DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE REPUBLIC OF AUSTRIA ġ S.L.123.12 1
SUBSIDIARY LEGISLATION 123.12
DOUBLE TAXATION RELIEF ON TAXES ON 
INCOME WITH THE REPUBLIC OF AUSTRIA 
ORDER 
8th December, 1981
 LEGAL NOTICE 130 of 1981.
Title.
on Income with the Republic of Austria 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 Government of the Republic of Austria with a view
to affording relief from double taxation in relation to
the following taxes imposed by the laws of the
Republic of Austria:
(i) Income Tax;
(ii) Corporation Tax; 
(iii) Directors Tax; 
(iv) Capital Tax;
(v) Tax on Property excluding death duties;
(vi) Tax on Commercial and Industrial Enterprises,
including the tax levied on the sum of wages;
(vii) Land Tax;
(viii) Tax on Agricultural and Forestry Enterprises; 
(ix) Contributions from Agricultural and Forestry
Enterprises to the Fund for the Equalisation of
Family Burdens;
(x) Tax on the value of Vacant Plots; and
( b ) that it is expedient that these arrangements should
have effect.
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SCHEDULE
CONVENTION BETWEEN
THE REPUBLIC OF MALTA 
AND THE REPUBLIC OF AUSTRIA
FOR THE AVOIDANCE OF DOUBLE TAXATION 
WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
The Government of the Republic of Malta and the Government of the Republic of
Austria, desiring to conclude a Convention for the Avoidance of Double Taxation
with respect to taxes on income and on capital, have agreed as follows:
CHAPTER I
Scope of the Convention
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 and on capital imposed on
behalf of each Contracting State or its political subdivisions or local authorities,
irrespective of the manner in which they are levied.
(2) There shall be regarded as taxes on income and on capital all taxes imposed
on total income, on total capital or on elements of income or of capital, including
taxes on gains from the alienation of movable or immovable property, as well as
taxes on capital appreciation.
(3) The existing taxes to which this Convention shall apply are:
( a ) in Austria:
(i) the income tax (die Eikommensteuer);
(ii) the corporation tax (die Korperschaftsteuer);
(iii) the directors tax (die Aufsichtsratsabgabe);
(iv) the capital tax (die Vermogensteuer);
(v) the tax on property excluding death duties (die Abgabe von
Vermogen, die der Erbschaftsteuer entzogen sind);
(vi) the tax on commercial and industrial enterprises, including the tax
levied on the sum of wages (die Gewerbesteuer einschlieBlich der
Lohnsum-mensteuer);
(vii) the land tax (die Grundsteuer);
(viii) the tax on agricultural and forestry enterprises (die Abgabe von
land- und forstwirtschaftlichen Betrieben);
(ix) the contributions from agricultural and forestry enterprises to the
fund for the equalisation of family burdens (die Beitrage yon
land- und forstwirtschaftlichen Betrieben zum Ausgleichsfonds
fur Familienbeihilfen);
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(x) the tax on the value of vacant plots (die Abgabe vom Bodenwert
bet unbebauten Grundstucken);
(hereinafter referred to as "Austrian tax"). 
( b ) in Malta:
the income tax and surtax, including prepayments of tax whether made
by deduction at source or otherwise,
(hereinafter referred to as "Malta tax").
(4) This Convention shall apply also to any identical or substantially similar
taxes which are imposed after the date of signature of this Convention in addition to
or in place of, the existing taxes. The competent authorities of the Contracting States
shall notify to each other any significant changes which have been made in their
respective taxation laws.
(5) Where the Convention provides that income arising in a Contracting State
shall be relieved from tax in that State, either in full or in part, and, under the law in
force in the other Contracting State, such income is subject to tax by reference to the
amount thereof which is remitted to or received in that other State and not by
reference to the full amount thereof then the relief to be allowed in the first-
mentioned State shall apply only to so much of the income as is remitted to or
received in the other State.
CHAPTER II
Definitions
ARTICLE 3
General Definitions
(1) In this Convention, unless the context otherwise requires -
( a ) the term "Austria" means the Republic of Austria;
( b ) the term "Malta" means the Republic of Malta, and, when used in a
geographical sense, 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 sea of Malta which, in accordance with international law, has
been or may hereafter be designated, under the law of Malta concerning the
Continental Shelf, as an area within which the rights of Malta with respect to the sea-
bed and sub-soil and their natural resources may be exercised;
( c ) the terms "a Contracting State" and "the other Contracting State" mean
Austria or Malta as the context requires;
( d ) the term "person" comprises an individual, a company and any other body of
persons;
 ( e ) the term "company" means any body corporate or any entity which 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 "national" means:
(i) in respect of Austria, any individual possessing the nationality of
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Austria and any legal person, partnership and association deriving its
status as such from the law in force in Austria;
(ii) in respect of Malta, any citizen of Malta as provided for in Chapter III
of the Constitution of Malta and in the Maltese Citizenship Act, and any
legal person, partnership or association deriving its status as such from
the law in force in Malta;
( h ) the term "international traffic" means any transport by a ship or aircraft
operated by an enterprise which has its place of effective management in 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 Austria, the Federal Minister of Finance;
(ii) in the case of Malta, the Minister responsible for finance or his
authorised representative.
(2) In the application of this Convention by a Contracting State, any term not
otherwise defined shall, unless the context otherwise requires, have the meaning
which it has under the laws of that Contracting State relating to the taxes which are
the subject of this Convention.
ARTICLE 4
Fiscal Domicile
(1) For the purposes of this Convention, the term "resident of a Contracting
State" means any person who, under the law of that State, is liable to taxation therein
by reason of his domicile, residence, place of management or any other criterion of a
similar nature. The term does not include any person who is liable to tax in that
Contracting State in respect only of income from sources therein or capital situated
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 Contracting State in which he
has a permanent home available to him. If he has a permanent home
available to him in both Contracting States, he shall be deemed to be a
resident of the Contracting State with which his personal and economic
relations are closest (centre of vital interests).
( b ) If the Contracting State in which he has his centre of vital interests
cannot be determined, or if he has no permanent home available to him
in either Contracting State, he shall be deemed to be a resident of the
Contracting State in which he has an habitual abode.
( c ) If he has an habitual abode in both Contracting 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 Contracting States or of neither of them, the
competent authorities of the Contracting States shall endeavour to 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 Contracting State in which its place of effective management is
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situated.
ARTICLE 5
Permanent Establishment
(1) For the purposes of this Convention the term "permanent establishment"
means a fixed place of business in which the business of the enterprise is wholly or
partly carried on.
(2) The term "permanent establishment" shall include especially -
( a ) a place of management; 
( b ) a branch;
( c ) an office;
( d ) a factory; 
( e ) a workshop;
( f ) a mine, quarry or other place of extraction of natural resources
including an off-shore drilling site;
( g ) a building site or construction or assembly project or supervisory
activities in connection therewith, where such site, project or activity
continues for more than 12 months.
(3) The term "permanent establishment" shall not be deemed 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;
( 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 for collecting information, for the
enterprise;
( e ) the maintenance of a fixed place of business solely for the purpose of
advertising, for the supply of information, for scientific research or for
similar activities which have a preparatory or auxiliary character for the
enterprise.
(4) A person acting in a Contracting State on behalf of an enterprise of the other
Contracting State - other than an agent of an independent status to whom paragraph
(5) applies - shall be deemed to be a permanent establishment in the first-mentioned
State if he has, and habitually exercises in that State, an authority to conclude
contracts in the name of the enterprise, unless his activities are limited to the
purchase of goods or merchandise for the enterprise.
(5) 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, where such persons are acting in the ordinary course
of their business.
(6) 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
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establishment or otherwise), shall not of itself make either company a permanent
establishment of the other.
CHAPTER III
Taxation of Income
ARTICLE 6
Income from Immovable Property
(1) Income from immovable property may be taxed in the Contracting State in
which such property is situated.
(2) The term "immovable property" shall be defined in accordance with 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, rights to which the
provisions of general law respecting immovable property apply, usufruct of
immovable property and rights to variable or fixed payments as consideration for the
working of, or the right to work, 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 professional services.
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 the determination of 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) In so far 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
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adopted shall, however, be such that the result shall be in accordance with the
principles embodied 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) 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.
(8) The term "profits" as used in this Article includes the profits derived by any
partner from his participation in a partnership and, in the case of Austria, from a
participation in a sleeping partnership (Stille Gesellschaft) created under Austrian
law.
(9) 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 from the operation of ships or aircraft in international traffic shall be
taxable only in the Contracting State in which the place of effective management of
the enterprise is situated.
(2) If the place of effective management of a shipping enterprise is aboard a
ship or boat, then it shall be deemed to be situated in the Contracting State in which
the home harbour of the ship or boat is situated or, if there is no such home harbour,
in the Contracting State of which the operator of the ship or boat is a resident.
(3) The provisions of paragraph (1) shall also apply to profits derived from the
participation in a pool, a joint business or in an international 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
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.
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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 be taxed in the Contracting State of which the
company paying the dividends is a resident, and according to the law of that State
but -
( a ) where the dividends are paid by a company resident of Austria to a
resident of Malta, the Austrian tax so charged shall not exceed 15 per
cent of the gross amount thereof;
( b ) where the dividends are paid by a company resident of Malta to a
resident of Austria -
(i) Malta tax shall not exceed that chargeable on the company paying
the dividends in respect of the profits so distributed, and in any
case it shall not exceed 32.5 per cent of the gross amount of the
dividends;
(ii) notwithstanding the provisions of sub-paragraph (i), Malta tax
shall not exceed 15 per cent of the gross amount of the dividends
if such dividends are paid out of gains or profits earned in any
year in respect of which the company is in receipt of tax benefits
under the provisions regulating aids to industries in Malta, and the
shareholder submits returns and accounts to the taxation
authorities of Malta in respect of his income liable to Malta tax
for the relative year of assessment;
(iii) no surtax otherwise chargeable under the law of Malta shall be
levied on the dividends.
This paragraph shall not effect 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,
"jouissance" shares or "jouissance" rights, 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 taxation law 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 recipient 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
professional 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 a 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 to residents of the first-mentioned State, or
subject the company’s undistributed profits to a tax on undistributed profits, even if
the dividends paid or the undistributed profits consist wholly or partly of profits or
income arising in that other State. The provisions of this paragraph shall not prevent
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that other State from taxing dividends paid to residents of that State or dividends
relating to a holding which is effectively connected with a permanent establishment
or fixed base maintained in that other State by a resident of the first-mentioned 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 be taxed in the Contracting State in which it
arises, and according to the law of that State, but 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 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 recipient 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 professional 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 a
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 in
connection with which the indebtedness on which the interest is paid was incurred,
and such interest is borne by such permanent establishment, then such interest shall
be deemed to arise in the Contracting State in which the permanent establishment is
situated.
(6) Where, owing to a special relationship between the payer and the recipient
or between both of them and same other person, the amount of the interest paid,
having regard to the debt-claim for which it is paid, exceeds the amount which
would have been agreed upon by the payer and the recipient in the absence of such
relationship, the provisions of this Article shall apply only to the last-mentioned
amount. In that 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 12
Royalties
(1) Royalties arising in a Contracting State and paid to a resident of the other
Contracting State shall be taxable only in that other State if such royalties consist of
payments of any kind received as consideration for the use of, or the right to use, any
copyright of literary, artistic or scientific work.
(2) Royalties arising in a Contracting State and paid to a resident of the other
Contracting State may be taxed in that other Contracting State if the royalties consist
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of payments of any kind received as a consideration for the use of, or the right to use,
cinematographic films or tapes for television or broadcasting, any patent, trade
mark, design, model, plan, secret formula or process, industrial, commercial or
scientific equipment, or information concerning industrial, commercial or scientific
experience. However, such royalties may also be taxed in the Contracting State in
which they arise, and according to the law of that State, but the tax so charged shall
not exceed 10 per cent of the gross amount of such royalties.
(3) The provisions of paragraphs (1) and (2) shall not apply if the recipient 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 professional 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
(4) 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 in
connection with which the liability to pay the royalties was incurred, and such
royalties are borne by such permanent establishment, then such royalties shall be
deemed to arise in the Contracting State in which the permanent establishment is
situated.
(5) Where, owing to a special relationship between the payer and the recipient
or between both of them and some other person, the amount of the royalties paid,
having regard to the use, right or information for which they are paid exceeds the
amount which would have been agreed upon by the payer and the recipient in the
absence of such relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In that 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 from the alienation of immovable property, as defined in paragraph
(2) of Article 6, may be taxed in the Contracting State in which such property is
situated.
(2) 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 professional services, including such gains from the
alienation of such a permanent establishment (alone or together with the whole
enterprise) or of such a fixed base, may be taxed in the other State. However, gains
from the alienation of movable property of the kind referred to in paragraph (3) of
Article 22 shall be taxable only in the Contracting State in which such movable
property is taxable according to the said Article.
(3) Gains from the alienation of any property other than those mentioned in
paragraphs (1) and (2) shall be taxable only in the Contracting State of which the
alienator is a resident.
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ARTICLE 14
Independent Personal Services
(1) Income derived by a resident of a Contracting State in respect of
professional services or other independent activities of a similar character shall be
taxable only in that State unless he has a fixed base regularly available to him in the
other Contracting State for the purpose of performing his activities. If he has such a
fixed base, the income may be taxed in the other Contracting State but only so much
of it as is attributable to that fixed base.
(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 the calendar 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
base which the employer has in the other State.
(3) Notwithstanding the preceding provisions of this Article, remuneration in
respect of an employment exercised aboard a ship or aircraft in international traffic
may be taxed in the Contracting State in which the place of effective management of
the enterprise is situated.
ARTICLE 16
Directors’ Fees
Directors’ fees and similar payments derived by a resident of a Contracting State
in his capacity as a member of the board of directors or other similar organ of a
company which is a resident of the other Contracting State may be taxed in that other
State.
ARTICLE 17
Artistes and Athletes
(1) Notwithstanding the provisions of Articles 14 and 15, income derived by
public entertainers, such as theatre, motion picture, radio or television artistes, and
musicians, and by athletes, from their personal activities as such, may be taxed in the
Contracting State in which these activities are exercised.
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(2) Where income in respect of personal activities as such of an entertainer or
athlete accrues not to that entertainer or athlete 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 athlete are exercised.
ARTICLE 18
Pensions
Pensions and other similar remuneration paid to a resident of a Contracting State
shall be taxable only in that State.
ARTICLE 19
Government Service
(1) ( a ) Remuneration paid by a Contracting State or a political subdivision or
a local authority thereof to any individual in respect of services rendered to that
State, or subdivision or local authority thereof shall be taxable only in that State.
( b ) However, such remuneration shall be taxable only in the other
Contracting State if the services are rendered in that State and the recipient is a
resident of that other Contracting State who -
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of
performing the services.
(2) The provisions of Articles 15, 16 and 17 shall apply to remuneration in
respect of services rendered in connection with any business carried on by a
Contracting State, a political subdivision or a local authority thereof.
(3) The provisions of paragraph (1) ( a ) shall likewise apply in respect of
remuneration paid, under a development assistance programme of a Contracting
State, a political subdivision or a local authority thereof, out of funds exclusively
supplied by that State, those political subdivisions or local authorities thereof, to a
specialist or volunteer seconded to the other Contracting State with the consent of
that other State.
ARTICLE 20
Teachers, Students and Trainees
(1) Remuneration which a professor or teacher who is, or immediately before
was, a resident of a Contracting State and who visits the other Contracting State for a
period not exceeding two years for the purpose of carrying out advanced study or
research or for teaching at a university, college, school or other educational
institution receives for such work shall not be taxed in that other State, provided that
such remuneration is derived by him from outside that other State.
(2) An individual who was a resident of a Contracting State immediately before
visiting the other Contracting State and is temporarily present in that other State
solely as a student at a university, college, school or other similar educational
institution in that other State or as a business apprentice shall, from the date of his
first arrival in that other State in connection with that visit, be exempt from tax in
that other State -
( a ) on all remittances from abroad for purposes of his maintenance,
education or training; and
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( b ) for any remuneration for an employment exercised in the other
Contracting State for a period not exceeding 183 days in the calendar
year for the purposes of his practical training.
(3) An individual who was a resident of a Contracting State immediately before
visiting the other Contracting State and is temporarily present in that other State
solely for the purpose of study, research or training as a recipient of a grant,
allowance or award from a scientific, educational, religious or charitable
organization or under a technical assistance programme entered into by the
Government of a Contracting State shall, from the date of his arrival in that other
State in connection with that visit, be exempt from tax in that other State -
( a ) on the amount of such grant, allowance or award; and
( b ) on all remittances from abroad for the purposes of his maintenance,
education or training.
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 if the recipient of the
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 professional 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 a case, the provisions of Article 7 or
Article 14, as the case may be, shall apply.
CHAPTER IV
Taxation of Capital
ARTICLE 22
Capital
(1) Capital represented by immovable property, as defined in paragraph (2) of
Article 6, may be taxed in the Contracting State in which such property is situated.
(2) Capital represented by movable property forming part of the business
property of a permanent establishment of an enterprise, or by movable property
pertaining to a fixed base used for the performance of professional services, may be
taxed in the Contracting State in which the permanent establishment or fixed base is
situated.
(3) Ships and aircraft operated in international traffic, and movable property
pertaining to the operation of such ships and aircraft, shall be taxable only in the
Contracting State in which the place of effective management of the enterprise is
situated.
(4) All other elements of capital of a resident of a Contracting State shall be
taxable only in that State.
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CHAPTER V
Elimination of Double Taxation
ARTICLE 23
Elimination of Double Taxation
(1) Where a resident of a Contracting State derives income or owns capital
which may be taxed in the other Contracting State in accordance with the provisions
of this Convention, the first-mentioned State shall, subject to the provisions of
paragraph (2) hereof, exempt such income or capital from tax but may, in calculating
tax on the other income or capital of that person, apply the tax which would have
been applicable if the exempted income or capital had not been so exempted.
(2)  Where a resident of a Contracting State derives income which may be taxed
in the other Contracting State in accordance with the provisions of paragraph (2) of
each one of Articles 10, 11 and 12 of this Convention, the first-mentioned State shall
allow as a deduction from its tax on the income of that person an amount equal to the
tax paid thereon in the other State. In Austria such deduction shall not, however,
exceed that part of its tax as computed before the deduction is given which is
appropriate to the income derived from Malta and in the case of Malta, the deduction
shall be computed in accordance with the provisions of the law of Malta regarding
the allowance of a credit against Malta tax in respect of foreign tax.
(3) Where a dividend is distributed by a company which is a resident of Malta to
a company which is a resident of Austria, such dividend shall be exempt from the
corporation tax and from the business tax in Austria if the Austrian company
receiving the dividend controls not less than 25 per cent of the voting power of the
Malta company.
(4) For the purposes of paragraph (2), Malta tax shall be deemed to have been
charged as follows:
( a ) in the case of interest, at the rate of 5 per cent; 
( b ) in the case of royalties, at the rate of 10 per cent;
( c ) in the case of dividends referred to in paragraph (2)( b )(ii) of Article 10,
at the rate chargeable under paragraph (2)( b )(i) thereof,
of the gross amount of the income in each case.
CHAPTER VI
Special Provisions
ARTICLE 24
Non-discrimination
(1) Notwithstanding the provisions of Article 1, the nationals of a Contracting
State whether or not they are residents of one of the Contracting States, 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 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
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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
or any other personal circumstances which it grants to its own residents.
(3) Except where the provisions of Article 9, paragraph (6) of Article 11, or
paragraph (5) 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.
Similarly, any debts of an enterprise of a Contracting State to a resident of the
other Contracting State shall, for the purpose of determining the taxable capital of
such enterprise, be deductible as if they had been contracted 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 Contracting State to
any taxation or any requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to which other similar
enterprises of that first-mentioned State are or may be subjected.
(5)  In this Article the term "taxation" means taxes of every kind and description.
ARTICLE 25
Mutual Agreement Procedure
(1) Where a resident of a Contracting State considers that the actions of one or
both of the Contracting States result or will result for him in taxation not in
accordance with this Convention, he may, notwithstanding the remedies provided by
the national laws of those States, present his case to the competent authority of the
Contracting State of which he is a resident or, in any case referred to in paragraph
(1) of Article 24, to that of the Contracting State of which he is a national. This case
must be presented within three years of the first notification of the actions which
give rise to taxation not in accordance with 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 an appropriate 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 not in accordance with the
Convention. Any agreement reached shall be implemented notwithstanding any time
limits in the national laws of the Contracting State.
(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.
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ARTICLE 26
Exchange of Information
(1) The competent authorities of the Contracting States shall exchange such
information as is necessary for the carrying out of this Convention and of the
domestic laws of the Contracting States concerning taxes covered by this
Convention insofar as the taxation thereunder is in accordance with this Convention.
Any information so exchanged shall be treated as secret and shall not be disclosed to
any persons or authorities including courts other than those concerned with the
assessment or collection of the taxes which are the subject of the Convention, or
with the prosecution of offences in relation thereto.
(2) In no case shall the provisions of paragraph (1) be construed so as to impose
on one of the Contracting States the obligation -
( a ) to carry out administrative measures at variance with the laws or the
administrative practice of that or of the other Contracting State;
( b ) to supply particulars which are 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.
ARTICLE 27
Diplomatic and Consular Officials
Nothing in this Convention shall affect the fiscal privileges of diplomatic or
consular officials under the general rules of international law or under the provisions
of special agreements.
CHAPTER VII
Final Provisions
ARTICLE 28
Entry into Force
(1) This Convention shall be ratified and the instruments of ratification shall be
exchanged at Vienna as soon as possible.
(2) The Convention shall enter into force 60 days after the exchange of
instruments of ratification, and its provisions shall have effect -
( a ) in respect of taxes on income derived on or after the first day of
January, 1977;
( b ) in respect of taxes on capital levied as from the first day of January,
1977.
ARTICLE 29
Termination
This Convention shall remain in force indefinitely but either of the Contracting
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States may, on or before the thirtieth day of June in any calendar year beginning
after the expiration of a period of three years from the date of its entry into force,
give to the other Contracting State, through diplomatic channels, written notice of
termination and, in such event, the Convention shall cease to be effective:
( a ) in respect of taxes on income derived on or after the first day of January
next following the year during which notice of termination has been
given;
( b ) in respect of taxes on capital levied as from the first day of January next
following the year during which notice of termination has been given.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have
signed this Convention.
DONE at Bonn on the 29th day of May, 1978, in duplicate in the German and
English languages, both texts being equally authentic.
E. ATTARD BEZZINA 
For the Republic of Malta 
FRANZ PEIN
For the Republic of Austria
