DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 1 SUBSIDIARY LEGISLATION 123.178 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER 6th December, 2017 LEGAL NOTICE 345 of

Article 7shall apply.

1. 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 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 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 situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. Article 11 INTEREST
2. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
3. 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.
4. 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.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein and the debtclaim in respect of which the interest is paid is effectively connected with such permanent establishment.

Article 7shall apply.

1. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State 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 State in which the permanent establishment 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 debtclaim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such 11 12 [ S.L. 123.178 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER relationship, the provisions of this Article shall apply only to the lastmentioned 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.
3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if it is received and held by the Government of the other Contracting State or its political subdivision, or by the National (Central) Bank of the other Contracting State, or by a bank wholly owned by the Government of the other Contracting State. Similarly, interest arising in a Contracting State shall be exempt from tax in that State if that interest is paid with respect to a loan guaranteed by the Government of the other Contracting State. Article 12 ROYALTIES
4. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
5. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of all payments.
6. 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 and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for information (know-how) concerning industrial, commercial or scientific experience.
7. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment.

Article 7shall apply.

5. 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, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 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. 6. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment 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 State in which the permanent establishment is situated. 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, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State. 3. Gains from the alienation of ships or aircraft operated in international traffic, boats engaged in inland waterways transport or movable property pertaining to the operation of such ships, aircraft or boats, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 4. Gains derived by a resident of a Contracting State from the alienation of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident. Article 14 INCOME FROM EMPLOYMENT 1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of 13 14 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 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 any twelve-month period commencing or ending in the fiscal 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 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 15 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 16 ARTISTES AND SPORTSMEN 1. Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 sportsman are exercised. 3. Notwithstanding the provisions of paragraphs 1 and 2, income referred to in this Article shall be exempt from tax in the Contracting State in which the activities of the entertainer or sportsman are exercised, if such activities are substantially financed from the public funds of either or both States, or are carried on under a cultural cooperation agreement between the Contracting States. Article 17 PENSIONS AND SOCIAL SECURITY PAYMENTS 1. Subject to the provisions of paragraph 2 of Article 18, 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. 2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under the social security legislation of a Contracting State shall be taxable only in that State. Article 18 GOVERNMENT SERVICE 1.
4. a)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 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 14,15,16 and 17 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a 15 16 [ S.L. 123.178 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER political subdivision or a local authority thereof. Article 19 STUDENTS AND BUSINESS APPRENTICES A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State shall be exempt from tax in the firstmentioned State on payments received from outside that firstmentioned State for the purpose of his maintenance, education or training. Article 20 OTHER INCOME 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment.

Article 7shall apply.

Article 21 Limitation of Benefits 1. Notwithstanding the provisions of any other Article of this Convention, a resident of a Contracting State shall not receive the benefit of any reduction in or exemption from tax provided for in the Convention by the other Contracting State if the main purpose or one of the main purposes of such resident or a person connected with such resident was to obtain the benefits of the Convention. 2. The foregoing provision shall not apply where a company is engaged in substantive business operation in the Contracting State of which it is a resident and the relief from the taxation claimed from the other Contracting State is with respect to income that is connected with such operations. DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 Article 22 ELIMINATION OF DOUBLE TAXATION 1. In the case of Ukraine double taxation shall be eliminated as follows: Subject to the provisions of the law of Ukraine regarding the elimination of tax paid in a territory outside Ukraine (which shall not affect the general principle hereof), Malta tax paid under the laws of Malta and in accordance with this Convention, whether directly or by deduction, on profits or income from sources within Malta shall be allowed as a credit against any Ukrainian tax computed by reference to the same profits or income by reference to which the Malta tax is computed. 2. follows: In the case of Malta double taxation shall be eliminated as Subject to the provisions of the law of Malta regarding the allowance of a credit against Malta tax in respect of foreign tax, where, in accordance with the provisions of this Convention, there is included in a Malta assessment income from sources within Ukraine, the Ukrainian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon. 3. Such credits in either case shall not exceed that part of income tax, as computed before the credit is given, which is attributable to the income which may be taxed in that other State. 4. Where in accordance with any provision of the Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 5. For the purposes of paragraphs 1 and 2, profits, income and capital gains derived by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other Contracting State. Article 23 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 17 18 [ S.L. 123.178 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER 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. Stateless persons who are residents of a Contracting State shall not be subjected in either 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 the State concerned in the same circumstances are or may be subjected. 3. 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. 4. Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11, or paragraph 5 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. 5. Enterprises of a Contracting State, the property of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. 6. Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted for taxation purposes to resident individuals on account of civil status or family responsibilities or which are granted to residents under the criteria not contained in general tax laws. 7. The provisions of this Article shall apply to taxes covered by this Convention. Article 24 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 this Convention, he may, irrespective DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 23, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or the application of the Convention. 4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 25 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 of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. 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, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of 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. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: 19 20 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178

1. a)to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. 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;
3. 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 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. Article 26 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS Nothing in this Convention shall affect the fiscal privileges accorded to members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. Article 27 ENTRY INTO FORCE 1. Each of the Contracting States shall notify to the other, through the diplomatic channel, the completion of the procedures required by its domestic law for the bringing into force of this Convention. This Convention shall enter into force on the date of the later of these notifications and shall thereupon have effect:
4. a)in Ukraine: (
5. i)in respect of taxes withheld at source on amounts paid on or after 1 January in the calendar year next following that in which the Convention enters into DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 force; and (
6. ii)in respect of other taxes for taxable years or periods beginning on or after 1 January in the calendar year next following that in which the Convention enters into force;
7. b)in Malta: in respect of taxes on income derived during any calendar year or accounting period, as the case may be, beginning on or after 1 January immediately following the date on which the Convention enters into force. Article 28 TERMINATION This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through the diplomatic channel, by giving notice of termination at least six months before the end of any calendar year beginning after the expiry of five years from the date of entry into force of the Convention. In such event, the Convention shall cease to have effect:
8. a)in Ukraine: (
9. i)in respect of taxes withheld at source on amounts paid on or after 1 January in the calendar year next following that in which the notice of termination is given; and (
10. ii)in respect of other taxes for taxable years or periods beginning on or after 1 January in the calendar year next following that in which the notice of termination is given;
11. b)in Malta: in respect of taxes on income derived during any calendar year or accounting period, as the case may be, beginning on or after 1 January immediately following the date on which the notice of termination is given. In witness whereof the undersigned, duly authorized thereto, have signed this Convention. Done in duplicate at Kiev this 4 of September 2013 in the English and Ukrainian languages, both texts being equally authentic. For the Government of the Republic of Malta For the Government of Ukraine 21 22 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UKRAINE) ORDER [ S.L. 123.178 PROTOCOL At the moment of signature of the Convention between the Government of Ukraine and the Government of the Republic of Malta for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, both parties have agreed upon the following provisions, which form an integral part of the Convention: 1. For the purpose of Article 8 this Convention shall not apply to persons who are entitled to an exemption or any other special tax benefit under the provisions of the law in force in Malta regulating merchant shipping. However, this does not apply to the income of such persons that is subject to the normal Malta income tax. 2. In connection with Article 10 (Dividends) paragraph 3
12. a)it is understood that the expression "the gross amount of the dividends" means the dividends in the shareholders' hands being grossed up, for the purposes of taxation according to the law of a Contracting State, with the tax paid by the company on the profits out of which such dividend is paid. The amount of tax with which dividends are grossed up is in the same proportion to the tax on the company's profits as the dividends in question, as grossed up, bear to the whole amount of the company's profits out of which the distribution is being made;
13. b)where the laws of a Contracting State provide for the availability of underlying tax relief, the provisions of Article 22 (Elimination of Double Taxation) shall be applicable in that Contracting State where the other Contracting State makes use of the offset mentioned in that paragraph. Where underlying tax relief is not so available, the provisions of Article 22 (Elimination of Double Taxation) may not be applied. In witness whereof the undersigned, duly authorized thereto, have signed this Protocol. Done in duplicate at Kiev this 4th day of September 2013 in the English and Ukrainian languages, both texts being equally authentic. For the Government of the Republic of Malta For the Government of Ukraine