ITALY [ S.L.123.16 SUBSIDIARY LEGISLATION 123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY ORDER 10th June, 1986 LEGAL NOTICE 31
1986, as amended by Legal Notice 14
this Order is Double Taxation Relief on Taxes on Income with the Republic
Italy Order. 2. It is hereby declared (a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government
the Republic
Italy with a view to affording relief from double taxation in relation to the following taxes imposed by the laws
the Republic
Italy: (
ITALY SCHEDULE AGREEMENT BETWEEN THE GOVERNMENT
THE REPUBLIC
MALTA AND THE GOVERNMENT
THE REPUBLIC
ITALY FOR THE AVOIDANCE
DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND THE PREVENTION
FISCAL EVASION The Government
the Republic
Malta and the Government
the Republic
Italy, desiring to conclude an Agreement for the Avoidance
Double Taxation with respect to Taxes on Income and the Prevention
Fiscal Evasion, have agreed as follows: CHAPTER I Scope
the Agreement ARTICLE 1 Personal Scope This Agreement shall apply to persons who are residents
one or both
the Contracting States. ARTICLE 2 * Taxes Covered
each Contracting State or its political or administrative subdivisions or local authorities, irrespective
the manner in which they are levied.
income, including taxes on gains from the alienation
movable or immovable property, taxes on the total amounts
wages and salaries paid by enterprises, as well as taxes on capital appreciation.
Italy: (
Malta: the income tax, (hereinafter referred to as "Malta tax").
signature
this Agreement in addition to, or in place
, the existing taxes. The competent authorities
the Contracting States *as amended by the Protocol reproduced in Legal Notice 14
2011. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 3 shall notify to each other any significant changes which have been made in their respective taxation laws.
the income as is remitted to or received in the other State. CHAPTER II Definitions ARTICLE 3 * General Definitions
Italy; (b) the term "Malta" means the Republic
Malta; (
persons; (
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; (
Italy, any individual possessing the nationality
Italy, and any legal person, partnership and association deriving its status as such from the law in force in Italy; (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
Italy, the Ministry
Economy and Finance; (ii) in the case
Malta, the Minister responsible for finance or his authorised representative. *as amended by the Protocol reproduced in Legal Notice 14
2011 [ S.L.123.16 4 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
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this Agreement 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 Agreement. ARTICLE 4 Fiscal Domicile
this Agreement, 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 situated in that State.
the provisions
paragraph
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 settle the question by mutual agreement.
the provisions
paragraph
both Contracting States, then it shall be deemed to be a resident
the Contracting State in which its place
effective management is situated. ARTICLE 5 Permanent Establishment
this Agreement the term "permanent establishment" means a fixed place
business in which the business
the enterprise is wholly or partly carried on.
management; (
fice; (
extraction
natural resources; DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 5 (
services, including consultancy services, by an enterprise through employees or other personnel, where activities
this nature continue (for the same or a connected project) within the country for a period or periods aggregating more than twelve months within any two-year period.
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.
an enterprise
the other Contracting State - other than an agent
an independent status to whom paragraph
the enterprise, unless his activities are limited to the purchase
goods or merchandise for the 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.
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 establishment or otherwise) shall not
itself make either company a permanent establishment
the other. CHAPTER III Taxation
Income ARTICLE 6 Income from Immovable Property
the Contracting State in which the property in question is situated. The term shall 6 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY in any case include property accessory to immovable property, rights to which the provisions
general law respecting immovable property apply. The term shall also include 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.
paragraph
immovable property.
paragraphs
an enterprise and to income from immovable property used for the performance
professional services. ARTICLE 7 Business 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.
paragraph
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.
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.
an apportionment
the total profits
the enterprise to its various parts, nothing in paragraph
apportionment adopted shall, however, be such that the result shall be in accordance with the principles embodied in this Article.
the mere purchase by that permanent establishment
goods or merchandise for the enterprise.
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.
income which are dealt with separately in other Articles
this Agreement, then the provisions
those Articles shall not be affected by the provisions
this Article. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 7 ARTICLE 8 Shipping and Air Transport
ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated.
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.
paragraph
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. ARTICLE 10 Dividends
a Contracting State to a resident
the other Contracting State may be taxed in that other 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
Italy to a resident
Malta who is the beneficial owner thereof, the Italian tax so charged shall not exceed 15 per cent
the gross amount
the dividends; (b) where the dividends are paid by a company resident
Malta to a resident
Italy who is the beneficial owner thereof (i) Malta tax shall not exceed that chargeable on the company paying the dividends in respect
the profits so distributed; (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 8 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY 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. The competent authorities
the Contracting States shall by mutual agreement settle the mode
application
this limitation. This paragraph shall not affect the taxation
the company in respect
the profits out
which the dividends are paid.
the State
which the company making the distribution is a resident.
paragraphs
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 p er m a n en t es t ab l i sh m e nt si t u a te d th e r ei n , o r p er f o r m s in t h at o t h er St a te 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 dividends are taxable in that other Contracting State according to its own law.
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
that other State or insofar as the holding in respect
which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other 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 such other State. ARTICLE 11 Interest
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the interest, the tax so charged shall not exceed 10 per cent
the gross amount
the interest. The competent authorities
the Contracting States shall by mutual agreement settle the mode
application
this limitation.
paragraph
the interest is the Government
that Contracting State or a local authority thereof; or (b) the interest is paid to the Government
the other Contracting State or local authority thereof or any agency or instrumentality (including a financial institution) wholly owned by that other Contracting State or local authority thereof; or DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY (c) [ S.L.123.16 9 the interest is paid to any other agency or instrumentality (including a financial institution) in relation to loans made under an agreement concluded between the Governments
the Contracting States.
every kind as well as all other income assimilated to income from money lent by the taxation law
the State in which the income arises.
paragraphs
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-claims in respect
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such a case, the interest is taxable in that other Contracting State according to its own law.
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.
them and some 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 Agreement. ARTICLE 12 Royalties
the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner
the royalties and the royalties consist
payments
any kind received as consideration for the use
, or the right to use, any copyright
literary, artistic or scientific work, cinematographic films or tapes for television or broadcasting.
the other Contracting State may be taxed in that other Contracting State if the royalties consist
payments
any kind received as a consideration for the use
, or the right to use, 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 if the recipient is the beneficial owner
the royalties, the tax so charged shall not exceed 10 per cent
the gross amount
such royalties.
paragraphs
10 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY 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 royalties are taxable in that other Contracting State according to its own law.
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.
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 Agreement. ARTICLE 13 Capital Gains
immovable property, as defined in paragraph
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
ships or aircraft operated in international traffic, as well as gains from the alienation
movable property pertaining to the operation
such ships or aircraft, shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated.
any property other than those mentioned in paragraphs
which the alienator is a resident. ARTICLE 14 Independent Personal Services
a Contracting State in respect
professional services or other independent activities
a similar character shall be taxable only in that State. However, such income may be taxed in the other DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 11 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
performing his activities (in which case only so much
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 during any calendar year.
physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent Personal Services
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.
paragraph
a Contracting State in respect
an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (
, 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.
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 Artists and Athletes
Articles 14 and 15, income derived by entertainers, such as theatre, motion picture, radio or television artists, 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.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
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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 and Annuities
paragraph
, pensions and other similar remuneration, and annuities, paid to a resident
a Contracting State shall be taxable only in that State.
past employment, or by way
compensation for injuries received in connection with past employment; (b) the term "annuity" means a stated sum paid periodically during life, or during a specified or ascertainable period
time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth. ARTICLE 19 Government Service
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.
funds created by, a Contracting State or a political or an administrative subdivision or a local authority thereof to any individual in respect
services rendered to the State or subdivision or local authority thereof shall be taxable only in that State. (b) However, such pension shall be taxable only in the other Contracting State if the recipient is a national
and a resident
that State. The provisions
Articles 15, 16 and 18 shall apply to remuneration or pensions in respect
services rendered in connection with any trade or business carried on by one
the Contracting States or a political or an administrative subdivision or a local authority thereof.
paragraph
remuneration paid, under a development assistance programme
a Contracting State, a political or administrative subdivision or a local authority thereof, out
funds exclusively supplied by that State, those subdivisions or local authorities thereof, to a specialist or volunteer seconded to the other Contracting State with the DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 13 consent
that other State. ARTICLE 20 Teachers, Students and Trainees
teaching or conducting research at a university, college, school or other educational institution, and who is, or immediately before such visit was, a resident
the other Contracting State shall be exem pt f rom tax in t he first- mention ed Contracting State in resp ect o f remuneration for such teaching or research.
a Contracting State and who is present in the other Contracting State solely for the purpose
his education or training receives for the purpose
his maintenance, education or training shall be exempt from tax in that other Contracting State, provided that such payments are made to him from outside that other Contracting State.
a Contracting State derives from an employment which he exercises in the other Contracting State for the purpose
practical training for a period
time which is reasonably required to conclude his training shall not be taxed in that other State.
a Contracting State derives from a part time employment which he exercises in the other Contracting State for a period
time which is reasonably required to conclude his studies shall not be taxed in that other State. ARTICLE 21 Other Income
income
a resident
a Contracting State, wherever arising, not dealt with in the foregoing Articles
this Agreement shall be taxable only in that State.
paragraph
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 items
income are taxable in that other Contracting State according to its own law. CHAPTER IV Method for Elimination
Double Taxation ARTICLE 22* Elimination
Double Taxation
this Article. *as amended by the Protocol reproduced in Legal Notice 14
2011. 14 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY
Italy owns items
income which are taxable in Malta, Italy, in determining its income taxes specified in Article 2
this Agreement, may include in the basis upon which such taxes are imposed the said items
income, unless specific provisions
this Agreement otherwise provide. In such a case, Italy shall deduct from the taxes so calculated the income tax paid in Malta but in an amount not exceeding that proportion
the aforesaid Italian tax which such items
income bear to the entire income. The tax paid in Malta for which deduction is granted is only the pro rata amount corresponding to the foreign income which is included in the aggregate income. However, no deduction shall be granted if the item
income is subjected in Italy to a substitute tax or to a final withholding tax, or to substitute taxation at the same rate as the final withholding tax, also by request
the recipient, in accordance with Italian law..
the law
Malta regarding the allowance
a credit against Malta tax in respect
foreign tax, where, in accordance with the provisions
this Agreement, there is included in a Malta assessment income from sources within Italy, the Italian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon.
2011). CHAPTER V Special Provisions ARTICLE 23 Non-discrimination
a Contracting State, whether or not they are residents
one
the Contracting States, shall not be subjected in the other Contracting State to any taxatio n, or any requi rement connected therewit h, which i s other or m ore burdensome than the taxation and connected requirements to which nationals
that other State in the same circumstances are or may be subjected.
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
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.
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 first mentioned State.
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 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 15 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.
every kind and description. ARTICLE 24 Mutual Agreement Procedure
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 Agreement, 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, if his case comes under paragraph
, to that
the Contracting State
which he is a national. This case must be presented within three years from the first notification
the action giving rise to taxation not in accordance with the Agreement.
the other Contracting State, with a view to the avoidance
taxation not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the national laws
the Contracting States.
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 Agreement. They may also consult together for the elimination
double taxation in cases not provided for in the Agreement.
the Contracting States may communicate with each other directly for the purpose
reaching an agreement in the sense
the preceding paragraphs. ARTICLE 25* Exchange
Information
the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions
this Agreement or to the administration or enforcement
the domestic laws concerning taxes
every kind and description imposed on behalf
the Contracting States, or
their political or administrative subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement as well as to prevent fiscal evasion and tax avoidance. The exchange
information is not restricted by Articles 1 and 2.
that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection
, the enforcement or prosecution in respect
, the determination
appeals in relation to the taxes referred to in paragraph 1, or the oversight
the above. 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. *as substiotuted by the Protocol reproduced in Legal Notice 14
2011. 16 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY
paragraph
that or
the other Contracting State; (b) to supply information which is 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 (ordre public).
paragraph
paragraph
ficials Nothing in this Agreement shall affect the fiscal privileges
diplomatic or consular
ficials under the general rules
international law or under the provisions
special agreements. ARTICLE 27 Refunds
the taxpayer or
the Contracting State
which he is a resident, if the right to collect the said taxes is regulated by the provisions
this Agreement.
the Contracting State obliged to make repayment and are to be accompanied by an
ficial certificate from the competent authorities
the other State
which the claimant is a resident. This shall certify that the conditions which give rise to entitlement to refund have been fulfilled.
the Contracting States shall by mutual agreement settle the mode
application
this Article, in accordance with the provisions
this Agreement. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 17 CHAPTER VI Final Provisions ARTICLE 28 Entry into Force
ratification shall be exchanged at Rome as soon as possible.
instruments
ratification, and its provisions shall have effect: (a) in Italy, as respects income assessable for any taxable period commencing on or after the first day
January, 1976; (b) in Malta, in respect
taxes which are levied for any year
assessment beginning with the year
assessment which brings to charge the income
1976.
any tax payable by a resident
a Contracting State referring to the taxable periods commencing on or after the 1st January 1976 and until the entry into force
this Agreement shall be lodged within three years from the date
entry into force
this Agreement or from the date when the tax is charged, whichever is the later. Nothing herein contained shall reduce any longer time limit available to such resident for this purpose under the law
the Contracting State
which he is a resident. ARTICLE 29 Termination This Agreement shall remain in force indefinitely but either
the Contracting States may, on or before the thirtieth day
June in any calendar year beginning after the expiration
a period
five 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 Agreement shall cease to be effective: (a) in Italy, as respects income assessable for any taxable period commencing on or after the first day
January in the calendar year next following that in which notice
termination is given; (b) in Malta, in respect
taxes which are levied for any year
assessment on income derived during any period commencing on the first day
January in the year next following that in which notice
termination is given, or in subsequent years. IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Agreement. DONE at Valletta this 16th day
July, 1981 in duplicate, in the Italian and English languages, both texts being equally authentic. 18 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY For the Government
the Republic
Malta For the Government
the Republic
Italy Robert Stivala, Secretary, Ministry
Finance, Customs and People’s Financial Investments. Maurizio Battaglini Ambassador
Italy PROTOCOL At the signing
the Agreement concluded today between the Republic
Malta and the Republic
Italy for the avoidance
double taxation and the prevention
fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following additional provisions which shall form an integral part
the Agreement. I With reference to Article 3, in the event
agreement being reached between Malta and Italy regulating their respective rights over the continental shelf and allied matters, the Contracting States will enter into negotiations in order to amend the definitions
Italy and Malta taking account
the agreement so reached. II With reference to Article 5, an
fshore drilling site is included in the expression "a mine, quarry or other place
extraction
natural resources" in paragraph
, the expression "expenses which are incurred for the purposes
the permanent establishment" means expenses directly connected with the activity
the permanent establishment. IV (a) With reference to Article 8, where profits derived from the operation
a ship in international traffic by an enterprise whose place
effective management is situated in Malta are exempt from tax under the provisions
article 86
the Merchant Shipping Act, or under any identical or similar provisions, such profits may be taxed in Italy unless it is proved to the satisfaction
the competent authorities
Italy that not more than twenty per cent
the capital
the company owning the relative ship is owned, directly or indirectly, by persons not residents
Malta. (b) With further reference to Article 8, an enterprise
a Contracting State deriving profits from the operation
ships or aircraft in international traffic shall not be subject to any local income tax imposed in the other Contracting State. V With reference to paragraph
, the expression "notwithstanding the remedies provided by the national laws" means that the mutual agreement procedure is not alternative to the national contestation proceedings which should, in any case, be initiated within the time limits
the national law. VI The provisions
paragraph
shall not prevent the competent authorities
the Contracting States from adopting, by mutual agreement, DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY [ S.L.123.16 19 other procedures for the reduction
taxation in accordance with this Agreement. VII Notwithstanding the provisions
paragraph
, the provisions
shall be applicable as respects income derived during any taxable period commencing on or after the 1st January, 1969. DONE at Valletta this 16th day
July, 1981 in duplicate, in the Italian and English languages, both texts being equally authentic. For the Government
the Republic
Malta For the Government
the Republic
Italy Robert Stivala, Secretary, Ministry
Finance, Customs and People’s Financial Investments. Maurizio Battaglini Ambassador
Italy Legal Notice 14
2011: PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT
THE REPUBLIC
MALTA AND THE GOVERNMENT
THE REPUBLIC
ITALY FOR THE AVOIDANCE
DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND THE PREVENTION
FISCAL EVASION The Government
Malta and the Government
the Italian Republic, desiring to conclude a Protocol to amend the Agreement for the avoidance
double taxation with respect to taxes on income and the prevention
fiscal evasion, with Additional Protocol and Exchange
Notes, signed at Valletta on 16th July, 1981 (hereinafter referred to as "the Agreement"), have agreed as follows: ARTICLE I Paragraph
Italy: (
Malta: the income tax, (hereinafter referred to as "Malta tax").". 20 [ S.L.123.16 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
ITALY ARTICLE II With reference to Article 3 "General definitions", letter (i), subparagraph (i)
paragraph
Italy, the Ministry
Economy and Finance;". ARTICLE III 1. With reference to Article 22 "Elimination
double taxation", paragraph
Italy owns items
income which are taxable in Malta, Italy, in determining its income taxes specified in Article 2
this Agreement, may include in the basis upon which such taxes are imposed the said items
income, unless specific provisions
this Agreement otherwise provide. In such a case, Italy shall deduct from the taxes so calculated the income tax paid in Malta but in an amount not exceeding that proportion
the aforesaid Italian tax which such items
income bear to the entire income. The tax paid in Malta for which deduction is granted is only the pro rata amount corresponding to the foreign income which is included in the aggregate income. However, no deduction shall be granted if the item
income is subjected in Italy to a substitute tax or to a final withholding tax, or to substitute taxation at the same rate as the final withholding tax, also by request
the recipient, in accordance with Italian law.". 2. Paragraph 4
ARTICLE IV Article 25 "Exchange
information" shall be deleted and replaced by the following: "
the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions
this Agreement or to the administration or enforcement
the domestic laws concerning taxes
every kind and description imposed on behalf
the Contracting States, or
their political or administrative subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement as well as to prevent fiscal evasion and tax avoidance. The exchange
information is not restricted by Articles 1 and 2.
that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection
, the enforcement or prosecution in respect
, the determination
appeals in relation to the taxes referred to in paragraph 1, or the oversight
the above. 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.
paragraph
ITALY [ S.L.123.16 21 (a) to carry out administrative measures at variance with the laws and administrative practice
that or
the other Contracting State; (b) to supply information which is 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 (ordre public).
paragraph
paragraph
the procedures required by its domestic law for the entry into force
this Protocol. This Protocol shall enter into force on the date
the receipt
the later
these notifications and its provisions shall thereupon have effect in both States. This Protocol shall remain into force as long as the Agreement remains into force. In Witness thereof the undersigned, being duly authorized thereto by their respective Governments, have signed this Protocol. Done in duplicate in Rome this 13th day
March 2009 in the English and Italian languages, all texts being equally authentic. Tonio Borg For the Government
Malta Vincenzo Scotti For the Government
the Italian Republic
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.