Obsah (4)

Article 11Article 7Article 1Article 2

DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 SUBSIDIARY LEGISLATION 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC RE

paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (

1. a)he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests); (
2. b)if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; (
3. c)if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national; (
4. d)if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where by reason of

paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated. Article 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: (

1. a)a place of management; (
2. b)a branch; (
3. c)an office; (
4. d)a factory; (
5. e)a sales outlet; (
6. f)a workshop; 5 6 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) (
7. g)a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. (
8. h)a commercial warehouse (in relation to a person carrying on business in the field of storage); and (
9. i)a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on. 3. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months. 4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include: (
10. a)the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (
11. b)the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (
12. c)the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (
13. d)the maintenance of a stock of goods or merchandise belonging to the enterprise, which is exhibited at a trade fair or exhibition, and which is sold by the enterprise at the end of such fair or exhibition, provided that the frequency of such trade fair or exhibition shall not exceed once in a twelve month period; (
14. e)the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise; (
15. f)the maintenance of a fixed place of business solely for the purpose of advertising for the enterprise; (
16. g)the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; (
17. h)the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (
18. a)to (g), provided that the overall activity of the fixed place of DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 business resulting from this combination is of a preparatory or auxiliary character. 5. Notwithstanding

paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under

that paragraph.

1. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it insures risks situated therein through a person other than an agent of an independent status to whom paragraph 7 applies.
2. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, where the activities of such an agent are devoted wholly or mainly to that enterprise and conditions are made or imposed between that enterprise and the agent in their commercial and financial relations which differ from those which would have been made between independent enterprises he would not be considered an agent of an independent status within the meaning of this paragraph.
3. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. 7 8 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 Article 6 INCOME FROM IMMOVABLE PROPERTY
4. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
5. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which

general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property. 3.

paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 4.

paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. Article 7 BUSINESS PROFITS

1. The profits of an enterprise of 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 of the enterprise may be taxed in the other State but only so much of them as are attributable to that permanent establishment.
2. Subject to

paragraph 3, where an enterprise of 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 of which it is a permanent establishment.

1. In determining the profits of a permanent establishment, DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. This provision shall apply subject to limitations under the domestic law, provided that those limitations are consistent with the principles of paragraph 2 of Article
3. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
5. For the purposes of 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.
6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then

those Articles shall not be affected by

this Article. Article 8 INTERNATIONAL TRAFFIC 1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 2. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident. 3. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic include: (

1. a)or aircraft; profits from the rental on a bareboat basis of ships 9 10 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 (
2. b)profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise; and (
3. c)profits from the sale of tickets for such transportation on behalf of other enterprises, where such rental, use, maintenance or sale of tickets, as the case may be, is incidental to the operation of ships or aircraft in international traffic. 4. For the purposes of this Article, interest on funds directly connected with the operation of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft, and

Article 11shall not apply in relation to such interest.

5.

paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED ENTERPRISES 1. Where (

1. a)an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (
2. b)the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of 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 of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but (
3. a)where the dividends are paid by a company which is a resident of Ethiopia to a resident of Malta who is the beneficial owner thereof, the tax so charged in Ethiopia shall not exceed five per cent of the gross amount of the dividends; (
4. b)where the dividends are paid by a company which is a resident of Malta to a resident of Ethiopia who is the beneficial owner thereof, Malta tax on the gross amount of the dividends shall not exceed that chargeable on the profits out of which the dividends are paid. Under the Maltese law presently in force, income tax paid by a company, as is referable to that part of its profits which is distributed by way of dividends, is assimilated with the personal income tax of the shareholder in receipt of such dividends. In the shareholder’s hands, the dividend is charged to tax after being grossed up with the tax paid by the company on the profits out of which such dividend is paid and the relevant amount of tax, so assimilated, is set off against the shareholder’s tax liability on his income from all sources liable to tax. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3. The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 11 12 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) 4.

paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case,

Article 7or Article 14, as the case may be, shall 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 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 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 five 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. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 4.

paragraph 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, 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 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 paid is effectively connected with such permanent establishment or fixed base. In such case

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 Contracting 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 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 relationship,

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

1. Royalties 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 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 five per cent of the gross amount of the royalties.
3. 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 computer software, cinematograph films and recordings on tape or other media used for radio or television broadcasting or other means of reproduction or transmission, any patent, trade mark, design or model, plan, secret formula or process or for information concerning industrial, commercial or scientific experience. 4.

paragraph 1and 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, or 13 14 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) 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. In such case,

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

1. Royalties shall be deemed to arise in a Contracting State when the payer is 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 or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the Contracting 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 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,

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 from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184
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 INDEPENDENT PERSONAL SERVICES
6. 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.
7. 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
8. Subject to

Articles 16, 18, 19, 20 and 21, 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

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 15 16 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated. 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 SPORTSPERSONS 1. Notwithstanding

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 sportsperson, from his or her 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 sportsperson in his or her capacity as such accrues not to the entertainer or sportsperson himself or herself but to another person, that income may, notwithstanding

Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. 3. Notwithstanding

paragraphs 1 and 2, income derived from the activities referred to in paragraph 1 within the framework of cultural or sports exchanges agreed to by the Governments of the Contracting States and carried out other than for the purpose of profit, shall be exempt from tax in the Contracting State in which these activities are exercised. DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 Article 18 PENSIONS AND ANNUITIES 1. Subject to

paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment and any annuity paid to such a resident shall be taxable only in that State. 2. Notwithstanding

paragraph 1, such pension or similar remuneration or annuity made under the social security legislation of a Contracting State shall be taxable only in that State. 3. The term "annuity" means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of 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 1. (

1. a)Salaries, wages and other similar remuneration 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. (
2. 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: (
3. i)is a national of that State; or (
4. ii)did not become a resident of that State solely for the purpose of rendering the services. 2. (
5. a)Notwithstanding

paragraph 1, pensions and other similar remuneration 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. (b) However, such pensions and similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State. 3.

Articles 15, 16, 17 and 18 shall apply to salaries, wages, pensions and other similar remuneration in respect 17 18 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) 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

1. 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.
2. In respect of grants, scholarships and remuneration from employment not covered by paragraph 1, a student or business apprentice referred to in that paragraph shall, in addition, be entitled during such education or training to the same exemptions, reliefs or reductions in respect of taxes available to residents of the Contracting State which he is visiting. Article 21 PROFESSORS AND RESEARCHERS
3. An individual who is or was a resident of a Contracting State immediately before making a visit to the other Contracting State and who, at the invitation of any university, college, school or other similar non-profitable educational institution, which is recognized by the Government of that other Contracting State, is present in that other State for a period not exceeding two years from the date of his first arrival in that other Contracting State, solely for the purpose of teaching or research or both, at such educational institution shall be exempt from tax in that other Contracting State on his remuneration for teaching or research. 2.

paragraph 1 of this Article shall not apply to income from research if such research is undertaken not in the public interest but for the private benefit of a specific person or persons. Article 22 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. DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 2.

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. In such case,

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

3. Notwithstanding

paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Convention and arising in the other Contracting State may also be taxed in that other State. Article 23 ELIMINATION OF DOUBLE TAXATION 1. as follows: In the case of Malta, double taxation shall be eliminated Subject to

the law of Malta regarding the allowance of a credit against Malta tax in respect of foreign tax, where, in accordance with

this Convention, there is included in a Malta assessment income from sources within Ethiopia, the Ethiopian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon. 2. In the case of Ethiopia, double taxation shall be eliminated as follows: Where a resident of Ethiopia derives income, which in accordance with

this Convention, may be taxed in Malta, Ethiopia shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Malta. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Malta. 3. For the purpose of paragraph 1, where the income arising in Ethiopia is exempt or taxed at a reduced rate in Ethiopia, for a limited period of time in accordance with the laws and regulations of Ethiopia aimed at promoting economic development, then the tax on such income which has been exempt or taxed at a reduced rate in Ethiopia shall be credited against the tax on income owing in Malta where the beneficial owner of this income is a resident. 19 20 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) 4.

paragraph 3 shall apply for the first ten years for which this Convention is effective. The competent authorities of the Contracting States may consult each other to determine whether this period may be extended. 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

Article 1

, also apply to persons who are not residents of one or both of the Contracting States.

1. 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.
2. Except where

paragraph 1 of Article 9, paragraph 6 of Article 11, or paragraph 6 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 Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. 5.

this Article shall, notwithstanding

Article 2, apply to taxes of every kind and description.

DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 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

this Convention, he may, irrespective of the remedies provided by the domestic law of the Contracting 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 24, 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 Convention.

1. 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.
2. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the 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.
3. 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
4. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out

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. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as 21 22 [ S.L. 123.184 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) 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, 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. 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

paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: (

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

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. DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 Article 27 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS 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

special agreements. Article 28 ENTRY INTO FORCE 1. The Contracting States shall notify each other in writing through diplomatic channels that their legal requirements for entry into force of this Convention have been fulfilled. 2. The Convention shall enter into force thirty days after the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect: (

1. a)in the case of Malta: in respect of taxes on income derived during any fiscal year beginning on or after the first day of January immediately following the date on which the Convention enters into force; (
2. b)in the case of Ethiopia: (
3. i)with regard to taxes withheld at source, in respect of amounts paid on or after the eighth day of July next following the date on which the Convention enters into force; and (
4. ii)with regard to other taxes, in respect of fiscal year beginning on or after the eighth day of July next following the date on which the Convention enters into force. Article 29 TERMINATION 1. This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention at any time after five years from the date on which the Convention enters into force by giving notice of termination, through diplomatic channels, at least six months before the end of any fiscal year. 2. In such event, the Convention shall cease to have effect: 23 24 DOUBLE TAXATION RELIEF (TAXES ON INCOME) (THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA) [ S.L. 123.184 (
5. a)in the case of Malta: in respect of taxes on income derived during any fiscal year beginning on or after the first day of January immediately following the date on which the notice is given; (
6. b)in the case of Ethiopia: (
7. i)with regard to taxes withheld at source, in respect of amounts paid on or after the eighth day of July next following the date on which the notice is given; and (
8. ii)with regard to other taxes, in respect of fiscal year beginning on or after the eighth day of July next following the date on which the notice is given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention. DONE and signed at Valletta, this 12th day of April, 2018 in duplicate, in the English language only. For the Government of the Republic of Malta For the Government of the Federal Democratic Republic of Ethiopia Ms. Maria Camilleri Calleja Director General, Political, European Affairs and Maltese Living Abroad Ministry for Foreign Affairs and Trade Promotion to Malta H.E. Zenebu Tadesse Woldetsadik Ambassador Extraordinary and Plenipotentiary of the Federal Democratic Republic of Ethiopia