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L.S. 123.12 Ordni dwar Eżenzjoni mill-Ħlas ta' Taxxa Doppja fuq l-Income mar-Repubblika ta' l-Awstrja

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DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 SUBSIDIARY LEGISLATION 123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA ORDER 8th December, 1981 LEGAL NOTICE 130

1981, as modified by S.L.123.183 *. 1. The title

this Order is Double Taxation Relief on Taxes on Income with the Republic

Austria Order. 2. It is hereby declared (a) that the arrangements specified in the Convention set out in the Schedule to this order have been made with the Government

the Republic

Austria with a view to affording relief from double taxation in relation to the following taxes imposed by the laws

the Republic

Austria: (

  1. i)(
  2. ii)(iii) (
  3. iv)(
  4. v)(
  5. vi)Income Tax; Corporation Tax; Directors Tax; Capital Tax; Tax on Property excluding death duties; Tax on Commercial and Industrial Enterprises, including the tax levied on the sum

wages; (vii) Land Tax; (viii) Tax on Agricultural and Forestry Enterprises; (ix) Contributions from Agricultural and Forestry Enterprises to the Fund for the Equalisation

Family Burdens; (x) Tax on the value

Vacant Plots; and (b) that it is expedient that these arrangements should have effect. *https://cfr.gov.mt/en/inlandrevenue/itu/Documents/Malta%20%20Austria%20DTA%20(sythesised%20text).pdf Title. Arrangements to have effect. 1 [ S.L.123.12 2 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA SCHEDULE CONVENTION BETWEEN THE REPUBLIC

MALTA AND THE REPUBLIC

AUSTRIA FOR THE AVOIDANCE

DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL The Government

the Republic

Malta and the Government

the Republic

Austria, desiring to conclude a Convention for the Avoidance

Double Taxation with respect to taxes on income and on capital, have agreed as follows: CHAPTER I Scope

the Convention ARTICLE 1 Personal Scope This Convention shall apply to persons who are residents

one or both

the Contracting States. ARTICLE 2 Taxes Covered

(1)This Convention shall apply to taxes on income and on capital imposed on behalf

each Contracting State or its political subdivisions or local authorities, irrespective

the manner in which they are levied.

(2)There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital or on elements

income or

capital, including taxes on gains from the alienation

movable or immovable property, as well as taxes on capital appreciation.

(3)The existing taxes to which this Convention shall apply are: (
  1. a)in Austria: (
  2. i)(
  3. ii)(iii) (
  4. iv)(
  5. v)(
  6. vi)the income tax (die Eikommensteuer); the corporation tax (die Korperschaftsteuer); the directors tax (die Aufsichtsratsabgabe); the capital tax (die Vermogensteuer); the tax on property excluding death duties (die Abgabe von Vermogen, die der Erbschaftsteuer entzogen sind); the tax on commercial and industrial enterprises, including the tax levied on the sum

wages (die Gewerbesteuer einschlieBlich der Lohnsum-mensteuer); (vii) the land tax (die Grundsteuer); (viii) the tax on agricultural and forestry enterprises (die Abgabe von land- und forstwirtschaftlichen Betrieben); (ix) the contributions from agricultural and forestry enterprises to the fund for the equalisation

family burdens (die Beitrage yon land- und forstwirtschaftlichen Betrieben zum Ausgleichsfonds fur Familienbeihilfen); DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA (x) [ S.L.123.12 3 the tax on the value

vacant plots (die Abgabe vom Bodenwert bet unbebauten Grundstucken); (hereinafter referred to as "Austrian tax"). (b) in Malta: the income tax and surtax, including prepayments

tax whether made by deduction at source or otherwise, (hereinafter referred to as "Malta tax").

(4)This Convention shall apply also to any identical or substantially similar taxes which are imposed after the date

signature

this Convention in addition to or in place

, the existing taxes. The competent authorities

the Contracting States shall notify to each other any significant changes which have been made in their respective taxation laws.

(5)Where the Convention provides that income arising in a Contracting State shall be relieved from tax in that State, either in full or in part, and, under the law in force in the other Contracting State, such income is subject to tax by reference to the amount thereof which is remitted to or received in that other State and not by reference to the full amount thereof then the relief to be allowed in the firstmentioned State shall apply only to so much

the income as is remitted to or received in the other State. CHAPTER II Definitions ARTICLE 3 General Definitions

(1)In this Convention, unless the context otherwise requires - (a) the term "Austria" means the Republic

Austria; (b) the term "Malta" means the Republic

Malta, and, when used in a geographical sense, the Island

Malta, the Island

Gozo and the other islands

the Maltese Archipelago, including the territorial waters thereof, and any area outside the territorial sea

Malta which, in accordance with international law, has been or may hereafter be designated, under the law

Malta concerning the Continental Shelf, as an area within which the rights

Malta with respect to the seabed and sub-soil and their natural resources may be exercised; (

  1. c)the terms "a Contracting State" and "the other Contracting State" mean Austria or Malta as the context requires; (
  2. d)the term "person" comprises an individual, a company and any other body

persons; (

  1. e)the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; (
  2. f)the terms "enterprise

a Contracting State" and "enterprise

the other Contracting State" mean, respectively, an enterprise carried on by a resident

a Contracting State and an enterprise carried on by a resident

the other Contracting State; (

  1. g)the term "national" means: (
  2. i)in respect

Austria, any individual possessing the nationality

[ S.L.123.12 4 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA Austria and any legal person, partnership and association deriving its status as such from the law in force in Austria; (ii) in respect

Malta, any citizen

Malta as provided for in Chapter III

the Constitution

Malta and in the Maltese Citizenship Act, and any legal person, partnership or association deriving its status as such from the law in force in Malta; (h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place

effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term "competent authority" means: (i) in the case

Austria, the Federal Minister

Finance; (ii) in the case

Malta, the Minister responsible for finance or his authorised representative.

(2)In the application

this Convention by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws

that Contracting State relating to the taxes which are the subject

this Convention. ARTICLE 4 Fiscal Domicile

(1)For the purposes

this Convention, the term "resident

a Contracting State" means any person who, under the law

that State, is liable to taxation therein by reason

his domicile, residence, place

management or any other criterion

a similar nature. The term does not include any person who is liable to tax in that Contracting State in respect only

income from sources therein or capital situated in that State.

(2)Where by reason

the provisions

paragraph

(1)an individual is a resident

both Contracting States, then his status shall be determined as follows: (a) He shall be deemed to be a resident

the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident

the Contracting State with which his personal and economic relations are closest (centre

vital interests). (b) If the Contracting State in which he has his centre

vital interests cannot be determined, or if he has no permanent home available to him in either Contracting State, he shall be deemed to be a resident

the Contracting State in which he has an habitual abode. (c) If he has an habitual abode in both Contracting States or in neither

them, he shall be deemed to be a resident

the Contracting State

which he is a national. (d) If he is a national

both Contracting States or

neither

them, the competent authorities

the Contracting States shall endeavour to settle the question by mutual agreement.

(3)Where by reason

the provisions

paragraph

(1)a person other than an individual is a resident

both Contracting States, then it shall be deemed to be a resident

the Contracting State in which its place

effective management is DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 5 situated. ARTICLE 5 Permanent Establishment

(1)For the purposes

this Convention the term "permanent establishment" means a fixed place

business in which the business

the enterprise is wholly or partly carried on.

(2)The term "permanent establishment" shall include especially (a) a place

management; (

  1. b)a branch; (
  2. c)an

fice; (

  1. d)a factory; (
  2. e)a workshop; (
  3. f)a mine, quarry or other place

extraction

natural resources including an

f-shore drilling site; (g) a building site or construction or assembly project or supervisory activities in connection therewith, where such site, project or activity continues for more than 12 months.

(3)The term "permanent establishment" shall not be deemed to include (a) the use

facilities solely for the purpose

storage, display or delivery

goods or merchandise belonging to the enterprise; (b) the maintenance

a stock

goods or merchandise belonging to the enterprise solely for the purpose

storage, display or delivery; (c) the maintenance

a stock

goods or merchandise belonging to the enterprise solely for the purpose

processing by another enterprise; (d) the maintenance

a fixed place

business solely for the purpose

purchasing goods or merchandise, or for collecting information, for the enterprise; (e) the maintenance

a fixed place

business solely for the purpose

advertising, for the supply

information, for scientific research or for similar activities which have a preparatory or auxiliary character for the enterprise.

(4)A person acting in a Contracting State on behalf

an enterprise

the other Contracting State - other than an agent

an independent status to whom paragraph

(5)applies - shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name

the enterprise, unless his activities are limited to the purchase

goods or merchandise for the enterprise.

(5)An enterprise

a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent

an independent status, where such persons are acting in the ordinary course

their business.

(6)The fact that a company which is a resident

a Contracting State controls or is controlled by a company which is a resident

the other Contracting State, or which carries on business in that other State (whether through a permanent 6 [ S.L.123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA establishment or otherwise), shall not

itself make either company a permanent establishment

the other. CHAPTER III Taxation

Income ARTICLE 6 Income from Immovable Property

(1)Income from immovable property may be taxed in the Contracting State in which such property is situated.
(2)The term "immovable property" shall be defined in accordance with the law

the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, rights to which the provisions

general law respecting immovable property apply, usufruct

immovable property and rights to variable or fixed payments as consideration for the working

, 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

paragraph

(1)shall apply to income derived from the direct use, letting, or use in any other form

immovable property.

(4)The provisions

paragraphs

(1)and
(3)shall also apply to the income from immovable property

an enterprise and to income from immovable property used for the performance

professional services. ARTICLE 7 Business Profits

(1)The profits

an enterprise

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

the enterprise may be taxed in the other State but only so much

them as is attributable to that permanent establishment.

(2)Subject to the provisions

paragraph

(3), where an enterprise

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

which it is a permanent establishment.

(3)In the determination

the profits

a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes

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)In so far as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis

an apportionment

the total profits

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

apportionment DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 7 adopted shall, however, be such that the result shall be in accordance with the principles embodied in this Article.

(5)No profits shall be attributed to a permanent establishment by reason

the mere purchase by that permanent establishment

goods or merchandise for the enterprise.

(6)For the purposes

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)The provisions

this Article shall not affect the provisions

the law

a Contracting State regarding the taxation

profits from the business

insurance.

(8)The term "profits" as used in this Article includes the profits derived by any partner from his participation in a partnership and, in the case

Austria, from a participation in a sleeping partnership (Stille Gesellschaft) created under Austrian law.

(9)Where profits include items

income which are dealt with separately in other Articles

this Convention, then the provisions

those Articles shall not be affected by the provisions

this Article. ARTICLE 8 Shipping and Air Transport

(1)Profits from the operation

ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place

effective management

the enterprise is situated.

(2)If the place

effective management

a shipping enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour

the ship or boat is situated or, if there is no such home harbour, in the Contracting State

which the operator

the ship or boat is a resident.

(3)The provisions

paragraph

(1)shall also apply to profits derived from the participation in a pool, a joint business or in an international agency. ARTICLE 9 Associated Enterprises
(1)Where (a) an enterprise

a Contracting State participates directly or indirectly in the management, control or capital

an enterprise

the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital

an enterprise

a Contracting State and an enterprise

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

the enterprises, but, by reason

those conditions, have not so accrued, may be included in the profits

that enterprise and taxed accordingly. 8 [ S.L.123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA ARTICLE 10 Dividends

(1)Dividends paid by a company which is a resident

a Contracting State to a resident

the other Contracting State may be taxed in that other State.

(2)However, such dividends may be taxed in the Contracting State

which the company paying the dividends is a resident, and according to the law

that State but (a) where the dividends are paid by a company resident

Austria to a resident

Malta, the Austrian tax so charged shall not exceed 15 per cent

the gross amount thereof; (b) where the dividends are paid by a company resident

Malta to a resident

Austria (i) Malta tax shall not exceed that chargeable on the company paying the dividends in respect

the profits so distributed, and in any case it shall not exceed 32.5 per cent

the gross amount

the dividends; (ii) notwithstanding the provisions

sub-paragraph (i), Malta tax shall not exceed 15 per cent

the gross amount

the dividends if such dividends are paid out

gains or profits earned in any year in respect

which the company is in receipt

tax benefits under the provisions regulating aids to industries in Malta, and the shareholder submits returns and accounts to the taxation authorities

Malta in respect

his income liable to Malta tax for the relative year

assessment; (iii) no surtax otherwise chargeable under the law

Malta shall be levied on the dividends. This paragraph shall not effect the taxation

the company in respect

the profits out

which the dividends are paid.

(3)The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, 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 taxation law

the State

which the Company making the distribution is a resident.

(4)The provisions

paragraphs

(1)and
(2)shall not apply if the recipient

the dividends, being a resident

a Contracting State, carries on business in the other Contracting State,

which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein and the holding in respect

which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions

Article 7or Article 14, as the case may be, shall apply.

(5)Where a company which is a resident

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 to residents

the first-mentioned State, or subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly

profits or income arising in that other State. The provisions

this paragraph shall not prevent DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 9 that other State from taxing dividends paid to residents

that State or dividends relating to a holding which is effectively connected with a permanent establishment or fixed base maintained in that other State by a resident

the first-mentioned State. ARTICLE 11 Interest

(1)Interest arising in a Contracting State and paid to a resident

the other Contracting State may be taxed in that other State.

(2)However, such interest may be taxed in the Contracting State in which it arises, and according to the law

that State, but the tax so charged shall not exceed 5 per cent

the gross amount

the interest.

(3)The term "interest" as used in this Article means income from debt-claims

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 bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose

this Article.

(4)The provisions

paragraphs

(1)and
(2)shall not apply if the recipient

the interest, being a resident

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 professional services from a fixed base situated therein and the debt-claim in respect

which the interest is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions

Article 7or 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

that State. Where, however, the person paying the interest, whether he is a resident

a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

(6)Where, owing to a special relationship between the payer and the recipient or between both

them and same other person, the amount

the interest paid, 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 recipient in the absence

such relationship, the provisions

this Article shall apply only to the last-mentioned amount. In that case, the excess part

the payments shall remain taxable according to the law

each Contracting State, due regard being had to the other provisions

this Convention. ARTICLE 12 Royalties

(1)Royalties arising in a Contracting State and paid to a resident

the other Contracting State shall be taxable only in that other State if such royalties consist

payments

any kind received as consideration for the use

, or the right to use, any copyright

literary, artistic or scientific work.

(2)Royalties arising in a Contracting State and paid to a resident

the other Contracting State may be taxed in that other Contracting State if the royalties consist 10 [ S.L.123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA

payments

any kind received as a consideration for the use

, or the right to use, cinematographic films or tapes for television or broadcasting, any patent, trade mark, design, model, plan, secret formula or process, industrial, commercial or scientific equipment, or information concerning industrial, commercial or scientific experience. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the law

that State, but the tax so charged shall not exceed 10 per cent

the gross amount

such royalties.

(3)The provisions

paragraphs

(1)and
(2)shall not apply if the recipient

the royalties, being a resident

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 professional services from a fixed base situated therein, and the right or property in respect

which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions

Article 7or Article 14, as the case may be, shall apply.

(4)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

that State. Where, however, the person paying the royalties, whether he is a resident

a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

(5)Where, owing to a special relationship between the payer and the recipient or between both

them and some other person, the amount

the royalties paid, 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 recipient in the absence

such relationship, the provisions

this Article shall apply only to the last-mentioned amount. In that case, the excess part

the payments shall remain taxable according to the law

each Contracting State, due regard being had to the other provisions

this Convention. ARTICLE 13 Capital Gains

(1)Gains from the alienation

immovable property, as defined in paragraph

(2)

Article 6, may be taxed in the Contracting State in which such property is situated.

(2)Gains from the alienation

movable property forming part

the business property

a permanent establishment which an enterprise

a Contracting State has in the other Contracting State or

movable property pertaining to a fixed base available to a resident

a Contracting State in the other Contracting State for the purpose

performing professional services, including such gains from the alienation

such a permanent establishment (alone or together with the whole enterprise) or

such a fixed base, may be taxed in the other State. However, gains from the alienation

movable property

the kind referred to in paragraph

(3)

Article 22shall be taxable only in the Contracting State in which such movable property is taxable according to the said Article.

(3)Gains from the alienation

any property other than those mentioned in paragraphs

(1)and
(2)shall be taxable only in the Contracting State

which the alienator is a resident. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 11 ARTICLE 14 Independent Personal Services

(1)Income derived by a resident

a Contracting State in respect

professional services or other independent activities

a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose

performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much

it as is attributable to that fixed base.

(2)The term "professional services" includes, especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities

physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent Personal Services

(1)Subject to the provisions

Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident

a Contracting State, in respect

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

paragraph

(1), remuneration derived by a resident

a Contracting State in respect

an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if (

  1. a)the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned, and (
  2. b)the remuneration is paid by, or on behalf

, an employer who is not a resident

the other State, and (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

this Article, remuneration in respect

an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State in which the place

effective management

the enterprise is situated. ARTICLE 16 Directors’ Fees Directors’ fees and similar payments derived by a resident

a Contracting State in his capacity as a member

the board

directors or other similar organ

a company which is a resident

the other Contracting State may be taxed in that other State. ARTICLE 17 Artistes and Athletes

(1)Notwithstanding the provisions

Articles 14 and 15, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such, may be taxed in the Contracting State in which these activities are exercised. 12 [ S.L.123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA

(2)Where income in respect

personal activities as such

an entertainer or athlete accrues not to that entertainer or athlete himself but to another person, that income may, notwithstanding the provisions

Articles 7, 14 and 15, be taxed in the Contracting State in which the activities

the entertainer or athlete are exercised. ARTICLE 18 Pensions Pensions and other similar remuneration paid to a resident

a Contracting State shall be taxable only in that State. ARTICLE 19 Government Service

(1)(a) Remuneration paid by a Contracting State or a political subdivision or a local authority thereof to any individual in respect

services rendered to that State, or subdivision or local authority thereof shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident

that other Contracting State who (i) is a national

that State; or (ii) did not become a resident

that State solely for the purpose

performing the services.

(2)The provisions

Articles 15, 16 and 17 shall apply to remuneration in respect

services rendered in connection with any business carried on by a Contracting State, a political subdivision or a local authority thereof.

(3)The provisions

paragraph

(1)(a) shall likewise apply in respect

remuneration paid, under a development assistance programme

a Contracting State, a political subdivision or a local authority thereof, out

funds exclusively supplied by that State, those political subdivisions or local authorities thereof, to a specialist or volunteer seconded to the other Contracting State with the consent

that other State. ARTICLE 20 Teachers, Students and Trainees

(1)Remuneration which a professor or teacher who is, or immediately before was, a resident

a Contracting State and who visits the other Contracting State for a period not exceeding two years for the purpose

carrying out advanced study or research or for teaching at a university, college, school or other educational institution receives for such work shall not be taxed in that other State, provided that such remuneration is derived by him from outside that other State.

(2)An individual who was a resident

a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other State solely as a student at a university, college, school or other similar educational institution in that other State or as a business apprentice shall, from the date

his first arrival in that other State in connection with that visit, be exempt from tax in that other State (a) on all remittances from abroad for purposes

his maintenance, education or training; and DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 13 (b) for any remuneration for an employment exercised in the other Contracting State for a period not exceeding 183 days in the calendar year for the purposes

his practical training.

(3)An individual who was a resident

a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other State solely for the purpose

study, research or training as a recipient

a grant, allowance or award f rom a scientific, educati onal, r elig ious o r ch arit able organization or under a technical assistance programme entered into by the Government

a Contracting State shall, from the date

his arrival in that other State in connection with that visit, be exempt from tax in that other State (a) on the amount

such grant, allowance or award; and (b) on all remittances from abroad for the purposes

his maintenance, education or training. ARTICLE 21 Other Income

(1)Items

income

a resident

a Contracting State, wherever arising, not dealt with in the foregoing Articles

this Convention, shall be taxable only in that State.

(2)The provisions

paragraph

(1)shall not apply if the recipient

the income, being a resident

a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect

which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions

Article 7or Article 14, as the case may be, shall apply.

CHAPTER IV Taxation

Capital ARTICLE 22 Capital

(1)Capital represented by immovable property, as defined in paragraph
(2)

Article 6, may be taxed in the Contracting State in which such property is situated.

(2)Capital represented by movable property forming part

the business property

a permanent establishment

an enterprise, or by movable property pertaining to a fixed base used for the performance

professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated.

(3)Ships and aircraft operated in international traffic, and movable property pertaining to the operation

such ships and aircraft, shall be taxable only in the Contracting State in which the place

effective management

the enterprise is situated.

(4)All other elements

capital

a resident

a Contracting State shall be taxable only in that State. 14 [ S.L.123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA CHAPTER V Elimination

Double Taxation ARTICLE 23 Elimination

Double Taxation

(1)Where a resident

a Contracting State derives income or owns capital which may be taxed in the other Contracting State in accordance with the provisions

this Convention, the first-mentioned State shall, subject to the provisions

paragraph

(2)hereof, exempt such income or capital from tax but may, in calculating tax on the other income or capital

that person, apply the tax which would have been applicable if the exempted income or capital had not been so exempted.

(2)Where a resident

a Contracting State derives income which may be taxed in the other Contracting State in accordance with the provisions

paragraph

(2)

each one

Articles 10, 11 and 12

this Convention, the first-mentioned State shall allow as a deduction from its tax on the income

that person an amount equal to the tax paid thereon in the other State. In Austria such deduction shall not, however, exceed that part

its tax as computed before the deduction is given which is appropriate to the income derived from Malta and in the case

Malta, the deduction shall be computed in accordance with the provisions

the law

Malta regarding the allowance

a credit against Malta tax in respect

foreign tax.

(3)Where a dividend is distributed by a company which is a resident

Malta to a company which is a resident

Austria, such dividend shall be exempt from the corporation tax and from the business tax in Austria if the Austrian company receiving the dividend controls not less than 25 per cent

the voting power

the Malta company.

(4)For the purposes

paragraph

(2), Malta tax shall be deemed to have been charged as follows: (a) in the case

interest, at the rate

5 per cent; (b) in the case

royalties, at the rate

10 per cent; (c) in the case

dividends referred to in paragraph

(2)(b)(ii)

Article 10, at the rate chargeable under paragraph

(2)(b)(i) thereof,

the gross amount

the income in each case. CHAPTER VI Special Provisions ARTICLE 24 Non-discrimination

(1)Notwithstanding the provisions

Article 1

, the nationals

a Contracting State whether or not they are residents

one

the Contracting States, 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

that other State in the same circumstances are or may be subjected.

(2)The taxation

a permanent establishment which an enterprise

a Contracting State has in the other Contracting State shall not be less favourably DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 15 levied in that other State than the taxation levied on enterprises

that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents

the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account

civil status or family responsibilities or any other personal circumstances which it grants to its own residents.

(3)Except where the provisions

Article 9, paragraph

(6)

Article 11, or paragraph

(5)

Article 12

apply, interest, royalties and other disbursements paid by an enterprise

a Contracting State to a resident

the other Contracting State shall, for the purpose

determining the taxable profits

such enterprise, be deductible under the same conditions as if they had been paid to a resident

the firstmentioned State. Similarly, any debts

an enterprise

a Contracting State to a resident

the other Contracting State shall, for the purpose

determining the taxable capital

such enterprise, be deductible as if they had been contracted to a resident

the firstmentioned State.

(4)Enterprises

a Contracting State, the capital

which is wholly or partly owned or controlled, directly or indirectly, by one or more residents

the other Contracting State, shall not be subjected in the first-mentioned Contracting 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

that first-mentioned State are or may be subjected.

(5)In this Article the term "taxation" means taxes

every kind and description. ARTICLE 25 Mutual Agreement Procedure

(1)Where a resident

a Contracting State considers that the actions

one or both

the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws

those States, present his case to the competent authority

the Contracting State

which he is a resident or, in any case referred to in paragraph

(1)

Article 24

, to that

the Contracting State

which he is a national. This case must be presented within three years

the first notification

the actions which give rise to taxation not in accordance with 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 an appropriate solution, to resolve the case by mutual agreement with the competent authority

the other Contracting State, with a view to the avoidance

taxation not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the national laws

the Contracting State.

(3)The competent authorities

the Contracting States shall endeavour to r e s o l v e b y m u t u a l a g r e e m e n t a n y d i ff i c u l t i e s o r d o u b t s a r i s i n g a s t o t h e interpretation or application

the Convention. They may also consult together for the elimination

double taxation in cases not provided for in the Convention.

(4)The competent authorities

the Contracting States may communicate with each other directly for the purpose

reaching an agreement in the sense

the preceding paragraphs. 16 [ S.L.123.12 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA ARTICLE 26 Exchange

Information

(1)The competent authorities

the Contracting States shall exchange such information as is necessary for the carrying out

this Convention and

the domestic laws

the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons or authorities including courts other than those concerned with the assessment or collection

the taxes which are the subject

the Convention, or with the prosecution

fences in relation thereto.

(2)In no case shall the provisions

paragraph

(1)be construed so as to impose on one

the Contracting States the obligation (a) to carry out administrative measures at variance with the laws or the administrative practice

that or

the other Contracting State; (b) to supply particulars which are not obtainable under the laws or in the normal course

the administration

that or

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

which would be contrary to public policy. ARTICLE 27 Diplomatic and Consular

ficials Nothing in this Convention shall affect the fiscal privileges

diplomatic or consular

ficials under the general rules

international law or under the provisions

special agreements. CHAPTER VII Final Provisions ARTICLE 28 Entry into Force

(1)This Convention shall be ratified and the instruments

ratification shall be exchanged at Vienna as soon as possible.

(2)The Convention shall enter into force 60 days after the exchange

instruments

ratification, and its provisions shall have effect (a) in respect

taxes on income derived on or after the first day

January, 1977; (b) in respect

taxes on capital levied as from the first day

January, 1977. ARTICLE 29 Termination This Convention shall remain in force indefinitely but either

the Contracting DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC

AUSTRIA [ S.L.123.12 17 States may, on or before the thirtieth day

June in any calendar year beginning after the expiration

a period

three years from the date

its entry into force, give to the other Contracting State, through diplomatic channels, written notice

termination and, in such event, the Convention shall cease to be effective: (a) in respect

taxes on income derived on or after the first day

January next following the year during which notice

termination has been given; (b) in respect

taxes on capital levied as from the first day

January next following the year during which notice

termination has been given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Convention. DONE at Bonn on the 29th day

May, 1978, in duplicate in the German and English languages, both texts being equally authentic. E. ATTARD BEZZINA For the Republic

Malta FRANZ PEIN For the Republic

Austria

🔗 Għas-sors uffiċjali

AI explanation based on the official legal text. Indicative, not a substitute for legal advice.