CYPRUS [ S.L.123.32 SUBSIDIARY LEGISLATION 123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS ORDER 7th October, 1994 LEGAL NOTICE 139
1994, as modified by S.L.123.183. 1. The title
this Order is Double Taxation Relief on Taxes on Income with the Republic
Cyprus 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
Cyprus with a view to affording relief from double taxation in relation to the following taxes imposed by the laws
the Republic
Cyprus: (
CYPRUS SCHEDULE AGREEMENT BETWEEN THE GOVERNMENT
MALTA AND THE GOVERNMENT
THE REPUBLIC
CYPRUS FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL The Government
Malta and the Government
the Republic
Cyprus desiring to conclude an Agreement for the Avoidance
Double Taxation and the prevention
fiscal evasion with respect to taxes on income and on capital, 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
a Contracting State or
its political subdivisions or local authorities, irrespective
the manner in which they are levied.
income or
capital, including taxes on gains from the alienation
movable or immovable property, taxes on the total amounts
wages or salaries paid by enterprises, as well as taxes on capital appreciation.
signature
this Agreement in addition to, or in place
, the existing taxes. The competent authorities
the Contracting States DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 3 shall notify to each other any significant changes which have been made in their respective taxation laws.
this Article this Agreement shall not apply to tax paid or payable in Malta at the rate provided for in sub-article
article 56
the Income Tax Act concerning the chargeable income
any person engaged in the production
petroleum produced in Malta. CHAPTER II Definitions ARTICLE 3 General Definitions
this Agreement, unless the context otherwise requires: (a) the term "Cyprus" means the Republic
Cyprus including the national territory, the territorial sea, the continental shelf, and any other area which in accordance with international law and the law
the Republic
Cyprus has been or may hereafter be designated as an area within which the Republic
Cyprus exercises sovereign rights or has jurisdiction or any other rights and duties; (b) the term "Malta", when used in a geographical sense, means the Island
Malta, the Island
Gozo and the other islands
the Maltese archipelago including the territorial waters thereof, and any area outside the territorial sea
Malta which, in accordance with international law, has been or may hereafter be designated, under the law
Malta concerning the Continental Shelf, as an area within which the rights
Malta with respect to the sea-bed and subsoil and their natural resources may be exercised; (c) the terms "a Contracting State" and "the other Contracting State" mean the Republic
Cyprus or Malta as the context requires; (d) the term "person" includes an individual, a company and any other body
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; (
Cyprus, individuals possessing the citizenship
Cyprus and any person other than an individual deriving its status as such from the law in force in Cyprus; (ii) in the case
Malta, any citizen
Malta 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, aircraft or road vehicle operated by an enterprise which has its place
effective management in a Contracting State, except when the ship, aircraft or road vehicle is operated solely between places in the other Contracting State; (
CYPRUS in the case
Cyprus, the Minister
Finance or his authorised representative; (ii) in the case
Malta, the Minister responsible for finance or his authorised representative.
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 law
that State concerning the taxes to which this Agreement applies. ARTICLE 4 Resident
this Agreement, the term "resident
a Contracting State" means any person who, under the laws
that State, is liable to tax therein by reason
his domicile, residence, place
management or any other criterion
a similar nature. But this term does not include any person who is liable to tax in that State in respect only
income from sources in that State or capital situated therein.
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 States, he shall be deemed to be a resident
the Contracting State with which his personal and economic relations are closer (centre
vital interests); (b) if the State in which he has his centre
vital interests cannot be determined, or if he has no permanent home available to him in either 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 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 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 through which the business
an enterprise is wholly or partly carried on.
management; (b) a branch; DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 5 (c) an
fice; (
extraction
natural resources including an
fshore drilling site; (g) a building site or construction or assembly or installation project or supervisory activities in connection therewith, where such site, project or activity continues for more than six months.
this Article, the term "permanent establishment" shall be deemed not to include: (a) the use
facilities solely for the purpose
storage, display or delivery
goods or merchandise belonging to the enterprise; (b) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
storage, display or delivery; (c) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
processing by another enterprise; (d) the maintenance
a fixed place
business solely for the purpose
purchasing goods or merchandise, or
collecting information, for the enterprise; (e) the maintenance
a fixed place
business solely for the purpose
carrying on, for the enterprise, any other activity
a preparatory or auxiliary character; (f) the maintenance
a fixed place
business solely for any combination
activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity
the fixed place
business resulting from this combination is
a preparatory or auxiliary character.
a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if: (
equipment referred to in sub-paragraph (b).
paragraphs
an independent status to whom paragraph
an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name
the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect
any activities which that person undertakes for the enterprise, unless the activities
such person are limited to those mentioned in paragraph
business, would not make this fixed place
business a permanent establishment under the provisions
that paragraph.
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 6 [ S.L.123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS agent
an independent status, where such persons are acting in the ordinary course
their business. However, when the activities
such an agent are devoted wholly or almost wholly on behalf
the enterprise, he shall not be considered an agent
an independent status if the transactions between the agent and the enterprise were not made under arm’s length conditions.
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 constitute either company a permanent establishment
the other. CHAPTER III Taxation
Income ARTICLE 6 Income from Immovable Property
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.
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 the provisions
general law respecting immovable property apply, usufruct
immovable property and rights to variable or fixed payments as consideration for the working
, or the right to work or to explore for, 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
independent personal 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 thereof 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 or with other associated enterprises with which it deals. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 7
the profits
a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes
the bu s i n e s s o f t h e pe r m a n e n t es ta bl i s h m e n t i nc lu d in g e x e c u t iv e an d g e ne ra l administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect
amounts, if any, paid (otherwise than towards reimbursement
actual expenses) by the permanent establishment to the head
fice
the enterprise or any
its other
fices, by way
royalties, fees or other similar payments in return for the use
patents or other rights, or by way
commission, for specific services performed or for management, or, except in the case
a banking enterprise, by way
interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination
the profits
a permanent establishment for amounts charged (otherwise than towards reimbursement
actual expenses), by the permanent establishment to the head
fice
the enterprise or any
its other
fices, by way
royalties, fees or other similar payments in return for the use
patents or other rights, or by way
commission for specific services performed or for management, or, except in the case
a banking enterprise by way
interest on moneys lent to the head
fice
the enterprise or any
its other
fices.
any law
a Contracting State relating to the determination
the tax liability
a person, including the determination
such liability by the exercise
discretion or the making
an estimate by the competent authority
that State in cases in which, from the information available to the competent authority
that State, it is not possible or not practicable to ascertain the profits to be attributed to a permanent establishment, provided that that law shall be applied, so far as the information available to the competent authority permits, consistently with the principles
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.
this Article shall not affect the provisions
the law
a Contracting State regarding the taxation
profits from the business
insurance.
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. ARTICLE 8 International Traffic
ships, aircraft or road vehicles 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
CYPRUS ARTICLE 9 Associated Enterprises
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.
any law
a Contracting State relating to the determination
such liability by the exercise
a discretion or the making
an estimate by the competent authority
that State in cases which, from the information available to the competent authority
that State, it is not possible or not practicable to determine the income to be attributed to an enterprise, provided that that law shall be applied, so far as the information available to the competent authority permits, consistently with the principles
this Article.
an enterprise
that State, and taxes accordingly, profits on which an enterprise
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 that enterprise
the first mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount
the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions
this Agreement and the competent authorities
the Contracting States shall if necessary consult each other. 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 laws
that State, but: (a) where the dividends are paid by a company resident
Cyprus to a resident
Malta who is the beneficial owner thereof, the Cyprus tax so charged shall not exceed 15 per cent
the gross amount
the dividends; (b) where the dividends are paid by a company which is a resident
Malta to a resident
Cyprus who is the beneficial owner thereof Malta tax on the gross amount
the dividends shall not exceed that chargeable on the profits out
which the dividends are paid. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 9 This paragraph shall not affect the taxation
the company in respect
the profits out
which the dividends are paid.
that 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 permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect
which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case the provisions
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, nor subject the company’s undistributed profits to a tax on t h e co m p a ny ’s u n di s tr i b u t e d pr o f i t s , e ve n i f t h e d i vi d e n d s p a i d o r t h e 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.
paragraph
the other Contracting State including political sub-divisions and local authorities thereof, the Central Bank or any statutory body
that other Contracting State with respect to loans or credits made or guaranteed by the Government
that other Contracting State including political sub-divisions and local authorities thereof, the Central Bank or any statutory body
that other Contracting State shall be exempt from tax in the firstmentioned Contracting State.
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
this Article.
paragraphs
the interest, being a resident
a Contracting State, carries on business in 10 [ S.L.123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS 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
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
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 or fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
a special relationship between the payer and the beneficial owner or between both
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 beneficial owner in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In such case, the excess part
the payments shall remain taxable according to the laws
each Contracting State, due regard being had to the other provisions
this Agreement. ARTICLE 12 Royalties
the other Contracting State may be taxed in that other State.
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
the royalties.
, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trademark or other like property or right; (b) the use
, or the right to use, any industrial, commercial or scientific equipment; (c) the supply
scientific, technical, industrial or commercial knowledge or information; (d) the supply
any assistance that is ancillary and subsidiary to, and is furnished as a means
enabling the application or enjoyment
, any such property or right as is mentioned in sub-paragraph (a), any such equipment as is mentioned in sub-paragraph (b), or any such knowledge or information as is mentioned in sub-paragraph (c); (e) the use
, or the right to use: (i) motion picture films; DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 11 (
the use or supply
any property or right referred to in this paragraph.
paragraphs
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 independent personal 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 case the provisions
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 or fixed base in connection with which the obligation 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 State in which the permanent establishment or fixed base is situated.
a special relationship between the payer and the beneficial owner or between both
them and some other person, the amount
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
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In such case, the excess part
the payments shall remain taxable according to the laws
each Contracting State, due regard being had to the other provisions
this Agreement. ARTICLE 13 Alienation
Property
immovable property, as defined in paragraph
shares or comparable interests in a company, the assets
which consist wholly or principally
immovable property, may be taxed in the Contracting State in which the assets or the principal assets
the company are situated.
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 independent personal services, including such income or gains from the alienation
such a permanent establishment (alone or together with the whole enterprise) or
such fixed base, may be taxed in the other State.
ships, aircraft and road vehicles operated in international traffic or movable property pertaining to the operation
such means
transportation shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated. 12 [ S.L.123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS
any property other than that referred to in paragraphs
which the alienator is a resident. ARTICLE 14 Independent Personal Services
a Contracting State in respect
professional services or other activities
an independent character shall be taxable only in that State. However, such income may be taxed in the other 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 (
that State and exceeds five thousand U.S. dollars (US$ 5,000) during the calendar year, notwithstanding that his stay in that State is for a period or periods amounting in the aggregate to less than 183 days during that twelve month period.
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 derived in respect
an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic may be taxed in the Contracting State in which the place
effective management
the enterprise is situated. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 13 ARTICLE 16 Directors’ Fees Directors’ fees and similar payments derived by a resident
one
the Contracting States in his capacity as a member
the board
directors, or other comparable body however described,
a company which is a resident
the other Contracting State, may be taxed in that other State. ARTICLE 17 Artistes and Athletes
Articles 14 and 15, income derived by a resident
a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste or a musician or as an athlete from his personal activities as such exercised in the other Contracting State, may be taxed in that other Contracting State.
personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the 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.
paragraphs
this Article income mentioned in this Article shall be exempt from tax in the Contracting State in which the activity
the entertainer or athlete is exercised provided that this activity is supported in a considerable part out
public funds
this State or
the other State or the activity is exercised under a cultural agreement or arrangement between the Contracting States. ARTICLE 18 Pensions
paragraph
, pensions and other similar remuneration paid to a resident
a Contracting State in consideration
past employment shall be taxable only in that State.
paragraph
a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State. ARTICLE 19 Government Service
services rendered to that State or subdivision or authority 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 individual is a resident
that State who: (i) is a national
that State; or (ii) did not become a resident
that State solely for the purposes
14 [ S.L.123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS rendering the services.
funds created by a Contracting State or a political subdivision or a local authority thereof to an individual in respect
services rendered to that State or subdivision or authority shall be taxable only in that State. (b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident
, and a national
, that State.
Articles 15, 16 and 18 shall apply to remuneration and pensions in respect
services rendered in connection with any business carried on by a Contracting State or a political subdivision or a local authority thereof.
a Contracting State, out
funds exclusively supplied by that State to a specialist or volunteer seconded to the other Contracting State with the consent
that other State, such remuneration shall be deemed to have been paid by the first-mentioned State and shall be taxable only in that State. ARTICLE 20 Teachers
the other Contracting State and who is present in the first-mentioned State for a period not exceeding two years for the purpose
carrying out advanced study or research or for teaching at a university, college, school or other educational institution receives for such work shall not be taxed in that State, provided that such remuneration is derived by him from outside that State.
a specific person or persons. ARTICLE 21 Students and Trainees An individual who is resident
a Contracting State immediately before making a visit to the other Contracting State and is temporarily present in the other State solely: (
a grant, allowance or award for the primary purpose
study, research or training from the government
either State or from a scientific, educational, religious, or charitable organisation or under a technical assistance programme entered into by the Government
either State, shall be exempt from tax in that other State on: (a) all remittances from abroad for the purposes
his maintenance, education, study, research or training; (b) the amount
such grant, allowance or award; and (c) any remuneration not exceeding six thousand U.S. dollars (US$ 6,000) DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 15 in respect
services in that other State provided the services are performed in connection with his study, research or training or are necessary for the purpose
his maintenance. ARTICLE 22 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
, if the recipient
such 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 independent personal 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 case, the provisions
CHAPTER IV Taxation
Capital ARTICLE 23 Capital
a Contracting State and situated in the other Contracting State, may be taxed in that other State.
the business property
a permanent establishment which an enterprise
a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident
a Contracting State in the other Contracting State for the purpose
performing independent personal services, may be taxed in that other State.
such ships, aircraft and boats, shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated.
capital
a resident
a Contracting State shall be taxable only in that State. CHAPTER V Elimination
Double Taxation ARTICLE 24 Elimination
Double Taxation
Cyprus double taxation shall be eliminated as follows: 16 [ S.L.123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS Subject to the provisions
the law
Cyprus regarding the allowance as a credit against Cyprus tax
tax payable in a territory outside Cyprus, Malta tax payable under the laws
Malta, whether directly or by deductions in respect
profits, income or gains from sources within Malta shall be allowed as a credit against any Cyprus tax payable in respect
that profit, income or gains. Such deduction shall not, however, exceed that part
the tax, as computed before the deduction is given, which is appropriate to such income derived in Malta.
Malta, double taxation shall be eliminated as follows: Subject to the provisions
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 Cyprus, the Cyprus tax on such income shall be allowed as a credit against the relative Malta tax payable thereon.
this Article shall be deemed to include the tax which would have been payable but for the legal provisions concerning tax reduction, exemption or other tax incentives granted under the laws
the Contracting State, provided that in the case
dividends, interest or royalties any such tax which has been exempted or reduced shall be deemed to have been paid at: (a) 15 per cent
the gross amount
the dividends referred to in Article 10; (b) 10 per cent
the gross amount
the interest referred to in Article 11; and (c) 10 per cent
the gross amount
the royalties referred to in Article 12.
this Agreement income is relieved from tax in one
the Contracting States and, under the law in force in the other Contracting State, a person, in respect
the said income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof then the relief to be allowed under this Agreement in the first mentioned Contracting State shall apply only to so much
the income as is remitted to or received in the other Contracting State. CHAPTER VI Special Provisions ARTICLE 25 Non-discrimination
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
that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions
, also apply to persons who are not residents
one or both
the Contracting States.
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.
paragraph
DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 17 Article 11, or paragraph
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. Similarly, any debts
an enterprise
a Contracting State to a resident
the other Contracting State shall, for the purpose
determining the taxable capital
such enterprise, be deductible under the same conditions as if they had been contracted 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 State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises
that firstmentioned State are or may be subjected.
the other Contracting State any personal allowances, reliefs and reductions for tax purposes on account
civil status, family responsibilities or any other personal circumstances which it grants to its own residents.
this Article shall, notwithstanding the provisions
, apply to taxes
every kind and description. ARTICLE 26 Mutual Agreement Procedure
one or both
the Contracting States result or will result for him in taxation not in accordance with the provisions
this Agreement, he may, irrespective
the remedies provided by the domestic law
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. The case must be presented within three years from the first notification
the action resulting in taxation not in accordance with the provisions
the Agreement.
the other Contracting State, with a view to the avoidance
taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law
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. When it seems advisable in order to reach agreement to have an oral exchange
opinions, such exchange may take place through a Commission consisting
representatives
the competent authorities
the Contracting States. 18 [ S.L.123.32 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS ARTICLE 27 Exchange
Information
the Contracting States shall exchange such information as is necessary for carrying out the provisions
this Agreement or
the domestic laws
the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. The exchange
information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws
that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection
, the enforcement or prosecution in respect
, or the determination
appeals in relation to, the taxes covered by the Agreement. 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
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). ARTICLE 28 Diplomatic and Consular
ficers Nothing in this Agreement shall affect the fiscal privileges
diplomatic agents or consular
ficers under the general rules
international law or under the provisions
special agreements. CHAPTER VII Final Provisions ARTICLE 29 Entry into Force
the Contracting States shall notify each other that the constitutional requirements for the entry into force
this Agreement have been complied with.
the later
the notifications referred to in paragraph
taxes which are levied on any income or capital which has accrued on or after the first day
January, DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE REPUBLIC
CYPRUS [ S.L.123.32 19 (b) in Malta: in respect
taxes for any year
assessment beginning on or after the first day
January in the year immediately following the year
the signature. ARTICLE 30 Termination This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice
termination at least six months before the end
any calendar year beginning after the expiration
a period
five years from the date
its entry into force. In such event, the Agreement shall cease to have effect: (a) in Cyprus: in respect
taxes for any year
assessment beginning in the year following the year in which the notice
termination has been given; (b) in Malta: in respect
taxes for any year
assessment beginning on or after the first day
January in the second calendar year next following that in which the notice
termination has been given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement. DONE in duplicate at Rome this 22nd day
October, 1993, in the English language. FOR THE GOVERNMENT
MALTA FOR THE GOVERNMENT
THE REPUBLIC
CYPRUS CARMEL J. AQUILINA AMBASSADOR FOR MALTA PEDROS MICHAELIDES CYPRIOT HIGH COMMISSIONER FOR MALTA
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.