S.L. 123.45 ст. 2Arrangements to have effect. The desiring to prevention of This Contracting 1. The (a) in (b) in 2. This taxes which or in place of, shall notify respective 3. not apply to article (13) of any person substantially Agreement.

It is hereby declared:

(a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of South Africa with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of South Africa:

(i) the normal tax;

(ii) the non-resident shareholders’ tax; and

(iii) the secondary tax on companies;

(b) that it is expedient that those arrangements should have effect. SCHEDULE

AGREEMENT BETWEEN MALTA AND SOUTH AFRICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Government of Malta and the Government of the Republic of South Africa, conclude an Agreement for the avoidance of double taxation and the fiscal evasion with respect to taxes on income, have agreed as follows:

CHAPTER I

SCOPE OF THE AGREEMENT

ARTICLE 1

Personal Scope Agreement shall apply to persons who are residents of one or both of the States.

ARTICLE 2

Taxes Covered existing taxes to which this Agreement shall apply are: Malta: the income tax; (hereinafter referred to as "Malta tax"); South Africa:

(i) the normal tax;

(ii) the non-resident shareholders’ tax; and

(iii) the secondary tax on companies; (hereinafter referred to as "South African tax"). Agreement shall apply also to any identical or substantially similar are imposed after the date of signature of the Agreement in addition to, the existing taxes. The competent authorities of the Contracting States each other of any significant changes which have been made in their taxation laws. Notwithstanding the other provisions of this Article, this Agreement shall tax paid or payable in Malta in accordance with the provisions of sub-article 56 of the Income Tax Act concerning the chargeable income of engaged in the production of petroleum produced in Malta or any similar provision which is imposed after the date of signature of this

CHAPTER II

DEFINITIONS

ARTICLE 3

General Definitions