|
|
Home
| Databases
| WorldLII
| Search
| Feedback
Maltese Laws |
B 1685
Income) (Republic of Slovenia) Order, 2003.
(a) that the arrangements specified in the Convention set out in the Schedule to this Order have been made with the Republic of
Slovenia with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of the Republic
of Slovenia:-
– the tax on profits of legal persons;-
– the tax on income of individuals, including wages and salaries, income from agricultural activities, income from business,
capital gains and income from immovable property and movable property;
(b) that it is expedient that those arrangements should have effect;
(c) that the Convention has entered into force on the 12 June,
2003.
Citation.
Arrangements to have effect.
B 1686
CONVENTION BETWEEN MALTA AND
THE REPUBLIC OF SLOVENIA
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
Malta and the Republic of Slovenia, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income, have agreed as follows:
This Convention shall apply to persons who are residents of one or both of the
Contracting States.
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 and taxes on the total amounts of wages or salaries paid by enterprises, as
well as taxes on capital appreciation.
3. The existing taxes to which this Convention shall apply are: (a) in Slovenia:
(i) the tax on profits of legal persons;
(ii) the tax on income of individuals, including wages and salaries, income from agricultural activities, income from business, capital gains and income from immovable and movable property;
(hereinafter referred to as “Slovenian tax”); (b) in Malta:
the income tax;
(hereinafter referred to as “Malta tax”).
B 1687
4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature
of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify
each other of any significant changes which have been made in their respective taxation laws.
1. For the purposes of this Convention, unless the context otherwise requires: (a) the term “Slovenia” means the Republic
of Slovenia and, when used in
a geographical sense, the territory of Slovenia, including the sea area, sea bed and
sub-soil adjacent to the territorial sea, over which Slovenia may exercise its sovereign rights and jurisdiction in accordance with
its domestic legislation and international law;
(b) the term “Malta” means the Republic of Malta and, when used in a geographical sense, means the Island of Malta, the Island
of Gozo and the other islands of the Maltese archipelago including the territorial waters thereof, as well as any area of the sea-bed,
its sub-soil and the superjacent water column adjacent to the territorial waters, wherein Malta exercises sovereign rights, jurisdiction,
or control in accordance with international law and its national law, including its legislation relating to the exploration of the
continental shelf and exploitation of its natural resources;
(c) the terms “a Contracting State” and “the other Contracting State” mean
Slovenia or Malta, as the context requires;
(d) the term “person” includes an individual, a company and any other body of persons;
(e) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;
(f) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an
enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(g) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State,
except when the ship or aircraft is operated solely between places in the other Contracting State;
(h) the term “competent authority” means:
B 1688
(i) in Slovenia: the Ministry of Finance of the Republic of Slovenia or its authorised representative;
(ii) in Malta: the Minister responsible for finance or his authorised representative;
(i) the term “national” means:
(i) any individual possessing the nationality of a Contracting State;
(ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.
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.
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 1 an individual is a resident of both Contracting States, then his status shall
be determined as follows:
(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent
home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic
relations are closer (centre of vital interests);
(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available
to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of
which he is a national;
B 1689
(d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle
the question by mutual agreement.
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.
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: (a) a place of management;
(b) a branch;
(c) an office; (d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources including an offshore drilling site.
3. The term “permanent establishment” likewise encompasses:
(a) 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;
(b) the furnishing of services, including consultancy services, by an 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:
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or
delivery;
B 1690
(c) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information,
for the enterprise;
(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity
of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e),
provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary
character.
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, 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. 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.
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.
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
B 1691
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, or to explore
for, 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.
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 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
Contracting 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.
B 1692
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.
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.
1. Where
(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise
of the other Contracting State, or
(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting
State and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ
from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued
to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise
and taxed accordingly.
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
B 1693
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.
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:
(a) where the dividends are paid by a company which is a resident of Slovenia to a resident of Malta who is the beneficial owner
thereof, the Slovenian tax so charged 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) 15 per cent of the gross amount of the dividends in all other cases; (b) where the dividends are paid by a company which is a resident of Malta
to a resident of Slovenia who is the beneficial owner thereof, Malta tax on the
gross amount of the dividends shall not exceed that chargeable on the profits out of which the dividends are paid.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3. The term “dividends” as used in this Article means income from shares, mining shares, founders’ 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 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
B 1694
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.
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 recipient is the beneficial owner of the interest, the tax so charged shall not exceed 5 per cent of the gross amount
of the interest.
3. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities
and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges
for late payment shall not be regarded as interest for the purpose of this Article.
4. The provisions of paragraphs 1 and 2 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.
5. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local
authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting
State
B 1695
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.
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 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.
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 recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 5 per cent of the gross amount
of such royalties.
3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the
right to use, any copyright of literary, artistic or scientific work including cinematograph films, any patent, trade mark, design
or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
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 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 that State itself, a political subdivision, a local
authority or 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
B 1696
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.
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 shares or comparable interests in a company the assets of which consist directly or indirectly
principally of immovable property situated in a Contracting State may be taxed in that State.
3. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise
of a Contracting State has in the other Contracting State 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.
4. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic,
or from movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
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.
B 1697
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. However, such income may be taxed in the other Contracting State in the following
circumstances:
(a) 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
(b) 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 the activity exercised in the 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.
1. Subject to the provisions of Articles 16, 18, 19 and 20, 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:
(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month
period commencing or ending in the fiscal year concerned, and
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
B 1698
(c) 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.
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.
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 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. The provisions of paragraphs 1 and 2, shall not apply to income from activities performed in a Contracting State by entertainers
or sportsmen if the activities are substantially supported by public funds of one or both of the Contracting States or of political
subdivisions or local authorities thereof. In such a case, the income shall be taxable only in the Contracting State of which the
entertainer or sportsman is a resident.
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.
B 1699
2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under the social security legislation of
a Contracting State may be taxed in that State.
1. (a) 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.
(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services
are rendered in that State and the individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of rendering the services.
2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof
to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
(b) However, such 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.
1. A resident of one of the Contracting States who, at the invitation of a university, college, school, or other recognised educational
institution situated in the other Contracting State, is temporarily present in the other State solely for the purpose of teaching,
or engaging in research, or both, at the educational institution shall, for a period not exceeding two years from the date he first
arrives in the other State, be exempt from tax by the other State on his remuneration for such teaching or research,
B 1700
provided that such remuneration is derived by him from sources outside that other State. If the visit exceeds two years, the other
State may tax the individual under its national law for the entire period of the visit, unless in a particular case the competent
authorities of the States agree otherwise.
2. No exemption shall be granted under paragraph 1 with respect to any remuneration for research carried on for the benefit of
any person other than the educational institution that extended the invitation referred to in paragraph 1.
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.
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.
1. In the case of Slovenia, double taxation shall be eliminated as follows:
B 1701
Where a resident of Slovenia derives income which, in accordance with the provisions of this Convention, may be taxed in Malta, Slovenia
shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Malta. Such deduction
shall not, however, exceed that portion of the income tax as computed before the deduction is given, which is attributable to the
income which may be taxed in Malta.
2. In the case of Malta, double taxation shall be eliminated as follows:
Subject to the provisions of the law of Malta regarding the allowance of a credit against Malta tax in respect of foreign tax, where,
in accordance with the provisions of this Convention, there is included in a Malta assessment income from sources within Slovenia,
the Slovenian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon.
3. 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.
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 1 of Article 9, paragraph 6 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.
B 1702
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 taxes covered by this Convention.
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 24, 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 the 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 for the purpose of reaching an
agreement in the sense of the preceding paragraphs.
B 1703
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. 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.
2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting
State;
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the
other Contracting State;
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process,
or information, the disclosure of which would be contrary to public policy (order public).
The provisions of this Convention shall not apply to persons entitled to any special tax benefit under a law of either one of the Contracting States or any substantially similar law subsequently enacted and which is identified by the Contracting States.
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.
B 1704
1. The Contracting States shall notify each other, through diplomatic channels, that the legal requirements for the entry into
force of this Convention have been complied with.
2. This Convention shall enter into force thirty days after the date of the later of the notifications referred to in paragraph
1 and its provisions shall have effect:
(a) in Slovenia:
in respect of income derived in any fiscal year beginning on or after the first day of January next following the calendar year in
which the Convention enters into force;
(b) 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.
This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention,
through diplomatic channels, by giving 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, the Convention shall cease to have
effect:
(a) in Slovenia:
in respect of income derived in any fiscal year beginning on or after the first day of January next following the calendar year in
which the notice of termination is given;
(b) 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.
B 1705
IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention.
DONE at Valletta this 8th day of October, 2002 in duplicate in the English and Slovenian languages, both texts being equally authentic.
In the case of divergence between the two texts, the English text shall prevail.
For Malta For The Republic of Slovenia
Joseph Scicluna Samuel Zbogar
Permanent Secretary State Secretary
Ministry of Finance Ministry of Foreign Affairs
B 1706
At the signing of the Convention between Malta and the Republic of Slovenia for the avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes on income, the undersigned have agreed that:
With reference to Article 27:
It is understood that in the case of Malta the persons who are entitled to a special tax benefit referred to in Article 27 are the
following:
a) persons who are entitled to a special tax benefit under the Malta Financial Services Centre Act (Cap. 330) except for those persons
who opt under section 41 of the said Act to be subject to the normal provisions of the Income Tax Act (Cap.
123) and the Income Tax Management Act, 1994;
b) persons who and to the extent to which under the provisions of the Merchant Shipping Act, 1973 are not subject to tax on the
profits derived from the operation of ships in international traffic;
c) persons entitled to any special tax benefit in respect of distributions by a trust subject to the provisions of the Trusts Act
given that a trust as laid down in that Act is not vested with legal personality and therefore cannot benefit under this Convention
in its own right; and
d) persons entitled to any special tax benefit under any substantially similar law subsequently enacted which is considered in mutual
agreement by the competent authorities of the Contracting States as special fiscal treatment within the meaning of Article 27 of
this Convention.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments have signed this Protocol.
DONE at Valletta this 8th day of October, 2002 in duplicate in the English and Sovenian languages, both texts being equally authentic.
In the case of divergence between the two texts, the English text shall prevail.
For Malta For The Republic of Slovenia
Joseph Scicluna Samuel Zbogar
Permanent Secretary State Secretary
Ministry of Finance Ministry of Foreign Affairs
WorldLII:
Copyright Policy
|
Disclaimers
|
Privacy Policy
|
Feedback
URL: http://www.worldlii.org/mt/legis/laws/ita123dtroioso2003n145o2003786