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SUBSIDIARY LEGISLATION 123.59
DOUBLE TAXATION RELIEF ON TAXES ON 
INCOME WITH THE SYRIAN ARAB REPUBLIC 
ORDER
16th October, 2000
LEGAL NOTICE 246 of 2001.
Title.
Taxes on Income with the Syrian Arab Republic Order.
Arrangements to 
have effect.
2. It is hereby declared -
( a ) that the arrangements specified in the Convention set
out in the Schedule to this order have been made with
the Syrian Arab Republic with a view to affording
relief from double taxation in relation to the following
taxes imposed by the laws of the Syrian Arab
Republic:
(i) the income tax on commercial, industrial and
non-commercial profits;
(ii) the income tax on salaries and wages;
(iii) the income tax on non-residents;
(iv) the income tax on revenue from movable and
immovable capital; 
(v) surcharges imposed as percentages of the above
taxes or in any other form or rate;
( b )  that it is expedient that those arrangements should
have effect;
( c ) that the Convention has entered into force on the 16
October, 2000.
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SCHEDULE
CONVENTION BETWEEN THE REPUBLIC OF MALTA
AND THE SYRIAN ARAB REPUBLIC
FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of the Republic of Malta and the Government of the Syrian Arab
Republic, desiring to conclude a Convention for the Avoidance of Double Taxation
and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed
as follows:
Article 1
PERSONAL SCOPE
This Convention shall apply to persons who are residents of one or both of
the Contracting States.
Article 2
TAXES COVERED
1. This Convention shall apply to taxes on income imposed on behalf of a
Contracting State or its local authorities, irrespective of the manner in which they
are levied.
2. There shall be regarded as taxes on income all taxes imposed on total
income or on elements of income, including taxes on gains from the alienation of
movable or immovable property, taxes on the total amounts of wages or salaries paid
by employers as well as taxes on capital appreciation.
3. The existing taxes to which the Convention shall apply are in particular:
( a ) in the case of Malta:
the income tax;
(hereinafter referred to as "Malta tax");
( b ) in the case of  Syria:
the income tax on commercial, industrial and non-commercial profits;
the income tax on salaries and wages;
the income tax on non-residents;
the income tax on revenue from movable and immovable capital;
surcharges imposed as percentages of the above taxes or in any other
form or rate;
(hereinafter referred to as "Syrian tax").
4. The Convention shall apply also to any identical or substantially similar
taxes which are imposed after the date of signature of the Convention in addition to,
or in place of, the existing taxes.  The competent authorities of the Contracting
States shall notify each other of substantial changes which have been made in their
respective taxation laws.
Article 3
GENERAL DEFINITIONS
1. For the purposes of this Convention, unless the context otherwise requires:
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( a ) the terms "a Contracting State" and "the other Contracting State" mean
Malta or Syria, as the context requires;
( b ) the term "Malta" means the Republic of Malta and, when used in a
geographical sense, means the Island of Malta, the Island of Gozo and
the other islands of the Maltese archipelago, including the territorial
waters thereof, and any area outside the territorial waters of Malta
which has been or may hereafter be designated, in accordance with
international law and under the law of Malta concerning the continental
shelf, as an area within which the rights of Malta with respect to the
seabed and subsoil and their natural resources may be exercised;
( c ) the term "Syria" means, in its geographical sense, the territory of the
Syrian Arab Republic, including its territorial sea, its air space, the
continental shelf, the subsoil and all other areas outside the Syrian
territorial sea within which, in accordance with international law, Syria
exercises sovereign rights for the purpose of extracting and exploring
the natural, vital and mining resources and all other rights on the seabed
and its subsoil and the superjacent waters;
( d ) the term "person" includes an individual, a company and any other body
of persons;
(e) the term "national" means:
(i) any individual possessing the citizenship of a Contracting State;
(ii) any legal person, partnership or association deriving its status as
such from the laws in force in a Contracting State;
( f ) the term "company" means any body corporate, or any entity which is
treated, for tax purposes, as a body corporate;
( g ) the terms "enterprise of a Contracting State" and "enterprise of the other
Contracting State" mean respectively an enterprise carried on by a
resident of a Contracting State and an enterprise carried on by a resident
of the other Contracting State;
( h ) the term "international traffic" means any transport by a ship or aircraft
operated by an enterprise of a Contracting State, except when the ship
or aircraft is operated solely between places in the other Contracting
State;
( i ) the term "competent authority" means :
(i) in the case of Malta, the Minister responsible for finance or his
authorised representative;
(ii) in the case of Syria, the Minister of Finance or his authorised
representative.
2. As regards the application of the Convention by a Contracting State, any
term not defined therein shall have the meaning which it has under the taxation laws
of that State to which the Convention applies, which meaning shall prevail over the
meaning provided for such term in other branches of law of that State.
Article 4
RESIDENT
1. For the purposes of this Convention, the term "resident of a Contracting
State" means any person who, under the laws of that State, is liable to tax therein by
reason of his domicile, residence, place of management or any other criterion of a
similar nature.  But this term shall not include any person who is liable to tax in that
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State in respect only of income from sources in that State.
2. Where by reason of the provisions of paragraph 1 an individual is a resident
of both Contracting States, then his status shall be determined as follows:
( a ) he shall be deemed to be a resident 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 of the State
with which his personal and economic relations are closer (centre of
vital interests);
( 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 of the State in which he has an
habitual abode;
( c ) if he has an habitual abode in both States or in neither of them, he shall
be deemed to be a resident  of the Contracting State of which he is a
national;
( 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 the provisions 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 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:
( a ) a place of management;
( b ) a branch;
( c ) an office;
( d ) a factory;
( e ) a workshop;
( f ) a mine, an oil or gas well, a quarry or any other place of extraction of
natural resources including an offshore drilling site; and
( g ) premises used as sales outlets.
3. A building site or construction or assembly 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:
( a ) the use of facilities solely for the purpose of storage or display of goods
or merchandise belonging to the enterprise;
( b ) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of storage or display;
( c ) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise;
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( d ) the maintenance of a fixed place of business solely for the purpose of
purchasing goods or merchandise, or of collecting information, for the
enterprise;
( e ) 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;
( f ) the maintenance of a fixed place of business solely for any combination
of activities mentioned in sub-paragraphs ( a ) to ( e ), provided that the
overall activity of the fixed place of business resulting from this
combination is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person -
other than an agent of an independent status to whom paragraph 6 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 the provisions of that paragraph.
6. An enterprise of 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 of an independent status, provided that such persons are acting in the ordinary
course of their business.  However, when the activities of such an agent are devoted
wholly or almost wholly on behalf of that enterprise, he will not be considered an
agent of an independent status within the meaning of this paragraph.
7. 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 Contacting 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.
Article 6
INCOME FROM IMMOVABLE PROPERTY
1. Income from immovable property (including income from agriculture or
forestry) may be taxed in the Contracting State in which such immovable property is
situated.
2. For the purposes of this Convention, 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 the provisions of 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, or to explore for, mineral
deposits, sources and other natural resources;  ships, boats and aircraft shall not be
regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct
use, letting, or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from
immovable property of an enterprise and to income from immovable property used
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for the performance of independent personal services.
5. Where a person has shares or other rights in a company, trust or comparable
institution and is thereby entitled to the enjoyment of immovable property situated in
a Contracting State and held by that company, trust or comparable institution,
income from the direct use, letting or use in any other form of that right of
enjoyment by that person may be taxed in that State notwithstanding the provisions
of Articles 7 and 14.
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
Contracting State but only so much of them as is attributable to that permanent
establishment.
2. Subject to the provisions of 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 or with other associated
enterprises with which it deals.
3. In determining the profits of a permanent establishment, 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.
4. 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. 
5. 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.
6. For the purposes of the preceding paragraphs of this Article, 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.
7. Where profits include items of income which are dealt with separately in
other Articles of this Convention, then the provisions of those Articles shall not be
affected by the provisions of this Article.
8. The provisions of this Article shall not affect the provisions of the law of a
Contracting State regarding the taxation of profits from the business of insurance.
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Article 8
SHIPPING AND AIR TRANSPORT
1. Profits of an enterprise of a Contracting State from the operation of ships or
aircraft in international traffic shall be taxable only in that State.  Such profits shall
include profits derived by the enterprise from other activities, and in particular from
the use, maintenance or rental of containers used for the transport of goods or
merchandise in international traffic, provided that such activities are incidental to
the operation of ships or aircraft in international traffic by the enterprise.
2. The provisions of paragraph 1 shall also apply to profits derived from the
participation in a pool, a joint business or an international operating agency.
3. The provisions of this Article do not include the profits realised by an
enterprise of a Contracting State through commissions on sales, in the other
Contracting State, of travel tickets of aircraft and ships belonging to other
enterprises.
Article 9
ASSOCIATED ENTERPRISES
1. Where
( 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
( 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 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 if that other State considers the adjustment justified.  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. Dividends mentioned in paragraph 1 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.  However, total Malta or Syrian tax on the profits of a company
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and the dividends distributed by such company, as the case may be, shall not exceed
the maximum of the tax chargeable on the profits of the company out of which the
dividends are paid.
3. The term "dividends" as used in this Article means income from any 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.
4. The provisions of 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 the provisions of Article 7 or Article 14, as
the case may be, shall apply.
5. 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
1. Interest 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 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 10 percent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, any such interest as is
mentioned in paragraph 1 shall be taxable only in the Contracting State of which the
recipient is a resident, if the beneficial owner of the interest is a resident of that
State, and if one of the following conditions is fulfilled:
( a ) such recipient is a Contracting State, or one of its local authorities, or a
statutory body of either, including the central bank of that State; or such
interest is paid by a Contracting State, or by its local authorities, or a
statutory body of either; or
( b ) such interest is paid in respect of any debt-claim or loan guaranteed,
insured or supported by a Contracting State or another person acting on
behalf of a Contracting State.
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
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shall not be regarded as interest for the purpose of this Article.
5. The provisions of paragraphs 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 paid is effectively connected with such permanent establishment or
fixed base.  In such case the provisions of Article 7 or Article 14, as the case may be,
shall apply.
6. Interest shall be deemed to arise in a Contracting State when 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.
7. 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 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 of such relationship, the provisions of 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 the tax so charged shall not
exceed 18 percent of the gross amount of the royalties referred to in paragraph 3 of
this Article.  The competent authorities of the Contracting States shall by mutual
agreement settle the mode of application of these limitations.
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 cinematograph films, or tapes for
television or radio broadcasting, any patent, trade mark, design or model, plan, or
any industrial or scientific equipment, or for information concerning industrial or
scientific experience.
4. The provisions of paragraphs 1 and 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 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 the provisions of Article 7 or Article 14, as
the case may be, shall apply.
5. Royalties shall be deemed to arise in a Contracting State when the payer is
that Contracting State itself,  a local authority or a resident of that Contracting 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,
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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.
6. 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, the provisions of 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 law of each Contracting State, due
regard being had to the other provisions of this Convention.
Article 13
CAPITAL GAINS
1. Gains derived from the alienation of immovable property may be taxed in
the Contracting State where such immovable property is situated.
2. Gains from the alienation of shares or comparable interests in a company,
the assets of which consist wholly or principally of immovable property, may be
taxed in the Contracting State in which the assets or the principal assets of the
company are situated.
3. 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.
4. Gains from the alienation of property forming part of the business property
of an enterprise of a Contracting State  and consisting of ships or aircraft operated by
such enterprise in international traffic or movable property pertaining to the
operation of such ships or aircraft shall be taxable only in that Contracting 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
1. 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.  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 of performing his activities; in that case, only so
much of the income as is attributable to that fixed base may be taxed in
that other Contracting State; or
( b ) if his stay in the other Contracting State is for a period or periods
amounting to or exceeding in the aggregate 183 days in any twelve-
month period commencing or ending in the fiscal year concerned; in
that case, only so much of the income as is derived from the activity
exercised in the other Contracting State may be taxed in that other State.
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2. 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
1. Subject to the provisions of Articles 16, 18 and 19, 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 the provisions of 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 all the
following conditions are fulfilled:
( 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;
( b ) the remuneration is paid by, or on behalf of, an employer who is not a
resident of 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.
3. Notwithstanding the preceding provisions of this Article, remuneration
derived in respect of an employment exercised aboard a ship or aircraft operated in
international traffic by an enterprise of a Contracting State may be taxed in that
State.
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 SPORTSMEN
1. Notwithstanding the provisions of 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 sportsman, from his 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 sportsman in his capacity as such accrues not to the entertainer or sportsman
himself but to another person, whether a resident of a Contracting State or not, that
income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the
Contracting State in which the activities of the entertainer or sportsman are
exercised.
3. Notwithstanding the provisions of paragraphs 1 and 2, income derived by a
resident of a Contracting State as an entertainer or sportsman from his personal
activities as such exercised in the other Contracting State shall be taxable only in the
first-mentioned State if those activities in the other State are supported mainly by
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public funds of the first-mentioned State or its local authorities.
Article 18
PENSIONS
1. Subject to the provisions of paragraph 2 of Article 19, pensions and other
similar remuneration paid to a resident of a Contracting State in consideration of
past employment shall be taxable only in that State.
2. Notwithstanding the provisions of paragraph 1, pensions and other payments
under the social security legislation of a Contracting State shall be taxable only in
that State.
3. Nothing contained in paragraphs 1 and 2 shall affect the provisions of the
law of a Contracting State concerning the exemption of pensions from tax.
Article 19
GOVERNMENT SERVICE
1. ( a ) Salaries, wages and other similar remuneration, other than a pension,
paid by a Contracting State or a local authority thereof to an individual
in respect of services rendered to that State or authority shall be taxable
only in that State.
( 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:
(i) is a national of that State;  or
(ii) did not become a resident of that State solely for the purpose of
rendering the services.
2. ( a ) Any pension paid by, or out of funds created by, a Contracting State or a
local authority thereof to an individual in respect of services rendered to
that State 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 of, and a national of, that State.
3. The provisions of Articles 15, 16 and 18 shall apply to salaries, wages and
other similar remuneration, and to pensions, in respect of services rendered in
connection with a business carried on by a Contracting State or a local authority
thereof.
4. Nothing contained in paragraph 2 shall affect the provisions of the law of a
Contracting State concerning the exemption of pensions from tax.
Article 20
STUDENTS
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 taxable in that State, provided that such payments arise from sources outside that
State.
DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE SYRIAN ARAB REPUBLIC g S.L.123.59 13
Article 21
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.
2. The provisions of paragraph 1 shall not apply to income, other than income
from immovable property as defined in paragraph 2 of Article 6, if the beneficial
owner 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 the
provisions of Article 7 or Article 14, as the case may be, shall apply.
Article 22
ELIMINATION OF DOUBLE TAXATION
1. Where a resident of a Contracting State derives income which, in accordance
with the provisions of this Convention, may be taxed in the other Contracting State,
then the first Contracting State shall allow as a deduction from the tax on the income
of that resident an amount equal to the income tax paid in the other Contracting
State; 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 the other Contracting State.
2. Where, in accordance with any provision of this Convention, income derived
by a resident of a Contracting State is exempt from tax in that State, such State may
nevertheless, in calculating the amount of tax on the remaining income of such
resident, take into account the exempted income.
Article 23
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.
2. The taxation of 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.
3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 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 that
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
14 g S.L.123.59
DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE SYRIAN ARAB REPUBLIC
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 of the first-
mentioned State are or may be subjected.
Article 24
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 the provisions
of this Convention, he may, irrespective of the remedies provided by the domestic
law of those 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 23,
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 provisions of the Convention.
2. 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.
3. 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.
4. The competent authorities of the Contracting States may communicate with
each other directly for the purpose of reaching an agreement in the sense of the
preceding paragraphs of this Article.  When it seems advisable in order to reach
agreement to have  an oral exchange of opinions, such exchange may take place
through a commission consisting of the competent authorities of the Contracting
States.
5. The competent authorities of the Contracting States may by mutual
agreement settle the mode of application of this Convention.
Article 25
EXCHANGE OF INFORMATION
1. The competent authorities of the Contracting States shall exchange such
information as is necessary for carrying out the provisions of this Convention or of
the domestic laws of the Contracting States concerning taxes covered by the
Convention insofar as the taxation thereunder is not contrary to the Convention.  The
exchange of 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 of that State and shall be disclosed only to persons
or authorities (including courts and administrative bodies) involved in the
assessment or collection of, the enforcement or prosecution in respect of, or the
determination of appeals in relation to, the taxes covered by the Convention.  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.
2. In no case shall the provisions of paragraph 1 be construed so as to impose
on a Contracting State the obligation:
DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE SYRIAN ARAB REPUBLIC g S.L.123.59 15
( a ) to carry out administrative measures at variance with the laws and
administrative practice of that or of the other Contracting State;
( 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;
( 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 ).
Article 26
MEMBERS OF DIPLOMATIC MISSIONS OR 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 the provisions of special agreements.
Article 27
ENTRY INTO FORCE
1. The Contracting States shall notify each other, through diplomatic channels,
that the legal requirements for the entry into force of this Convention have been
complied with.  This Convention shall enter into force thirty days after the date of
the later of these notifications.
2. The provisions of the Convention shall have effect in respect of taxes on
income derived during any calendar year or accounting period, as the case may be,
beginning on or after the first day of January immediately following the date on
which the Convention enters into force.
Article 28
TERMINATION
1. This Convention shall remain in force indefinitely unless it is terminated by
a Contracting State.  After a period of five years from the date on which the
Convention enters into force, either Contracting State may terminate it by giving
notice of termination, through diplomatic channels, at least six months before the
end of any calendar year.
2. In such event the Convention shall cease to have effect in respect of taxes on
income derived during any calendar year or accounting period, as the case may be,
beginning on or after the first day of January immediately following the date on
which the notice is given.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed
this Convention.
DONE at Damascus, this 22nd day of February, 1999 in the English language.
Guido de Marco M. Khaled Al Mahayni
Vice Premier Minister of Finance
and Minister of Foreign Affairs
For the Government of  For the Government of 
the Republic of Malta the Syrian Arab Republic
