Elimination of double taxation: credit and deduction rules govern relief where income taxed in both Malta and India. Elimination of double taxation is effected by allowing relief in the State of residence for taxes imposed in the State of source through specified deduction or credit mechanisms. For residents of India, Malta tax on income taxable under the agreement is allowed as a deduction against Indian tax, limited to the portion of Indian tax attributable to that Malta-taxable income; Malta tax includes hypothetical Malta tax that would have been payable but for specified Maltese incentive provisions. For residents of Malta, Indian tax included in a Malta assessment is allowed as a credit against the relevant Malta tax.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Elimination of double taxation: credit and deduction rules govern relief where income taxed in both Malta and India.
Elimination of double taxation is effected by allowing relief in the State of residence for taxes imposed in the State of source through specified deduction or credit mechanisms. For residents of India, Malta tax on income taxable under the agreement is allowed as a deduction against Indian tax, limited to the portion of Indian tax attributable to that Malta-taxable income; Malta tax includes hypothetical Malta tax that would have been payable but for specified Maltese incentive provisions. For residents of Malta, Indian tax included in a Malta assessment is allowed as a credit against the relevant Malta tax.
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