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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

PROTOCOL

At the signing today of the Convention between the Government of the Republic of Malta and the Government of the Principality of Andorra for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed upon the following provisions, which shall form an integral part of this Convention:

(I) With reference to paragraph 1 of Article 4 (Resident):

  • (1) An investment fund and a pension fund or scheme of a Contracting State is considered to be a resident of that State. For this purpose:
    • (i) the term “investment fund” means:
      • (a) in the case of Malta, a collective investment scheme as defined in the Investment Services Act (Chapter 370 of the Laws of Malta) and any other law or regulation that may develop, replace or modify this law in the future;
      • (b) in the case of Andorra, an investment fund according to the Law 10/2008, of 12 June, and any other law or regulation that may develop, replace or modify this law in the future;
      • (c) any other investment fund, arrangement or entity of a Contracting State which the competent authority of that Contracting State determines to regard as an investment fund for the purpose of this paragraph; and
    • (ii) the term “pension fund or scheme” means:
      • (a) in the case of Malta, a retirement fund or retirement scheme licensed, regulated or otherwise authorised under the Special Funds (Regulation) Act (Chapter 450 of the Laws of Malta) and any other law or regulation that may develop, replace or modify this law in the future;
      • (b) in the case of Andorra, a pension fund or scheme within the meaning of the Law Regulating the activity of Insurance companies of 11 May 1989 and any other law or regulation that may develop, replace or modify this law in the future;
      • (c) any other pension fund or scheme of a Contracting State which the competent authority of that Contracting State determines to regard as a pension fund or scheme for the purpose of this paragraph.
  • (2) A partnership or a trust which is formed under the laws of a Contracting State and which is registered for tax purposes in that Contracting State shall be considered as a resident of that Contracting State.

(II) With reference to Article 24 (Exchange of Information):

  • (1) It is understood that the concept of foreseeable relevance referred to in paragraph 1 thereto is intended to provide for exchange of information in tax matters to the widest possible extent and, at the same time, to clarify that the Contracting States are not at liberty to engage in fishing expeditions or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer.
  • (2) The rights and safeguards secured to persons in a Contracting State remain applicable in that Contracting State in the course of the process of information exchange.
  • (3) The provisions of the Convention in connection with requests for information apply:
    • (i) in respect to tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the requesting Party, to taxable periods beginning on or after the first day of January of the third year preceding the one in which the Convention enters into force, or where there is no taxable period, to all taxes arising on or after the first day of January of the third year preceding the one in which the Convention enters into force; and
    • (ii) in other cases, to taxable periods beginning on or after the first day of January of the year next following the one in which the Convention enters into force or, where there is no taxable period, for all taxes arising on or after the first day of January of the year next following the one in which the Convention enters into force.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed this Protocol.

DONE at New York this 20th day of September 2016, in two originals in the English and Catalan languages, both texts being equally authentic.

FOR THE GOVERNMENT OF THE REPUBLIC OF MALTA:

FOR THE GOVERNMENT OF THE PRINCIPALITY OF ANDORRA: