PAKISTAN [ S.L.123.09 SUBSIDIARY LEGISLATION 123.09 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN ORDER 13th June, 1980 LEGAL NOTICE 54
this Order is Double Taxation Relief on Taxes on Income with the Islamic Republic
Pakistan Order. 2. It is hereby declared (a) that the arrangements specified in the Convention out in the Schedule to this Order have been made with the Government
the Islamic Republic
Pakistan with a view to affording relief from double taxation and preventing fiscal evasion in relation to the following taxes imposed by the laws
the Islamic Republic
Pakistan: the income tax, super-tax and the surcharge; (b) that it is expedient that those arrangements should have effect. Title. Arrangements to have effect. 1 [ S.L.123.09 2 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN SCHEDULE CONVENTION BETWEEN THE REPUBLIC
MALTA AND THE ISLAMIC REPUBLIC
PAKISTAN FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION WITH THE RESPECT TO TAXES ON INCOME The Government
the Republic
Malta and the Government
the Islamic Republic
Pakistan, desiring to conclude a Convention for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion with respect to taxes on income, have agreed as follows: CHAPTER I Scope
the Convention ARTICLE 1 Personal Scope This Convention shall apply to persons who are residents
one or both
the Contracting States. ARTICLE 2 Taxes Covered
each Contracting State irrespective
the manner in which they are levied.
income, including taxes on gains from the alienation
movable or immovable property, as well as taxes on the total amounts
wages and salaries paid by enterprises.
Pakistan: the income tax, supertax and the surcharge, (hereinafter referred to as "Pakistan tax"). (b) In the case
Malta: the income tax and surtax, including prepayments
tax whether made by deduction at source or otherwise, (hereinafter referred to as "Malta tax").
signature
this Convention in addition to, or in place
, the existing taxes by either Contracting State or by the Government
any territory to which the present Convention is extended under Article 27
this Convention. The competent authorities
the Contracting States shall notify to each other any significant changes which have been made in their respective taxation laws. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 3 CHAPTER II Definitions ARTICLE 3 General Definitions
the Islamic Republic
Pakistan and also includes any area outside the territorial waters
Pakistan which in accordance with international law, has been or may hereafter be designated, under the laws
Pakistan, as an area within which the rights
Pakistan with respect to the sea-bed and sub-soil and their natural resources may be exercised; (b) the term "Malta" when used in a geographical sense means the Republic
Malta including the Island
Malta, the Island
Gozo, the other islands
the Maltese Archipelago together with 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 seabed and sub-soil and their natural resources may be exercised; (
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; (
a Contracting State; (
Pakistan, the Central Board
Revenue; (ii) in the case
Malta, the Minister responsible for finance or his authorised representative.
this Convention by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws
that Contracting State relating to the taxes which are the subject
this Convention. ARTICLE 4 Fiscal Domicile
this Convention, the term "resident
a Contracting [ S.L.123.09 4 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN State" means any person who, under the law
that State, is liable to taxation therein by reason
his domicile, residence, place
management or any other criterion
a similar nature.
the provisions
paragraph
both Contracting States, then his status shall be determined as follows: (a) He shall be deemed to be a resident
the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident
the Contracting State with which his personal and economic relations are closest (centre
vital interests). (b) If the Contracting State in which he has this centre
vital interests cannot be determined, or if he has no permanent home available to him in either Contracting State, he shall be deemed to be a resident
the Contracting State in which he has an habitual abode. (c) If he has an habitual abode in both Contracting States or in neither
them, he shall be deemed to be a resident
the Contracting State
which he is a national. (d) If he is a national
both Contracting States or
neither
them, the competent authorities
the Contracting States shall settle the question by mutual agreement.
the provisions
paragraph
both Contracting States, then it shall be deemed to be a resident
the Contracting State from whose law it derives its status as such.
the provisions
paragraph
both Contracting States, the competent authorities
the Contracting States shall by mutual agreement endeavour to settle the question and to determine the mode
application
the Convention to such persons. ARTICLE 5 Permanent Establishment
this Convention the term "permanent establishment" means a fixed place
business in which the business
the enterprise is wholly or partly carried out.
management; (
fice; (
extraction
natural resources including an
fshore drilling site; (g) a building site or construction or assembly project which exists for more than 12 months.
a Contracting State shall be deemed to have a permanent establishment in other Contracting State if it carries on supervisory activities in that DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 5 other State for more than 12 months in connection with a construction or assembly project.
facilities solely far the purpose
storage, display or delivery
goods or merchandise belonging to the enterprise; (b) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
storage, display or delivery; (c) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
processing by another enterprise; (d) the maintenance
a fixed place
business solely for the purpose
purchasing goods or merchandise, or for collecting information, for the enterprise; (e) the maintenance
a fixed place
business solely for the purpose
advertising, for the supply
information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.
an enterprise
the other Contracting State - other than an agent
an independent status to whom paragraph
the enterprise, unless his activities are limited to the purchase
goods or merchandise for the enterprise.
a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent
an independent status, where such persons are acting in the ordinary course
their business.
a Contracting State controls or is controlled by a company, which is a resident
the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not
itself make either company a permanent establishment
the other. CHAPTER III Taxation
Income ARTICLE 6 Income from Immovable Property
the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, 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, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. [ S.L.123.09 6 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN
paragraph
immovable property.
paragraphs
an enterprise and to income from immovable property used for the performance
professional services. ARTICLE 7 Business Profits
an enterprise
a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits
the enterprise may be taxed in the other State but only so much
them as is attributable to that permanent establishment.
paragraph
a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise
which it is a permanent establishment.
the profits
a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes
the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
an apportionment
the total profits
the enterprise to its various parts, nothing in paragraph
apportionment adopted shall, however, be such that the result shall be in accordance with the principles embodied in this Article.
the mere purchase by that permanent establishment
goods or merchandise for the enterprise.
the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
income which are dealt with separately in other Articles
this Convention, then the provisions
those Articles shall not be affected by the provisions
this Article. ARTICLE 8 Shipping and Air Transport
a Contracting State from the operation
ships or aircraft in international traffic shall be taxable only in that State.
paragraph
, profits derived DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 7 from the operation
ships or aircraft used principally to transport passengers or goods exclusively between places in a Contracting State may be taxed in that State.
paragraphs
a Contracting State from its participation in a pool, a joint business or in an international operating agency.
this Article, profits derived from the operation
ships or aircraft in international traffic also include income derived from (a) the rental, lease or maintenance
ships or aircraft; (b) the rental, lease, use or maintenance
containers, trailers for the inland transport
containers and other related equipment; (
a Contracting State whose income is wholly or mainly derived from the operation
ships or aircraft in international traffic; and is paid by a resident
the other Contracting State whose income is also wholly or mainly derived from the operation
ships or aircraft in international traffic.
this Article, profits from the operation
a ship in international traffic derived by a company which is a resident
Malta having more than 25 per cent
its capital owned, directly or indirectly, by persons not residents
Malta, may be taxed in Pakistan unless the company proves that the profits derived from the operation
such ship are subject to Malta tax without regard to any relief therefrom as provided for in section 86
the Merchant Shipping Act, or in any identical or similar provision. 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. ARTICLE 10 Dividends
a Contracting State to a resident
the other Contracting State may be taxed in that other State. [ S.L.123.09 8 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN
which the company paying the dividends is a resident, and according to the law
that State but (a) where the dividends are paid by a company resident
Pakistan to a company resident
Malta which is the beneficial owner thereof, and which owns 20 per cent or more
the voting power
the firstmentioned company, the Pakistan tax so charged shall not exceed 15 per cent
the gross amount; (b) where the dividends are paid by a company resident
Malta to a resident
Pakistan who is the beneficial owner thereof, Malta tax shall not exceed that chargeable on the company paying the dividends in respect
the profits so distributed, and the shareholder shall be entitled to receive a credit in respect
the tax paid by the company on the profits so distributed. This paragraph shall not affect the taxation
the company in respect
the profits out
which the dividends are paid.
the State
which the Company making the distribution is a resident.
paragraphs
the dividends, being a resident
a Contracting State, carries on business in the other Contracting State,
which the company paying the dividends is a resident, through a permanent establishment situated therein or performs in that other State professional services from a fixed base situated therein and the holding in respect
which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case, the 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 to persons who are not residents
that other State, or subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly
profits or income arising in such other State. ARTICLE 11 Interest
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the interest, the tax so charged shall not exceed 10 per cent
the gross amount
the interest.
paragraph
Pakistan or to the State Bank
Pakistan shall be exempt from Malta tax; DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 9 (b) interest arising in Pakistan and paid to the Malta Government, the Central Bank
Malta or the Malta Development Corporation shall be exempt from Pakistan tax; (c) interest arising in a Contracting State to a financial institution
the other Contracting State, not less than 51 per cent
whose shares carrying voting rights are held by the Government
that other State, shall be exempt from tax in the first-mentioned 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 bonds or debentures.
paragraphs
the interest, being a resident
a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein and the debt-claim in respect
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such a 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 in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
them and some other person, the amounts or the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In that case, the excess part
the payments shall remain taxable according to the law
each Contracting State, due regard being had to the other provisions
this Convention. ARTICLE 12 Royalties
the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner
the royalties and the royalties consist
payments
any kind received as consideration for the use
, or the right to use, any copyright
literary, artistic or scientific work, including cinematographic films or tapes for television or broadcasting.
the other Contracting State may be taxed in that other Contracting State if the royalties consist
payments
any kind received as a consideration for the use
, or the right to use, any patent, trade mark, design, model, plan, secret formula or process, industrial, commercial or scientific equipment, or information concerning industrial, commercial or scientific experience. However, such royalties may also be taxed in 10 [ S.L.123.09 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN the Contracting State in which they arise, and according to the law
that State, but if the recipient is the beneficial owner
the royalties, the tax so charged shall not exceed 10 per cent
the gross amount
such royalties.
paragraphs
the royalties, being a resident
a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect
which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the 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 in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
them and some other person, the amount
the royalties paid, having regard to the use, right or information for which they are paid exceeds the amount which would have been agreed upon by the payer and the recipient in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In that case, the excess part
the payments shall remain taxable according to the law
each Contracting State, due regard being had to the other provisions
this Convention.
the Contracting States from the sale
patent rights by a resident
the other Contracting State who does not carry on a trade or business in the first-mentioned Contracting State through a permanent establishment situated therein with which the patent rights are effectively connected, shall be exempt from tax in the first-mentioned Contracting State. ARTICLE 13 Capital Gains
immovable property, as defined in paragraph
movable property forming part
the business property
a permanent establishment which an enterprise
a Contracting State has in the other Contracting State or
movable property pertaining to a fixed base available to a resident
a Contracting State in the other Contracting State for the purpose
performing professional services, including such gains from the alienation
such a permanent establishment (alone or together with the whole enterprise) or
such a fixed base, may be taxed in the other State. However, gains from the alienation
ships or aircraft operated by an enterprise
a Contracting State in international traffic and movable property pertaining to the operation
such ships or aircraft, shall be taxable only in that Contracting State.
any property other than those mentioned in paragraphs
which the alienator is a resident. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 11 ARTICLE 14 Independent Personal Services
a Contracting State in respect
professional services or other independent activities
a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose
performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much
it as is attributable to that fixed base.
physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent Personal Services
Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident
a Contracting State in respect
an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised such remuneration as is derived therefrom may be taxed in that other State.
paragraph
a Contracting State in respect
an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if (
, an employer who is not a resident
the other State, and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
this Article, remuneration in respect
an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise
a Contracting State may be taxed in that State. ARTICLE 16 Directors’ Fees Directors’ fees and similar payment derived by a resident
a Contracting State in his capacity as a member
the board
directors or any other similar organ
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 public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the 12 [ S.L.123.09 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN Contracting State in which these activities are exercised.
this Article are provided in a Contracting State by an enterprise
the other Contracting State the profits derived from providing these activities by such an enterprise may be taxed in the first-mentioned Contracting State.
paragraphs
cultural and sports programmes sponsored by or on behalf
each
the Contracting States. ARTICLE 18 Pensions
paragraph
, pensions and other similar remuneration paid to a resident
a Contracting State shall be taxable only in that State.
past employment, or by way
compensation for injuries received in connection with past employment. ARTICLE 19 Government Service
services rendered to that State or subdivision or local authority thereof shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident
that other Contracting State who (i) is a national
that State; or (ii) did not become a resident
that State solely for the purpose
performing the services.
funds created by, a Contracting State or a political subdivision or a local authority thereof to any individual in respect
services rendered to that State or subdivision or local authority thereof shall be taxable only in that State. (b) However, such pension shall be taxable only in the other Contracting State if the recipient is a national
and a resident
that State.
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.
paragraph
remuneration paid, under a development assistance programme
a Contracting State, a political subdivision or a local authority thereof, out
funds exclusively supplied by that State, those political subdivisions or local authorities thereof, to a specialist or volunteer seconded to the other Contracting State with the consent
that other State. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 13 ARTICLE 20 Teachers, Students and Trainees
a Contracting State who visits the other Contracting State for a period not exceeding two years, for the purpose
teaching or research at a university, research institute, college, school or other educational establishment in that other Contracting State shall be exempt from tax in that other Contracting State in respect
any payments which he receives for such activity.
one
the Contracting States who is temporarily present in the other Contracting State solely (
a grant, allowance or award for the primary purpose
study or research from a religious, charitable, scientific or educational organization
the former State; or (d) as a trainee under arrangements with the Government
the other Contracting State or any agency or instrumentality thereof for the purpose
training, study or orientation, shall not be taxed in the other Contracting State in respect
remittances from abroad for the purpose
his maintenance, education or training or in respect
a scholarship grant. ARTICLE 21 Other Income
income
a resident
a Contracting State, wherever arising, not dealt with in the foregoing Articles
this Convention shall be taxable only in that State.
paragraph
the income, being a resident
a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property, in respect
which the income is paid, is effectively connected with such permanent establishment or fixed base. In such a case, the provisions
CHAPTER IV Elimination
Double Taxation ARTICLE 22 Elimination
Double Taxation
Pakistan tax law regarding the allowance
credit against Pakistan tax in respect
foreign tax, Malta tax payable, whether directly or by deduction by a person resident in Pakistan, in respect
income from sources within Malta (including income accruing or arising in Malta but deemed, 14 [ S.L.123.09 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN under the provisions
the law
Pakistan, to accrue or arise in Pakistan) shall be allowed as a credit against any Pakistan tax payable in respect
that income.
the law
Malta regarding the allowance
credit against Malta tax in respect
foreign tax, where, in accordance with the provisions
this Convention there is included in a Malta assessment income from sources within Pakistan, Pakistan tax on such income shall be allowed as a credit against the relative Malta tax payable thereon.
allowing credit in accordance with the provisions
this Article, the tax referred to in paragraph
this Convention, shall be deemed to have been effectively borne at the rate actually charged plus 15 pear cent
the net income from the sources referred to in the said provisions, so however that the rate
tax shall in no case be deemed to be less than 15 per cent
the net income. CHAPTER V Special Provisions ARTICLE 23 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.
a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied an enterprises
that other State carrying on the same activities.
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: provided that the provisions
this paragraph shall be without prejudice to the requirements
the law
either Contracting States regulating the deduction
the said disbursements.
a Contracting State, the capital
which is wholly or partly owned or controlled, directly or indirectly, by one or more residents
the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises
that first-mentioned State are or may be subjected.
this Article shall be construed (i) as obliging either
the Contracting States to grant to persons not resident in its territory those personal allowances and reliefs for tax purposes which are by law available only to persons who are so resident; (ii) as affecting any provisions
the law
Pakistan regarding the grant
rebate
tax to companies fulfilling specified requirements regarding DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 15 the declaration and payment
dividends. ARTICLE 24 Mutual Agreement Procedure
a Contracting State considers that the actions
one or both
the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws
those States, present his case to the competent authority
the Contracting State
which he is a resident.
the other Contracting State, with a view to the avoidance
taxatian not in accordance with the Convention.
the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application
the Convention. They may also consult with respect to the allocation
profits to a resident
a Contracting State and its permanent establishment in the other Contracting State or to the allocation
profits between a resident
a Contracting State and any associated person provided for in Article 9.
the Contracting States may communicate with each other directly for the purpose
reaching an agreement in the sense
the preceding paragraphs. ARTICLE 25 Exchange
Information
the Contracting States shall exchange such information as is necessary for the carrying out
this Convention and
the domestic laws
the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention and for the prevention or evasion
such taxes. The competent authorities shall, through consultations, develop appropriate conditions, methods and techniques concerning the matters respecting which such exchange shall be made, as well as exchange
information regarding avoidance
tax where appropriate. Any information so exchanged shall be treated as secret, but may be disclosed to any person (including a court or administrative body) concerned with the assessment, enforcement or prosecution in respect
the taxes which are the subject
the Convention.
paragraph
the Contracting States the obligation (a) to carry out administrative measures at variance with the laws or the administrative practice
that or
the other Contracting State; (b) to supply particulars which are 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. 16 [ S.L.123.09 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN ARTICLE 26 Diplomatic and Consular
ficials
diplomatic or consular
ficials under the general rules
international law or under the provisions
special agreements.
ficials under the general rules
international law or under the provisions
special international treaties, income is not subject to tax in the receiving State, the right to tax shall be reserved to the sending State. ARTICLE 27 Territorial Extension
the present Convention and any such extension shall take effect from such date and subject to such modifications and conditions (including conditions as to termination) as may be specified and agreed to between the Contracting States in notes to be exchanged for this purpose.
Pakistan or Malta
the present Convention under Article 29 shall, unless otherwise expressly agreed to by both Contracting States, terminate the application
the present Convention to any territory to which the Convention has been extended under this Article. CHAPTER VI Final Provisions ARTICLE 28 Entry into Force
ratification shall be exchanged at Malta as soon as possible.
instruments
ratification, and its provisions shall have effect (a) in Pakistan, in respect
Pakistan tax for the "previous years" (as defined by the tax laws
Pakistan) beginning on or after the first day
January 1973; and (b) in Malta, in respect
Malta tax for any year
assessment beginning on or after the first day
January 1974. ARTICLE 29 Termination This Convention shall remain in force indefinitely but either
the Contracting States may, on or before the thirtieth day
June in any calendar year beginning after the expiration
a period
three years from the date
its entry into force, give to the other Contracting State, through diplomatic channels, written notice
DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE ISLAMIC REPUBLIC
PAKISTAN [ S.L.123.09 17 termination and, in such event, the Convention shall cease to be effective: (a) in Pakistan, in respect
Pakistan tax for the "previous years" (as defined by the tax laws
Pakistan) beginning on or after the first day
January in the calendar year next following that in which notice
termination is given; and (b) in Malta, in respect
Malta tax for the years
assessment beginning with the second year
assessment following the calendar year during which notice
termination is given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention. DONE at Valletta this 8th day
October, 1975, in duplicate in the English language. J ABELA For the Government
the Republic
Malta AFTAB AHMAD KHAN For the Government
the Islamic Republic
Pakistan
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.