DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 SUBSIDIARY LEGISLATION 123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) ORDER 28th September,

Article 7or 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 o n t h e c om pa n y’s u n d i s t r ib u t e d p r o f it s , e v e n i f t h e d i v i de n ds pa i d o r t he undistributed profits consist wholly or partly of profits or income arising in such other State. Article 11 Interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 9 Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other State to the extent that such interest is paid

1. a)in connection with the sale on credit of any industrial, commercial or scientific equipment;
2. b)in connection with the sale on credit of any merchandise by one enterprise to another enterprise; or
3. c)on any loan of whatever kind granted by a bank. 4. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid between associated companies shall not be subject to taxation in the source State, where: - such companies are affiliated by a direct minimum holding of 10 per cent for at least one year or are both held by a third company which has directly a minimum holding of 10 per cent both in the capital of the first company, and in the capital of the second company for at least one year; and - such companies are resident in a Contracting State; and - under any double taxation agreement with any third State none of the companies is resident in that third State; and - all companies are subject to corporation tax without being exempted in particular on interest payments and each adopts the form of a limited company. 5. 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. The term "interest" shall not include any item which is treated as a distribution under the provisions of Article 10. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 6. The provisions of paragraphs 1, 2, 3 and 4 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.

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

1. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
2. 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 10 [ S.L.123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 12 Royalties
3. Royalties arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State.
4. 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.
5. The provisions of paragraph 1 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.

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

4. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 13 Capital gains 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or from movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State. 4. Gains from the alienation of shares of the capital stock of 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. 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 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 11 alienator is a resident. Article 14 Independent personal services 1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of 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 of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 Dependent personal services 1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

1. 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 of, an employer who is not a resident of the other State, and
3. 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. Article 16 Directors’ fees Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 Artistes and sportsmen 1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman 12 [ S.L.123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) 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. Paragraphs 1 and 2 shall not apply to income from activities performed by entertainers or sportsmen if such income is derived directly or indirectly in a substantial manner from public funds of the other Contracting State, a political subdivision or a local authority thereof. Article 18 Pensions 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. Article 19 Government service 1.
4. 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.
5. 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: (
6. i)is a national of that State; or (
7. ii)did not become a resident of that State solely for the purpose of rendering the services. 2.
8. 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.
9. 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. Article 20 Students and business apprentices Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. Article 21 Other income 1. Items of income of a resident of a Contracting State, wherever arising, not DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 13 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.

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

Article 22 Elimination of double taxation In the case of Malta, double taxation shall be avoided 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 (which shall not affect the general principles hereof), where in accordance with the provisions of this Convention, there is included in a Malta assessment income from sources within Switzerland, the Swiss tax on such income shall be allowed as a credit against the relative Malta tax payable thereon. 2. In the case of Switzerland, double taxation shall be avoided as follows:

1. a)Where a resident of Switzerland derives income, other than income falling under Article 10, which, in accordance with the provisions of this Convention, may be taxed in Malta, Switzerland shall, subject to the provisions of subparagraph b), exempt such income from tax but may, in calculating tax on the remaining income of that resident, apply the rate of tax which would have been applicable if the exempted income had not been so exempted. However, such exemption shall apply to gains referred to in paragraph 4 of Article 13 only if actual taxation of such gains in Malta is demonstrated.
2. b)Where a resident of Switzerland derives interest which, in accordance with the provisions of Article 11, may be taxed in Malta, Switzerland shall allow, upon request, a relief to such resident. The relief may consist of: (
3. i)a deduction from the tax on the income of that resident of an amount equal to the tax levied in Malta in accordance with the provisions of Article 11; such deduction shall not, however, exceed that part of the Swiss tax, as computed before the deduction is given, which is appropriate to the income which may be taxed in Malta; or (
4. ii)a lump sum reduction of the Swiss tax; or (iii) a partial exemption of such interest from Swiss tax, in any case consisting at least of the deduction of the tax levied in Malta from the gross amount of the interest. Switzerland shall determine the applicable relief and regulate the procedure in accordance with the Swiss provisions relating to the carrying out of international conventions of the Swiss Confederation for the avoidance of double taxation. (
5. c)Notwithstanding the provisions of sub-paragraph
6. a)of paragraph 2 hereof, a company which is a resident of Switzerland and which derives 14 [ S.L.123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) dividends from a company which is a resident of Malta shall be entitled, for the purposes of Swiss tax with respect to such dividends, to the same relief which would be granted to the company if the company paying the dividends were a resident of Switzerland. Article 23 Entitlement to benefits Notwithstanding the other provisions of this Convention, a benefit under this Convention shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Convention. Article 24 Non-discrimination 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11, or paragraph 4 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. 4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the firstmentioned State are or may be subjected. 5. The provisions of this Article shall apply to the taxes which are the subject of this Convention. Article 25 Mutual agreement procedure 1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 15 this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of either Contracting State. 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. 3. The competent authorities of 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 of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 26 Exchange of information 1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws 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. 2. Any information received under paragraph 1 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 referred to in paragraph 1. 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. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
7. a)to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
8. 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;
9. 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 (ordre public). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such 16 [ S.L.123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. In order to obtain such information, the tax authorities of the requested Contracting State, if necessary to comply with its obligations under this paragraph, shall have the power to enforce the disclosure of information covered by this paragraph, notwithstanding paragraph 3 or any contrary provisions in its domestic laws. Article 27 Members of diplomatic missions and consular posts 1. 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. 2. Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State which is situated in the other Contracting State or in a third State shall be deemed, for the purposes of this Convention, to be a resident of the sending State if:
10. a)in accordance with international law he is not liable to tax in the receiving Contracting State in respect of income from sources outside that State situated outside that State, and
11. b)he is liable in the sending State to the same obligations in relation to tax on his total income as are residents of that State. 3. The Convention shall not apply to international organisations, to organs or officials thereof and to persons who are members of a diplomatic mission, consular post or permanent mission of a third State, being present in a Contracting State and not treated in either Contracting State as residents in respect of taxes on income. Article 28 Entry into force 1. Each Contracting State shall notify to the other, through diplomatic channels, the completion of the procedures required by its law for the bringing into force of this Convention. The Convention shall enter into force on the date on which the later of those notifications has been received. 2. The provisions of the Convention shall have effect:
12. a)with respect to taxes withheld at source on amounts paid or credited on or after the first day of January of the year next following the year of the entry into force of the Convention;
13. b)with respect to other taxes for taxation years beginning on or after the first day of January of the year next following the year of the entry into force of the Convention;
14. c)with respect to Article 26 of the Convention, for requests for the exchange of information made on or after the date of entry into force to information that relates to taxable periods beginning on or after the first day of January of the year that follows the entry into force of this DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 17 Convention. 3. The exchange of letters of 30 March 1987 between the Government of Malta and the Swiss Federal Council relative to the taxation of profits derived from the operation of ships or aircraft in international traffic shall cease to have effect on the date on which this Convention shall take effect. Article 29 Termination This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to have effect:
15. a)in respect of taxes withheld at source on amounts paid or credited on or after the first day of January of the calendar year next following that in which the notice was given;
16. b)in respect of other taxes for taxation years beginning on or after the first day of January of the calendar year next following that in which the notice was given. IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Convention. Done in duplicate at Rome this 25th February 2011, in the English and French languages, both texts being equally authentic. For the Government of Malta: Leslie Agius For the Swiss Federal Council: Bernardino Regazzoni PROTOCOL Malta and The Swiss Confederation Have agreed at the signing at Rome on the 25th February 2011 of the Convention between the two States for the avoidance of double taxation with respect to taxes on income upon the following provisions which shall form an integral part of the said Convention. 1. ad Article 7 In respect of paragraphs 1 and 2 of Article 7, where an enterprise of a Contracting State sells goods or merchandise or carries on business in the other State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of that part of the total receipts which is attributable to the actual activity of the permanent establishment for such sales or business. In the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which 18 [ S.L.123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the head office of the enterprise shall be taxable only in the State of which the enterprise is a resident. 2. ad Article 7 and 12 It is understood that payments received as a consideration for the use of, or the right to use industrial, commercial or scientific equipment constitute business profits covered by Article 7. 3. ad Articles 18 and 19 It is understood that the terms "pensions" and "pension" as used in Articles 18 and 19, respectively, cover periodic as well as lump sum payments paid under a pension arrangement. 4. ad Article 25 In the event that pursuant to an Agreement or Convention concluded with another third country after the date of signature of this Convention, Malta agrees to introduce an arbitration clause, the following paragraph 5 will be added to the present Convention and shall apply as from the date in which such Agreement or Convention enters into force: "5. Where,
17. a)
18. b)under paragraph 1, a person has presented a case to the competent authority of a Contracting State on the basis that the actions of one or both of the Contracting States have resulted for that person in taxation not in accordance with the provisions of this Convention, and the competent authorities are unable to reach an agreement to resolve that case pursuant to paragraph 2 within three years from the presentation of the case to the competent authority of the other Contracting State, any unresolved issues arising from the case shall be submitted to arbitration if the person so requests. These unresolved issues shall not, however, be submitted to arbitration if a decision on these issues has already been rendered by a court or administrative tribunal of either State. Unless a person directly affected by the case does not accept the mutual agreement that implements the arbitration decision or the competent authorities and the persons directly affected by the case agree on a different solution within six months after the decision has been communicated to them, the arbitration decision shall be binding on both Contracting States and shall be implemented notwithstanding any time limits in the domestic laws of these States. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this paragraph. The Contracting States may release to the arbitration board, established under the provisions of this paragraph, all information which is necessary for carrying out the arbitration procedure. The members of the arbitration board shall be subject to the limitations of disclosure described in paragraph 2 of Article 26 with respect to the information so released." DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) 5. [ S.L.123.136 19 ad Article 26 It is understood that
19. a)an exchange of information will only be requested once the requesting Contracting State has exhausted all regular sources of information available under the internal taxation procedure.
20. b)the tax authorities of the requesting State shall provide the following information to the tax authorities of the requested State when making a request for information under Article 26 of the Convention: (
21. i)the name and address of the person(
22. s)under examination or investigation and, if available, other particulars facilitating that persons identification, such as date of birth, marital status, tax identification number; (
23. ii)the period of time for which the information is requested; (iii) a statement of the information sought including its nature and the form in which the requesting State wishes to receive the information from the requested State; (
24. iv)the tax purpose for which the information is sought; (
25. v)the name and address of any person believed to be in possession of the requested information.
26. c)It is understood that the standard of “foreseeable relevance” is intended to provide for exchange of information in tax matters to the widest possible extent and, at the same time, to clarify that the Contracting States are not at liberty to engage in "fishing expeditions" or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer. While subparagraph 5
27. b)contains important procedural requirements that are intended to ensure that fishing expeditions do not occur, clauses (
28. i)through (
29. v)of subparagraph 5
30. b)nevertheless are not to be interpreted in order to frustrate effective exchange of information.
31. d)It is further understood that Article 26 of the Convention shall not commit the Contracting States to exchange information on an automatic or a spontaneous basis.
32. e)It is understood that in case of an exchange of information, the administrative procedural rules regarding taxpayers’ rights provided for in the requested Contracting State remain applicable before the information is transmitted to the requesting Contracting State. It is further understood that this provision aims at guaranteeing the taxpayer a fair procedure and not at preventing or unduly delaying the exchange of information process. 6. Where under any provision of this Convention income or profits from a source within Switzerland is relieved from Swiss tax and, under the laws in force in Malta, a resident, in respect of such income or profits, is subject to tax by reference to the amount thereof which is remitted or received in Malta and not by reference to the full amount thereof, then the relief to be allowed under the Convention in Switzerland shall apply only to so much of the income or profits as are remitted to or received in Malta. Done in duplicate at Rome this 25th February 2011, in the English and French languages, both texts being equally authentic. For the Government of Malta: Leslie Agius For the Swiss Federal Council: Bernardino Regazzoni 20 [ S.L.123.136 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) EXCHANGE OF NOTES Ministry of Foreign Affairs Malta The Ministry of Foreign Affairs of Malta presents its compliments to the Federal Department of Foreign Affairs of the Swiss Confederation and has the honour to refer to the Convention between Malta and the Swiss Confederation for the avoidance of double taxation with respect to taxes on income signed in Valletta on 18 December 2008. Following the signature of the said Convention the two sides agreed that there should be some important modifications to the text and that it would be preferable to sign a new Convention in replacement of the 2008 one. The new Convention that is being signed today between the respective Ambassadors reflects the changes that were necessary and which are agreed to by both countries. This Note and the Swiss Government’s reply thereto shall therefore confirm that the Convention signed today replaces the Convention signed in 2008 which is thereby abrogated. The Ministry of Foreign Affairs of Malta avails itself of this opportunity to renew to the Federal Department of Foreign Affairs of the Swiss Confederation the assurance of its highest consideration. 25th February 2011 The Federal Department of Foreign Affairs Berne Federal Department of Foreign Affairs FDFA Swiss Confederation The Federal Department of Foreign Affairs presents its compliments to the Ministry of Foreign Affairs of Malta and has the honour to acknowledge receipt of the Ministry’s note dated 25th February 2011 reading as follows: "Exchange of Notes The Ministry of Foreign Affairs of Malta presents its compliments to the Federal Department of Foreign Affairs of the Swiss Confederation and has the honour to refer to the Convention between Malta and the Swiss Confederation for the avoidance of double taxation with respect to taxes on income signed in Valletta on 18 December 2008. Following the signature of the said Convention the two sides agreed that there should be some important modifications to the text and that it would be preferable to sign a new Convention in replacement of the 2008 one. T h e n e w C o n v e n t i o n t h a t i s b e i n g s i g n e d t o d a y b e t w e e n t h e re s p e c t i v e Ambassadors reflects the changes that were necessary and which are agreed to by both countries. DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE SWISS CONFEDERATION) [ S.L.123.136 21 This Note and the Swiss Government’s reply thereto shall therefore confirm that the Convention signed today replaces the Convention signed in 2008 which is thereby abrogated. The Ministry of Foreign Affairs of Malta avails itself of this opportunity to renew to the Federal Department of Foreign Affairs of the Swiss Confederation the assurance of its highest consideration." The Department has the honour to confirm that the Convention between the Swiss Confederation and Malta for the avoidance of double taxation with respect to taxes on income, signed in Rome on 25th February 2011, replaces the Convention for the avoidance of double taxation with respect to taxes on income signed between the two countries on 18 December 2008, which is thereby abrogated. The Department avails itself of this opportunity to renew to the Ministry the assurances of its highest consideration. Berne, 2nd March 2011