Article 23 - Methods for elimination of double taxation - Malta

ARTICLE 23 METHODS FOR ELIMINATION OF DOUBLE TAXATION Double taxation shall be eliminated as follows: 1. In India: (a) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Malta, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Malta. Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Malta. (b) Where in accordance with any provision of the Agreement income derived by a resident of India is exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 2. In Malta: (a) 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 Agreement, there is included in a Malta assessment income from sources within India, the Indian tax on such income shall be allowed as a credit against the relative Malta tax payable thereon. (b) Where in accordance with any provision of the Agreement, income derived by a resident of Malta is exempt from tax in Malta, Malta may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.