DOUBLE TAXATION RELIEF ON TAXES ON INCOME
WITH THE ARAB REPUBLIC OF EGYPT  ġ S.L.123.57 1
SUBSIDIARY LEGISLATION 123.57
DOUBLE TAXATION RELIEF ON TAXES ON 
INCOME WITH THE ARAB REPUBLIC OF EGYPT 
ORDER
14th September, 2001
LEGAL NOTICE 205 of 2001.
Title.
Taxes on Income with the Arab Republic of Egypt 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 Arab Republic of Egypt with a view to affording
relief from double taxation in relation to the following
taxes imposed by the laws of the Arab Republic of
Egypt:
(i) the tax on income derived from immovable
property (including the agriculture land tax and
the building tax;
(ii) the unified tax on income of individuals;
(iii) the tax on corporation profits;
(iv) the development duty of the financial resources
of the State; and
(v) supplementary taxes imposed as percentage of
taxes mentioned above or otherwise;
( b ) that it is expedient that those arrangements should
have effect;
( c ) that the Convention has entered into force on the 7th
April, 2001.
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SCHEDULE
CONVENTION 
BETWEEN THE REPUBLIC OF MALTA 
AND THE ARAB REPUBLIC OF EGYPT
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 Arab
Republic of Egypt, 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. The existing taxes to which this Convention shall apply are:
( a ) in Egypt:
(i) the tax on income derived from immovable property (including
the agriculture land tax and the building tax);
(ii) the unified tax on income of individuals;
(iii) the tax on corporation profits;
(iv) the development duty of the financial resources of the State; and 
(v) supplementary taxes imposed as percentage of taxes mentioned
above or otherwise;
(hereinafter referred to as '' Egyptian tax'');
( b ) in Malta:
the income tax;
(hereinafter referred to as ''Malta tax'').
2. 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 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:
( a ) the term ''Egypt'' means the Arab Republic of Egypt and, when used in a
geographical sense, means the territory and the territorial waters of the
Arab Republic of Egypt and its exclusive economic zone and
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continental shelf as defined in accordance with international law;
( 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 terms ''a Contracting State'' and ''the other Contracting State'' mean
Malta or Egypt, 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 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 ''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 Egypt: the Minister of Finance or his 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 by a Contracting State any
term not defined therein shall, unless the context otherwise requires, have the
meaning which it has under the law of that State concerning the taxes to which the
Convention applies.
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 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 of the State in which he has a
permanent home available to him; if he has a permanent home available
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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 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 purpose 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 six 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 12-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 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;
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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 7 applies - is acting
in a Contracting State on behalf of an enterprise of the other Contracting State, that
enterprise shall be deemed to have a permanent establishment in the first-mentioned
Contracting State in respect of any activities which that person undertakes for the
enterprise, if such a person: 
( a ) has and habitually exercises in that State an authority to conclude
contracts in the name of 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; or
( b ) has no such authority, but habitually maintains in the first-mentioned
State a stock of goods or merchandise from which he regularly delivers
goods or merchandise on behalf of the enterprise.
6. Notwithstanding the preceding provisions of this Article, an insurance
enterprise of a Contracting State shall, except in regard to re-insurance, be deemed
to have a permanent establishment in the other Contracting State if it collects
premiums in the territory of that other State or insures risks situated therein through
a person other than an agent of an independent status to whom paragraph 7 applies.
7. 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.
8. 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) situated in the other Contracting State
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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, 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.
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 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 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.
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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 derived 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
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. ( a ) 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:
(i) where the dividends are paid by a company which is a resident of
Egypt to a resident of Malta who is the beneficial owner thereof,
the Egyptian tax so charged shall not exceed 10 percent of the
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gross amount of the dividends;
(ii) where the dividends are paid by a company which is a resident of
Malta to a resident of Egypt 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.
( b ) Under the law in force in Malta, income tax paid or payable by a
company, as is referable to that part of its profits which is distributed by
way of dividends, is assimilated with the personal income tax of the
shareholder in receipt of such a dividend. In the shareholder's hands, the
dividend is charged to tax gross and the relevant amount of tax, so
assimilated, is set off against the shareholder's tax liability on his
income from all liable sources.
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,
''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 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 recipient is the beneficial
owner of the interest the tax so charged shall not exceed 10 percent 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
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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
taxable according to the laws of each Contracting State, due regard being had to the
other provisions of this Convention.
7. Notwithstanding the provisions of paragraph 2, interest arising in a
Contracting State and paid to the other Contracting State, its Central Bank, a
political subdivision or a local authority thereof in relation to any debentures, or
loans guaranteed, insured or financed by a Contracting State, its Central Bank, a
political subdivision or local authority thereof shall be exempt from tax in the first-
mentioned State.
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 12 percent of the gross
amount of the 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, or films or tapes
used for radio or television broadcasting, any patent, trade mark, design or model,
plan, secret formula or process, or for the use of, or the right to use, industrial,
commercial or scientific equipment, or for information concerning industrial,
commercial or scientific experience.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner
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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
payment 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 of the capital stock of a company the
property of which consists 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
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 income or
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 ships or aircraft operated in international traffic
by an enterprise of a Contracting State, or 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.
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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 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 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: 
( 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
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.
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Article 17
ENTERTAINERS 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.
Article 18
PENSIONS AND ANNUITIES
1. Pensions and annuities arising in a Contracting State and paid to a resident
of the other Contracting State shall be taxable only in the first-mentioned State.
2. The term ''annuities'' means a stated sum payable periodically at stated
times, during life or during a specified or ascertainable period of time, under an
obligation to make the payments in return for adequate and full consideration in
money or money’s worth.
Article 19
GOVERNMENT SERVICE
1. ( a ) Salaries, wages and other similar remuneration 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 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. 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 political
subdivision or a local authority thereof.
Article 20
PAYMENTS RECEIVED BY STUDENTS AND 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 purposes of his maintenance, education or training shall not
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be taxed in that State, provided that such payments arise from sources outside that
State.
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 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
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,
the first-mentioned State shall allow as a deduction from the tax on the income of
that resident an amount equal to the income tax paid in that other 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
that other 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.
3. For the purposes of deduction from the tax on income in a Contracting State,
the tax paid in the other Contracting State shall be deemed to include the tax which
is otherwise payable in that other Contracting State but has been reduced or waived
by that Contracting State under its legal provisions for tax incentives. 
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. 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
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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.
5. The provisions of this Article shall, notwithstanding the provisions of
Article 2, apply to taxes of every kind and description which are the subject of this
Convention.
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.
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
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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:
( 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 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 27
ENTRY INTO FORCE
1. Each Contracting State shall notify the other, through diplomatic channels,
of the completion of the procedures required by its domestic law for the entry into
force of this Convention.
2. This Convention shall enter into force on the date of the later of these
notifications and shall thereupon have effect:
( a ) in Egypt:
(i) in respect of tax withheld at source, on amounts paid or credited
on or after the first day of January in the calendar year following
that in which the Convention enters into force; and
(ii) in respect of other taxes, for taxation years beginning on or after
the first day of January in the calendar year following that 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 in
the calendar year following the date on which the Convention enters into
force.
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Article 28
TERMINATION
This Convention shall remain in force indefinitely unless terminated by
either 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 entry into force of this Convention. 
In such event, the Convention shall cease to have effect:
( a ) in Egypt:
(i) in respect of tax withheld at source, on amounts paid or credited
on or after the first day of January in the calendar year following
that in which the notice is given; and
(ii) in respect of other taxes, for taxation years beginning on or after
the first day of January in the calendar year following that in
which the notice 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 in
the calendar year following the date on which the notice is given.
IN WITNESS HEREOF the undersigned, being duly authorised thereto by their
respective Governments, have signed this Convention.
DONE at Cairo this Saturday 20th February 1999, in duplicate in the English and
Arabic language, all texts being equally authentic. In case of divergence of
interpretation, the English text shall prevail.
For the Government of the For the Government of the
Republic of Malta Arab Republic of Egypt
Guido de Marco Amre Moussa
Deputy Prime Minister Minister of Foreign Affairs
Minister of Foreign Affairs
