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Maltese Laws |
AN ACT to implement Budget measures for the financial year 2009 and other administrative measures.
BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:
Implementation Act, 2009.
Government of Malta may raise in Malta, by way of loan, a sum of
Short title.
Coming into force of this Part.
Interpretation. Cap. 174.
Authority to raise loan.
A 142
Cap. 161.
money not exceeding five hundred million euro.
(2) For the purpose of raising the aforesaid loan the Minister responsible for finance is hereby authorised to issue stock in Malta
under the provisions of the Local Loans (Registered Stock and Securities) Ordinance on such terms and conditions as the said Minister
may approve.
Purpose. 5. Any money borrowed under the authority of this Part shall be appropriated and applied for the purpose of:
(a) meeting excess expenditure over revenue incurred in the Consolidated Fund for year 2009 and/or subsequent years;
(b) redeeming registered stocks which are due for redemption during 2009; and
(c) effecting portfolio changes in relation to amounts raised through Treasury Bills, amounts raised through Government Stocks,
and in respect of loans raised outside Malta as and when required in line with Government’s debt management policies.
Amendment of the Code of Police Laws. Cap. 10.
Amendment of article 185 of the Code.
Amendment of article 316F of the Code.
"sixteen years", there shall be substituted the words "seventeen years".
Amendment of the Income Tax Act.
Cap. 123.
(2) The provisions of articles 12 and 13 shall come into force as from the year of assessment 2009.
(3) The provisions of article 14 shall come into force as from the year of assessment 2010.
A 143
(a) paragraph (a) of subarticle (6) thereof shall be deleted;
(b) subarticle (8) thereof shall be amended as follows:
(i) for the words "the overall gain", there shall be substituted the words "the income, whether chargeable under
this article or under article 4(1)(a)," and
(ii) immediately after the proviso thereto there shall be added the following new proviso:
"Provided further that if the capital gain exceeds the cost of acquisition of the replacement property any excess is to be taxable
in the year in which the replacement property was acquired and the cost of acquisition of the replacement property to be taken into
account on a subsequent transfer will be zero.";
(c) in paragraph (i) of subarticle (9) thereof, for the words "In ascertaining the capital gain"
there shall be substituted the words “In ascertaining the income, whether chargeable under this article or under article
4(1)(a),";
(d) in subarticle (14) thereof, for the words "upon a subsequent transfer shall be deemed to be the cost of acquisition of
the original shares:" there shall be substituted the following:
"upon a subsequent transfer of the original shares or the new shares shall be deemed to be the cost of acquisition of the original
shares.
For the purposes of this subarticle -
"original shares" means shares held before and involved in the restructuring, and
"new shares" means, in relation to any original shares, the shares in the company which, as a result of the restructuring,
represent the original shares:"; and
(e) in subarticle (15) thereof, for the words "the base cost of the assets that would be considered is the original cost existing
before the first transfer took place." there shall be substituted the following:
Amendment of article 5 of the principal Act.
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"the base cost and date of acquisition of the assets that would be considered, whether chargeable under this article or under
article 4(1)(a), shall be the original cost and the date when it was acquired before the first transfer took place:
Provided further that this article shall apply only where an individual or a partnership en nom collectif transfers to a company a business as a going concern, together with the whole assets of the business, or together with the whole of
those assets other than cash, and the business is so transferred wholly in exchange for shares issued by the company to the person
transferring the business:
Amendment of article 5A of the principal Act.
Provided also that for the purpose of computing any chargeable gain accruing on the disposal of the said shares, the cost of acquisition taken into account shall be reduced by any chargeable gain that would have resulted on the transfer of the said business had this sub-article not been applied.".
(a) in paragraph (a) of subarticle (2) thereof, in the definition of "transfer", for the words "deemed to be a transfer
in terms of" there shall be substituted the words "deemed to be a transfer in terms of subarticle (12A) of this article
and";
(b) in sub-paragraph (ii) of paragraph (g) of subarticle (3) thereof, for the words "and the gains derived therefrom shall
be subject to tax in accordance with article 5 and determined as provided in article 5(8);" there shall be substituted
the following:
"and the income, whether chargeable under article
4(1)(a) or under article 5, derived therefrom shall be determined as provided in article 5(8);";
(c) immediately after sub-paragraph (ii) of paragraph (g) of subarticle (3) thereof, as amended, there shall be added the
following new sub-paragraph:
"(iii) this paragraph shall not apply, and accordingly article 5(8) shall not apply, if the replacement property is disposed
of or ceases to be used in such business, within a period of two years starting from the
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date the replacement property was acquired or such shorter period as the Commissioner may determine.";
(d) immediately after paragraph (g) of subarticle (4)
thereof there shall be added the following new provisos:
"Provided that this paragraph shall not apply, and accordingly article 5(15) is not applicable, if the business is disposed of
or ceases to exist, within a period of two years starting from the date the business is transferred to the said company or such shorter
period as the Commissioner may determine:
Provided further that, for the purposes of determining whether the property has been transferred not later than five years from the
date of its acquisition, under subarticle (3)(b) of this article, where the transferor is a company that had acquired the property
by means of a transfer that qualified for an exemption in terms of this subarticle or article 5(15), it shall be deemed to have acquired
the property on the date on which the property had previously been acquired by the person transferring the property to the said company;";
(e) in paragraph (g) of subarticle (12) thereof, for the words "on which that amount is remitted." there shall be substituted
the following:
"on which that amount is remitted:
Provided that, for any period or part thereof commencing on or after 1st January 2009, interest shall be calculated at the rate of
point seven five percent (0.75%) per month or part thereof and the total interest shall not exceed the said amount of tax.";
and
(f) immediately after subarticle (12) thereof, there shall be added the following new subarticle:
"(12A) (a) If a company ("the chargeable company") owns property which had been acquired from another company
and such acquisition was exempt from tax under subarticle (4)(f) hereof, this subarticle shall apply if the chargeable company
ceases to be a member of the group before the lapse of five years from the date of the said acquisition. References in this subarticle
to a company ceasing to be a member of a group of companies do not
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apply to cases where a company ceases to be a member of a group by being wound up or dissolved or in consequence of another member
of the group being wound up or dissolved.
(b) A company shall cease to be a member of a group if such company and the company from which it had acquired the property referred
to in this subarticle no longer satisfy the provisions of article 5(9)(a) and (b).
(c) When the chargeable company ceases to be a member of the group it shall be treated for all the purposes of this article as if,
immediately after its acquisition of the property, it had transferred and immediately re-acquired the property at that time and the
transfer value to be taken into account is the value at which the chargeable company had acquired the said property from the group
company in an acquisition to which subarticle (4)(f) hereof applies.
(d) The tax on a transfer to which this subarticle applies shall be charged at the rate of twelve percent (12%) of the transfer value
as established in paragraph (c) hereof.
Amendment of article 14C of the principal Act.
Substitution of article 14E of the principal Act.
(e) Tax chargeable under this subarticle shall be due by the chargeable company and shall be remitted to the Commissioner within fifteen working days from the date on which such company ceases to be a member of the group as provided in paragraph (b) hereof.".
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"Sports fees.
L.N. 63 of
2008.
14E. Notwithstanding anything to the contrary contained in this Act, if an individual proves to the satisfaction of the Commissioner
that in the year preceding a year of assessment he has paid fees in respect of his children who have not attained the age of sixteen
years, attending sports activities organised either by a person registered under the Sport Persons (Registration) Regulations or
by the Kunsill Malti g]all-Isport, he shall, for each child, be allowed as a deduction against his income the lesser of these amounts
-
(a) the amount actually paid; (b) one hundred euro:
Provided that the deduction shall only be allowed if the payment and the details of the individual making the claim are confirmed
by information provided by the registered person through the Kunsill Malti g]all-Isport or by the Kunsill Malti g]all-Isport as
the case may be, in such format and content as determined by the Commissioner.".
"(a) in the case of a married couple resident in Malta in the year immediately preceding the year of assessment and to whom
article 49 applies saving where the responsible spouse has opted for a separate computation for the purposes of article
50 -
For every euro of the first €11900 ............... 0c For every euro of the next €9300 ............... 15c For every euro of the
next €7500 ............... 25c For every euro of the remainder ............... 35c;
(b) in the case of any other individual resident in Malta including each spouse where the responsible spouse has opted for a separate
computation for the purposes of article 50 -
Amendment of article 56 of the principal Act.
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For every euro of the first €8500.................. 0c
For every euro of the next €6000 ............... 15c
For every euro of the next €5000 ............... 25c
Amendment of article 96 of the principal Act.
For every euro of the remainder ..............35c:".
"(4) The Minister responsible for finance may by rules amend, repeal or substitute the Schedule to this Act.".
Amendment of the Police Licenses Act. Cap. 128.
Amendment of article 3 of the principal Act.
(2) The provisions of this Part shall be deemed to have come into force on the 1st January, 2009.
Deletion of article 4 of the principal Act.
Amendment of the Swimming Pools (Control) Act.
Cap. 244.
Amendment of article 2 of the principal Act.
Amendment of the Social Security Act. Cap. 318.
(2) The provisions of articles 22, 23 and 24 shall be deemed to have come into force on the 3rd of January, 2009.
(3) The provisions of article 25 shall be deemed to have come into force on the 6th of January, 2007.
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Pension" shall be amended as follows:
(a) in paragraph (v) thereof, for the words "net of four hundred and sixty-five euro and eighty-seven cents (€465.87)"
there shall be substituted the words "net of four hundred and sixty-six euro (€466)";
(b) paragraph (vi) thereof shall be renumbered as paragraph (vii); and
(c) immediately after paragraph (v) thereof, there shall be added the following new paragraph:
"(vi) with effect from the 3rd January 2009, for the purposes of calculating the rate of a pension under this Act, a service
pension net of another €200; and".
(a) in subarticle (1) thereof, for the two provisos, that is from the words "Provided that where a person in respect of
whom" to the words "till the last day of such spell of unemployment" there shall be substituted the following new
provisos:
"Provided that -
(i) where a person in respect of whom this subarticle applies becomes self-occupied under and in accordance with the provisions
of any of the Manpower Incentive Schemes announced by Government, he shall nonetheless remain entitled to the assistance aforesaid
during the first twenty-eight weeks of his becoming self- occupied if -
(a) on the day of his becoming self-occupied he is over eighteen years of age but under sixty years of age; and
(b) during the twelve consecutive months immediately prior to the day on which he becomes self-occupied he had been registered
under Part One of the Register as aforesaid in this subarticle;
(ii) where a person becomes entitled to
Unemployment Benefit or Special Unemployment Benefit
Amendment of article 2 of the principal Act.
Amendment of article 30 of the principal Act.
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as aforesaid in this subarticle, if his spell of unemployment extends into a new benefit year which is related in terms of the Eleventh
Schedule to this Act to two consecutive contribution years during which less than 20 contributions had been paid or credited in his
respect, such person shall, nonetheless, but save as provided for in subarticle (2), remain entitled to Unemployment Benefit or Special
Unemployment Benefit, as the case may be, till the last day of such spell of unemployment;
(iii) where a person in respect of whom this article applies, becomes engaged in voluntary community work or engaged in
any public works under any scheme announced by Government for persons who have been registering for work for more than five years,
such person shall, nonetheless, remain entitled to the assistance for the duration of such engagement.";
(b) in paragraph (iv) of the proviso to subarticle (6) thereof, for the words "not be deemed to be an employed person
or a self-employed person or a self-occupied person:" there shall be substituted the words "not be deemed to be an employed
person or a self-employed person or a self-occupied person; and", and immediately thereafter there shall be added the following
new paragraph:
"(v) where the head of household is engaged under a scheme in accordance with paragraph (iii) of the proviso to subarticle
(1) of this article, then the rate of assistance for such household in accordance with Part I of the Sixth Schedule of this Act is
to be increased to seventy- five percent (75%) of the national minimum wage as applicable to persons of eighteen years of age or
over as established by a national standard order issued under the Employment and Industrial Relations Act:"; and
(c) in the proviso after the new subparagraph (v), as added by this article, for the words "during the first 12 weeks of
his entitlement to any benefit, income, privilege or grant accruing to him under any of the Schemes as aforesaid, and any
such benefit, income, privilege or grant shall not be taken into account during the aforesaid 12-week period" there shall
be substituted the words "during the first 28 weeks of his entitlement to any benefit, income, privilege or grant accruing to
him under any of the Schemes as aforesaid, and any such benefit, income, privilege or grant shall not be taken into account
during the aforesaid 28-week period".
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(a) the marginal note thereof shall be substituted by the following new marginal note:
"Increases not considered in the assessment or re- assessment of a Pensionable Income.";
(b) in paragraph (c) thereof, for the words "any accelerated increment.", there shall be substituted
the words "any accelerated increment;"; and
(c) immediately after paragraph (c), as amended, there shall be added the following new paragraph and proviso:
"(d) any remuneration for overtime, any form of bonus, any extra allowances, any remuneration in kind or commission which
did not form part of the basic wage or salary, and which in any manner becomes part of the basic wage or salary during the period
on which the pensionable income is to be assessed:
Provided that where the Director is satisfied that a person is in receipt of a pension which was calculated on the basis of a pensionable
income which includes income as described in this article, the Director shall re-assess the pension payable to such person in such
a manner to ensure that the provisions of this article are duly applied with regard to future payments.".
"4. In calculating the means of a married couple for the purposes of awarding a Disability Pension or a Pension for the Visually
Impaired, account shall be taken of the property (excluding the house of residence) belonging to the couple or the income that is
being received or that could be received, by each of the couple:
Provided that, where there is no community of acquests between them either because such community of acquests was excluded by contract
or because it was dissolved as a result of their legal separation, account shall only be taken of the property belonging to,
or the income that is being received or that could be received by each of the couple, so
Amendment of article 58 of the principal Act.
Amendment of the Second Schedule to the principal Act.
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however that in the case where such married couple is de facto
separated, account shall be taken of:
(a) the community of acquests, and
(b) only the income that is being received or that could be received by the claimant:
Sohowever that, with effect from the 6th January
2007, with respect to the property and income of the spouse of the disabled or visually impaired person, the provisions of this paragraph
shall only come into effect from the first Saturday following the fifth year from the date of their marriage.".
Amendment of the Duty on Documents and Transfers Act. Cap. 364.
Amendment of article 35 of the principal Act.
(2) The provisions of this Part shall apply to transfers causa mortis happening on or after 1 January, 2009.
(a) for the words "the whole; and" in paragraph (ii) thereof, there shall be substituted the words "the whole;";
(b) in paragraph (iii) for the words "at the time of the transfer by the surviving spouse" there shall be substituted
the words "at the time of the transfer by the surviving spouse;" and
(c) immediately after paragraph (iii) there shall be added the following new paragraph:
"(iv) where all the following conditions are satisfied, that is -
(a) the property transferred causa mortis consists of a dwelling house or a part thereof, or of any real right over a dwelling house;
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Cap. 413.
(b) the transferee causa mortis is a person who is on the Register of Persons with Disability kept by the National Commission Persons with Disability set
up in terms of the Equal Opportunities (Persons with Disability) Act, and identifies himself as such on the declaration of the
relative transfer causa mortis by means of an identity card issued by the said Commission;
(c) the person from whom the transfer causa mortis originates is the parent or the legal guardian of the said transferee causa mortis;
(d) the said dwelling house was, at the time of the transfer, the ordinary residence of the person from whom the transfer originates
and also the ordinary residence of the said transferee causa mortis,
no duty shall be levied at the time of the transfer causa mortis of that property:
Provided that if such property or part thereof is transferred inter vivos by the said transferee causa mortis during the first ten years from the date of the transfer causa mortis in question, the duty which would have been payable on the transfer causa mortis of the property, or part thereof, that is so transferred shall be levied at the time of the said transfer inter vivos.".
"(7) The Commissioner may give notice in writing to any person informing him that an enquiry will be conducted into that person's tax declarations and liabilities in respect of such years of assessment as shall be indicated in the said notice.".
Amendment of the Income Tax Management Act.
Cap. 372.
Amendment of article 13 of the principal Act.
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Amendment of article 44 of the principal Act.
Amendment of article 48 of the principal Act.
"recovery of such interest:
Provided that for any period or part thereof commencing on or after 1st January 2009, interest shall be calculated at the rate of
point seven five percent (0.75%) per month or part thereof and the total interest shall not exceed the amount of the said tax;".
"for which it remains unpaid:
Provided that for any period or part thereof commencing on or after 1st January 2009, interest shall be calculated at the rate of
point seven five percent (0.75%) per month or part thereof and the total interest shall not exceed the amount of the said repayment.".
Amendment to the Excise Duty Act.
Cap. 382.
(2) The provisions of this Part shall come into force or, as the case may be, shall be deemed to have come into force, as follows:
(a) the provisions of article 33 shall come into force or, as the case may be, shall be deemed to have come into force, as follows:
(i) the provisions of paragraph (a) thereof shall be deemed to have come into force on 4th November,
2008;
(ii) the provisions of the amendment contained in paragraph (b) thereof, relating to "ETHYL ALCOHOL, excluding Spirit based
flavoured beverages of an alcoholic content over 1.2% but not exceeding 7%" shall come into force on 5th January, 2009; and
(iii) the provisions of the amendment contained in
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paragraph (b) thereof, relating to "Spirit based flavoured beverages of an alcoholic content over 1.2% but not exceeding 7%"
shall be deemed to have come into force on 4th November, 2008;
(b) the provisions of article 34 shall be deemed to have come into force on 4th November, 2008; and
(c) the provisions of article 35 shall come into force or, as the case may be, shall be deemed to have come into force, as follows:
(i) the provisions of paragraphs (a), (c), (d), (h), (i), (j), (k), (m), (n) and (o) thereof shall be deemed to have come into
force on 4th November, 2008; and
(ii) the provisions of paragraphs (b), (e), (f), (g), and (l) thereof shall come into force on such date as the Minister may, by
notice in the Gazette, appoint.
(a) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "INTERMEDIATE PRODUCTS",
there shall be substituted the following:
"€150.00 per hectolitre"; and
(b) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column
thereof in respect of the item "ETHYL ALCOHOL", there shall be substituted the following:
Amendment to the Second Schedule to the principal Act.
" E TH YL ALC O H O L, e x cl ud in g Spi r i t ba sed flavoured beverages of an alcoholic content over
1.2% but not exceeding 7%
Spirit based flavoured beverages of an alcoholic content over 1.2% but not exceeding 7%
€0.14 per %
vol. per litre
€0.40 per %
vol. per litre"
(a) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "Cigarettes", there
shall be substituted the following:
"48.7% of the retail price plus €22.00 per 1000 cigarettes but not less than €109.50 per 1000 cigarettes";
Amendment to the Third Schedule to the principal Act.
A 156
(b) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "Cigars and Cigarillos",
there shall be substituted the following:
"€15.20 per 1000 units";
(c) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "Hand-rolling Tobacco",
there shall be substituted the following:
"€68.13 per kg.";
(d) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "Other Smoking Tobacco",
there shall be substituted the following:
"€68.13 per kg.";
(e) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "Pipe Tobacco", there
shall be substituted the following:
"€21.94 per kg."; and
(f) for the words in the 'Rate of Excise Duty' column thereof in respect of the item "Chewing Tobacco and Snuff",
there shall be substituted the following:
Amendment to the Fourth Schedule to the principal Act.
"€29.59 per kg.".
(a) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Leaded petrol", there shall be substituted the following:
" Leaded petr ol f a lling with in CN Codes
2710.11.31, 2710.11.51 and 2710.11.59
€558.18 per
1000 litres";
(b) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column
thereof in respect of the item "Leaded petrol", there shall be substituted
A 157
the following:
" Leaded petr ol falli ng wit h in CN Codes
2710.11.31, 2710.11.51 and 2710.11.59, excluding
aviation spirit falling within CN Code 2710.11.31 if used for aviation purposes
2710.11.31 if used for aviation purposes
€558.18 per
1000 litres
€450.00 per
1000 litres";
(c) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Unleaded petrol", there shall be substituted the following:
" Un l e ad ed pet r o l fal ling wi thin CN Codes
2710.11.41, 2710.11.45 and 2710.11.49
€439.38 per
1000 litres";
(d) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Gas oil", there shall be substituted the following:
"Gas oil falling within CN Codes 2710.19.41 to
2710 .19.49 excludin g gas oi l fal ling withi n
2710.19.49 if used for heating purposes
€352.40 per
1000 litres";
(e) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Gas oil", there shall be substituted the following:
"Gas oil falling within CN Codes 2710.19.41 to
2710 .19.49 excludin g gas oi l fal ling withi n
2710.19.41 or 2710.19.45 with a sulphur content not
exceeding 0.1% by weight if used by commercial or
industrial entities for heating purposes
2710 .19 .45 with a sulphur conten t no t exceedin g
0.1% by weight if used by commercial or industrial
entities for heating purposes
€352.40 per
1000 litres
€142.09 per
1000 litres";
(f) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof under the column "Gas oil:
"If used by private pleasure seacraft for outbound voyages
0";
there shall be substituted the following:
"If used by pleasure sea-craft for direct voyages to destinations outside the European Union
0";
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(g) the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty'
column thereof in respect of the item hereunder:
"Gas Oil falling within CN Code 2710.19.49 if used for heating purposes
€96.79 per
1000 litres"
shall be repealed;
(h) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column
thereof in respect of the item "Biodiesel (a mixture of biomass and gas oil)", there shall be substituted the following:
"Biodiesel (a mixture of biomass and gas oil) €352.40 per
1000 litres";
(i) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Natural gas", there shall be substituted the following:
"Natural gas falling within CN Codes 2711.11.00 and 2711.21.00
If used as motor fuel €2.60 per 1 gigajoule,
gross
calorific value
If used for heating purposes €0.84 per 1 gigajoule,
gross
calorific value";
(j) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Liquid petroleum", there shall be substituted the following:
"Liquid petroleum gas falling within CN Codes
2711.12 to 2711.13, except when used for heating purposes
2711.12 to 2711.13, when used for heating purposes
€125.00 per
1000 Kgs
€34.94 per
1000 Kgs";
(k) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column
thereof in respect of the item "Kerosene" - the first line thereof - there
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shall be substituted the following:
"Kerosene falling within CN Codes 2710.19.21 and 2710.19.25
€352.40 per
1000 litres";
(l) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column
thereof
- under the item "Kerosene":
"If used by private pleasure aircraft for outbound voyages
0";
there shall be substituted the following:
"If used by private pleasure aircraft for direct voyages to destinations outside the European Union
0";
(m) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Electricity", there shall be substituted the following:
"Electricity falling under CN Code 2716 €0.84 per
MWh";
(n) for the words in the 'Description of excise goods' column and in the relative 'Rate of Excise Duty' column thereof in respect of the item "Coal and Coke", there shall be substituted the following:
"Coal and Coke falling within CN Codes 2701,
2702 and 2704
€0.26 per 1 gigajoule, gross
calorific value";
and
(o) the Note at the end of the Schedule, starting with the words "Note: Beginning from 1 December 2005" and ending with
the words "and 2710.11.49" shall be deleted.
(2) The provisions of this Part shall come into force or, as the case may be, shall be deemed to have come into force, as follows:
Amendment of the Value Added Tax Act.
Cap. 406.
A 160
(a) the provisions of articles 40, 42, 43, 44(a), 44(c),
44(d), 44(e), 45, 46, 47 and 49 to 56 shall be deemed to have come into force on the 1st January, 2009;
(b) the provisions of articles 37, 38, 39, 41 and 44(b) shall come into force on the 1st January, 2010 as provided for by Council
Directive 2008/8/EC of 12th February, 2008;
Amendment of article 10 of the principal Act.
(c) the provisions of article 48 shall come into force on the 1st January, 2015 as provided for by Council Directive
2008/8/EC of 12th February, 2008.
(a) subarticle (1) thereof shall be substituted by the following:
"(1) (a) A taxable person established in Malta who is not registered under this article or under article
11 shall apply to be registered under this article by not later than thirty days from the date on which he makes a supply for consideration
in Malta other than an exempt without credit supply.
(b) A taxable person established in Malta who is not registered under this article or under article 11 and who supplies services
within the territory of another Member State for which the tax is payable solely by the recipient shall apply to be registered under
this article by not later than thirty days from the date on which he makes a supply for consideration."; and
Amendment of article 12 of the principal Act.
(b) in subarticle (2) thereof for the words "Subarticle (1) does not apply" there shall be substituted the words "Paragraph (a) of subarticle (1) does not apply".
(a) in subarticle (2) thereof, for the words "A taxable person who is not registered" there shall be substituted
the words "For the purpose of subarticle (1), a taxable person who is not registered".
(b) Subarticles (3) to (8) thereof shall be renumbered as subarticles (4) to (9) respectively and immediately after subarticle
(2) thereof there shall be added the following new
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subarticle (3):
"(3) A taxable person established in Malta, other than a taxable person registered under article 10, who receives services
for which he is liable to pay the tax pursuant to article 20(2), shall apply to be registered under this article by not later than
the date on which he receives a service.";
(c) in subarticle (4) thereof as renumbered, for the words "in terms of subarticle (1) or who makes" there shall
be substituted the words "in terms of subarticles (1) or (3) or who makes";
(d) subarticles (8) and (9) thereof, as renumbered, shall be renumbered again as subarticles (9) and (10) and
immediately after subarticle (7) thereof there shall be added the following new subarticle (8):
"(8) A person registered under this article in the circumstances mentioned in subarticle (3) may apply for the cancellation
of his registration at any time if he no longer receives supplies of services for which he is liable to pay the tax pursuant to article
20(2)."; and
(e) in paragraph (b) of subarticle (10) thereof, as re- numbered, for the words "a cancellation in accordance with
subarticle (5) or (6)" there shall be substituted the words "a cancellation in accordance with subarticle (6) or (7) or
(8)".
(a) paragraph (b) thereof shall be substituted by the following:
"(b) a supply of services made to a taxable person or a non-taxable legal person identified for purposes
of Value Added Tax in terms of item 2(1) in Part Two of the Third Schedule; or"; and
(b) paragraph (c) thereof shall be substituted by the following:
"(c) a supply of goods or of services, other than a supply to which paragraph (a) or (b) refers, made to a taxable person
registered under article 10 or article 12, or to a non-taxable legal person identified for purposes of
Amendment of article 20 of the principal Act.
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Value Added Tax:
Provided that, for the purposes of this subarticle, a taxable person who has a fixed establishment within Malta shall be regarded
as a taxable person who is not established within Malta when the following conditions are met:
(i) he makes a taxable supply of goods or of services within Malta;
Amendment of article 21 of the principal Act.
Amendment of article 30 of the principal Act.
Amendment of article 37 of the principal Act.
(ii) an establishment which the supplier has within Malta does not intervene in that supply.".
"(3) Every taxable person shall make a recapitulative statement on such form and at such intervals as the Minister may by regulations
prescribe for the following supplies:
(a) exempt intra-Community supplies of goods; (b) services, other than services that are
exempted from the tax in the Member State where the
transaction is taxable, and for which the recipient is liable to pay the tax;
made to taxable persons and non-taxable legal persons identified for purposes of Value Added Tax.".
"(3) Where a tax return for a tax period furnished to the Commissioner by a person registered under article 10 who only supplies
goods or services listed under Part One of the Fifth Schedule to this Act, does not contain a full and correct statement
of the matters required to be declared by that person in that return and to the extent that that person does not correct such an
understatement or overstatement in accordance with the provisions of article 28 before he is served with an assessment for that period
he shall, unless that person has in virtue of that default become liable to a higher administrative penalty under
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the other provisions of this article, be liable to an administrative penalty of one hundred and fifty euro (€150).".
(a) in paragraph (b) of subarticle (1) thereof, for the words "twenty-three euro (€23)," there shall be substituted
the words "twenty euro (€20),";
(b) the proviso to subarticle (1) thereof shall be substituted by the following:
"Provided that where the tax payable is less than two hundred and fifty euro (€250), such administrative penalty shall not
exceed the equivalent of the tax payable to the nearest euro or fifty euro (€50), whichever is the greater, and it shall not exceed
two hundred and fifty euro (€250) in all other cases.";
(c) in subarticle (2) thereof, for the words "twenty-three euro (€23)," there shall be substituted the words "ten
euro (€10),"; and
(d) the proviso to subarticle (2) thereof shall be substituted by the following:
"Provided that such administrative penalty shall in no case exceed one hundred and twenty euro (€120) for each such declaration
or statement.".
(a) in paragraph (b) of subarticle (1) thereof, for the words "twenty-three euro (€23)," there shall be substituted
the words "twenty euro (€20),";
(b) in paragraph (a) of subarticle (2) thereof, for the words "the tax chargeable on the intra-community acquisitions",
there shall be substituted the words "the tax chargeable on the intra-community acquisitions or the services received or both
such intra-community acquisitions and services received,";
(c) in paragraph (b) of subarticle (2) thereof, for the words "twenty-three euro (€23)," there shall be substituted
the words "twenty euro (€20),";
Amendment of article 38 of the principal Act.
Amendment of article 39 of the principal Act.
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(d) in subarticle (3) thereof, for the words "twenty-three euro (€23)," there shall be substituted the words "twenty
euro (€20),"; and
(e) the proviso to subarticle (3) thereof shall be substituted by the following:
Amendment of article 40 of the principal Act.
"Provided that such administrative penalty shall in no case exceed two hundred and fifty euro (€250) for each such notice.".
(a) in paragraph (b) thereof, for the words "two hundred and thirty-two euro (€232)," there shall be substituted
the words "one hundred euro (€100),"; and
(b) the proviso thereof shall be substituted by the following:
Substitution of article 42 of the principal Act.
"Provided that such administrative penalty shall in no case exceed five hundred euro (€500).".
"42. (1) Notwithstanding the provisions of articles 37 to 41, both inclusive -
(a) no administrative penalty shall be due by a person for any default if that person proves that there is a reasonable excuse
for the default;
(b) if a person does not prove that there is a reasonable excuse for a default, but the Commissioner is of the view that the
default resulted from particular circumstances that merit a mitigation of the administrative penalty, he may, in his discretion,
remit part of the administrative penalty for that default;
(c) if the Commissioner is of the view that the default resulted from a genuine mistake he may remit in whole or in part the
administrative penalty for that default.
(2) For the purposes of paragraphs (a) and (b) of subarticle (1) -
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due; or
(a) an insufficiency of funds to pay any tax
(b) when reliance is placed on any other person to perform any task, the fact of that reliance or any dilatoriness or inaccuracies
on the part of the person relied upon,
shall not constitute a reasonable excuse.
(3) Notwithstanding the provisions of articles 43 and
44, the use of the Commissioner's discretion for the purpose of paragraphs (b) and (c) of subarticle (1) shall not be questioned
in any appeal or in any reference made to the Value Added Tax Appeals Board.".
"in cases where such a penalty has been imposed in virtue of article
37" shall be substituted by the words "except where it is imposed as a result of an assessment".
(a) paragraph (g) thereof shall be substituted by the following new paragraph:
"(g) the supply of telecommunications, broadcasting or electronic services supplied by taxable persons not established within
the Community;";
(b) paragraph (h) thereof shall be substituted by the following new paragraph:
"(h) the supply of telecommunications, broadcasting or electronic services supplied by taxable persons established within
the Community but not in the Member State of consumption;"; and
(c) immediately after paragraph (h) thereof, there shall be added the following new paragraph (i):
"(i) such other operations as may be designated by an order as may be made, amended, substituted or replaced by the Minister
and published in the Gazette.".
Amendment of article 44 of the principal Act.
Amendment of article 57 of the principal Act.
Amendment of article 76 of the principal Act.
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(a) for the words "a fine (multa) of not less than six hundred and ninety-five euro (€695) and not exceeding three thousand and four hundred and ninety euro (€3,490)"
there shall be substituted the words "a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand and five hundred euro (€3,500)"; and
Amendment of article 77 of the principal Act.
(b) for the words "a further fine (multa) of not less than four euro (€4) and not exceeding twenty-three euro (€23)" there shall be substituted the words "a further fine (multa) of not less than five euro (€5) and not exceeding twenty euro (€20)".
(a) for the words "a fine (multa) of not less than six hundred and ninety-five euro (€695) and not exceeding three thousand and four hundred and ninety euro (€3,490)" there shall be substituted the words "a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand and five hundred euro (€3,500)"; and
Amendment of article 78 of the principal Act.
(b) for the words "a further fine (multa) of not less than four euro (€4) and not exceeding twenty-three euro (€23)" there shall be substituted the words "a further fine (multa) of not less than five euro (€5) and not exceeding twenty euro (€20)".
(a) in subarticle (1) thereof for the words "one thousand and one hundred and sixty euro (€1,160)" there shall be substituted the words "one thousand and two hundred euro (€1,200)"; and
Amendment of article 79 of the principal Act.
(b) in subarticle (2) thereof for the words "two thousand and three hundred and twenty-five euro (€2,325)" there shall
be substituted the words "two thousand and five hundred euro (€2,500)".
52. In article 79 of the principal Act, for the words "a fine (multa) of not less than four hundred and sixty-five euro (€465) and not more than two thousand and three hundred and twenty-five euro
(€2,325)" there shall be substituted the words "a fine (multa) of not less than five hundred euro (€500) and not more than two thousand and five hundred euro (€2,500)".
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54. In article 81 of the principal Act, for the words "a fine (multa) of not less than two hundred and thirty-two euro (€232) but not exceeding one thousand and one hundred and sixty euro (€1,160)", there shall be substituted the words "a fine (multa) of not less than two hundred and fifty euro (€250) but not exceeding one thousand and two hundred euro (€1,200)".
Amendment of article 80 of the principal Act.
Amendment of article 81 of the principal Act.
Amendment of article 84 of the principal Act.
Amendment of the Ninth Schedule to the principal Act.
Amendment of the Malta Resources Authority Act. Cap. 423.
"(2) An administrative fine imposed under subarticle (1) of this article shall not exceed one hundred thousand euro (€100,000) for each contravention and, or six hundred euro (€600) for each day of non-compliance, from the date of the decision given by the Authority".
Amendment of article 31 of the principal Act.
(2) The provisions of this Part shall come into force on the 1st of March, 2009, (except for item S 201001 in the Second Schedule which will come into force on 1st January, 2010).
Amendment of the Eco- Contribution Act.
Cap. 473.
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Amendment of article 2 of the principal Act.
Amendment of article 3 of the principal Act.
Amendment of article 4 of the principal Act.
substituted the following definition:
" "producer" means a person who, for the purpose of trade or otherwise in the course of business, manufactures or brings
into Malta products on which the eco-contribution shall be payable in terms of this Act, and in relation to services means a person
who for the purpose of trade or otherwise provides services in Malta on which eco-contribution shall be payable in terms of this
Act;"; and
(b) immediately before the definition of "waste" there shall be added the following new definition:
" "services" means services which are listed in the Second Schedule and on which an eco-contribution is chargeable;".
following new subarticle:
"(1) There shall be charged and levied by the competent authority, on account of the Government, an eco-contribution at the
rates shown in the Third Column of the First Schedule payable on products described in the First and Second Columns of the said Schedule,
which are placed on the market, and in the Fourth Column of the Second Schedule payable on services described in the First,
Second and Third Columns of the said Schedule.";
(b) in subarticle (2), for the words "First Schedule" there shall be substituted the words "First and Second
Schedules"; and
(c) in the proviso to subarticle (2) for the words "the said First Schedule", wherever they occur, there shall be substituted
the words "the said First and Second Schedules".
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the market and the eco-contribution on services listed under the Second Schedule shall be due at the time indicated in the
third column of the Second Schedule:".
"Part IIIA - Imposition of Eco-contribution on Plastic Bags
Amendment of article 9 of the principal Act.
Addition of new Part in the principal Act.
Information to be printed on plastic bags.
Offences and penalties.
9A. (1) A producer of plastic bags described in the First and Second Columns of the First Schedule who is liable for the payment
of an eco-contribution at the rate shown in the Third Column of the said Schedule shall be obliged to comply with the obligations
in accordance with the provisions of the said Fourth Schedule.
(2) The Minister may, by regulations made under this article, amend, substitute or repeal the Fourth Schedule.
9B. Any person in the course of an economic activity who, upon an inspection by the competent authority or any person appointed
by it for such purpose in terms of article 25 -
(a) has in his possession plastic bags, already placed on the market in Malta, which do not conform to the obligations listed under
the provisions of the Fourth Schedule; or
(b) fails to comply with any other obligation listed under the provisions of the Fourth Schedule,
shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than one thousand euro (€1,000):
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Compromise penalties.
Provided that where a person has been convicted under this article and is again convicted of an offence under the said article committed
within six months from the date of the previous conviction, the fine (multa) shall in no case be less than one thousand five hundred euro (€1,500):
Provided further that where a person has been convicted for a third offence under this article within a period of twelve months from
the date of the first conviction, the fine (multa) shall in no case be less than two thousand euro (€2,000):
Provided further that where a person has been convicted for four offences under this article in a period of twenty-four months, the
court shall on the latest of the said convictions impose a fine (multa) of not less than two thousand five hundred euro (€2,500) and in addition to the punishment for that conviction order the suspension
for a determinate time of not less than one week and not more than one month of all licences, permits, warrants or other authorisation
granted by the Police or by any other authority to carry on the economic activity or activities to which the offences relate.
9C. (1) Notwithstanding any other provision of this Act, the competent authority may, in the case of an offence under article 9C,
enter into an agreement in writing with the offender whereby the said offender pays to the competent authority five hundred euro
(€500) in the case of a first offence, seven hundred and fifty euro (€750) in the case of a second offence and one thousand euro
in the case of a third offence (€1,000), within fifteen days from the receipt of a notice by the competent authority to this effect,
and upon the payment of such fine (multa), all criminal liability under this Act with regard to the offences in relation to which the fine (multa) has been paid, shall be extinguished.
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(2) Any sum due in virtue of an agreement entered into in terms of subarticle (1) shall be due to the Government as
a civil debt. The competent authority shall not enter into an agreement as is referred to in subarticle (1) unless such agreement
is accompanied by the payment of the sum due or a sufficient security for its payment.
(3) The provisions of this article shall be without prejudice to any proceedings or forfeiture instituted or having effect in virtue
of any other law.
(4) The said agreement and the payment of the fine (multa) so imposed shall be without prejudice to any eco-contribution and administrative penalty due under this Act.".
"for the recovery of waste from those products:
Provided that producers of bags of plastics falling under the First Schedule of this Act and producers of services falling under the
Second Schedule of the Act shall not qualify for the purpose of this subarticle.".
"PLASTIC BAGS
3923 Bags for the conveyance of goods, of plastics, excluding:
(i) sacks and cones;
(ii) bags, without any handles, loops, slots or any other feature that facilitates the use of the bag for the conveyance of
goods, and without any gussets, not exceeding 26 cm in width and 40 cm in length;
Amendment of article 12 of the principal Act.
Amendment of the First Schedule to the principal Act.
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(iii) bio-degradable bags in accordance with MSA EN 13432:2000, MSA EN 14046:2003, MSA EN
14047:2003, MSA EN 14048:2003 as appropriate, and degradable platic bags, of any dimension, including bio-degradable and degradable
garbage bags;
(iv) plastic packaging, without handles, used as part of a production process;
(v) plastic bags designed for re-use, which are used to contain goods or products, and which are sold by the producer for a sum of
not less than Lm0.50
3923 Bags for the conveyance of goods, of degradable plastic, excluding bags without any handles, loops, slots or any other feature
that facilitates the use of the bag for the conveyance of goods, and without any gussets, not exceeding 26 cm in width and 40 cm
in length
there shall be substituted the words -
3923 Bags of plastics, excluding:
(i) bags for the conveyance of goods; (ii) sacks and cones;
(iii) bags, without any handles, loops, slots or any other feature that facilitates the use of the bag for the conveyance of
goods, and without any gussets, not exceeding 26 cm in width and 40 cm in length;
(iv) bio-degradable bags in accordance with MSA EN 13432:2000, MSA EN 14046:2003, MSA EN
14047:2003, MSA EN 14048:2003 as appropriate, and degradable
platic bags, of any dimension, including bio-degradable and degradable garbage bags;
€0.14 per piece
€0.02 per piece"
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(v) plastic packaging, without handles, used as part of a production process;
(vi) plastic bags designed for re-use, which are used to contain goods or products, and which are sold by the producer for a sum of
not less than
€1.20 per piece
3923 Bags of degradable plastic, excluding bags for the conveyance of goods and bags without any handles, loops, slots
or any other feature that facilitates the use of the bag for the conveyance of goods, and without any gussets, not exceeding
26 cm in width and 40 cm in length
3923 Bags of plastics, for the conveyance of goods, with a handle, loop, slot or any other feature that facilitates the use of the
bag for the conveyance of goods, excluding bags which constitute or form an integral part of the packaging in which goods are sealed
prior to retail sale or transfer
€0.14 per piece
€0.02 per piece
€0.15 per bag".
Amendment of the Second Schedule to the principal Act.
Addition of new Schedule to the principal Act.
S 201001 Accommodation
provided in any premises which for the purpose of providing such service requires the license in virtue of the Malta Travel and Tourism Services Act, or any other Act which may be substituted therefore, excluding host families.
The time when the invoice is raised by the producer or at the time of the check-in, whichever is the earlier.
Fifty cents (€0.50) per night per person.".
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Addition of new Schedule to the principal Act.
"FOURTH SCHEDULE (Article 9A)
(1) Any producer referred to in subarticle (1) of article 9A shall be obliged to print on each side of the bag, a label, consisting
of, but not limited to, the following information:
(a) the name of the person registered in terms of the
Third Schedule of this Act,
(b) the business address, and
(c) the eco-contribution registration number as prescribed in item 1(3) of the Third Schedule of this Act.
The information above mentioned is to be provided in a character font of not less than two centimetres and in a manner clearly
visible. The producer shall also print the batch number of the bag on each side of the bag.
(2) The producer, referred to in subarticle (1) of article 9A, shall provide, for every supply, a certificate to prove that the
bag or bags with the corresponding batch number were supplied by him and that the eco-contribution was accounted for in terms of
this Act.
(3) Any person who in the course of an economic activity acquires the plastic bags through an intermediary, is required to
obtain a copy of the certificate issued by the producer, verifying that eco-contribution has been accounted for on the consignment
with the corresponding batch number.
(4) Any person who supplies plastic bags and who is required to issue a fiscal receipt under item 2 of the Thirteenth Schedule to
the Value Added Tax Act shall indicate on the fiscal receipt the price inclusive of the eco-contribution for each supplied plastic
bag, one by one.".
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Passed by the House of Representatives at Sitting No. 86 of the
2nd March, 2009.
LOUIS GALEA
Speaker
PAULINE ABELA
Clerk to the House of Representatives
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