Income Tax Act (Cap. 123), article 73

73. (1) Where any person pays to a person not resident in Malta, or to a person resident in Malta on behalf of such non- resident person, any income chargeable to tax under the provisi ons of this Act, he shall upon paying such income, unless he is him self liable to pay tax thereon under the provisions of article 5 of the Income Tax Management Act , deduct tax therefrom: (a) at the rate of twenty-five cents (0.25) in the euro where payment is made to or on behalf of any non-resident person other than a company or a person to whom article 56(18A) applies; (b) at the rate chargeable under article 56(6) where payment is made to or on b ehalf of a non-resident company; and (c) at the rate chargeable under article 56(18A): Provided that the Commissioner may, by notice in writing given to any person required to effect a deduction of tax in accordance with paragraphs ( a) and ( b), authorise such person to deduct tax at a rate lower than that hereinbefore mentioned, or to pay such income without any deduction of tax: Cap. 372. Provided further that the provisions of this sub-article shall not apply to income from which ta x has been deducted under the provisions of article 59 or under the provisions of article 23 of the Income Tax Management Act . (2) Any amount of tax deducted from income in accordance with the provisions of sub-artic le (1) shall be a debt due to t he Government by the person effectin g the deduction as aforesaid, payable within thirty days from the making of the deduction, an d such amount shall be accounted for and remitted to the Commissioner within the said period. Cap. 372. (3) Deductions of tax made under sub-article (1)( a) and ( b) shall, when paid to the Commissioner as provided in sub-article (2), be set off for the purposes of collection against the tax charg ed on the non-resident person in respe ct of the relative income. Any excess shall be refunded in accordance with the provisions of article 48 of the Income Tax Management Act . (4) Where any person fails to d educt tax in accordance with the provisions of this article or, after deducting such tax fails t o pay it to the Commissioner within the period mentioned in sub-article (2) - (a) such person shall be chargeable with the tax which should have been deducted or paid as aforesaid and, in addition, with twice th e amount of such tax; (b) the tax and additional tax shall be recoverable from the said person in the same manner as other tax charged upon him under this Act; (c) a notice given by the Commissioner to any person and stating the tax which was due to be deducted or paid by him as aforesaid and any additional tax to which he became liable for having failed to deduct or pay the tax 200 CAP. 123.] INCOME TAX shall, unless the contrary is proved, be sufficient evidence that the amount shown in the said notice is the amount due to be paid to the Commissioner by the said person; (d) the Commissioner may in his discretion remit wholly or in part any additional tax chargeable under the provisions of this sub-article; (e) additional tax charged under this sub-article shall be borne by the person required to deduct or pay the tax and shall not be recoverable by such person, whether wholly or in part, from the person receiving the income; Cap. 372. (f) additional tax charged under the provisions of this sub- article shall not be deemed to be part of any tax paid or payable for the purposes of articles 59, 76 and 89 and articles 42, 51 and 52 of the Income Tax Management Act. Amended by: XVII. 1994.28. PART X RELIEF OF DOUBLE TAXATION Four reliefs of double taxation. Added by: XVII. 1994.28.