United Kingdom / Malta · Article 11 · Malta–United Kingdom 1994 Convention: official MLI synthesis

- (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 and subject to tax in respect of the interest in the other Contracting State the tax so charged shall not exceed 10 per cent of the gross amount of 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. The term ‘interest’ shall not include any item which is treated as a distribution under the provisions of Article 10 of this Convention.

- (4) The provisions of paragraphs (1) and (2) of this Article 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 of this Convention, 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 paid exceeds, for whatever reason, 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 of interest. 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) [Replaced by paragraph 1 and paragraph 4 of Article 7 of the MLI] (Refer to page 47 of this synthesised text, immediately following Article 28) [The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the debt-claim in respect of which the interest is paid to take advantage of this Article by means of that creation or assignment].

- (8) Notwithstanding the provisions of paragraph (2) of this Article, interest arising in a Contracting State shall be exempt from tax in that State if it is derived and beneficially owned by the Government of the other Contracting State or a local authority thereof or any agency or instrumentality of that Government or local authority.

- (9) Notwithstanding the provisions of Article 7 of this Convention and of paragraph (2) of this Article, interest arising in a Contracting State which is paid to and beneficially owned by a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State if it is paid in respect of a loan made, guaranteed or insured, or any other debt-claim or credit guaranteed or insured by an institution beneficially owned by the Government of the other Contracting State or any agency or instrumentality of that Government.

Source & edition

HMRC, Synthesised text of the Multilateral Instrument and the 1994 UK-Malta Double Taxation Convention

Official online text · retained capture Official source website ↗

SHA-256 300b912cedb67dd7e0db131452b2ad167b4e5d5ec2f4499df517ee31dbe1072f

Digest scope: retained online-source capture; no PDF binary verification

Publisher role and language

Official publisher synthesis, not an authentic signed original or current-law certification. Publisher qualifications remain source text and searchable.

Official publisher synthesis includes its stated MLI modifications and tax-specific entry-into-effect discussion. Currentness and subsequent positions not independently certified.

Actual supplied body languages: English. A language named by an instrument is not a supplied translation.

Edition

Official MLI synthesis; HMRC updated 11 April 2019

Text available here

English

Review

Unreviewed; qualified human review pending

Current applicability

Not verified

Underlying instrument signature

1994-05-12

Languages recorded in source metadata: English. This is not a promise of available text or a translation.

Edition notes and known limitations

Official HTML text capture, not Original PDF; human wording and current-law certification not claimed.

Block IDs are navigation aids, never invented legal paragraph numbers. Native extraction can flatten ordered-list styling; only printed source labels are retained.

Complete preamble, closing and all supplied integral protocol/notes are retained separately and searchable within this source.

Publisher synthesis, not an authentic treaty instrument. MLI replacement text and explanations are retained; original boxes/layout are not reproduced. Authentic Convention and MLI texts take precedence.

Source authority, text completeness and currentness still require human review.