna" tinkludi individwu, kumpannija u kull korp tapersuni ieor;

(6) il-frai "kumpannija" tfisser kull korp magqud jew kull enti li jkunittrattat bala korp magqud gall-iskopijiet ta taxxa;

(7) il-fraijiet "impria ta Stat Kontraenti" u "impria ta l-Istat


4/40

B 4956

Kontraenti l-ieor" ifissru rispettivament impria estita minn residenti ta StatKontraenti u impria estita minn residenti ta l-Istat Kontraenti l-ieor;

(8) il-frai "traffiku internazzjonali" tfisser kull trasport permezz tabastiment jew binenji ta l-ajru imaddem minn impria ta Stat Kontraenti,lief meta l-bastiment jew l-inenji ta l-ajru jkunu unikament imaddma bejnpostijiet fl-Istat Kontraenti l-ieor;

(9) il-frai "awtorit kompetenti" tfisser:

(1) fis-Serbja, il-Ministru tal-Finanzi jew ir-rappreentantawtorizzat tiegu;

(2) fMalta, il-Ministru responsabbli gall-finanzi jew ir-

rappreentant awtorizzat tiegu.

2. Gar-rigward ta l-applikazzjoni tal-Ftehim fkull mien minn StatKontraenti, kull frai li ma tkunx imfissra fih gandu jkollha, kemm-il darba r-rabta tal-kliem ma tkunx tetie xortora, it-tifsira mogtija lilha fdak i-mientat il-lii ta dak l-Istat gall-finijiet tat-taxxi li dwarhom ikun japplika l-Ftehim,hekk li tifsira tat il-liijiet tat-taxxa li japplikaw fdak l-Istat gandha tkuntipprevali fuq tifsira mogtija lil dik il-frai tat liijiet ora ta dak l-Istat.

Artiklu 4RESIDENTI

1. Gall-finijiet ta dan il-Ftehim, il-frai "residenti ta Stat Kontraenti"tfisser kull persuna li, tat il-liijiet ta dak l-Istat, tkun soetta gat-taxxahemmhekk minabba fid-domiilju tagha, residenza, post tal-mani jew kullkriterju ieor ta xorta bal dawk, u tinkludi wkoll dak l-Istat jew xi sottodivijoni

jew awtorit lokali tiegu. Din il-frai, madankollu, ma tinkludix lil xi persuna litkun soetta gat-taxxa fdak l-Istat gar-rigward biss ta income minn gejjunfdak l-Istat.

2. Meta minabba fid-dispoizzjonijiet tal-paragrafu 1 individwu jkunresidenti ta-ewg Stati Kontraenti, allura l-istatus tiegu gandu jii stabbilit kif

ej:

(1) huwa gandu jitqies li jkun residenti biss ta l-Istat li fih ikolludar permanenti gad-dispoizzjoni tiegu; jekk huwa jkollu dar permanentigad-dispoizzjoni tiegu fi-ewg Stati, huwa gandu jitqies li jkunresidenti biss ta l-Istat li miegu r-relazzjonijiet personali u ekonomiitiegu jkunu l-aktar marbuta (entru ta interessi vitali);

(2) jekk l-Istat li fih huwa jkollu -entru ta interessi vitali majkunx jista jii stabbilit, jew jekk huwa ma jkollux gad-dispoizzjonitiegu dar permanenti fxi Stat wieed jew l-ieor, huwa gandu jitqies li


5/40

B 4957

jkun residenti ta l-Istat li fih ikun soltu jirrisjedi;

(3) jekk huwa soltu jirrisjedi fi-ewg Stati, jew febda wiehed

minnhom, huwa gandu jitqies li jkun residenti biss ta l-Istat li jkun ittadintiegu;

(4) jekk huwa jkun ittadin ta-ewg Stati jew ta l-ebda wiehedminnhom, l-awtoritajiet kompetenti ta l-Istati Kontraenti gandhom

jiddeiedu l-ka bi ftehim bejnithom.

3. Meta minabba fid-dispoizzjonijiet tal-paragrafu 1 persuna li ma tkunxindividwu tkun residenti ta-ewg Stati Kontraenti, allura dak l-individwu gandu

jitqies li jkun residenti biss fl-Istat fejn ikun jinsab il-post ta mani effettivtiegu.

Artiklu 5STABBILIMENT PERMANENTI

1. Gall-finijiet ta dan il-Ftehim, il-frai "stabbiliment permanenti"tfisser post tan-negozju fiss li minnu jitmexxa l-kummer ta dik l-impriagalkollox jew fparti minnu.

2. Il-frai "stabbiliment permanenti" bmod spejali tinkludi:

(1) post ta mani;

(2) ferga;

(3) uffiju;

(4) fabbrika;

(5) anut tax-xogol; u

(6) minjiera, bir ta-ejt jew tal-gass, barriera jew kull post ieor taestrazzjoni ta riorsi naturali.

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

(1) art li tkun qegda tinbena, proett ta kostruzzjoni, assemblajew stallazzjoni jew attivitajiet ta sorveljanza li jkollhom xjaqsmu ma dan,

imma biss meta dik l-art, dak il-proett jew dawk l-attivitajiet jibqgugaddejin gal perjodu ta aktar minn disa xhur;

(2) l-goti ta servizzi, inklui servizzi ta konsulenza, minn impriapermezz ta impjegati jew persunal ieor imqabbad mill-impria gal dak l-gan, imma biss meta attivitajiet ta dik ix-xorta (gall-istess proett jewwieed konness) fi dan Stat Kontraenti jibqgu gaddejin gal perjodu jew


6/40

B 4958

perjodi li flimkien iibu jew jeedu s-sitt xhur fxi perjodu ta tnax il-xahar.

4. Minkejja d-dispoizzjonijiet ta qabel ta dan l-Artiklu, il-frai

"stabbiliment permanenti" gandha titqies li ma tinkludix:(1) l-uu ta failitajiet bl-iskop uniku ta hin, wiri jew tqassim ta

oetti jew merkanzija li jkunu jappartjenu lill-impria;

(2) i-amma ta hana ta oetti jew ta merkanzija li tkuntappartjeni lill-impria unikament gall-fini ta hin, wiri jew tqassim;

(3) i-amma ta hana ta oetti jew ta merkanzija li tkuntappartjeni lill-impria unikament gall-fini ta ipproessar minn impriaora;

(4) i-amma ta post fiss ta negozju unikament gall-fini ta xirita oetti jew ta merkanzija jew ta gbir ta tagrif, gall-impria;

(5) i-amma ta post fiss ta negozju unikament gall-fini li tiiestita, gall-impria, kull attivit ora ta xorta preparatorja jew awiljarja;

(6) i-amma ta post fiss ta negozju unikament biex tkun tista ssirkull kombinazzjoni ta attivitajiet imsemmija fis-subparagrafi (1) sa (5),

sakemm l-attivit kollha tal-post tan-negozju fiss li tirriulta minn din il-kombinazzjoni tkun wahda ta xorta preparatorja jew awiljarja.

5. Minkejja l-provvedimenti tal-paragrafi 1 u 2, meta persuna - li ma tkunx

aent bi status indipendenti li galih japplika l-paragrafu 6 - tkun qegda taixxifisem xi impria u jkollha, u tkun abitwalment teerita, fi Stat Kontraenti l-awtorit li tagmel kuntratti fisem l-impria, dik l-impria gandha titqies li

jkollha stabbiliment permanenti fdak l-Istat gar-rigward ta kull attivit li dik il-persuna tagmel gall-impria, kemm-il darba l-attivitajiet ta dik il-persuna ma

jkunux limitati gal dawk imsemmija fil-paragrafu 4 illi, jekk dawn jiu eeritatiminn go post tan-negozju fiss, ma jkunux jirrendu lil dan il-post tan-negozju fiss

bala stabbiliment permanenti tat il-provvedimenti ta dak il-paragrafu.

6. Impria mgandhiex titqies li jkollha stabbiliment permanenti fi StatKontraenti unikament galiex tkun tiestixxi negozju fdak l-Istat permezz tasensal, aent bkummissjoni enerali jew kull aent ieor bi status indipendenti,sakemm dawk il-persuni jkunu qegdin jaixxu fil-kors ordinarju tan-negozjutaghom. Madankollu, meta l-attivitajiet ta dak l-aent isiru galkollox jewkwai galkollox fisem dik l-impria, u jsiru jew jiu imposti kundizzjonijiet bejndik l-impria u l-aent fir-relazzjonijiet kummerjali u finanzjarji taghom li jkunu

jvarjaw minn dawk li kieku kienu jsiru bejn imprii indipendenti, huwa ma jitqiesxbala aent 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 l-Istat


7/40

B 4959

Kontraenti l-ieor, jew li tkun tiestixxi negozju fdak l-Istat l-ieor (sewpermezz ta stabbiliment permanenti sew xortora), mgandux fih innifsu

jikkostitwixxi lil kumpannija wahda jew l-ora stabbiliment permanenti tal-

kumpannija l-ora.

Artiklu 6INCOME MINN PROPRJET IMMOBBLI

1. Income li jinkiseb minn residenti ta Stat Kontraenti minn proprjet

immobbli (inkluincome mill-agrikoltura jew hidma fil-boskijiet) li tkun tinsab fl-Istat Kontraenti l-ieor jista jii intaxxat fdak l-Istat l-ieor.

2. Il-frai "proprjet immobbli" gandu jkollha t-tifsira li gandha tatil-lii ta l-Istat Kontraenti fejn tkun tinsab il-proprjet involuta. Il-frai gandha

fkull ka tkun tinkludi proprjet aessorja gal proprjet immobbli, bhejjemfrazzett u tagmir li jintua fl-agrikoltura u fil-idma fil-boskijiet, drittijiet ligalihom japplikaw il-provvedimenti tal-lii enerali dwar il-proprjet ta l-art, l-uufrutt tal-proprjet immobbli u drittijiet dwar lasijiet varjabbli jew fissi balakorrispettiv gal idma fi, jew id-dritt li jinadmu, depoiti minerali, gejjun uriorsi ora naturali; bastimenti, dgajjes u inenji ta l-ajru mgandhomx jitqiesubala proprjet immobbli.

3. Il-provvedimenti tal-paragrafu 1 gandhom ikunu japplikaw galincome li jinkiseb mill-uu dirett, mill-kiri, jew mill-uu bkull mod ieor taproprjet immobbli.

4. Il-provvedimenti tal-paragrafi 1 u 3 gandhom japplikaw ukoll galincome minn proprjet immobbli ta impria u gal income minn proprjetimmobbli uata gall-gemil ta servizzi personali indipendenti.

Artiklu 7PROFITTI MINN NEGOZJU

1. Il-profitti ta impria ta Stat Kontraenti gandhom jiu intaxxati bissfdak l-Istat kemm-il darba l-impria ma tkunx tmexxi negozju fl-Istat Kontraentil-ieor permezz ta stabbiliment permanenti li jkun jinsab hemmhekk. Jekk l-impria tkun qegda tmexxi negozju kif hawn aktar qabel imsemmi, il-profitti tal-impria jistgu jiu intaxxati fl-Istat l-ieor imma biss gal dik il-parti minnhomdaqskemm tkun attribwibbli lil dak l-istabbiliment permanenti.

2. Bla sara gall-provvedimenti tal-paragrafu 3, meta impria ta StatKontraenti tkun tmexxi negozju fl-Istat Kontraenti l-ieor permezz ta stabbilimentpermanenti li jkun qieged hemmhekk, gandhom fkull Stat Kontraenti jiuattribwiti lil dak l-istabbiliment permanenti il-profitti li kien ikun mistenni jagmelkieku kien impria distinta u separata li tadem fl-istess attivitajiet jew orajnbalhom tat l-istess kundizzjonijiet jew orajn balhom u li tadem galkollox

indipendentement mill-impria li tkun stabbiliment permanenti tagha.


8/40

B 4960

3. Sabiex jiu stabbiliti l-profitti ta stabbiliment permanenti, gandhomikunu permessi bala tnaqqis dawk l-ispejje li jsiru gall-ganijiet ta l-istabbiliment permanenti, inklui l-ispejje eekuttivi u amministrattivi enerali li

jkunu hekk saru, sew fl-Istat li fih ikun jinsab l-istabbiliment permanenti sewbandora.

4. Sakemm tkun il-konswetudni fi Stat Kontraenti li jistabbilixxi l-profitti

li gandhom jiu attribwiti lil stabbiliment permanenti minabba fi tqassim tal-profitti totali ta l-impria lill-partijiet diversi tagha, ebda aa fil-paragrafu 2mgandha tipprekludi lil dak l-Istat Kontraenti milli jistabbilixxi l-profitti ligandhom jiu intaxxati bdak it-tqassim skond ma jista jkun konswetudinarju;il-metodu ta tqassim li jii adottat gandu, madankollu, isir btali mod li r-riultatikun skond il-prinipji li jinsabu fdan l-Artiklu.

5. Ebda profitti mgandhom jiu attribwiti lil stabbiliment permanentiminabba biss fli jsir ix-xiri minn dak l-istabbiliment permanenti ta oetti jewmerkanzija gall-impria.

6. Gall-ganijiet tal-paragrafi preedenti, il-profitti li gandhom jiuattribwiti lill-istabbiliment permanenti gandhom jiu stabbiliti bl-istess metodugal kull sena kemm-il darba ma jkunx hemm raguni tajba u suffijenti galiexdan mgandux isir.

7. Meta l-profitti jkunu jinkludu oetti ta income li jkunu qegdin jiutrattati separatament fArtikli ora ta dan il-Ftehim, galdaqshekk il-

provvedimenti ta dawk l-Artikli mgandhomx jintlaqtu bil-provvedimenti ta danl-Artiklu.

Artiklu 8TRAFFIKU INTERNAZZJONALI

1. Il-profitti li jinkisbu minn impria ta Stat Kontraenti mit-taddim tabastimenti jew inenji ta l-ajru fi traffiku internazzjonali gandhom jiu intaxxatibiss fdak l-Istat.

2. Il-provvedimenti tal-paragrafu 1 gandhom ukoll japplikaw gal profitti

miksubin mill-parteipazzjoni fpool, negozju bi shab jew agenzija boperatinternazzjonali.

Artiklu 9IMPRII ASSOJATI

1. Meta

(1) impria ta Stat Kontraenti tipparteipa sew direttament sewindirettament fit-tmexxija, kontroll jew kapital ta impria ta l-IstatKontraenti l-ieor, jew


9/40

B 4961

(2) l-istess persuni jipparteipaw sew direttament sew indirettamentfit-tmexxija, kontroll jew kapital ta impria ta Stat Kontraenti u ta impriata l-Istat Kontraenti l-ieor,

u fkull ka isiru jew jiu imposti kondizzjonijiet bejn i-ewg imprii fir-relazzjonijiet kummerjali jew finanzjarji taghom li ma jkunux jaqblu ma dawkli kieku kienu jsiru bejn imprii indipendenti, fdak il-ka il-profitti li, kieku makienx gal dawk il-kondizzjonijiet, kienu jakkumulaw favur xi wahda mill-imprii,imma, minabba dawk il-kondizzjonijiet, ma jkunux hekk akkumulaw, jistgu jiuinklui fil-profitti ta dik l-impria u intaxxati skond hekk.

2. Meta Stat Kontraenti ikun jinkludi fil-profitti ta impria ta dak l-Istat -u skond hekk jintaxxa - profitti li fuqhom impria ta l-Istat Kontraenti l-ieor tkuniet intaxxata fdak l-Istat l-ieor u l-profitti li jiu hekk inklui jkunu profitti li

kienu jinqalgu mill-impria ta l-ewwel Stat imsemmi li kieku l-kondizzjonijietmagmulin bejn i-ewg imprii kienu dawk li kienu kieku jsiru bejn ew impriiindipendenti, galdaqshekk dak l-Istat l-ieor jista jagmel l-austament li jmissfl-ammont tat-taxxa hemmhekk imposta fuq dawk il-profitti. Biex jii stabbilitdak l-austament, gandhom jitqiesu kif dovut il-provvedimenti l-ora ta dan il-Ftehim u l-awtoritajiet kompetenti ta l-Istati Kontraenti gandhom jekk ikun hekkmetie jikkonsultaw lil xulxin.

Artiklu 10DIVIDENDI

1. Id-dividendi mallsa minn kumpannija li tkun residenti ta StatKontraenti lil residenti ta l-Istat Kontraenti l-ieor jistgu jiu intaxxati fdak l-Istat l-ieor.

2. Madankollu, dawk id-dividendi jistgu jiu intaxxati wkoll fl-IstatKontraenti li l-kumpannija li tkun tallas id-dividendi tkun residenti fih u skond il-liijiet ta dak l-Istat, imma:

(1) meta d-dividendi jitallsu minn kumpannija li tkun residenti fis-Serbja lil residenti fMalta li jkun is-sid benefijarju tad-dividendi, it-taxxa lihekk tintalab mis-Serbja mgandhiex tkun ijed minn:

(i) 5 fil-mija ta l-ammont kollu u si tad-dividendi jekk is-sid benefijarju jkun kumpannija li jkollha direttament mill-inqas 25 fil-mija mill-kapital tal-kumpannija li tkun qegda tallas id-dividendi;

(ii) 10 fil-mija ta l-ammont kollu u si tad-dividendi fil-kaijiet l-ora kollha;

(2) meta d-dividendi jitallsu minn kumpannija li tkun residenti taMalta lil residenti tas-Serbja li jkun is-sid benefijarju tad-dividendi, it-taxxata Malta fuq l-ammont kollu u si tad-dividendi mgandhiex tkun ijed


10/40

B 4962

minn dik li titallas fuq il-profitti li minnhom jitallsu d-dividendi.

Dan il-paragrafu ma jolqotx l-intaxxar tal- kumpannija gar-rigward tal-

profitti li minnhom jitallsu d-dividendi.

3. Il-frai "dividendi" skond ma tintua fdan l-Artiklu tfisser incomeminn ishma jew drittijiet ora, li ma jkunux pretensjonijiet ta debitu, il-parteipazzjoni fi profitti, kif ukoll income minn drittijiet korporattivi ora lijingata l-istess trattament ta taxxa ballikieku kien income minn ishma skond il-liijiet ta l-Istat fejn tkun residenti l-kumpannija li tkun qegda tagmel it-tqassim.

4. Il-provvedimenti tal-paragrafi 1 u 2 mgandhomx japplikaw jekk is-sidbenefijarju tad-dividendi, li jkun residenti ta Stat Kontraenti, ikun imexxi

negozju fl-Istat Kontraenti l-ieor li fih tkun residenti l-kumpannija li tallas id-dividendi, permezz ta stabbiliment permanenti li jkun sitwat hemmhekk, jew li

jkun jagmel fdak l-Istat l-ieor servizzi personali indipendenti minn baistabbilita sitwata hemmhekk, u l-holding li dwarhom jkunu mallsa d-dividendi

jkollu effettivament xjaqsam ma dak l-istabbiliment permanenti jew baistabbilita. Fdak il-ka gandhom japplikaw il-provvedimenti ta l-Artiklu 7 jewta l-Artiklu 14, skond il-ka.

5. Meta kumpannija li tkun residenti ta Stat Kontraenti tikseb profitti jew

income mill-Istat Kontraenti l-ieor, dak l-Istat l-ieor ma jista jimponi ebdataxxa fuq id-dividendi mallsa mill-kumpannija, lief sakemm dawk id-dividendi

jitallsu lil residenti ta dak l-Istat l-ieor jew sakemm il-holding li dwaru jitallsud-dividendi jkun effettivament konness ma stabbiliment permanenti jew ma baistabbilita sitwati fdak Istat l-ieor, lanqas ma jista jassoetta l-profitti mhuximqassma tal-kumpannija gal taxxa fuq il-profitti mhux imqassma tal-kumpannija, ukoll jekk id-dividendi mallsa jew il-profitti mhux imqassma jkunukollha kemm huma jew fparti minnhom jikkonsistu fi profitti jew income li

jinqalgu fdak l-Istat l-ieor.

Artiklu 11MGAX

1. Mgax li jinqala fi Stat Kontraenti u jitallas lil residenti ta l-IstatKontraenti l-ieor jista jii intaxxat fdak Istat l-ieor.

2. Madankollu, dak l-imgax jista wkoll jii intaxxat fl-Istat Kontraentifejn dan jinqala u skond il-liijiet ta dak l-Istat, imma jekk is-sid benefijarju tadak l-imgax ikun residenti tal-Istat Kontraenti l-ieor, it-taxxa hekk mitlubamgandhiex teedi 10 fil-mija ta l-ammont kollu u si ta l-imgax.

3. Minkejja l-provvedimenti tal-paragrafu 2, mgax jii eentat mit-taxxafl-Istat Kontraenti fejn dan jinqala jekk dan jinkiseb u jkollu bala sid benefijarju

tiegu lill-Gvern tal-Istat Kontraenti l-ieor, inklua kull sottodivijoni politika


11/40

B 4963

jew awtorit lokali tiegu, il-Bankentrali jew xi istituzzjoni finanzjarja li dak il-Gvern ikollu bi proprjet assoluta.

4. Il-frai "mg

ax" kif tintua fdan l-Artiklu tfisser income minnpretensjonijiet ta debitu ta kull xorta, sew jekk assikurati bipoteka sew jekk le, usew jekk ikollhomx dritt li jipparteipaw fil-profitti tad-debitur sew jekk le, ubmod partikolari, income minn titoli tal-Gvern u income minn bonds jew

debentures, inklui premiums u premjijiet relatati ma dawk it-titoli, bonds jewdebentures. lasijiet ta penali gal las tardiv ma jitqiesux bala mgax gall-finijiet ta dan l-Artiklu.

5. Il-provvedimenti tal-paragrafi 1, 2 u 3 mgandhomx japplikaw jekk is-sid benefijarju ta l-imgax, li jkun residenti ta Stat Kontraenti, ikun qed imexxinegozju fl-Istat Kontraenti l-ieor li fih jinqala l-imgax, permezz ta stabbiliment

permanenti sitwat hemmhekk, jew jagmel servizzi personali indipendenti fdakIstat l-ieor minn bai stabbilita sitwata hemmhekk, u l-pretensjoni ta debitu lidwarha jitallas l-imgax tkun effettivament konnessa ma dak l-istabbilimentpermanenti jew bai stabbilita. Fka bal dak gandhom japplikaw il-provvedimenti ta l-Artiklu 7 jew ta l-Artiklu 14, skond il-ka.

6. Gandu jitqies li jinqala mgax fi Stat Kontraenti meta min iallas ikunresidenti ta dak l-Istat. Meta, madankollu, l-persuna li tkun qed tallas l-imgax,sew jekk tkun residenti ta Stat Kontraenti sew jekk le, ikollha fi Stat Kontraenti

stabbiliment permanenti jew bai stabbilita li fkonnessjoni maghom tkuninkisbet il-qagda ta debitu li fuqu jitallas l-imgax, u dak l-imgax jinarr minn

dak l-istabbiliment permanenti jew minn dik il-bai stabbilita, allura dak l-imgaxgandu jitqies bala li jinqala fl-Istat fejn ikunu jinsabu l-istabbilimentpermanenti jew il-bai stabbilita.

7. Meta, minabba frelazzjoni spejali bejn min iallas u s-sidbenefijarju jew bejn it-tnejn li huma u xi persuna ora, l-ammont ta l-imgax,wara li titqies xi tkun il-pretensjoni ta debitu li dwarha jitallas, ikun ijed mill-ammont li kien ikun miftiehem bejn min iallas u s-sid benefijarju fin-nuqqas tadik ir-relazzjoni, il-provvedimenti ta dan l-Artiklu gandhom ikunu japplikawbiss gall-ammont l-ahhar imsemmi. Fka bal dak, il-parti ejda tal-lasijiettibqa taxxabbli skond il-liijiet ta kull Stat Kontraenti, fil-qjies tal-provvedimentil-ora ta dan il-Ftehim.

Artiklu 12ROYALTIES

1. Royalties li jinqalgu fi Stat Kontraenti u li jitallsu lil residenti ta l-Istat Kontraenti l-ieor jistgu jiu intaxxati fdak Istat l-ieor.

2. Madankollu, dawk ir-royalties jistgu jiu intaxxati wkoll fl-IstatKontraenti fejn jinqalgu u skond il-liijiet ta dak l-Istat, imma jekk ir-rieviturikun is-sid benefijarju tar-royalties, it-taxxa hekk imposta mgandhiex tkun ijed


12/40

B 4964

minn:

(1) 5 fil-mija ta l-ammont kollu u si ta royalties fil-kuntest tat-

tifsir tas-subparagrafu 1) tal-paragrafu 3 ta dan l-Artiklu;

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

3. Il-frai "royalties", skond ma tintua fdan l-Artiklu, tfisser lasijiet takull xorta li jsiru bkorrispettiv:

(1) gall-uu ta, jew gall-jedd ta l-uu, ta kull dritt ta l-awturta xogol letterarju, artistiku jew xjentifiku inklui films inematografii ufilms jew tapes gal xandir bir-radju jew bit-televijoni; u

(2) all-uu ta, jew gall-jedd ta l-uu, ta kull privattiva, trademark, disinn jew mudell, pjan, formula jew proess sigrieti, jew gall-uuta, jew id-dritt li jintua, tagmir industrijali, kummerjali jew xjentifiku,

jew gal informazzjoni dwar konoxxenza industrijali, kummerjali jewxjentifika.

4. Il-provvedimenti tal-paragrafi 1 u 2 mgandhomx japplikaw jekk is-sidbenefijarju tar-royalties, li jkun residenti ta Stat Kontraenti, ikun qed imexxinegozju fl-Istat Kontraenti l-ieor fejn jinqalgu r-royalties, permezz tastabbiliment permanenti sitwat hemmhekk, jew ikun qieged jagmel fdak Istat l-

ieor servizzi personali indipendenti minn bai stabbilita li tkun tinsab hemmhekk,u d-dritt jew il-proprjet li dwarhom jitallsu r-royalties ikunu effettivamentkonnessi ma dak l-istabbiliment permanenti jew bai stabbilita. Fdak il-kagandhom japplikaw il-provvedimenti ta l-Artiklu 7 jew ta l-Artiklu 14, skond il-ka.

5. Ir-royalties gandhom jitqiesu li jinqalgu fi Stat Kontraenti meta miniallashom ikun residenti ta dak l-Istat. Meta, madankollu, il-persuna li tallas ir-royalties, sew jekk tkun residenti ta Stat Kontraenti sew jekk ma tkunx, ikollha fi

Stat Kontraenti stabbiliment permanenti jew bai stabbilita li dwarhom ikunittieed l-obbliu li jitallsu r-royalties, u dawk ir-royalties ikunu r-responsabbilt

ta dak l-istabbiliment permanenti jew bai stabbilita, allura dawk ir-royaltiesgandhom jitqiesu li jinqalgu fl-Istat li fih ikun jinsab l-istabbiliment permanenti

jew il-bai stabbilita.

6. Meta, minabba fir-relazzjoni spejali bejn min iallas u s-sidbenefijarju jew bejnithom it-tnejn u xi persuna ora, l-ammont tar-royalties, fil-qies ta xikun l-uu, id-dritt jew l-informazzjoni li jitallsu dwarhom, ikun ijedmill-ammont li kien ikun miftiehem bejn min iallas u s-sid benefijarju fin-nuqqas ta dik ir-relazzjoni, il-provvedimenti ta dan l-Artiklu gandhom ikunu

japplikaw biss gall-ammont l-ahhar imsemmi. Fdak il-ka, il-parti ejda tal-lasijiet gandha tibqa taxxabbli skond il-liijiet ta kull Stat Kontraenti, wara li


13/40

B 4965

jitqiesu l-provvedimenti l-ora ta dan il-Ftehim.

Artiklu 13

QLIG MINN PROPRJET1. Kull qlig li jinkiseb minn residenti ta Stat Kontraenti mit-trasferiment

ta proprjet immobbli imsemmi fl-Artiklu 6 u li tkun tinsab fl-Istat Kontraenti l-

ieor jista jii intaxxat fdak l-Istat l-ieor.

2. Qlig mit-trasferiment ta proprjet mobbli li tagmel parti mill-proprjet tan-negozju ta stabbiliment permanenti li impria ta Stat Kontraenti

jkollha fl-Istat Kontraenti l-ieor jew ta proprjet mobbli li tkun tappartjeni galbai stabbilita li tkun disponibbli gal residenti ta Stat Kontraenti fl-IstatKontraenti l-ieor bil-gan li jitwettqu servizzi personali indipendenti, inklu dak

il-qlig mit-trasferiment ta dak l-istabbiliment permanenti (wahdu jew flimkienma l-impria kollha) jew ta dik il-bai stabbilita, jista jii intaxxat fdak Istat l-ieor.

3. Qlig li jinkiseb minn impria ta Stat Kontraenti mit-trasferiment tabastimenti jew inenji ta l-ajru li jkunu qegdin jitaddmu fi traffikuinternazzjonali, jew minn proprjet mobbli li tkun tappartjeni gat-taddim tadawk il-bastimenti jew inenji ta l-ajru, gandhom jiu intaxxati biss fdak l-Istat.

4. Kull qlig li jinkiseb minn residenti ta Stat Kontraenti mit-trasferimentta ishma jew interessi li jixxiebhu fkumpannija li jkollha l-assi tagha

direttament jew indirettament prinipalment jikkonsistu fi proprjet immobbli litkun tinsab fi Stat Kontraenti jista jii intaxxat fdak l-Istat.

5. Qlig mit-trasferiment ta proprjet li ma tkunx dik imsemmija fil-paragrafi 1, 2, 3 u 4 gandu jii intaxxat biss fl-Istat Kontraenti li min jittrasferixxi

jkun residenti fih.

Artiklu 14SERVIZZI PERSONALI INDIPENDENTI

1. Income li jinkiseb minn residenti ta Stat Kontraenti gal servizzi

professjonali jew attivitajiet ora ta xorta indipendenti gandu jii intaxxat bissfdak l-Istat lief fdawn i-irkostanzi li ejjin, meta dak l-income jista jiiintaxxat fl-Istat l-ieor:

(1) jekk l-individwu jkollu bai stabbilita li tkun regolarment disponibbligalih fl-Istat Kontraenti l-ieor bil-gan li jwettaq l-attivitajiet tiegu; fdak il-ka, ikun biss daqstant mill-income daqskemm jista jkun attribwibbli gal dik il-bai stabbilita li tkun tista titallas taxxa fuqu fdak l-Istat Kontraenti l-ieor; jew

(2) jekk l-individwu jkun joqgod fl-Istat Kontraenti l-ieor gal perjodujew gal perjodi li jkunu jgoddu jew bkollox jeedu aktar minn 183 gurnata


14/40

B 4966

fperjodu ta tnax-il xahar li jibda gaddej jew itemm fis-sena fiskali in kwistjoni;fdak il-ka, biss daqstant mill-income daqskemm jista jinkiseb mill-attivitajiettiegu mwettqa fdak l-Istat Kontraenti l-ieor ikun jista jii intaxxat fdak l-Istat

l-ieor.

2. Il-frai "servizzi professjonali" tinkludi bmod spejali attivitajietxjentifii, letterarji, artistii, edukattivi jew ta taglim indipendenti kif ukoll l-attivitajiet indipendenti ta tobba, avukati, inginiera, periti, dentisti u accountants.

Artiklu 15SERVIZZI PERSONALI DIPENDENTI

1. Bla sara gall-provvedimenti ta l-Artikli 16, 18 u 19, is-salarji, il-pagiu kull kumpens ieor bal dak li jinkisbu minn residenti ta Stat Kontraenti dwar xi

impjieg gandhom jiu intaxxati biss fdak l-Istat kemm-il darba l-impjieg majiix eeritat fl-Istat Kontraenti l-ieor. Jekk l-impjieg jii hekk eeritat, dak il-kumpens li jinkiseb minnu jista jii intaxxat fdak Istat l-ieor.

2. Minkejja l-provvedimenti tal-paragrafu 1, il-kumpens li jinkiseb minn

residenti ta Stat Kontraenti dwar xi impjieg li jkun eeritat fl-Istat Kontraenti l-ieor gandu jii intaxxat biss fl-Istat l-ewwel imsemmi jekk:

(1) min jirevih ikun joqgod fl-Istat l-ieor gal perjodu jewperjodi li bkollox ma jgoddux aktar minn 183 gurnata fperjodu ta tnax-ilxahar li jibda gaddej jew itemm fis-sena kalendarja involuta, u

(2) il-kumpens jitallas minn, jew fisem, prinipal li ma jkunxresidenti fl-Istat l-ieor; u

(3) il-kumpens ma jkunx ta pi fuq l-istabbiliment permanenti jewil-bai stabbilita li l-prinipal ikollu fl-Istat l-ieor.

3. Minkejja l-provvedimenti preedenti ta dan l-Artiklu, il-kumpens lijinkiseb dwar impjieg eeritat abbord bastiment jew inenji ta l-ajru operati fitraffiku internazzjonali minn impria ta Stat Kontraenti, jista jii intaxxat fdak l-Istat.

Artiklu 16DRITTIJIET TAD-DIRETTURI

Id-drittijiet tad-diretturi u lasijiet simili ora li jinkisbu minn residenti taStat Kontraenti fil-kapait tiegu ta membru tal-bord ta diretturi ta kumpannijali tkun residenti fl-Istat Kontraenti l-ieor jistgu jiu intaxxati fdak l-Istat l-ieor.

Artiklu 17ARTISTI U SPORTIVI


15/40

B 4967

1. Minkejja l-provvedimenti ta l-Artikli 14 u 15, income li jinkiseb minn

residenti ta Stat Kontraenti bala persuna li jagti spettaklu, bal artist tat-teatru,tal-films inematografii, tar-radju jew tat-televijoni, jew bala muiista, jew

bala sportiv, mill-attivitajiet personali tiegu bala tali li jiu eeritati fl-IstatKontraenti l-ieor, jista jii intaxxat fdak l-Istat l-ieor.

2. Meta income dwar attivitajiet personali eeritati minn persuna li tagtispettaklu jew minn sportiv fil-kapait tiegu bala tali ma jinabarx favur il-persuna li tagti spettaklu jew l-isportiv innifsu imma favur persuna ora, dak l-income jista, minkejja l-provvedimenti ta l-Artikli 7, 14 u 15, jii intaxxat fl-IstatKontraenti fejn jiu eeritati l-attivitajiet tal-persuna li tagti spettaklu jew ta l-isportiv.

3. Minkejja l-provvedimenti tal-paragrafi 1 u 2 ta dan l-Artiklu, income

imsemmi fdan l-Artiklu jkun eenti mit-taxxa fl-Istat Kontraenti fejn tiieeritata l-attivit ta min jagti spettaklu jew tal-isportiv sakemm din l-attivittkun sostanzjalment sostnuta minn fondi pubblii ta l-Istat jew sottodivijonipolitika jew awtorit lokali tiegu, jew jekk l-attivit tkun eeritata tat ftehimkulturali jew sportiv jew arranament bejn l-Istati Kontraenti.

Artiklu 18PENSJONIJIET

1. Bla sara gall-provvedimenti tal-paragrafu 2 ta l-Artiklu 19, il-pensjonijiet u kumpens ieor bal dawk li jitallsu lil residenti ta Stat Kontraenti

minabba fxi impjieg imgoddi gandhom jiu intaxxati biss fdak l-Istat.

2. Minkejja l-provvedimenti tal-paragrafu 1, il-pensjonijiet u kumpens

ieor bal dawk li jinqalgu fi Stat Kontraenti u li jitallsu lil residenti tal-IstatKontraenti l-ieor minabba fimpjieg tal-imgoddi jistgu jiu intaxxati fl-Istat l-ewwel imsemmi daqstant li dawk il-pensjonijiet u kull rimunerazzjoni orabalhom ma jkunux soetti gat-taxxa fdak l-Istat l-ieor.

3. Minkejja l-provvedimenti tal-paragrafu 1, pensjonijiet imallsa ulasijiet ora li jsiru tat il-liijiet tas-sigurt sojali ta Stat Kontraenti gandhom

jiu intaxxati biss fdak l-Istat.

Artiklu 19SERVIZZ TAL-GVERN

1. (1) Salarji, pagi u kull rimunerazzjoni ora bal dawk, minbarrapensjoni, mallsa minn Stat Kontraenti jew minn sottodivijoni politika jewawtorit lokali tiegu lil xi individwu gar-rigward ta servizzi mogtijin lil dak l-Istat jew sottodivijoni jew awtorit gandhom jiu intaxxati biss fdak l-Istat.

(2) Madankollu, kull salarju, paga u rimunerazzjoni ora bal dawkgandhom jiu intaxxati biss fdak l-Istat Kontraenti l-ieor jekk is-servizzi


16/40

B 4968

jingataw fdak l-Istat u l-individwu jkun residenti fdak l-Istat u:

(1) ikun ittadin ta dak l-Istat; jew

(2) ma jkunx sar residenti ta dak l-Istat unikament biex jaqdi dawk

is-servizzi.

2. (1) Pensjoni mallsa minn, jew li tohrog minn fond mahluq minn,Stat Kontraenti jew sottodivijoni politika jew awtorit lokali tiegu lil individwugar-rigward ta servizzi mogtija lil dak l-Istat jew sottodivijoni jew awtoritgandhom jiu intaxxati biss fdak l-Istat.

(2) Madankollu, dik il-pensjoni gandha tii intaxxata biss fl-IstatKontraenti l-ieor jekk l-individwu jkun residenti ta, u ittadin ta, dak l-Istat.

3. Il-provvedimenti ta l-Artikli 15, 16, 17 u 18 gandhom japplikaw galsalarji, pagi u kull rimunerazzjoni ora bal dawk, u gal pensjonijiet, gar-rigward ta servizzi mogtija fdak li gandu xjaqsam ma kummerestit minnStat Kontraenti jew sottodivijoni politika jew awtorit lokali tiegu.

Artiklu 20STUDENTI

Il-lasijiet li student jew apprendist kummerjali li jkun jew kien minnufih qabel majur Stat Kontraenti residenti fl-Istat Kontraenti l-ieor u li jkun joqgod fl-IstatKontraenti l-ewwel imsemmi unikament gall-finijiet ta l-edukazzjoni jew it-tari

tiegu jirievi gall-finijiet tal-manteniment, l-edukazzjoni jew it-tahrig tiegumgandhomx jiu intaxxati fdak l-Istat, sakemm dawk il-lasijiet ikunu ejjin minngejjun ora li ma jkunux dak l-Istat.

Artiklu 21INCOME IEOR

1. Elementi ta income ta residenti ta Stat Kontraenti, jinqalgu minnfejn jinqalgu, li ma jkunux ittrattati fl-Artikli ta hawn aktar qabel ta dan il-Ftehim gandhom jiu intaxxati biss fdak l-Istat.

2. Il-provvedimenti tal-paragrafu 1 mgandhomx japplikaw gal income,li ma jkunx income minn proprjet immobbli kif imfisser fil-paragrafu 2 ta l-

Artiklu 6, jekk min jirievi dak l-income, gax ikun residenti ta Stat Kontraenti,jiestixxi negozju fl-Istat Kontraenti l-ieor permezz ta stabbiliment permanentili jkun jinsab fdak l-Istat, jew iwettaq fdak Istat l-ieor servizzi personaliindipendenti minn bai stabbilita li tkun tinsab hemmhekk, u d-dritt jew il-proprjet li dwarhom jitallas l-income ikunu effettivament konnessi ma dak l-istabbiliment permanenti jew bai stabbilita. Fdak il-ka gandhom japplikaw il-provvedimenti ta l-Artiklu 7 jew l-Artiklu 14, skond il-ka.


17/40

B 4969

Artiklu 22ELIMINAZZJONI 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 l-ieor, l-Istat l-ewwel imsemmi gandu jippermetti bala tnaqqis mit-taxxa fuq l-income tadak ir-residenti, ammont daqsinsew it-taxxa fuq l-income li titallas fdak l-Istat l-ieor. Dak it-tnaqqis, madankollu, mgandux jeedi dik il-parti tat-taxxa fuq l-income, kif din tkun iet mahduma qabel ma jingata t-tnaqqis, li tkun attribwibbligall-income li jista jii intaxxat fdak l-Istat l-ieor.

2. Meta skond xi provvediment tal-Ftehim income li jinkiseb minn

residenti ta Stat Kontreanti jkun eenti mit-taxxa fdak l-Istat, dak l-Istat jista

madankollu, meta jii biex jikkalkula l-ammont ta taxxa fuq l-income li jifdal tadak ir-residenti, jieu kont ta l-income li jkun ie eentat.

Artiklu 23EBDA DISKRIMINAZZJONI

1. I-ittadini ta Stat Kontraenti mgandhom jiu assoettati fl-IstatKontraenti l-ieor gal ebda tassazzjoni jew ebda tiea konnessi ma dan, li tkundiversa jew ta iktar pi mit-tassazzjoni u htieiet konnessi li galihom ittadini tadak l-Istat l-ieor fl-istess irkostanzi, bmod partikolari gar-rigward taresidenza, ikunu jew jistgu jkunu assoettati. Dawn il-provvedimentigandhom, minkejja l-provvedimenti ta l-Artiklu 1, ikunu japplikaw ukoll galpersuni li ma jkunux residenti ta xi wiehed jew i-ewg Stati Kontraenti.

2. L-intaxxar fuq stabbiliment permanenti li impria ta Stat Kontraentijkollha fl-Istat Kontraenti l-ieor mgandux jingabar bmod inqas favorevolifdak Istat l-ieor mit-tassazzjoni migbura fuq imprii ta dak l-Istat l-ieor li jkunqieged iwettaq l-istess ativitajiet. Dan il-provvediment mgandux jiftiehembala li jobbliga lil Stat Kontraenti li jikkonedi lil residenti ta l-Istat Kontraenti l-ieor xi allowances, helsien u tnaqqis personali gall-ganijiet ta taxxa minabbafl-istatus ivili jew responsabbiltajiet familjari li jikkonedi lir-residenti tiegu.

3. lief meta jkunu japplikaw il-provvedimenti tal-paragrafu 1 ta l-Artiklu 9, tal-paragrafu 7 ta l-Artiklu 11, jew tal-paragrafi 6 ta l-Artiklu 12,

mgax, royalties u lasijiet ora li jsiru minn impria ta Stat Kontraenti lilresidenti ta l-Istat Kontraenti l-ieor gandhom, gall-fini li jiu stabbilit xikunul-profitti taxxabbli ta dik l-impria, jiu mnaqqsa tat l-istess kondizzjonijietballikieku dawn kienu mallsa lil residenti ta l-Istat l-ewwel imsemmi.

4. Imprii ta Stat Kontraenti, li l-kapital taghom ikun galkollox jewfparti minnu proprjet jew tat il-kontroll, sew dirett sew mhux dirett, taresidenti wiehed jew iktar ta l-Istat Kontraenti l-ieor, ma jkunu assoettati fl-

Istat l-ewwel imsemmi gal ebda taxxa jewgal ebda tiea konnessa ma dan li


18/40

B 4970

tkun xortora jew ta iktar pi mit-taxxa u htiiet konnessi li galihom ikunu jewjistgu jkunu assoettati l-imprii ora bal dawk ta l- Istat l-ewwel imsemmi.

Artiklu 24PROEDURA TA FTEHIM REIPROKU

1. Meta persuna jidhrilha li l-azzjonijiet ta xi wiehed jew i-ewg StatiKontraenti jirriultawlu jew jistgu jirriultawlu ftaxxa li ma tkunx skond il-provvedimenti ta dan il-Ftehim, tista, irrispettivament mir-rimedji provduti mil-

lii domestika ta dawk l-Istati, tippreenta l-ka tagha quddiem l-awtoritkompetenti ta l-Istat Kontraenti fejn tkun residenti jew, jekk il-ka tagha jkun

jaqa tat il-paragrafu 1 ta l-Artiklu 23, quddiem dik ta l- Stat Kontraenti li tkunittadin tiegu. Il-ka gandu jii ippreentat fi mien tliet snin minn meta ssir l-ewwel avvi ta l-azzjoni li tirriulta ftaxxa li ma tkunx skond il-provvedimenti

tal-Ftehim.

2. L-awtorit kompetenti gandha tipprova, jekk l-oezzjoni tkuntidhrilha bala wada ustifikata u jekk hi nnifisha ma tkunx tista tasal galsoluzzjoni sodisfaenti, tirrisolvi l-ka bi ftehim reiproku ma l-awtoritkompetenti ta l-Istat Kontraenti l-ieor, bil-gan li tii evitata taxxa li ma tkunxskond il-Ftehim. Meta jintlahaq ftehim, dan gandu jii implimentat minkejja kulltermini fil-lii domestika ta l- Stati Kontraenti.

3. L-awtoritajiet kompetenti ta l-Istati Kontraenti gandhom permezz taftehim reiproku jippruvaw jirrisolvu kull diffikult jew dubbju li jista jirriulta

dwar l-interpretazzjoni jew l-applikazzjoni tal-Ftehim. Dawn jistgu wkolljikkonsultaw flimkien dwar l-eliminazzjoni ta tassazzjoni doppja fdawk il-

kaijiet li mhemm xejn dwarhom fil-Ftehim.

4. L-awtoritajiet kompetenti ta l-Istati Kontraenti jistgu jikkomunikawma xulxin direttament, ukoll permezz ta kummissjoni konunta magmulaminnhom stess jew mir-rappreentanti taghom, bl-iskop li jilhqu ftehim fis-senstal-paragrafi preedenti.

Artiklu 25SKAMBJU TA INFORMAZZJONI

1. L-awtoritajiet kompetenti ta l-Istati Kontraenti gandhom jiskambjawdik l-informazzjoni li tista tkun metiea biex jitwettqu l-provvedimenti ta danil-Ftehim jew tal-liijiet domestii ta l-Istati Kontraenti gar-rigward ta taxxikoperti bil-Ftehim sakemm l-intaxxar li jsir tathom ma jkunx kuntrarju gall-Ftehim, partikolarment dwar il-prevenzjoni ta frodi jew l-evajoni ta dawk it-taxxi. L-iskambju ta informazzjoni mhuwiex ristrett bl-Artiklu 1. Kull

informazzjoni li tii rievuta mill-Istat Kontraenti gandha tii ittrattata balawada sigrieta bl-istess mod ball-informazzjoni miksuba tat il-liijiet domestiita dak l-Istat u gandha tii velata biss lil persuni jew lil awtoritajiet (inklui

qrati u korpi amministrattivi) li jkollhom xjaqsmu ma l-istima jew fil-bir ta, l-


19/40

B 4971

infurzar jew prosekuzzjoni dwar, jew id-deizjoni ta appelli dwar, it-taxxi kopertibil-Ftehim. Dawk il-persuni jew awtoritajiet gandhom juaw dik l-informazzjonibiss gal dawk l-ganijiet. Huma jistgu jivelaw l-informazzjoni fi proeduri tal-

qorti bil-miftuh jew fdeijonijiet gudizzjarji.

2. Febda ka mgandhom il-provvedimenti tal-paragrafu 1 jiftiehmubala li jimponu fuq Stat Kontraenti l-obbliu:

(1) li jwettaq miuri amministrattivi li ma jkunux jaqblu mal-liijietu mal-prattika amministrattiva ta dak l-Istat Kontraenti jew ta l-Istat

Kontraenti l-ieor;

(2) li jagti informazzjoni li ma tkunx tista tinkiseb tat il-liijietjew fil-kors normali ta l-amministrazzjoni ta dak jew ta l-Istat Kontraenti

l-ieor;

(3) li jagti informazzjoni li tikxef xi sigriet ta senga, negozju,industrija, kummer jew professjoni jew proess ta kummer, jewinformazzjoni, li meta tii velata din tkun tmur kontra l-ordni pubbliku(ordre public).

Artiklu 26MEMBRI TA MISSJONIJIET DIPLOMATII U KARIGI KONSULARI

Ebda haga fdan il-Ftehim mgandha tolqot il-privilei fiskali tal-membri

ta missjonijiet diplomatii jew ta karii konsulari tat ir-regoli enerali tad-drittinternazzjonali jew tat il-provvedimenti ta kull ftehim spejali.

Artiklu 27BIDU FIS-SE

1. L-Istati Kontraenti gandhom javaw lil xulxin, permezz tal-kanalidiplomatii, li l-proeduri metiea bil-liijiet domestii taghom gall-bidu fis-se ta dan il-Ftehim ikunu ew imarsa.

2. Dan il-Ftehim gandu gandu jidhol fis-sehh fid-data li tii l-iktar tard

minn dawn l-avvii u l-provvedimenti tiegu gandu jkollhom effett:

(1) fis-Serbja: gar-rigward ta taxxi fuq income miksub fkull senafiskali li tibda fl-ewwel jum ta Jannar jew wara tas-sena kalendarja li tabatminnufih wara s-sena li fiha jibda jse il-Ftehim;

(2) fMalta: gar-rigward ta taxxi fuq income miksub matul xi senakalendarja jew perjodu ta kontijiet, skond il-ka, li jibda fl-ewwel jum taJannar jew wara li jkun jabat minnufih wara d-data li fiha jibda jse il-Ftehim.


20/40

B 4972

Artiklu 28TERMINAZZJONI

Dan il-Ftehim gandu jibqa jsehh sakemm jii terminat minn xi StatKontraenti. Kull wiehed mill-Istati Kontraenti jista jtemm il-Ftehim, permezz takanali diplomatii, billi jagti avvi tat-terminazzjoni mill-inqas sitt xhur qabel it-tmiem ta xi sena kalendarja li tibda gaddejja wara l-iskadenza ta perjodu tahames snin minn meta jidhol fis-sehh il-Ftehim. Fdak il-ka, dan il-Ftehimmgandux jibqa fis-sehh:

(1) fis-Serbja:gar-rigward ta taxxi fuq income miksub fkull senafiskali li tibda fl-ewwel jum ta Jannar jew wara tas-sena kalendarja li tabatminnufih wara s-sena li fiha jingata l- avvi tat-terminazzjoni;

(2) fMalta: gar-rigward ta taxxi fuq income miksub matul xi senakalendarja jew perjodu ta kontijiet, skond il-ka, li jibda fl-ewwel jum taJannar jew wara li jkun jabat minnufih wara d-data li fiha jingata l-avvi.

BXIEHDA TA DAN is-sottoskritti, awtorizzati kif imiss biex jagmlu dan,iffirmaw dan il-Ftehim.

MAGMUL fil-Belt Valletta, illum 9 ta Settembru, 2009 few oriinali,fl-ilsien Serb u fl-ilsien Ingli, kull wieed mi-ew testi oriinali awtentiindaqs.

TONIO FENECH

Gal MaltaVUK JEREMIC

Gar-Repubblika tas-Serbja


21/40

B 4973

L.N. 431 of 2010

INCOME TAX ACT(CAP. 123)

DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THEREPUBLIC 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:-

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

Arrangements tohave effect.

2. It is hereby declared:-

(a) that the arrangements specified in the Agreement set out in

the Schedule to this Order have been made with the 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 16th June,

2010.


22/40

B 4974

SCHEDULE(Article 2)

C O N V E N T I O N

BETWEEN

MALTA

AND

THE REPUBLIC OF SERBIA

FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TOTAXES 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 1PERSONS 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.


23/40

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 3GENERAL 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 ageographical sense it means the territory of the Republic of Serbia;

(3) the term ''Malta'' means the Republic of Malta and, when used in ageographical 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.


24/40

B 4976

(5) the term ''person'' includes an individual, a company and any otherbody of persons;

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

(7) the terms ''enterprise of a Contracting State'' and ''enterprise of theother Contracting State'' mean respectively an enterprise carried on by a residentof 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 oraircraft 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 thepurposes 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 4RESIDENT

1. For the purposes of this Convention, the term ''resident of aContracting State''means any person who, under the laws of that State, is liable totax 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 politicalsubdivision 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 1 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


25/40

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 bedetermined, 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 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.

Article 5PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term ''permanentestablishment'' means a fixed place of business through which the business of anenterprise 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


26/40

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 belongingto 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 anycombination 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 1 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, ifexercised through a fixed place of business, would not make this fixed place of

business a permanent establishment under the provisions of that paragraph.

6. An enterprise 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


27/40

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 6INCOME 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 otherContracting State may be taxed in that other State.

2. The term ''immovable property'' shall have the meaning which it hasunder 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 1 shall apply to income derived from the

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

4. The provisions of paragraphs 1 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 7BUSINESS 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


28/40

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 beallowed 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 inaccordance 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 separatelyin other Articles of this Convention, then the provisions of those Articles shall not

be affected by the provisions of this Article.

Article 8INTERNATIONAL 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 1 shall also apply to profits from the

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

Article 9ASSOCIATED 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


29/40

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 thefirst-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 10DIVIDENDS

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.


30/40

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 sharesor other rights, not being debt-claims, participating in profits, as well as incomefrom 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 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, 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 withsuch 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 insuch other State.

Article 11INTEREST

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


31/40

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 payeris 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 ownerin 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 12ROYALTIES

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.


32/40

B 4984

3. The term ''royalties'' as used in this Article means payments of any kindreceived 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 1 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 permanentestablishment 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 permanentestablishment 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 13CAPITAL 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


33/40

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 (aloneor 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 maybe 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 14INDEPENDENT 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 betaxable 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 independentscientific, literary, artistic, educational or teaching activities as well as the

independent activities of physicians, lawyers, engineers, architects, dentists and

accountants.


34/40

B 4986

Article 15DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages andother 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 periodcommencing 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 thatState.

Article 16DIRECTORS' 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 17ARTISTES 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


35/40

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 1 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 18PENSIONS

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 otherpayments made under the social security legislation of a Contracting State shall be

taxable only in that State.

Article 19GOVERNMENT SERVICE

1. (1) 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


36/40

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 20STUDENTS

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 21OTHER 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. Insuch case the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 22ELIMINATION 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


37/40

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 incomederived 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 23NON-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 toresidence, 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 1 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.


38/40

B 4990

Article 24MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of theContracting 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 otherContracting 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 ofthemselves or their representatives, for the purp

Documents

DTC agreement between Serbia and Malta