CONVENTION

Between

The Government of The Hashemite Kingdom of Jordan

And

Malta

 For the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

            The Government of The Hashemite Kingdom of Jordan and The Government of Malta, 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 :

Chapter 1

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.       The existing taxes to which this Convention shall apply are :

            a.          in Jordan   :

                                    the income tax ;

                                    ( hereinafter referred  to as " Jordan 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 significant changes which have been made  in their respective taxation laws .

3.         Notwithstanding the other provisions of this Article, the Convention shall not apply to tax paid or payable in Malta in accordance with the provisions of subsection ( 13 ) of section 56 of the Income Tax Act ( Cap. 123 ) , concerning the chargeable income of any person engaged in the production of  petroleum produced in Malta, or any substantially similar provision which is imposed after the date of signature of the Convention .

 Chapter 11

Definitions

Article  3

GENERAL  DEFINITIONS

 1.       For the purposes of this Convention, unless the context otherwise requires :

            a.            the term "  Jordan " means the territories of the Hashemite       Kingdom of Jordan, the territorial waters of Jordan, and the seabed    and subsoil of the territorial waters, and includes any area    extending beyond the limits of the territorial waters of Jordan, and      the seabed and subsoil of any such area, which has been or may          hereafter be designated, under the laws of Jordan as in    accordance with international law as an area over which Jordan has      sovereign rights for the purposes of exploring and exploiting the    natural resources, whether living or non-living .

             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 Jordan 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    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  Jordan  : 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 permanent home  available to him in both States, he shall be deemed to be a resident  of the State with which his personal and economic relations are  closer ( centre of vital interests ) ;

            b.         if  the State in which he has his centre of vital interests cannot be   determined, or if he has not a permanent home available to him in   either State, he shall be deemed to be a resident of the State in  which he has an habitual abode ;

            c.         if he has an habitual abode in both States or in neither of them, he  shall be deemed to be a resident of the 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.                     An enterprise of a  Contracting State shall be deemed to have a permanent establishment in the other Contracting State if substantial equipment is being used  or   installed in that other State , or supervision     thereof is carried out, by, for or under contract with the enterprise for a period or periods aggregating more than six months within any 12-month period .

5.         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 ;

            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 .

6.         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 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 5 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 .

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 .

 Chapter III

Taxation of Income

 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 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, live stock 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 .

 7.         Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article .

 8.         The provisions of this Article shall not affect the provisions of  the law of a Contracting State regarding the taxation of profits from the business of insurance .

 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.         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    Jordan to a resident of  Malta  who  is   the   beneficial   owner   thereof, the Jordan tax so charged shall not exceed ................

            b.         where the dividends are paid by a company which is a resident of      Malta to a resident of Jordan 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, ["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 shall be taxable only in that other State .

 2.                     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 .

3          The provisions of  paragraph 1 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.

4.         Where, by reason of a special relationship between the payer and the recipient 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 recipient in the absence of such relationship, the provisions of  this Article shall apply only to the last-mentioned amount . In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 12

 ROYALTIES

 1.       Royalties arising in a  Contracting State and paid to  a resident of the other Contracting State shall be taxable only in that other State if such  resident is the beneficial owner of the royalties .

2.                     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 cinematography films ,any patent, trade work, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience .

3          The provisions of  paragraph 1 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.

4.         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

 ALIENATION OF PROPERTY

1.       Income or 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.                     Income or gains from the alienation of  shares or comparable interests in a company, the assets of which consist wholly or principally of immovable property, may be taxed in the Contracting State in which the assets or the principal assets of the company are situated .

3                      Income or 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.         Income or 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.         Income or 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; or

             c.         if the remuneration for his activities in the other Contracting State is paid by a resident of that Contracting State or is borne by  a permanent establishment or a fixed base situated in that Contracting State and exceeds in the fiscal year the equivalent of ........... United                         States dollars.

 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 other 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 .

Article 17

 ENTERTAINERS AND SPORTSMEN

 1.         Notwithstanding the provisions of  Articles 7, 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 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 shall be taxable only in that State.

Article  19

 GOVERNMENT SERVICES

 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 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 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, a national of, that State.

 3.         The provisions of  Articles 15, 16 and 18, shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof .

Article 20

STUDENTS AND BUSINESS APPRENTICES

                                    A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State shall be exempt from tax in the first-mentioned State on payments received from outside that first-mentioned State 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 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 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.

Chapter 1V

Elimination of Double Taxation

Article  22

ELIMINATION OF DOUBLE TAXATION

1.       In the case of  Jordan double taxation shall be eliminated as follows:

 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 Jordan, the Jordan tax on such income shall be allowed as a credit  against the relative Malta tax payable thereon.

 3.         For the purposes of allowance as a credit, the tax payable in Jordan or Malta, as the context requires, shall be deemed to include the tax which is otherwise payable in a Contracting State but has been reduced or waived by that State under its legal provisions for tax incentives .

4.         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 enforce 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 such portion of the income as is remitted to or received in the other State .

Chapter V

Special Provisions

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 enterprise 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 4 of Article 11, or paragraph 4 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 Aricle 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 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 paragraph .

Article 25

EXCHANGE OF INFORMATION

1.       The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of  the domestic laws of  the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention . The exchange of information is not restricted by Article 1 . Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of  that State and shall be disclosed only to persons or authorities ( including courts and administrative bodies ) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention . Such persons or authorities shall use the information only for such purposes . They may disclose the information in public court proceedings or in judicial decisions .

 2.         In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation :

             a.          to carry out administrative measures at