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SUBSIDIARY LEGISLATION 123.70
DOUBLE TAXATION RELIEF ON TAXES ON 
INCOME WITH THE REPUBLIC OF SLOVENIA 
ORDER
12th June, 2003
LEGAL NOTICE 145 of 2003.
Citation.
Taxes on Income with the Republic of Slovenia 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 Republic of Slovenia with a view to affording
relief from double taxation in relation to the following
taxes imposed by the laws of the Republic of Slovenia:
- the tax on profits of legal persons;
- the tax on income of individuals, including
wages and salaries, income from agricultural
activities, income from business, capital gains
and income from immovable property and
movable property;
( b ) that it is expedient that those arrangements should
have effect;
( c ) that the Convention has entered into force on the 12th
June, 2003.
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SCHEDULE
CONVENTION BETWEEN MALTA AND THE REPUBLIC OF SLOVENIA 
FOR THE AVOIDANCE OF DOUBLE TAXATION 
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
Malta and the Republic of Slovenia, 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
Persons Covered
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 of its political subdivisions or 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 and taxes on the total amounts of wages or salaries
paid by enterprises, as well as taxes on capital appreciation.
3. The existing taxes to which this Convention shall apply are:
( a ) in Slovenia:
(i) the tax on profits of legal persons;
(ii) the tax on income of individuals, including wages and salaries,
income from agricultural activities, income from business, capital
gains and income from immovable and movable property;
(hereinafter referred to as "Slovenian tax").
( b ) in Malta, 
the income tax;
(hereinafter referred to as "Malta 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 any significant 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:
( a ) the term ''Slovenia'' means the Republic of Slovenia and, when used in a
geographical sense, the territory of Slovenia, including the sea area, sea
bed and sub-soil adjacent to the territorial sea, over which Slovenia may
exercise its sovereign rights and jurisdiction in accordance with its
domestic legislation and international law;
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( 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, as well as any area of the sea-bed, its sub-soil and the
superjacent water column adjacent to the territorial waters, wherein
Malta exercises sovereign rights, jurisdiction, or control in accordance
with international law and its national law, including its legislation
relating to the exploration of the continental shelf and exploitation of its
natural resources;
( c ) the terms ''a Contracting State'' and ''the other Contracting State'' mean
Slovenia or Malta, as the context requires;
( d ) the term ''person'' includes an individual, a company and any other body
of persons;
( e ) the term ''company'' means any body corporate or any entity that is
treated as a body corporate for tax purposes;
( f ) 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;
( g ) 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;
( h ) the term ''competent authority'' means:
(i) in Slovenia: the Ministry of Finance of the Republic of Slovenia
or its authorised representative;
(ii) in Malta: the Minister responsible for finance or his authorised
representative;
( i ) the term ''national'' means:
(i) any individual possessing the nationality 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.
2. As regards the application of the Convention at any time by a Contracting
State, any term not defined therein shall, unless the context otherwise requires, have
the meaning that it has at that time under the law of that State for the purposes of the
taxes to which the Convention applies, any meaning under the applicable tax laws of
that State prevailing over a meaning given to the term under other laws 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, and also includes that State and any political subdivision or local
authority thereof. This term, however, does not include any person who is liable to
tax in that 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 only of the State in which he has a
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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 only 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 only 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 only of the 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 only 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; and
( f ) a mine, an oil or gas well, a quarry or any other place of extraction of
natural resources including an offshore drilling site.
3. The term ''permanent establishment'' likewise encompasses:
( a ) a building site, a construction, assembly or installation project or
supervisory activities in connection therewith, but only where such site,
project or activities continue for a period of more than nine months;
( b ) the furnishing of services, including consultancy services, by an
enterprise through employees or other personnel engaged by the
enterprise for such purpose, but only where activities of that nature
continue (for the same or a connected project) within a Contracting
State for a period or periods aggregating more than six months within
any twelve-month period.
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, display or delivery
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, display or delivery;
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( c ) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise;
( 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 shall not be deemed to have a permanent establishment in a
Contracting State merely because it carries on business in that 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.
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 Contracting 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 derived by a resident of 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.
2. 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
for the performance of independent personal services.
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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 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.
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 Contracting 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, 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.
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.
2. The provisions of paragraph 1 shall also apply to profits from the
participation in a pool, a joint business or an international operating agency.
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
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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. 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. However, such dividends 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, but:
( a ) where the dividends are paid by a company which is a resident of
Slovenia to a resident of Malta who is the beneficial owner thereof, the
Slovenian tax so charged shall not exceed:
(i) 5 per cent of the gross amount of the dividends if the beneficial
owner is a company which holds directly at least 25 per cent of
the capital of the company paying the dividends;
(ii) 15 per cent of the gross amount of the dividends in all other cases;
( b ) where the dividends are paid by a company which is a resident of Malta
to a resident of Slovenia who is the beneficial owner thereof, Malta tax
on the gross amount of the dividends shall not exceed that chargeable on
the profits out of which the dividends are paid.
This paragraph shall not affect the taxation of the company in respect of the
profits out of which the dividends are paid.
3. The term ''dividends'' as used in this Article means income from shares,
mining shares, founders’ 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,
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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 recipient is the beneficial
owner of the interest, the tax so charged shall not exceed 5 per cent of the gross
amount of the interest.
3. 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
shall not be regarded as interest for the purpose of this Article.
4. 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.
5. Interest shall be deemed to arise in a Contracting State when the payer is
that State itself, a political subdivision, a local authority or a resident of that State.
Where, however, 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, then such interest shall be deemed to arise in the 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
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
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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 if the recipient is the beneficial
owner of the royalties, the tax so charged shall not exceed 5 per cent of the gross
amount of such royalties.
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, any patent, trade
mark, design or model, plan, secret formula or process, or for information
concerning industrial, commercial 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 State itself, a political subdivision, a local authority or a resident of that 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,
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.
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 laws of each Contracting State, due
regard being had to the other provisions of this Convention.
Article 13
Capital gains
1. Gains derived by a resident of a Contracting State from the alienation of
immovable property referred to in Article 6 and situated in the other Contracting
State may be taxed in that other State.
2. Gains from the alienation of shares or comparable interests in a company the
assets of which consist directly or indirectly principally of immovable property
situated in a Contracting State may be taxed in that State.
3. Gains from the alienation of movable property forming part of the business
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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 derived by an enterprise of a Contracting State from the alienation of
ships or aircraft operated in international traffic, or from movable property
pertaining to the operation of such ships or aircraft, shall be taxable only in that
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.
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, 19 and 20, 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:
( 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, and
( 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
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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, 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. The provisions of paragraphs 1 and 2, shall not apply to income from
activities performed in a Contracting State by entertainers or sportsmen if the
activities are substantially supported by public funds of one or both of the
Contracting States or of political subdivisions or local authorities thereof. In such a
case, the income shall be taxable only in the Contracting State of which the
entertainer or sportsman is a resident.
Article 18
Pensions and Social Security Payments
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 paid and other
payments made under the social security legislation of a Contracting State may be
taxed in that State.
Article 19
Government service
1. ( a ) Salaries, wages and other similar remuneration, other than a pension,
paid by a Contracting State or a political subdivision or a local authority
thereof to an individual in respect of services rendered to that State or
subdivision 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
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(ii) did not become a resident of that State solely for the purpose of
performing the services.
(2) ( a ) Any pension paid by, or out of funds created by, a Contracting State or a
political subdivision or a local authority thereof to an individual in
respect of 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 of, and a national of, that State.
3. The provisions of Articles 15, 16, 17 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 political
subdivision or a local authority thereof.
Article 20
Professors and Researchers
1. A resident of one of the Contracting States who, at the invitation of a
university, college, school, or other recognised educational institution situated in the
other Contracting State, is temporarily present in the other State solely for the
purpose of teaching, or engaging in research, or both, at the educational institution
shall, for a period not exceeding two years from the date he first arrives in the other
State, be exempt from tax by the other State on his remuneration for such teaching or
research, provided that such remuneration is derived by him from sources outside
that other State. If the visit exceeds two years, the other State may tax the individual
under its national law for the entire period of the visit, unless in a particular case the
competent authorities of the States agree otherwise.
2. No exemption shall be granted under paragraph 1 with respect to any
remuneration for research carried on for the benefit of any person other than the
educational institution that extended the invitation referred to in paragraph 1.
Article 21
Students and Business Apprentices
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 taxed in that State, provided that such payments arise from sources outside that
State.
Article 22
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 recipient 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
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WITH THE REPUBLIC OF SLOVENIA [ S.L.123.70 13
Article 7 or Article 14, as the case may be, shall apply.
Article 23
Elimination of double taxation
1. In the case of Slovenia, double taxation shall be eliminated as follows:
Where a resident of Slovenia derives income which, in accordance with the
provisions of this Convention, may be taxed in Malta, Slovenia shall allow as a
deduction from the tax on the income of that resident, an amount equal to the income
tax paid in Malta. Such deduction shall not, however, exceed that portion of the
income tax as computed before the deduction is given, which is attributable to the
income which may be taxed in Malta.
2. In the case of Malta, double taxation shall be eliminated as follows:
Subject to the provisions of the law of Malta regarding the allowance of a
credit against Malta tax in respect of foreign tax, where, in accordance with the
provisions of this Convention, there is included in a Malta assessment income from
sources within Slovenia, the Slovenian tax on such income shall be allowed as a
credit against the relative Malta tax payable thereon.
3. Where in accordance with any provision of the 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 24
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. This provision shall, notwithstanding the
provisions of Article 1, also apply to persons who are not residents of one or both of
the Contracting States.
2. The taxation on 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 6 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 such
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
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.
14 [ S.L.123.70
DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE REPUBLIC OF SLOVENIA
5. The provisions of this Article shall apply to taxes covered by this
Convention.
Article 25
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 24,
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.
Article 26
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) concerned with 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:
( 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
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WITH THE REPUBLIC OF SLOVENIA [ S.L.123.70 15
information, the disclosure of which would be contrary to public policy
( ordre public ).
Article 27
Limitation of benefits
The provisions of this Convention shall not apply to persons entitled to any
special tax benefit under a law of either one of the Contracting States or any
substantially similar law subsequently enacted and which is identified by the
Contracting States.
Article 28
Members of Diplomatic Missions and 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 29
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.
2. This Convention shall enter into force thirty days after the date of the later
of the notifications referred to in paragraph 1 and its provisions shall have effect:
( a ) in Slovenia:
in respect of income derived in any fiscal year beginning on or after the
first day of January next following the calendar year in which the
Convention enters into force;
( b ) in Malta:
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 30
Termination
This Convention shall remain in force until terminated by a Contracting
State. Either Contracting State may terminate the Convention, through diplomatic
channels, by giving notice of termination at least six months before the end of any
calendar year beginning after the expiration of a period of five years from the date of
its entry into force. In such event, the Convention shall cease to have effect:
(a) in Slovenia:
in respect of income derived in any fiscal year beginning on or after the
first day of January next following the calendar year in which the notice
of termination is given;
(b) in Malta:
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.
16 [ S.L.123.70
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WITH THE REPUBLIC OF SLOVENIA
IN WITNESS WHEREOF the undersigned, being duly authorised thereto by
their respective Governments, have signed this Convention.
DONE at Valletta this 8th day of October, 2002 in duplicate in the English
and Slovenian languages, both texts being equally authentic. In the case of
divergence between the two texts, the English text shall prevail.
For Malta For the Republic of Slovenia
Permanent Secretary State Secretary
Joseph Scicluna Samuel Zbogar
Ministry of Finance Ministry of Foreign Affairs
PROTOCOL
At the signing of the Convention between Malta and the Republic of
Slovenia for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income, the undersigned have agreed that:
With reference to Article 27:
It is understood that in the case of Malta the persons who are entitled to a
special tax benefit referred to in Article 27 are the following:
( a ) persons who are entitled to a special tax benefit under the Malta
Financial Services Authority Act (Cap. 330) except for those persons
who opt under section 41 of the said Act to be subject to the normal
provisions of the Income Tax Act (Cap. 123) and the Income Tax
Management Act, 1994;
( b ) persons who and to the extent to which under the provisions of the
Merchant Shipping Act, 1973 are not subject to tax on the profits
derived from the operation of ships in international traffic;
( c ) persons entitled to any special tax benefit in respect of distributions by a
trust subject to the provisions of the Trusts Act given that a trust as laid
down in that Act is not vested with legal personality and therefore
cannot benefit under this Convention in its own right; and
( d ) persons entitled to any special tax benefit under any substantially
similar law subsequently enacted which is considered in mutual
agreement by the competent authorities of the Contracting States as
special fiscal treatment within the meaning of Article 27 of this
Convention.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto by
their respective Governments have signed this Protocol.
DONE at Valletta this 8th day of October, 2002 in duplicate in the English
and Sovenian languages, both texts being equally authentic. In the case of
divergence between the two texts, the English text shall prevail.
DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE REPUBLIC OF SLOVENIA [ S.L.123.70 17
For Malta For the Republic of Slovenia
Permanent Secretary State Secretary
Joseph Scicluna Samuel Zbogar
Ministry of Finance Ministry of Foreign Affairs
