S.L. 123.207 Art. 10Ascertaining the total income of a permanent establishment.

(1) For the purpose of ascertaining the total income of any body of persons not resident in Malta, where such body of persons maintains a permanent establishment situated in Malta, these rules shall apply, to the arrangements between the mutatis mutandis, permanent establishment and the body of persons.

(2) For the purpose of ascertaining any income derived by a company registered in Malta which is attributable to a permanent establishment situated outside Malta, these rules shall apply, mutatis mutandis, to the arrangements between the permanent establishment and the company registered in Malta:

Provided that for the purposes of this rule:

(a) the term "associated enterprises" shall be construed as including the relationship between a permanent establishment and the company;

(b) the term "cross-border arrangement" shall be construed as including an arrangement, as defined in this rule, between a non-resident company and its permanent establishment situated in Malta and between a company registered in Malta and its permanent establishment situated outside Malta; and

(c) a "permanent establishment" shall be treated as if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions:

Provided further that this rule shall be construed, interpreted and applied to ensure, as far as practicable, consistency between the effect which is to be given to this rule, and the 2010 Report on the Attribution of Profits to Permanent Establishments approved on 22 June 2010 by the Committee on Fiscal Affairs and by the OECD Council on 22 July 2010, as supplemented, modified, revised or otherwise replaced, as may by notice be designated by the Minister responsible for Finance for the purposes of this rule.