DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE UNITED ARAB EMIRATES [ S.L.123.106 SUBSIDIARY LEGISLATION 123.106 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE UNITED ARAB EMIRATES ORDER 18th

Article 3

, paragraph 3 (e): It is understood that the meaning of the term "company" will be construed in accordance with the provisions of law of the Contracting States. 2.

Article 4

, paragraph 2: It is understood that: (

1. i)in the case of the United Arab Emirates, a Government institution shall include the following types of entities created under public law by the Government of the United Arab Emirates, or by a local Government of one of the Emirates or by a local Government authority thereof: foundations, corporations, authorities, funds, banks, agencies, and other wholly owned entities directly or indirectly owned by the above; (
2. ii)the Central Bank of the U.A.E., Abu Dhabi Investment Authority, Abu Dhabi Investment Company, International Petroleum Investment Company and the Dubai Tourism Department have been recognized as Government institutions for the purposes of sub-paragraph (i). 3.

Article 6

, paragraph 1: It is understood that "income" means gross income less any expenses deductible for tax purposes thereagainst. 4.

Article 8

: 16 [ S.L.123.106 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE UNITED ARAB EMIRATES (

1. a)the term "profits" includes: (
2. i)gross receipts and revenues derived directly from the operation of ships or aircraft in international traffic, (
3. ii)interest on sums generated directly from the operation of ships or aircraft in international traffic which is incidental to such operation; (iii) income from the rent of containers; (
4. iv)profits from the charter of ships or aircraft fully equipped, manned and supplied, provided that such rent and charter referred to in sub-paragraphs (iii) and (
5. iv)above are incidental to the operation by the enterprise of ships or aircraft in international traffic. (
6. b)With respect to profits derived by an air transport consortium, the provisions of paragraph (
7. i)shall apply only to such part of the profits of the consortium as corresponds to the participation held in that consortium by an enterprise of either one of the Contracting States. (
8. c)It is also understood that the term "profits" includes income from services relating to engineering, handling operations and the use of information technology software relating to the reservation system of such an enterprise, given to another enterprise and that are supplementary or incidental to the operation of aircraft in international traffic by the first-mentioned enterprise. 5.

Article 10

: It is understoood that in the case of dividends paid by a company which is a resident of Malta to a resident of the U.A.E. the provisions of paragraph 1 shall not apply if the resident of the U.A.E. claims a credit or refund of the tax paid in Malta by the company on the profits out of which the dividend has been paid. 6.

Articles 10, 11 and 12: For the purposes of paragraph 5 of Article 10, paragraph 3 of Article 11 and paragraph 3 of Article 12, a representative office (or otherwise) in Malta of such U.A.E. Public Institutions as is specified and agreed in letters exchanged between the competent authorities of the Contracting States shall not be regarded as a permanent establishment in Malta provided that the said office (or otherwise) is engaged solely in an activity of a preparatory or auxiliary character or in other activities as may be agreed upon from time to time by the competent authorities of the Contracting States for the said public institution. 7.

Article 12

: It is understood that the term "royalties" does not include payments in respect of the operation of mines or quarries or the exploitation of natural resources. 8.

Article 13

: (

1. a)It is understood that "gains" means gains chargeable to tax under the laws of the Contracting States; (
2. b)It is understood that in the case of gains referred to in paragraph 3 of Article 13, gains from the alienation of movable property forming part of the business property of a permanent establishment, which a public institution of a Contracting State has in the other Contracting State, shall be taxable only in that State. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE UNITED ARAB EMIRATES [ S.L.123.106 17 For the purposes of this paragraph, public institution shall mean Abu Dhabi Investment Authority and any other institution as is specified and agreed in letters exchanged between the competent authorities of the Contracting States. 9.

Article 15

: Notwithstanding the provisions of Article 15, remuneration derived in respect of an employment exercised in a Contracting State by a person forming part of the ground staff of an enterprise of the other Contracting State that is engaged in international traffic shall be taxable only in the last-mentioned State provided that the person employed: (

1. i)is a national of the last-mentioned State; and (
2. ii)is present in the first-mentioned State solely for the purpose of exercising such employment for a period not exceeding 4 years; and (iii) was a resident of the last-mentioned State or was performing duties for the said enterprise in a third State immediately before being present in the first-mentioned State for the purpose of exercising such employment. 10.

Article 28

: It is understood that notwithstanding the provisions of Article 28 of this Convention the provisions of Articles 8 and of paragraph 4 of Article 13 of this Convention shall have effect for taxes levied on profits derived from the operation of ships or aircraft in international traffic as from January 1st,

2. It was agreed further that under the existing law in force in Malta, a person resident in the United Arab Emirates may claim a two-thirds or full refund, as the case may be, of the tax paid by the company in those circumstances and under those conditions referred to in article 48