The Government of Malta and the Government of the Republic of India, on signing at Valletta on 8 April 2013 the Agreement between Malta and the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed that the following shall form an integral part of the Agreement.
(1) With reference to sub-paragraph (b) of paragraph (2) of Article 10, it is understood that, under the full imputation system adopted by Malta, there is no withholding tax on dividends in addition to the tax chargeable in respect of the profits or income of the company out of which the dividends are paid.
(2) The provisions of Articles 6 to 22 of the Agreement shall not apply to:
- (a) any person enjoying a special fiscal treatment under the provisions of the Malta Merchant Shipping Act, 1973 to the extent that it is not subject to tax on the profits derived from the operation of ships in international traffic; or
- (b) any company licensed under the Malta Freeport Act of 1989 to the extent that it is not subject to tax on its profits as a result of such license; or
- (c) any person that enjoys a special fiscal treatment under any law similar to those referred to in (a) or (b) above, enacted in Malta after the signature of this Agreement.
(3) It is understood that at the date of signature of this Agreement, the laws of Malta permit it to lend assistance in collection of taxes on income, profits or gains only to countries that are members of the European Union. However, if after the date of signature of this Agreement, the laws of Malta change to provide assistance in collection of taxes to any country which is not a member of the European Union or Malta agrees to extend such assistance to any country which is not a member of the European Union, then Malta shall forthwith inform the Indian competent authority and the competent authorities of the Contracting States shall by mutual agreement settle the mode of extending assistance in collection of taxes to each other.
DONE in duplicate at Valletta, this eighth day of April 2013, each in the English and Hindi languages, both texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.
FOR THE GOVERNMENT OF MALTA:
FOR THE GOVERNMENT OF THE REPUBLIC OF INDIA: