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Maltese Laws |
AN ACT to implement Budget measures for the financial year
2011 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, 2011.
Short title.
Coming into force of this Part.
Interpretation. Cap. 174.
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Authority to raise loan.
Cap. 161.
(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 2011 and, or subsequent years;
(b) redeeming registered stocks which are due for redemption during 2011;
(c) repaying a bank loan originally granted to the Government of Malta to take over loan liabilities held in the name of Malta
Drydocks Corporation; and
(d) 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 Income Tax Act.
Cap. 123.
(2) The provisions of this Part shall come into force as follows:
(a) articles 7(a), 10(b), 11, 13, 14(b), 16, 17, 18, 20(d),
20(e), 21, 22 and 24 as from year of assessment 2011;
(b) articles 7(b), 8(a), 8(c), 8(d), 10(a), 20(a) and 20(g)
on the 1st January 2011;
(c) articles 7(c), 7(d), 8(e), 8(f) and 8(g)(ii) as from year of assessment 2009;
(d) articles 8(b), 9(a) and 19 on 26th November, 2010;
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(e) article 8(g)(i) on 16th April, 2010; and
(f) articles 12, 20(b) and 20(c) as from year of assessment 2012.
(a) for the definition "petroleum", there shall be substituted the following:
" "petroleum" means crude oil of whatever density, natural gas and other hydrocarbons and substances that may be extracted
therefrom;";
(b) immediately after the definition "property company", there shall be added the following new definition:
'' "property partnership" shall mean a partnership as defined in article 5(1)(b) which owns immovable property
situated in Malta, or any real rights thereon, or a partnership which, directly or indirectly, holds shares or other proprietary
interests in any entity or person, which owns immovable property situated in Malta, or any real rights thereon, where five percent
or more of the total value of the said shares or other proprietary interests so held is attributable to such immovable property
or rights:
Provided that where a partnership, entity or person carrying on a trade or business owns immovable property situated in Malta, or
any real rights thereon, consisting only of a factory, showroom, warehouse or office used solely for the purpose of carrying
on such trade or business, such partnership, entity or person shall, for the purpose of this definition, be treated as not owning
immovable property if not more then fifty percent of the value of its assets consist of immovable property situated in Malta, or
any real rights over such property, and it does not carry on any activity the income from which is derived directly or indirectly
from immovable property situated in Malta;";
(c) in the definition ''foreign income account'', paragraph (a) thereof shall be substituted by the following
new paragraph:
''(a) profits resulting from royalties and similar income arising outside Malta and from dividends, capital
Amendment of article 2 of the principal Act.
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gains, interest, rents, income or gains derived from a participating holding or from the disposal of such holding other than a participating
holding in a company resident in Malta, and any other income derived from investments situated outside Malta, which are liable to
tax in Malta and are receivable by a company registered in Malta not being a company registered under the Malta Financial Services
Authority Act, and''; and
(d) for the definition "property company" there shall be substituted the following:
'' ''property company'' shall mean a company which owns immovable property situated in Malta or any
real rights thereon or a company which holds, directly or indirectly, shares or other interests in any entity or person, which owns
immovable property situated in Malta or any real rights thereon where five percent or more of the total value of the said shares
or other interests so held is attributable to such immovable property or rights:
Amendment of article 5 of the principal Act.
Provided that where a company, entity or person carrying on a trade or business owns immovable property situated in Malta or any real rights thereon, consisting only of a factory, showroom, warehouse or office used solely for the purpose of carrying on such trade or business, such company, entity or person shall, for the purpose of this definition, be treated as not owning immovable property if not more then fifty percent of the value of its assets consist of immovable property situated in Malta or any rights over such property and it does not carry on any activity the income from which is derived directly or indirectly from immovable property situated in Malta;''.
(i) in subparagraph (iv) of paragraph (a) thereof, for the words "subarticle (13)(b)(ii)." there shall be substituted
the words "subarticle (13)(b)(ii);", and immediately thereafter there shall be added the following new subparagraph:
"(v) gains or profits arising from the transfer of the ownership or usufruct of or from the assignment or cession of any rights
over any interest
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in a partnership. For the purposes of this subparagraph "transfer" shall mean:
(a) a transfer of a full or partial interest and any alienation of any such full or partial interest in a partnership; and
(b) a deemed transfer of an interest in the partnership. Where a person acquires or increases a partnership share there is a deemed
transfer of an interest in the partnership to that partner from the other partners;";
(ii) in paragraph (b) thereof, immediately before the definition "transfer", there shall be inserted the following new
definitions:
" "partnership" shall mean a commercial partnership en nom collectif, or commercial partnership en commandite the capital of which is not divided into shares and, except for the purposes of subparagraph (v)(b), shall include any other partnership
having a legal personality distinct from that of its members other than a commercial partnership en commandite the capital of which is divided into shares;
"partnership share" means the share to which a person is entitled in the income of the partnership and to assets available
for distribution on a winding up of the partnership;";
(iii) in the definition ''transfer'', immediately after the words ''subarticles (9A) and (13)(b),''
there shall be added the words ''and for the avoidance of doubt includes any transfer of an asset by a company to its shareholders,
or by a commercial partnership en nom collectif or commercial partnership en commandite the capital of which is not divided into shares to its members, in the course of winding up the company or partnership or in the
course of a distribution of assets to its shareholders or partners pursuant to a scheme of distribution,'';
(b) immediately after the last proviso to paragraph (c) of subarticle (3) thereof, there shall be added the following new proviso:
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''Provided also that the acquisition cost of shares resulting from a conversion of a partnership into a company
as referred to in article 45B shall be the cost of acquisition of the interest (representing those shares) held in the partnership
that had been converted into the said company;'';
(c) immediately after subarticle (3) thereof, there shall be added the following new subarticle:
"(3A) For the purpose of ascertaining the gains or profits arising from any transfer of property in terms of sub-article (1)(a)(v):
(a) the acquisition cost in each of the circumstances mentioned in this paragraph shall, subject to any adjustments that
may be prescribed, be determined as follows:
(i) the acquisition cost of an interest acquired from an existing partner shall be the actual purchase price;
(ii) the acquisition cost of an interest acquired causa mortis shall be the lower of the value declared in a deed of transfer causa mortis and the price which that interest would have fetched had it been sold on the open market on the date of that acquisition;
(iii) the acquisition cost of an interest acquired by way of a capital contribution made to the partnership shall be the
amount or value of such contribution;
(iv) the acquisition cost of an interest resulting from a conversion of a company into a partnership as referred to in article
45A shall be the cost of acquisition of the shares (representing that interest) held in the company that had been converted into
the said partnership:
Provided that where the said shares consist of shares whose return is limited
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to a fixed rate of return the acquisition cost shall be taken to be zero; and
(b) any transfer consisting of an exchange shall be considered as if two separate transfers were taking place; and
(c) the provisions of subarticle (2)(d), (e), and (f) and shall apply mutatis mutandis to this subarticle.";
(d) immediately after subarticle (6) thereof, there shall be added the following new subarticle:
"(6A) The provisions of subarticle (1)(a)(v) shall not apply to gains or profits relating to property transferred in the circumstances
referred to in subarticle (5)(e) and (f).";
(e) in paragraph (iii) of subarticle (9), for the words
''For the purpose of this paragraph "property company" shall mean a company which owns immovable property situated
in Malta, or any rights over such property, or a company which holds, directly or indirectly, shares or interests in a body of persons
which owns immovable property situated in Malta, or any rights over such property:'' there shall be substituted the words
''For the purpose of this paragraph the proviso to the definition of ''property company'' in article
2(1) shall not apply:'';
(f) for paragraph (h) of subarticle (9A) thereof, there shall be substituted the following new paragraph:
''(h) For the purpose of paragraph (a) the term "shares in a company" shall mean shares in a company which, on
the date of the acquisition referred to in the said paragraph owned, directly or indirectly, any immovable property situated in Malta
or any real rights thereon and the said property or any part thereof is still, directly or indirectly, owned by such company on the
date it ceases to be a member of the group in accordance with the provisions of paragraph (b). For the purpose of this paragraph
a company is treated as indirectly owning immovable property if it holds, directly or indirectly, shares or other interests
in any entity or person, which owns immovable property situated in Malta or any real rights thereon where five percent or more of
the total value
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of the said shares or other interests so held is attributable to such immovable property or rights.''; and
(g) paragraph (b)(ii) of subarticle (13) thereof shall be amended as follows:
(i) in the first proviso thereto, for the words ''or in the proportion in the value'' there shall be substituted
the words ''and in the proportion in the value''; and
Amendment of article 5A of the principal Act.
(ii) in the last proviso thereto, for the words ''For the purpose of this paragraph "property company" shall mean a company which owns immovable property situated in Malta, or any rights over such property, or a company which holds, directly or indirectly, shares or interests in a body of persons which owns immovable property situated in Malta, or any rights over such property.'' there shall be substituted the words ''For the purpose of this paragraph the proviso to the definition of ''property company" in article 2(1) shall not apply:''.
(a) in paragraph (i) of subarticle (4) thereof, for the words "or any other provision of the Income Tax Acts or any other
law." there shall be substituted the words "or any other provision of the Income Tax Acts or any other law;" and immediately
thereafter there shall be added the following new paragraph:
"(j) A transfer of property by a company to its shareholder or to an individual related to its shareholder in the course of
winding up or in the course of a distribution of assets pursuant to a scheme of distribution, where the said shareholder is an individual
or his spouse, who owns or own, all of the share capital (disregarding the holding of one share having no preferential rights)
of the said company transferring the property as aforesaid:
For the purpose of this paragraph an individual is related to the said shareholder if such individual is his spouse, his descendant
or ascendant in the direct line, or the spouse of any such descendant or ascendant, or, in the absence of any descendants in the
direct line, his brother or sister or a descendant of his brother or sister:
Provided that this paragraph shall only apply where
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all the following conditions have been satisfied:
(i) the said shareholder held all of the share capital (disregarding the holding of one share having no preferential rights) of
the company transferring the property for a period exceeding five years immediately preceding the date of the transfer of the property
as aforesaid;
(ii) the said property consists of one transferable unit, being either a dwelling house, garage, shop, office, store or warehouse;
(iii) the said property is held as a capital asset by the company and has been so held for a period exceeding five years immediately
preceding the date of the transfer of the property as aforesaid:
Provided further that, on a subsequent transfer of the said property by the said shareholder or related individual, the provisions
of subarticle (3)(b) shall not apply:
Provided also that where the said property is subsequently transferred by the said shareholder or related individual, as the case
may be, to a person referred to in subarticle (4)(a)(i), and such person subsequently transfers the said property within a period
of five years from the date of its acquisition the provisions of subarticle (3)(b) shall not apply:
Provided also that every company resident in Malta shall allocate the distributable profits derived from a transfer to which this
paragraph applies, and on which no tax is payable in accordance with this paragraph, to the final tax account.";
(b) in paragraph (a) of subarticle (2) thereof, in the definition of "transfer", the words "any transfer of property
by a company to its shareholders in the course of winding up" shall be deleted; and
(c) in paragraph (a) of subarticle (6) thereof, for the words "In a contract of emphyteusis the ground rent" there
shall be substituted the words "In a contract of emphyteusis and in any transfer of property where the consideration consists
of or
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Amendment of article 12 of the principal Act.
Amendment of article 14 of the principal Act.
Amendment of article 14B of the principal Act.
includes periodical payments to which article 4(1)(d) or (e)
applies, the ground rent or any such other periodical payment".
(a) in subparagraph (ii) of paragraph (c) thereof, for the words "long term policies of insurance and of any shares or securities
in a company" there shall be substituted the words "long term policies of insurance, of any interest in a partnership which
is not a property partnership and of any shares or securities in a company"; and
(b) for paragraph (p) thereof, there shall be substituted the following:
"(p) any dividend paid by a company whose main source of income in the relevant year is charged at the rate provided for in
article 56(13) in respect of a Contractor;".
(a) in paragraph (n) thereof, for the words "nine hundred and thirty-five euro (935) per child:" there shall
be substituted the words " nine hundred and thirty-five euro (€935) per child."; and
(b) the proviso thereto shall be deleted.
(a) paragraph (b) thereof shall be substituted by the following:
"(b) one thousand and six hundred euro (€1,600) in respect of each child who attended such secondary school or one
thousand and two hundred euro (€1,200) in respect of each child who attended such primary school or kindergarten:"; and
(b) immediately after paragraph (b) as substituted, there shall be added the following proviso:
"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, in such
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format and content as determined by the Commissioner, by the head of the relative school or kindergarten.".
Substitution of article 23 of the principal Act.
"Profits from production of petroleum.
Cap. 156. Cap. 194. S.L. 156.01
23. (1) Where any person engaged in the business of exploration for, and the production of, petroleum (hereinafter
referred to as "the Contractor") derives, or aims to derive, gains or profits through a Production Sharing Contract (hereinafter
referred to as "the Contract") granted to such person by the Government of Malta by way of licence in accordance with
the provisions of the Petroleum Production Act, the Continental Shelf Act and the Petroleum (Production) Regulations, or any provision
amending or substituting the said Acts or Regulations, the chargeable income of the said person from such business shall be determined
as set out in this article.
(2) (a) The gains or profits derived by the Contractor from the production of petroleum for any basis year, being the year
immediately preceding a year of assessment, shall be arrived at by deducting the recoverable costs as defined in the Contract and
not yet fully recovered by the Contractor, from the total of the value of the cost recovery petroleum and of the share of profit
petroleum, as defined in the Contract, allotted to the Contractor for that year, to which shall be added any ancillary or incidental
income for the same year.
(b) Where after such deduction as is referred to in paragraph (a) there remains any balance of unabsorbed recoverable costs,
the amount of such unabsorbed costs shall be carried forward to the following year and shall be added to and become part of the recoverable
costs for that year.
(c) The procedure referred to in paragraph (b) shall be followed in subsequent years until all recoverable costs shall have been
absorbed.
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Cap. 372.
(3) (a) For the purposes of this article, particularly for the purposes of subarticle (2), each Contract shall be deemed
to constitute a separate and distinct source of income and any Contractor deriving gains or profits from more than one Contract
shall be subject to tax as if he were a separate and unconnected person with respect to each such Contract.
(b) Where more than one petroleum field is in production in an area covered by the same Contract, the gains or profits from
each such field shall be determined as if each such field constitutes a separate and distinct source of income arising to a separate
person, so however that the Contractor shall have the right to identify the fields in the said area where the cost of exploration
and development operations are to be taken into account in determining the relative gains or profits.
(4) The provisions of articles 16 to 22 shall not apply in the case of any company in any year in which the company is operating
under a licence referred to in subarticle (1).
(5) (a) Notwithstanding anything contained in the Income Tax Acts, where a non- resident sub-contractor renders services
to a Contractor in Malta, such Contractor shall withhold tax at the rate set out in article
56(13)(b) on payments made to the sub- contractor for services rendered in Malta and shall pay to the Commissioner any
tax so withheld within thirty days from the making of the deduction.
(b) Where a Contractor fails to deduct and pay tax in accordance with paragraph (a), the provisions of article 73(4) of
this Act and of article 40(1) of the Income Tax Management Act shall apply mutatis mutandis.
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(c) The tax withheld in accordance with paragraph (a) shall be considered as a final withholding tax unless the sub-contractor notifies
the Commissioner that this tax is to be considered as a provisional tax payment to be credited against the tax liability
of the said sub- contractor’s chargeable income for the relevant year of assessment computed in accordance with the provisions
of the Act.
(d) The notification referred to in paragraph (c) shall be made by not later than the tax return date for the relevant year of
assessment and in such form as the Commissioner may require.
(6) Except for gains or profits derived from the production of petroleum referred to in subarticles (1) and (2), any income
or deemed income derived by a Contractor and subject to tax under any of the provisions of this Act shall be so brought to charge
in accordance with the said provisions and at the applicable rates, but no deduction shall be granted thereagainst in respect of
any loss or outgoing expense incurred in connection with the exploration for or the production of petroleum.".
(a) in paragraph (a) thereof, for the words "other than alimony payments as provided for in article 14A and school fees
as provided for in article 14B;" there shall be substituted the words "other than those specifically allowed by this Act;";
and
(b) in paragraph (g) thereof, for the words "voluntary nature." there shall be substituted the words "voluntary
nature;" and immediately thereafter there shall be added the following new paragraph:
"(h) any interest, discount or premium paid or payable to a person not resident in Malta where -
(i) the person not resident in Malta derives or benefits from the said interest, discount or premium, directly or indirectly,
from the granting of loans or from any form of credit to finance the acquisition, development,
Amendment of article 26 of the principal Act.
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construction, refurbishment, renovation of immovable property situated in Malta or any right thereon including professional fees related
thereto (including fees related to the acquisition of finance) and any other matter which increases or enhances the value
of such immovable property or any right thereon; and
(ii) the said interest, discount or premium is exempt from tax under the provisions of article 12(1)(c)(i); and
(iii) the payor of the interest, discount or premium is a person related to the person not resident in Malta.
For the purpose of this paragraph a person is deemed to be related to a person not resident in Malta if:
(i) that person and the person not resident in Malta are, directly or indirectly, controlled or beneficially owned to
the extent of more than 10% by the same persons; or
Amendment of article 27D of the principal Act.
Amendment of article 33 of the principal Act.
(ii) that person owns, directly or indirectly, more than 10% of the ordinary share capital or voting rights of the person not resident in Malta.".
"Provided that the provisions of this subarticle shall apply mutatis mutandis where none of the trustees of a trust is a person resident in Malta and the beneficiaries of the such trust include persons that
are -
(i) ordinarily resident and domiciled in Malta; or
(ii) ordinarily resident or domiciled in Malta and the relevant income is received in Malta.".
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"Provided that where the recipient derives, or is deemed to have derived pursuant to the provisions of article 43(6)(a), (b)
or (c), investment income referred to in article 41(a)(viii), tax shall be deducted at the rate specified in article 56(6) or such
other rate as may be prescribed and rules may also be prescribed on how the investment income provisions are to be applied in particular
circumstances.".
(a) for item (4) of subparagraph (viii) of paragraph (a)
thereof there shall be substituted the following:
"(4) the dividend referred to in article 43(6)(a) and the income or gains referred to in article 43(6)(c);"
and immediately thereafter the following new item shall be added the following:
"(5) the income referred to in article 43(6)(b);";
(b) for paragraph (b) thereof there shall be substituted the following:
"(b) "payor" shall mean the person who is liable to make, or if different, who makes a payment of investment income
and with respect to investment income referred to in paragraph (a)(viii)(4) shall mean the company which earned the profits deemed
distributed pursuant to article
43(6)(a) and article 43(6)(c) and with respect to investment income referred to in paragraph (a)(viii)(5) shall mean the Commissioner;";
and
(c) the proviso to paragraph (c) thereof shall be substituted by the following:
"Provided that with respect to the investment income referred to in paragraph (a)(viii)(2) and (3) a recipient shall be an individual
who is resident in Malta and with respect to the investment income referred to in paragraph (a)(viii)(4) and (5) a recipient shall
be the individual referred to in article 43(6)(a), (b) and (c), as the case may be, and in the circumstances referred to in article
43(6)(e) such individual must be ordinarily resident and domiciled in Malta.".
Amendment of article 41 of the principal Act.
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Amendment of article 43 of the principal Act.
(a) for paragraph (a) thereof there shall be substituted the following:
Cap. 372.
Cap. 372.
Cap. 372.
"(a) Where an individual resident in
Malta is registered for the purpose of article
48(4) or article 48(4A) of the Income Tax Management Act, or is beneficially entitled, directly or indirectly, to the profits of a
person or entity which is so registered, such individual shall be deemed to have received a dividend or dividends corresponding
to the amount of profits (that is, the profits net of the tax paid or payable by the company in respect of which he or the said person
or entity are so registered) that he is beneficially entitled to receive directly or indirectly from such company, on the first day
of the accounting period following that in which such profits were earned by the said company or on the date such profits where distributed
whichever is the earlier:
Provided that this paragraph shall not apply where the said profits were distributed to such individual resident in Malta registered
for the purpose of article
48(4) or article 48(4A) of the Income Tax Management Act by way of dividends in the accounting period in which such profits were earned
by the said company:
Provided further that when an individual resident in Malta registered for the purpose of article 48(4) or article
48(4A) of the Income Tax Management Act
has been deemed to have received a dividend or dividends on the first day of the accounting period following that in which
such profits were earned by the said company such dividend or dividends shall for the purpose of article 41(a)(viii)(2) be deemed
to have been paid on such day.";
(b) paragraph (b) thereof shall be substituted by the following:
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"(b) An individual resident in Malta beneficially entitled, directly or indirectly, to the profits of a person or entity which
has received the income referred to in article
41(a)(viii)(3), shall be deemed to have received, at the time
that the said person or entity has received the said income, so much of that income as corresponds to his, direct or indirect, entitlement
to receive that income by way of dividend or other means through or from any person or entity in any manner whatsoever:";
(c) paragraph (d) thereof shall be substituted by the following:
"(d) (i) Notwithstanding any other provision in the Income Tax Acts, where an individual becomes beneficially entitled, directly
or indirectly, to the profits of a person or entity or any such entitlement is increased in any way and such person or entity has
received but not yet distributed, or is entitled to receive (at the time such individual became so entitled or had his entitlement
so increased), directly or indirectly, the income referred to in article
41(a)(viii)(2) and (3), such individual shall be deemed to have received a dividend chargeable to tax under this Act at the time that
he became so entitled or had his entitlement so increased as corresponds to his, direct or indirect, entitlement or increased entitlement
to receive that income by way of dividend or other means through or from any person or entity in any manner whatsoever and such individual
shall be obliged to declare the said dividend in his return of income:
Provided that the provisions of this paragraph shall not be applicable where the Commissioner is satisfied that the events referred
to in this paragraph were not the result of some arrangement or scheme the sole or main purpose of which was the avoidance of
or postponement of the payment of tax.
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Cap. 372.
(ii) Notwithstanding any other provision in the Income Tax Acts, where an individual not resident in Malta changes his residence
and becomes resident and domiciled in Malta and at the time of the change becomes or is beneficially entitled, directly or indirectly,
to the profits of a person or entity and such person or entity has received, directly or indirectly, but not yet distributed the
income referred to in article 41(a)(viii)(2) and (3), such individual shall be deemed to have received a dividend chargeable to tax
under this Act at the time that he becomes resident and domiciled in Malta as corresponds to his, direct or indirect, entitlement
to receive that income by way of dividend or other means through or from any person or entity in any manner whatsoever and such individual
shall be obliged to declare the said dividend in his return of income:
Provided that the provisions of this paragraph shall not be applicable where the said individual was not at any time resident in Malta
throughout the whole of the period of five years immediately preceding the date such individual changes his residence and becomes
ordinarily resident and domiciled in Malta.
(iii) Notwithstanding any other provision in the Income Tax Acts, where an individual not resident in Malta, whether or not
registered for the purpose of article
48(4) or article 48(4A) of the Income Tax
Management Act, receives, directly or indirectly, the income referred to in article
41 (a)(viii)(2) and (3), and such individual was at any time within the five year period preceding the date on which he received,
directly or indirectly the said income, resident and domiciled in Malta, such income shall be chargeable to tax under this
Act and the said individual shall be obliged to declare the said income in a return of income.
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(iv) For the purpose of paragraphs (i) to (iii) above the reference to "recipient" in article 42(a)(viii)(2) shall mean
any person or entity."; and
(d) paragraph (e) thereof shall be substituted by the following:
"(e) Where the immediate shareholder of the company, person or entity referred to in paragraphs (a), (b) and (c) is not an individual
and is not resident in Malta, the provisions of the said paragraphs shall only be applicable when the said individual is ordinarily
resident and domiciled in Malta.".
Addition of new article to the principal Act.
"Conversion of a partnership into a company. Cap. 386.
45B. Notwithstanding anything contained in this Act, where, in accordance with the provisions of the Companies Act, a commercial
partnership en nom collectif or a commercial partnership en commandite the capital of which is not divided into shares is converted into a company, it shall be deemed for all the purposes of the Income
Tax Acts that no transfer or acquisition of assets has taken place and for the purpose of determining the chargeable income or gains
on a transfer of the said assets by the company, the cost and date of acquisition taken into account shall be the cost and date as
applicable to the commercial partnership that has been converted.".
(a) for the proviso to subarticle (8) thereof, there shall be substituted the following:
Amendment of article 56 of the principal Act.
"Provided that with effect from 1 January
2011 and up to 31 December 2014, as regards dividends paid by a company which was an international trading company as at 31 December
2010:
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Cap. 372.
(i) the provisions of this subarticle shall continue to apply after 31 December
2010 with respect to the distribution of profits earned by such company while it was an international trading company, and
(ii) the conditions set out in paragraphs (a) and (b) above shall not apply in respect of such dividends paid to any recipient
shareholder who is registered for the purpose of article 48(4) or article
48(4A) of the Income Tax Management
Act.";
(b) in paragraph (b) of subarticle (10) thereof, for the words "under article 4(1)(a) and (b)" there shall be substituted
the words "under articles 4 or 5";
(c) in paragraph (a)(ii) of subarticle (11) thereof, for the words "under article 4(1)(a) and (b)" there shall be substituted
the words "under articles 4 or 5";
(d) for subarticle (13) thereof there shall be substituted by the following:
"(13) (a) The tax upon the chargeable income of any person referred to as a Contractor in article 23 shall be levied at the rate
of 35 cents (€0.35) on every euro of the chargeable income in so far as such income is to be computed in accordance with
the provisions of the said article 23(1) and (2). Other income arising to a Contractor shall be charged at the appropriate rate or
rates.
(b) The rate at which tax shall be withheld by a Contractor from payments made to a sub-contractor in accordance with the
provisions of article 23(5) shall be at
10 cents (€0.10) of every euro of the payments made as
aforesaid.";
(e) subarticles (14), (15) and (16) thereof shall be deleted;
(f) for subarticle (20) thereof, there shall be substituted the following:
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"(20) (a) Where a member of a company resident in Malta is a resident of a State or territory with which Malta has made an
arrangement under the provisions of this Act for the grant of relief from double taxation, and under that arrangement a
dividend, or part thereof, distributed by such a company is subject to income tax in Malta at a rate lower than that chargeable
on the income out of which the dividend is distributed, such company shall be entitled to require that the gains or profits, or part
thereof, derived by it from its trade or business for the year of assessment 2001 and for subsequent years of assessment and which
are distributable by way of dividend subject to tax at a lower rate as aforesaid shall, notwithstanding that the dividend, or part
thereof has not been distributed, be taxed at the said reduced rate and not at the rate properly chargeable under this Act on the
gains or profits of the company:
Provided that the provisions of this paragraph shall only be applicable with respect to companies which do not sell by retail and
a person shall be deemed not to sell by retail if its sales of goods or services are made to:
(i) a person who carries on a trade, business, profession or vocation and the goods or services so sold to such person are either
resold by such person or are used by such person for the purpose of his trade, business, profession or vocation; or
(ii) a person, other than an individual, who uses those goods for the purposes of an undertaking carried on by such person:
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Cap. 372.
Provided further that where a company has opted to be taxed at a reduced rate of income tax as provided by this paragraph, no
person in receipt of a dividend paid by such company out of profits which have been subject to tax at such reduced rate of tax
shall be entitled to claim a refund under the provisions of the Income Tax Acts in respect of that dividend other than a refund in
terms of article 48(4A) of the Income Tax Management Act:
Provided also that where a company has opted to be taxed at a reduced rate of income tax as provided by this paragraph and such
company distributes gains or profits derived by it from its trade or business which have been subject to tax at the rate properly
chargeable under this Act to the member resident in the said state or territory, such member shall not be entitled to claim a refund
under the provisions of the Income Tax Acts in respect of any dividend paid by such company out of the said gains or profits:
Provided also that where a company has opted to be taxed at a reduced rate of income tax as provided by this paragraph and such
company distributes gains or profits derived by it from its trade or business which have been subject to tax at such reduced rate
of tax to any person not entitled to a reduced rate of tax under any arrangement as aforesaid, such gains or profits shall be taxed
at a rate being the difference between the rate referred to in article 56(6) and the rate actually applied and such tax shall be
tax payable by the company in the year of assessment in which such profits are distributed.
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(b) Where the provisions of paragraph (a) have been applied and subsequently there is a change in the shareholding of the company
in consequence of which the new shareholders will not be entitled to a reduced rate of tax under any arrangement as aforesaid or
if so entitled the rate applicable in such arrangement is more than the rate applicable to the outgoing shareholder, then any profits
which have been subject to tax at such lower rate as aforesaid and which have not been distributed at the end of the last financial
year of the company preceding the date of change in shareholding less any of such profits distributed to the outgoing shareholder
in the current financial year shall be taxed at a rate being the difference between the rate of tax which would be
applicable had the new shareholder held the shares when such profits were earned, and the rate actually applied, and such tax
shall be a tax payable by the company in the year of assessment in which such profits are distributed:
Provided that where a member of a company is also a company incorporated under Maltese law, the provisions of this article
shall apply to the same extent as if the members of the latter company had owned the shares directly in the company.
(c) The provisions of this subarticle shall apply where a member of a company resident in Malta is a resident of a State or territory
with which Malta has made an arrangement under the provisions of this Act for the grant of relief from double taxation, and under
that arrangement the said company is entitled to require that the gains or profits, or part thereof, derived by it and which are
distributable by way of dividend, be subject to tax at a lower rate as aforesaid, notwithstanding that the dividend, or part
thereof has not been distributed."; and
(g) subarticle (21) thereof shall be amended as follows:
(i) in the first paragraph thereof, the words " who for the purposes of this subarticle, is not deemed to be ordinarily resident
in Malta" shall be deleted; and
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Amendment of article 59 of the principal Act.
Amendment of article 68 of the principal Act.
(ii) in sub-paragraph (i) of paragraph (c) of the proviso thereto, the words "an individual is to be deemed as being not ordinarily resident in Malta and under which" shall be deleted.
"(5) When any person is registered in
Cap. 372.
terms of article 48(4A) of the Income Tax Management Act for the purposes of claiming a refund of tax chargeable on a company and that company has any profits allocated to its Maltese Taxed Account or its foreign income account the whole or part of which are actually distributed or deemed to be distributed under any provision of the Income Tax Acts, such person who is so registered shall be deemed to have received, whether upon an actual distribution or deemed distribution as aforesaid, so much of such profits from each such account as corresponds to his percentage entitlement to participate in a distribution of profits of the said company. Any provisions in the memorandum and articles of association of the company or in any agreement which provide that a shareholder, who is so registered, shall be entitled to be paid dividends solely or mainly from the Maltese Taxed Account or the foreign income account shall be disregarded for the purpose of the Income Tax Acts:
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Cap. 325.
Provided that where profits have been subject to tax at a rate pursuant to article 15 of the Business Promotion Act or article 56(20) of this Act, the provisions of this subarticle shall not apply as regards such profits and unless the shares (including any shares substituting the original shares resulting from any share exchange or reorganisation) which gave rise to the entitlement that such profits be taxed in accordance with the aforementioned articles are no longer in existence, such profits shall be distributable only to the person in respect of whom the aforementioned articles were applicable or to any other person who acquired the shares from such person.".
(a) subarticle (1) thereof shall be substituted by the following:
"(1) If the Minister responsible for finance by order declares that arrangements specified in the order have been
made with the Government of any territory outside Malta with a view to -
(a) affording relief from double taxation in relation to income tax and any tax of a similar character imposed by
the laws of that territory;
(b) preventing fiscal evasion;
(c) giving assistance in the collection of tax;
and that it is expedient that those arrangements should have effect, the arrangements shall have effect notwithstanding anything
in this or any other enactment."; and
(b) subarticle (4) thereof shall be substituted by the following:
"(4) The Minister responsible for finance may make rules for carrying out the provisions of any arrangements having effect
under this article. In particular,
Amendment of article 76 of the principal Act.
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with regard to arrangements for the prevention of fiscal evasion, rules may be made in relation to -
(a) the availability of applicable information;
(b) the access to applicable information;
(c) the mechanism of exchange of information;
Amendment of article 89 of the principal Act.
Amendment of the Financial Administration and Audit Act. Cap. 174.
Amendment of article 13 of the principal Act.
(d) appropriate rights and safeguards; and enforcement provisions (including applicable penalties).".
"(7) The provisions of this article shall not apply in the case of gains or profits referred to in article 23.".
"(2) The Minister may delegate his authority to authorise an accounting officer to open any public or official account in any bank in accordance with subarticle (1) to any public officer not below the rank of Director General.".
Amendment of the Social Security Act. Cap. 318.
Amendment of article 2 of the principal Act.
Pension" shall be amended as follows:
(a) paragraph (vii) thereof shall be renumbered as paragraph (viii);
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(b) in paragraph (vi) thereof, for the words "another
€200; and" there shall be substituted the words "another two hundred euro (€200);"; and
(c) immediately after paragraph (vi) thereof, there shall be added the following new paragraph:
"(vii) with effect from the 1st January 2011, for the purposes of calculating the rate of a pension under this Act, a service
pension net of another two hundred euro (€200); and ".
"(7) For the purposes of this article, insofar as contributions are concerned, any Class Two contributions paid by an insured
part-time female self-occupied person in any contribution year after the 3rd January 2011 at a rate which is below the maximum rate
for category SA established in Part III of the Tenth Schedule, shall be multiplied:
(a) by the proportion of the actual total value of pro-rata SA contributions paid by the part-time self- occupied person during
a contribution year, in accordance with Part III in the Tenth Schedule to this Act, bears to the full value of contributions that
would have been due under the provisions of this Act during the said contribution year, had the self-occupied person concerned not
opted to pay a pro-rata contribution according to the Tenth Schedule to this Act; and
(b) for the purposes of determining entitlement to any benefit, pension, grant or allowance, by the resulting number of such
weighted contributions for that contribution year as calculated in terms of paragraph (a) of this subarticle, and shall be
considered as the actual number of contributions paid by and in respect of the self- occupied person during the said contribution
year for such benefit, pension, grant or allowance under this Act.".
Amendment of article 17 of the principal Act.
Amendment of the Second Schedule to the principal Act.
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Cap. 452.
"3. In calculating the income or privilege which is, or could be received or enjoyed by any member of the household as aforesaid
in this Part no account shall be taken of the income or part thereof of the wife of a head of household from a gainful activity:
Provided that during the period in respect of which such income is due, the sum to be ignored shall in no case exceed an amount equivalent
to the difference between the national minimum wage as is applicable to persons of 18 years of age or over established by a national
standard order issued under the Employment and Industrial Relations Act and the scale rate as applicable to a household of
two persons, as determined by Part I of the Sixth Schedule to this Act.".
Amendment of the Duty on Documents and Transfers Act. Cap. 364.
Amendment of article 2 of the principal Act.
(2) The provisions of article 40 shall be deemed to have come into force on the 1st January, 2011.
substituted the following:
" "body of persons" includes any company, partnership, fellowship, society of persons, or other association of persons,
whether corporate or unincorporate, and whether vested with legal personality or not;"; and
(b) immediately after the definition "Commissioner" there shall be added the following new definition:
Cap. 123.
" "company" has the same meaning assigned to it in article 2(1) of the Income Tax Act;
(c) immediately after the definition "Minister" there
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shall be added the following new definition:
Cap. 386. Cap. 168.
" "partnership" means:
(a) any partnership constituted under the Companies Act or under the Commercial Partnerships Ordinance, being either a
commercial partnership en nom collectif or commercial partnership en commandite the capital of which is not divided into shares or any other partnership having a legal personality distinct from that of its members
constituted, incorporated or registered under any other law in force in Malta;
(b) any body of persons constituted, incorporated or registered outside Malta, and of a nature similar to the aforesaid partnerships;
and"; and
(d) in the definition "transfer" immediately after the words "in accordance with the provisions of article
42B of this Act," there shall be added the words "and for the avoidance of doubt includes any transfer of an asset by a
company to its shareholders, or by a partnership to its members, in the course of winding up the company or partnership or in the
course of a distribution of assets to its shareholders or members pursuant to a scheme of distribution,".
32 of the principal Act, there shall be added the following new paragraph:
"(c) Notwithstanding the foregoing provisions of this article, no duty shall be chargeable on a transfer of immovable property
by a company to its shareholder in the course of winding up or in the course of a distribution of assets pursuant to a scheme of
distribution, where the said shareholder is an individual or his spouse who owns or own all of the share capital (disregarding the
holding of one share having no preferential rights) of the said company transferring the property as aforesaid and the
Commissioner issues a certificate attesting that he is satisfied that the requirements and conditions
Amendment of article 16 of the principal Act.
Amendment of article 32 of the principal Act.
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under this paragraph are fulfilled:
Provided that this paragraph shall only apply and the Commissioner shall only issue a certificate, where all the following conditions
have been satisfied:
(i) the said shareholder held all of the share capital (disregarding the holding of one share having no preferential rights)
of the company transferring the said immovable property for a period exceeding five years immediately preceding the date of the transfer
of the property as aforesaid;
(ii) the said immovable property consists of one transferable unit, being either a dwelling house, garage, shop, office, store or
warehouse;
Amendment of article 42 of the principal Act.
(iii) the said immovable property is held as a capital asset by the company and has been so held for a period exceeding five years immediately preceding the date of the transfer of the property as aforesaid.".
(a) paragraph (a) of subarticle (1) thereof shall be substituted by the following:
Cap. 123.
Cap. 123.
Cap. 370.
"(a) on every transfer inter vivos, whether executed in Malta or outside Malta, of foreign marketable securities held in a property company as defined in article 2(1)
of the Income Tax Act made to, or by any person resident in Malta and on every document whereby any foreign marketable security is
transferred inter vivos to, or by any person resident in Malta:
Provided that where the marketable securities in question are not held in a property company as defined in article 2(1) of the Income
Tax Act, no duty shall be chargeable where such transfer is effected through a local bank or through a person holding an investment
services licence under the Investment Services Act. For the purpose of this proviso, the provisos to the said definition of "property
company" in article
2(1) shall not apply;"; and
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(b) for the second proviso to paragraph (b) of subarticle
(1) thereof, there shall be substituted the following:
Cap. 123.
"Provided further that where any company referred to in the immediately preceding proviso is a "property company",
the immediately preceding proviso shall only apply where the individual, direct or indirect, beneficial owners of the companies referred
to in the said proviso are the same and each such individual holds, directly or indirectly, substantially the same percentage interest
in the nominal share capital and voting rights in each of the said companies both before and after the transfer or exchange, as the
case may be. The provisions of article
32(6)(b) shall apply mutatis mutandis for the
purpose of making such determination.
For the purpose of this proviso "property company" shall have the same meaning assigned to it in article 2(1) of the Income
Tax Act but the provisos to the said definition shall not apply.".
(a) in paragraph (i) of the proviso thereto, for the words "or in the proportion in the real value" there shall be
substituted the words "and in the proportion in the real value"; and
(b) in paragraph (v) of the proviso thereto, for the words "For the purpose of this paragraph "property company"
shall mean a company which owns any immovable property situated in Malta, or any rights over such property, or a company which holds,
directly or indirectly, shares or interests in a body of persons which owns any immovable property situated in Malta, or any rights
over such property." there shall be substituted the words:
Amendment of article 42B of the principal Act.
Cap. 123.
"For the purpose of this paragraph "property company" shall have the same meaning assigned to it in article 2(1) of the Income Tax Act but the provisos to the said definition shall not apply.".
Addition of new article to the principal Act.
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"Duty on transfer of an interest in a partnership.
Cap. 123.
42C. (1) A duty of two euro for every one hundred euro or part thereof of the amount or value of the consideration or the real
value, whichever is the higher, of an interest in a partnership shall be charged:
(a) on every document whereby an interest in a partnership, other than in a foreign partnership, is transferred to or by
any person in Malta;
(b) on a deemed transfer of an interest in a partnership referred to in subarticle (3), other than in a foreign partnership;
(c) on every notice of the transfer causa mortis of an interest in a partnership made in accordance with article 45.
For the purpose of this article a transfer of an interest in a partnership shall include a transfer of a full or partial interest
and any alienation of any such full or partial interest in a partnership and the term "foreign partnership" shall mean
a partnership, which satisfies all of the following conditions:
(i) it is not a "property partnership";
(ii) it does not hold marketable securities in a company registered in Malta as defined in article 2 of the Income Tax Act;
Cap. 386. Cap. 168.
Cap. 123.
(iii) it is not constituted, incorporated or registered under the Companies Act or under the Commercial Partnerships
Ordinance or under any other law in force in Malta.
For the purpose of this paragraph "property partnership" shall have the same meaning assigned to it in article 2(1) of the
Income Tax Act but the provisos to the said definition shall not apply.
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(2) The provisions of article 42(2) shall apply mutatis mutandis to this article and references to the term "company", where applicable, shall be deemed to be references to a "partnership"
and references to "subarticle (1)" shall be deemed to be references to "subarticle (1) of article 42C".
(3) Where a person acquires or increases a partnership share, there shall be a deemed transfer of an interest in the
partnership (to that partner and from the other partners). "Partnership share" means the share to which a person is entitled
in the income of the partnership and to the assets available for distribution on the winding up of the partnership:
Provided that this subarticle shall only apply where the partnership in question is a commercial partnership en nom collectif or commercial partnership en commandite the capital of which is not divided into shares.
(4) Notwithstanding the provisions contained in this Act, the Minister may make rules determining the method of calculation
of the amount or value chargeable to duty in relation to a transfer or deemed transfer of an interest in a partnership and
to prescribe any matter that may be prescribed in relation to such transfer.".
Substitution of article 43 of the principal Act.
"Transfer of marketable securities and of interests in partnerships executed in Malta or abroad.
43. (1) Every transfer inter vivos of marketable securities or of an interest in a partnership executed in Malta shall, under pain of nullity, be made in writing.
(2) Where the transfer of any foreign marketable security or of an interest in a partnership is executed outside Malta upon an order
given directly in Malta by any person, such person shall give a notice in writing to the Commissioner of such transfer in such manner
and in such term as may be prescribed:
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Substitution of article 45 of the principal Act.
Provided that a notice given as aforesaid may stipulate that it will apply also to other transfers of marketable securities and interests
in partnerships executed outside Malta that may be made in the future by the same person, in which case that person will not
be required to give notice of such further transfers:
Provided further that notice shall not be given where duty is not chargeable under any of the provisions of this Act.".
"45. (1) A person to whom an interest in a partnership registered in Malta or shares in a company registered in Malta, are
transmitted causa mortis (hereinafter in this article referred to as a "transferee causa mortis") shall not later than such term after the happening of the transfer causa mortis as may be prescribed, give notice to the Registrar of Companies.
(2) The notice referred to in subarticle (1) shall contain such particulars of the person from whom the transfer causa mortis originates and of the transferee causa mortis, the details of the shares or interest being the object of the transfer and the manner in which the shares or interest devolved
on the transferee causa mortis, as may be prescribed.
Amendment of article 47 of the principal Act.
(3) The Registrar of Companies shall register the notice referred to in subarticle (1) in a register which shall be open to public inspection, and which shall be kept and indexed in such manner as may be prescribed.".
(a) in subarticle (9) thereof, for the words "the relevant conditions and provisions are satisfied." there
shall be substituted the words "the relevant conditions and provisions are satisfied:" and immediately thereafter there
shall be added the following new proviso:
"Provided that any such determination made in relation to a company which falls under subarticle (3)(c), shall, in so far as
it is valid as at 31st December, 2010, be considered, as from 1st January, 2011, to be a determination made in relation
to a company which falls under subarticle (3)(e)."; and
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(b) in paragraph (a) of subarticle (10) thereof for the words "company the assets of which consist wholly or principally
of immovable property situated in Malta" there shall be substituted the words " "property company" as defined
in article 2(1) of the Income Tax Act".
Substitution of article 48 of the principal Act.
"Penalty for contravening articles 32, 33,
39 to 43, 45
and 46.
48. Save as otherwise provided in this Act any person who fails to comply with any of the provisions of articles 32, 33, 39, 40,
41, 42, 42B,
42C, 43, 45 or 46 shall be liable to a penalty of not less than twenty-three euro (€23) but not
exceeding one thousand, one hundred and sixty euro (€1,160) for each omission.".
Amendment of article 52 of the principal Act.
Amendment of article 56 of the principal Act.
Addition of new articles to the principal Act.
"Executive title.
Cap. 12.
60A. (1) An assessment which is final and conclusive in accordance with article 60 of this Act shall be an executive title
within the meaning and for the purposes of Title VII of Part I of Book Second of the Code of Organisation and Civil Procedure.
(2) If duty and, or additional duty and, or interest is not paid as prescribed in this Act, the Commissioner shall serve a demand
note upon the person liable for the payment, and if payment is not made within fifteen days from the date of the service of such
demand note, the Commissioner may enforce payment in virtue of the executive title referred to in subarticle (1), after two days
from the service of an intimation for payment made by means of a judicial act.
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Limitation of action for payment of duty.
60B. (1) Save as otherwise expressly provided in this Act, no action for payment of duty and, or additional duty and, or
interest may be taken after the lapse of five years from the date on which the relative assessment becomes final and conclusive.
(2) The running period of prescription specified in this article shall be interrupted by any judicial act filed before the
expiration of such period by the Commissioner whereby any payment of duty is claimed.".
Amendment of article 61 of the principal Act.
Amendment of the Motor Vehicles Registration and Licensing Act. Cap. 368.
Amendment of article 2 of the principal Act.
"Provided that where such notice is not made because the taxpayer could not be found or for other reasons attributable to him and the Commissioner publishes a notice in the Gazette and in one or more daily newspapers stating that a notice has been made and inviting the taxpayer to call for it at the Department, then such notice shall also be deemed to have been duly notified.".
(2) The provisions of this Part shall be deemed to have come into force on the 1st January, 2011.
substituted the following:
" "brought into Malta" means the entry into Malta of a motor vehicle coming from -
(a) a Member State,
(b) the Channel Islands (Guernsey and
Jersey),
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(c) the Isle of Man, (d) Monaco,
(e) Andorra, or
(f) San Marino
and which was put into free circulation in such Member State, or in the Channel Islands, or in the Isle of Man, or in Monaco, or in
Andorra, or in San Marino, as the case may be, prior to entry into Malta;";
(b) immediately after the definition "circulation licence fee" there shall be added the following new definition:
" "circulation permit" means the permit issued annually by the Authority in terms of the provisions of the provisos
to item 6 of the Fourth Schedule;";
(c) immediately after the definition "Council Regulation (EEC) No 684/92" there shall be
added the following new definition:
" "depreciation" means, for the purpose of this Act, the reduction in value of a motor vehicle resulting from use and
obsolescence. Depreciation is calculated from the vehicle’s date of first registration and allows for the original value
of the vehicle to be modified for the purposes of tax deduction;";
(d) for the definition "Euro 2", "Euro 3", "Euro 4 and over", "Euro II", "Euro III",
and "Euro IV and over" there shall be substituted the following:
" "Euro 2", "Euro 3", "Euro 4", "Euro 5", "Euro 6", "Euro II", "Euro
III", "Euro IV", "Euro V" and "Euro VI" mean the emission standards set for all motor vehicles
under Directive 70/220/EEC, Directive 88/77/EEC, Directive 1999/96/ EC, Directive 2005/55/EC, Regulation (EC) No 715/2007 and Regulation
595/ 2009;";
(e) immediately after the definition "invoice" there shall be added the following new definition:
" "Latest Euro Standard" means and corresponds to the dates set out in the current EU Directives and Regulations
establishing emission limits for the
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registration of new motor vehicles;";
(f) immediately after the definition "registration tax" there shall be added the following new definition:
" "Regulation (EC) No 715/2007" means Regulation (EC) No 715/2007 of the European Parliament and of the Council
on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and
on access to vehicle repair and maintenance information;"; and
Amendment of article 9 of the principal Act.
Amendment of article 19 of the principal Act.
(g) in the definition "special purpose vehicle", for the words "and comprising those listed in the First Schedule"
there shall be substituted the words "and classified under the First Schedule".
48. In the Maltese version of subarticle (2) of article 9 of the principal Act, for the words "Il-valur ta’ reāistrazzjoni ta’
vettura bil- mutur fil-kategorija M1 ādida, motor cycle, quad bike," there shall be substituted the words "Il-valur ta’ reāistrazzjoni ta’ vettura bil-mutur uŜata fil-kategorija M1,
motor cycle, quad bike;".
(a) immediately after paragraph (c) of subarticle (2)
thereof, there shall be added the following new paragraph:
"(d) The Minister responsible for finance may delegate his authority to any person to put into effect the exemption under subarticle
(2)(a)."; and
(b) for the proviso to subarticle (3)(i) thereof, there shall be substituted the following:
"Provided that the vehicle has been registered in the name of that person or in the name of his or her spouse for at least twenty-four
consecutive months at the time of transfer of residence to Malta and that person has been residing outside Malta for a continuous
period of at least twenty-four months at the time of transfer of residence to Malta:
Provided further that where a motor vehicle is brought or imported into Malta not more than six months before the time of transfer
of residence by the person transferring his residence, that vehicle shall qualify for the
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exemption if both the said vehicle and the person transferring his residence meet the conditions prescribed in regulations made under
this Act:
Provided further that that person shall not have been granted an exemption from registration tax in respect of another motor
vehicle in the previous eight years;".
(a) in the marginal note thereto for the words "in 2008 and in 2009" there shall be substituted the words "in 2010";
Amendment of article 24 of the principal Act.
and
(b) subarticles (1), (2) and (3) thereof shall be deleted;
(c) subarticle (4) thereof shall be renumbered as the whole article and shall be amended as follows:
(i) in sub-paragraph (ii) of paragraph (a) thereof, for the words "December 2011:" there shall be substituted the words
"December, 2011." and the proviso thereto shall be deleted;
(ii) paragraphs (b) to (f) thereof shall be renumbered as paragraphs (c) to (g);
(iii) immediately after paragraph (a) thereof, there shall be inserted the following new paragraph:
"(b) An authorised motor vehicle importer or motor dealer who by the 25th October, 2010, has had in stock or had ordered motor
vehicles other than M1 vehicles or motor cycles, and who had delivered a list of the said vehicles to the Authority before the 24th
January, 2011 -
(i) shall be deemed to have registered the said vehicles prior to the 1st January, 2011, unless the authorised
motor vehicle importer or dealer decides otherwise; and
(ii) shall pay the registration tax thereof by the 31st December, 2011:
Provided that where it results to the
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Authority that a motor vehicle which is on the list notified to it by an authorised motor vehicle importer or motor vehicle
dealer, in terms of the provisions of this paragraph and of paragraph (a) of this article, was not so ordered or was not in stock,
the Authority shall consider the said motor vehicle not registered in terms of this article.";
(iv) in paragraph (c) thereof, as renumbered, for the words "1st January, 2010" there shall be substituted the words "1st
January, 2011";
(v) in paragraph (d) thereof, as renumbered, for the words "9th November" there shall be substituted the words "25th
October, 2010", and for the words "31st December, 2009", wherever they appear, there shall be substituted the
words "31st December, 2010"; and
Amendment of the First Schedule to the principal Act.
(vi) in paragraph (g) thereof, as renumbered, for the words "9th November, 2009" there shall be inserted the words "25th
October, 2010", for the words "1st January,
2010", wherever they appear, there shall be substituted the words "1st January, 2011", and for the words "31st
October, 2010" there shall be substituted the words "24th January, 2011".
"Category A: N1, N2 and N3 vehicles, special purpose vehicles, tractor units and light weight three-wheeled vehicles having the
characteristic of a motor vehicle
N1 vehicles, special purpose vehicles, tractor units and light weight three-wheeled vehicles having the characteristic of a motor
vehicle
Latest Euro standard | |
vehicles with a maximum authorised mass of up to 1,305 kg | Kg x 0.40 + cc x 0.45 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,305 kg up to 1,760 kg | Kg x 0.45 + cc x 0.50 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,760 kg up to 3,500 kg | Kg x 0.50 + cc x 0.55 x €1 |
Latest Euro standard -1 |
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vehicles with a maximum authorised mass of up to 1,305 kg | Kg x 1.00 + cc x 1.10 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,305 kg up to 1,760 kg | Kg x 1.10 + cc x 1.20 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,760 kg up to 3,500 kg | Kg x 1.20 + cc x 1.30 x €1 |
Latest Euro standard -2 | |
vehicles with a maximum authorised mass of up to 1,305 kg | Kg x 6.00 + cc x 6.00 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,305 kg up to 1,760 kg | Kg x 7.00 + cc x 7.00 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,760 kg up to 3,500 kg | Kg x 8.00 + cc x 8.00 x €1 |
Latest Euro standard -3 and older | |
vehicles with a maximum authorised mass of up to 1,305 kg | Kg x 25.00 + cc x 25.00 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,305 kg up to 1,760 kg | Kg x 27.00 + cc x 27.00 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 1,760 kg up to 3,500 kg | Kg x 30.00 + cc x 30.00 x €1 |
N2 vehicles, special purpose vehicles and tractor units
1
N3 vehicles, special purpose vehicles and tractor units
Latest Euro standard and Latest Euro standard -1 | |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 12,000 | 0 |
Latest Euro standard -2 | |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 12,000 kg up to 25,000 kg | Kg x 2.10 + cc x 2.50 x €1 |
v e h i c l e s w i t h a m a x i m u m a u t h o r i s e d m a s s exceeding 25,000 kg | Kg x 2.70 + cc x 3.50 x €1 |
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1
Tax rate formula:
Following the application of the relevant tables under the heading, the total amount of the registration tax shall be equal
to the sum total of the maximum authorised mass (kg) of a motor vehicle multiplied by the factor indicated plus the cubic capacity
(cc) of the engine of a motor vehicle multiplied by the factor indicated multiplied by €1 and, in respect of used vehicles, this
sum shall be multiplied by the difference between 100% and the aggregate percentage consisting of the percentage of the total annual
depreciation as specified in the table hereunder plus 0.5% for each 10,000 kms showing on a vehicle’s odometer:
{[(kg x Y) + (cc x Y)] x €1} x {100%- [Y% of total annual depreciation + 0.5% for each 10,000 kms]}
Provided that the maximum depreciated value of a motor vehicle in this category shall not exceed 95%, and once this value
is reached there shall be no further reductions.
Depreciation according to year of first registration of vehicle
Year | Annual Depreciation | Total Depreciation |
0 | 12% | 12% |
1 | 14% | 26% |
2 | 19% | 45% |
3 | 5% | 50% |
4 onwards | 5% | 55% |
5 | 5% | 60% |
6 | 5% | 65% |
7 | 5% | 70% |
8 | 5% | 75% |
9 | 5% | 80% |
10 | 5% | 85% |
11 | 5% | 90% |
12 | 5% | 95% |
13 onward | N/A | 95% |
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For the purpose of registration tax, where a vehicle used for the transport of goods (N1, N2 and N3), or a special purpose vehicle
or a tractor unit, whose year of manufacture falls under any of the following years of manufacture, is not accompanied by a certificate
showing the emission levels equivalent to Euro standards, the registration tax rates to be paid thereon shall be equivalent to those
under the different Euro standards:
Category | Up to and including Euro 2 / II | Euro 3 / III | Euro 4 / IV | Euro 5 / V | Euro 6 / VI |
N1 | Up to and including year 2000 | 2001 to 2005 | 2006 to 2010 | 2011 to 2014 | from 2015 |
N2 | Up to and including year 2000 | 2001 to 2005 | 2006 to 2008 | 2009 to 2013 | from 2014 |
N3 | Up to and including year 2000 | 2001 to 2005 | 2006 to 2008 | 2009 to 2013 | from 2014 |
Where an importer or dealer or owner of a motor vehicle provides a certificate as approved by an accredited technical service established within a Member State, that the engine of that particular vehicle meets lower emissions despite the vehicle’s year of manufacture, that vehicle shall on registration be taxed the rate pertaining to its equivalent Euro standard.".
(a) in the heading thereof, for the words "quadricycles and motor cycles (including electric and hybrid electric motor vehicles)"
there shall be substituted the words "quadricycles, motor cycles and quad bikes (including electric and hybrid electric motor
vehicles)";
(b) for the words "Category A: M1 motor vehicles (including vehicles to be registered to be used as taxicars, self- drive
vehicles and chauffeur driven vehicles), motor cycles, quadricycles and quad bikes, whether new or used:" there shall
be substituted the words "Category A: M1 motor vehicles (including vehicles to be registered to be used as taxicars, self- drive
vehicles and chauffeur driven vehicles), whether new or used:";
(c) in paragraph (5) under the heading "Tax Rate Formula" thereof, for the words "20%" there shall
be substituted the words "30%"; and
(d) for item 2 of Category F thereof, there shall be
Amendment of the Second Schedule to the principal Act.
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substituted the following:
"2. M2 and M3 motor vehicles, including trackless trains and amphibious motor vehicles
Latest Euro standard -3 and older
M2 Kg x 12.00 + cc x
15.00 x €1
M3 Kg x 10.00 + cc x
12.00 x €1
Latest Euro standard -2
Kg x 1.50 + cc x
2.40 x €1
Kg x 2.20 + cc x
2.60 x €1
Latest Euro standard and Latest Euro standard -1
0
0
In respect of used vehicles, the total amounts of registration tax reached using any of the above formulas shall be multiplied by
the difference between 100% and the aggregate percentage consisting of the percentage of the total annual depreciation as specified
in the table titled "Depreciation according to age of vehicle" in Category A of the First Schedule hereof, plus 0.5% for
each 10,000 kms showing on a vehicle’s odometer.
For the purpose of registration tax, where an M2 or M3 vehicle, whose year of manufacture falls under any of the following years of
manufacture, is not accompanied by a certificate showing the emission levels equivalent to Euro standards, the registration tax rates
to be paid thereon shall be equivalent to those under the following different Euro standards:
Up to and including Euro II | Euro III | Euro IV and over | |
M2 | Up to and including year 2000 | 2001 to 2005 | 2006 onwards |
M3 | Up to and including year 2000 | 2001 to 2005 | 2006 onwards |
Where an importer or dealer or owner of a motor vehicle provides a certificate as approved by an accredited technical service established
within a Member State, that the engine of that particular vehicle meets lower emissions despite the vehicle’s year of manufacture,
that vehicle shall on registration be taxed the rate pertaining to its equivalent Euro standard.";
(e) for Category G thereof there shall be substituted the following:
"Category G: other motor vehicles Rate of Tax
Percentage of RV
0%
1. Ambulances, whether new or used ..... 0%
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2. Motor vehicles, go-karts, quad bikes and motor cycles not to be used on the road other than in authorised races
only, whether new or used .................. 0%
3. Caravans, and motor homes, whether
new or used ........................................ 50%
4. Motor hearses (new only) ................... 30%"; and
(f) in category H thereof, for the words "M1 vehicles", wherever they appear, there shall be substituted the words
"M vehicles".
(a) in item 6 thereof, for the words "M1 motor vehicles" there shall be substituted the words "category
M motor vehicles", for the words "(vi) more than 2000cc
..................................... 204" there shall be substituted the words "(vi) more than 2000cc .....................................
204:" and immediately thereafter there shall be added the following provisos:
"Provided that a person who has more than one such vehicle registered in his name, may opt to have those vehicles covered by
one or more circulation permits. The fee for a permit covering a joint number of vehicles shall be equivalent to the highest
annual circulation licence payable on each of those vehicles covered by that permit. Each such group of vehicles may additionally
be covered by a subsequent permit or permits the fee of which shall be equivalent to the next highest annual circulation licence
payable for those vehicles. An administrative fee of €8 shall be payable to the Authority for each of the other vehicles covered
by the permit:
Provided further that no person may at any one time use on the road more vehicles than what is permitted by the circulation permit.";
(b) item 7 thereof shall be renumbered as sub-item (a) and immediately thereafter there shall be added the following new sub-item:
"(b) the provisions of the provisos to item 6 shall mutatis mutandis apply to motor vehicles classified under this item.";
Amendment of the Fourth Schedule to the principal Act.
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(c) item 8 thereof shall be renumbered as sub-item (a) and immediately thereafter there shall be inserted the following new sub-item:
"(b) the provisions of the provisos to item 6 shall mutatis mutandis apply to motor vehicles classified under this item."; and
(d) in item 16 thereof, for the figure "€0" there shall be substituted the figure "€10".
Amendment of the Income Tax Management Act.
Cap. 372.
Amendment of article 5 of the principal Act.
Amendment of article 10 of the principal Act.
Amendment of article 14 of the principal Act.
(2) The provisions of article 63 shall be deemed to have come into force on the 1st January, 2011.
(a) the present provisions thereof shall be renumbered as subarticle (1); and
(b) immediately after subarticle (1) as renumbered, there shall be added the following new subarticles:
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"(2) Notwithstanding any provision of the Income Tax Acts or any other law the Commissioner may, for the purpose of obtaining
full information in respect of any person’s income, give notice in writing to such person requiring him to furnish the
Commissioner within the time indicated in such notice, not being less than thirty days from the date of service
of such notice, a statement containing particulars of -
(a) all property held in his own name or in the name of his spouse, minor children or dependents, or in any other name,
in which he is or has been interested or has or has had a beneficial interest, or in respect of which he has or has had the
power to operate or dispose, jointly or solely, in his own economic interest and which property is in existence or which has existed
at any time during the period stated in the notice;
(b) all income derived from the property referred to in paragraph (a);
(c) all other property wherever situated not referred to in paragraph (a) and the income derived therefrom;
(d) any property transferred or delivered by him to, or which is currently held by, any person, including a designated person referred
to in subarticle (3), during the period or periods specified in such notice; and
(e) all facts bearing upon his liability to income tax which he is, or has been, liable to.
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Cap. 377.
(3) (a) Where, subsequent to a request for information made in accordance with the provisions of subarticles (1) and (2), the
Commissioner has reasonable grounds to suspect that tax has been, is, or may be evaded by any person, he may request, by notice in
writing to a designated person, that the designated person provide the Commissioner, within the time indicated in such notice not
being less than thirty days from the date of service of such notice, with all such information and documentation which the designated
person may have relating to property of any kind or description, transferred or delivered to him by that person and owned, possessed,
or held by the designated person under any title on behalf of or for the benefit of any such person on the date of the said
notice or during the period specified in such notice not commencing earlier than five years from the date of such notice; provided
that the designated person shall not be bound to provide information to the Commissioner in respect of any beneficiaries for whose
benefit the property may be held or the terms and conditions under which it is so held.
(b) Any designated person who receives such notice shall provide the Commissioner with the information requested in the notice and
this notwithstanding anything to the contrary in the Income Tax Acts, any provision of the Professional Secrecy Act, any obligation
of secrecy or confidentiality, or to any other restriction relating to the disclosure of information whether arising from a provision
of law or any agreement or other arrangement.
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The Commissioner shall keep confidential any information provided to him by the designated person and shall not disclose such information
to any other person except where the Commissioner is bound at law to effect such disclosure or where he requires to use such information
in the context of proceedings under this Act; provided that the Commissioner may report any act or failure by the designated person
to the relevant regulatory authority which issued a licence or authorization to such designated person.
Any information obtained by the Commissioner shall be used by him solely for the purpose of the investigation being carried out by
the Commissioner as to whether tax has been, is, or may be evaded by the relevant person being investigated and, or any related
proceedings under this Act.
(c) The Commissioner shall specify in a notice issued under this article what information he requires and whether with reference
to the property held on the date of the notice and, or at any point during a period of time (not commencing earlier than five years
from the date of such notice), and the designated person receiving the notice shall supply the following information:
(i) details of any such property owned, possessed or otherwise held under any title and which had been transferred or delivered
(whether directly or indirectly through a transaction or a number of transactions which the designated person is aware of) to
the designated person or vested in such designated person by or on the instructions of the person in respect of whom notice has
been given by the Commissioner to the designated person in terms of paragraph (a) of this subarticle; and
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(ii) details of the person or persons who transferred or delivered or made arrangements for the designated person to receive the
property or on whose behalf the property was so transferred delivered or vested in the designated persons:
Provided that this paragraph (c) shall also apply to any property transferred or delivered to the designated person and is no longer
held by the designated person or has been converted into a different form of property or has increased or decreased in value or extent
or has been transferred to another designated person, but shall not apply where the property has been held temporarily for the
purpose of a transaction and has been returned to the person who is being investigated.
(d) If the designated person in receipt of a notice -
(i) has not held any property which was transferred or delivered (whether directly or indirectly through a transaction or a number
of transactions which the designated person is aware of) to the designated person or vested in such designated person by the person
in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph (a) of this subarticle;
or
(ii) holds or has held the aforesaid property on a temporary basis or as a simple administrator; or
(iii) has returned the aforesaid property to the person in respect of whom notice has been given by the Commissioner to the designated
person in terms of paragraph (a) of this subarticle,
he shall inform the Commissioner accordingly and shall have no further obligations in this regard unless the Commissioner
seeks further information specifically on such circumstances in which case the provisions of this article shall apply mutatis mutandis.
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(e) Where a notice has been given by the Commissioner to a designated person in terms of paragraph (a) of this subarticle,
the Commissioner shall, within fifteen days of issue of such notice, inform by a further notice in writing the person in respect
of whom such notice was given, that he has issued a notice under this article, and any designated person in receipt of
any such notice may inform his customer, principal or other person who may have delivered, settled, donated or otherwise transferred
property to the designated person of the receipt of such notice and his response thereto.
Such further notice in writing may be served on a person either personally or by being sent by post to his last known business
or private address, and shall in the latter case be deemed to have been served within three working days from the date it is sent
by post.
(f) For the purposes of this article:
(i) "property" means property of any kind or description, whether movable or immovable, personal or real,
and wherever situated, and in relation to rights and interests whether vested, contingent, voidable or future, and including any
money, investments, and amounts in savings, loan and other bank accounts (whether fixed, overdraft, current, deposit, or otherwise,
and whether business or private accounts);
(ii) a designated person is any person who may be acting as mandatory, nominee, trustee, agent, depository, custodian, under
a contract of work or otherwise, and includes without limitation any of the following:
Cap. 371.
(A) a person who is in possession of a valid licence issued in terms of the Banking Act; or
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Cap. 370.
Cap. 403. Cap. 487.
Cap. 331.
(B) a person who is licensed in terms of the Investment Services Act; or
(C) a person who is authorized in terms of the Insurance Business Act or enrolled in the Brokers List under the Insurance
Intermediaries Act; or
(D) a person who is authorised under the Trusts and Trustees Act to act as a trustee or as an administrator of any private
foundation; or
(E) advocates, notaries, legal procurators, accountants, auditors and other persons holding warrants to exercise a profession,
and irrespective of whether such person is in actual possession of authorisations or is exempt from requiring such authorisations
under any law or is acting in breach of law when holding such property without authorisation required to do so by applicable law;
(iii) owning, possessing and holding property includes owning, possessing and holding with others or through others and, or enjoying
a power to operate or dispose of such property in such manner as renders secret the ownership rights or interests of the person being
investigated and does not include circumstances where such person remains registered as the owner of the property in a public register
in Malta or where the designated person is owning, holding or possessing the property temporarily for the purposes of a transaction
relating to or involving such property or is otherwise a simple administrator of such property;
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(iv) reasonable grounds on the part of the Commissioner to suspect that tax has been, is or may be evaded by any person
shall include but not be limited to the following:
(A) a refusal by that person to provide the Commissioner with any documentation or information as may have been requested from
him by the Commissioner in relation to any property which he owns, possesses, or holds at that time through another person including
designated persons, or any property previously owned, possessed or held and subsequently disposed of under any title whatsoever by
such person at an earlier date;
(B) where a notice in terms of article 29 is not made as the taxpayer could not be found or for other reasons attributable
to the taxpayer, and in accordance with the said article 29, the Commissioner publishes a notice in the Gazette and in one
or more daily newspapers stating that a notice has been made and inviting the taxpayer to call for it at the Department;
(C) where, after being requested by the Commissioner by means of a notice in writing, such person fails to produce without any reasonable
excuse any books, records, documents, accounts, electronic data and a correct statement referred to in subarticle (2) within thirty
days from the date of service of such notice;
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Amendment of article 17 of the principal Act.
Amendment of article 20 of the principal Act.
Amendment of article 23 of the principal Act.
Amendment of article 40 of the principal Act.
Addition of new article to the principal Act.
(D) such person gives any false answer, whether verbally or in writing, to any question or request for information asked or made
in accordance with the provisions of the Income Tax Acts;
(E) such person prepares or maintains any false books of account or other records or falsifies any books of account or records.
(g) Where a designated person gives any false, misleading or incorrect information in relation to a notice issued under this
subarticle he shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than ten thousand euro (€10,000) and not exceeding twenty-three thousand euro (€23,000).".
"(g) the notice referred to in article 47A(2):".
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shall be added the following new article:
"Assistance in the collection of taxes.
Cap. 123.
47A. (1) The Commissioner shall lend assistance to foreign tax authorities in the collection of revenue claims in accordance
with the provisions of applicable arrangements referred to in article 76 of the Income Tax Act where these exist.
(2) For the purposes of subarticle (1), a notice by the Commissioner to any person showing the amount of a revenue claim by
a foreign tax authority to which he is liable for having failed to pay the said amount shall be sufficient evidence that the amount
shown in the said notice is the amount due to be paid to the foreign tax authority by the said person.
(3) For the purposes of this article, the arrangements in relation to the collection of taxes shall determine the meaning
of "taxes" and "revenue claims".".
(a) in subarticle (2F) thereof, for the words "or the first proviso to subarticle (7)" there shall be substituted the
words "or the provisos to subarticle (7)(a)";
(b) subarticle (4) thereof shall be amended as follows:
(i) in paragraph (c) thereof, the words "and subarticle (7)" shall be deleted;
(ii) in the proviso to paragraph (c) thereof, for the words "the expression "Malta tax paid" shall mean" there
shall be substituted the words "the expression "Malta tax paid" shall, for the purpose of determining the amount of
the refund, mean";
(iii) immediately after the proviso to paragraph (c) thereof, as amended, there shall be added the following new proviso:
"Provided further that, notwithstanding the previous proviso, a tax refund payable in terms of this subarticle shall in no
case exceed the amount of tax actually paid by the company to the
Amendment of article 48 of the principal Act.
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Commissioner on the profits distributed out of the foreign income account or on any profits derived and distributed by a company while
it was an international trading company, as the case may be.";
(c) in sub-paragraph (ii) of paragraph (a) of subarticle (4A) thereof, for the words "this subarticle." there shall
be substituted the words "this subarticle;" and immediately thereafter there shall be added the following
new sub- paragraph:
Cap. 123.
"(iii) which have been subject to tax at a rate (hereinafter referred to as “the reduced rate”) lower than that referred
to in article 56(6) of the Income Tax Act the rate of refund shall be determined in accordance with the following formula:
Where -
(a) "Y" represents the rate to be determined; and
(b) "R" represents the reduced rate:";
(d) in paragraph (a) of subarticle (4A) thereof, immediately after the proviso thereto, as amended, there shall be
added the following new proviso:
"Provided further that, notwithstanding the provisions of article 42B(2), a tax refund payable in terms of this subarticle shall
in no case exceed the amount of tax actually paid by the company to the Commissioner on the profits distributed out of the Maltese
taxed account or foreign income account."; and
(e) subarticle (7) thereof shall be substituted by the following:
"(7) (a) Where a claim for refund has been made under the provisions of subarticle (4) or subarticle (4A) in respect
of Malta tax paid on distributed profits as properly shown in the relevant dividend certificate, no person shall be entitled
to a further refund under those subarticles or to a refund under any other provisions of the Income Tax Acts in relation to the Malta
tax paid on such distributed profits:
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Cap. 123.
Provided that a person entitled to such refund as set out under subarticle (4) in respect of profits distributed by an international
trading company shall also be entitled to a refund of the difference between the Malta tax paid by the international trading company
and the tax chargeable on such person on such income in accordance with the provisions of this Act:
Provided further that the provisions of the immediately preceding proviso shall during the period 1 January 2011 to 31 December
2014 also apply in the case of any profits distributed by a company which was an international trading company as at 31 December
2010 where such profits were earned by such company while it was an international trading company.
(b) Where a claim for refund has been made under the provisions of subarticle (4) or subarticle (4A) in respect of Malta tax paid
on distributed profits as properly shown in the relevant dividend certificate, notwithstanding the provisions of article
60 of the Income Tax Act, such Malta tax paid which a company had deducted or is entitled to deduct under article 59 from such
dividend, shall, when such dividend is included in the chargeable income of any person, including a company receiving the said dividend
or a person holding directly or indirectly shares in such company which receives a dividend out of such profits, be set off, for
the purposes of collection, only against the tax charged on that dividend.
(c) Where a claim for refund of the Malta tax paid has been made under subarticle (1) in respect of Malta tax paid on distributed
profits as properly shown in the relevant dividend certificate, no person shall be entitled to a further refund under the provisions
of subarticle (4) or subarticle (4A) in relation to the Malta tax paid on such distributed profits.".
(a) in paragraph (e) thereof, for the words "art or contrivance,", there shall be substituted the words "art or contrivance; or";
Amendment of article 52 of the principal Act.
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(b) immediately after paragraph (e) thereof there shall be added the following new paragraphs:
"(f) has in his possession or under his control any article for use in the course of or in connection with altering, destroying,
erasing or concealing any information, records or evidence which he knows or is reasonably expected to know to be relevant
for any purpose of this Act; or
(g) makes, adapts, supplies or offers to supply any article knowing that it is designed or adapted for use in the course of or
in connection with altering, destroying, erasing or concealing any information, records or evidence which he knows or is reasonably
expected to know to be relevant for any purpose of this Act, or intending it to be used to commit, or assist in the commission of
fraud; or
(h) alters, destroys, conceals, covers up, falsifies, or makes a false entry in any record, document, electronic data or tangible
object,"; and
(c) immediately after paragraph (h), as added by this article, for the words "shall be guilty of an offence, and shall for
each such offence be liable on conviction before a Court of Magistrates sitting as a court of criminal judicature to a fine (multa)
of not less than one hundred and sixteen euro (116) and not exceeding four hundred and sixty-five euro (465) and, in addition, to
treble the amount of tax to which the person whose tax liability it was intended to evade or to assist in evading is liable under
the Income Tax Acts for the year of assessment in respect of or during which the offence was committed, or to imprisonment for any
term not exceeding six months, or to both such fine and imprisonment.", there shall be substituted the words:
"shall be guilty of an offence, and shall be liable on conviction before a Court of Magistrates sitting as a court of criminal
judicature -
(i) to a fine (multa) not less than seven hundred euro (€700) and not exceeding three thousand five hundred euro (€3,500) in the case of any offence
committed under paragraphs (a) to (d); and
(ii) to a fine (multa) of not less than six thousand euro (€6,000) and not exceeding ten thousand euro
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(€10,000) for an offence committed under paragraphs (e)
to (h),
and, in addition, for each offence as above referred to in paragraphs (a) to (h), to treble the amount of tax to which the person
whose tax liability it was intended to evade, or to assist in evading, is liable under the Income Tax Acts for the year of assessment
in respect of or during which the offence was committed, or to imprisonment for any term not exceeding six months, or to both such
fine and imprisonment.
For the purposes of paragraphs (f) and (g) the term
"article" includes any program or data held in electronic form.".
(a) paragraph (c) thereof shall be renumbered as paragraph (d); and
(b) in paragraph (b) thereof, for the words "the said Acts and regulations; and" there shall be substituted the words
"the said Acts and regulations;", and immediately thereafter there shall be added the following new paragraph:
Amendment of article 58 of the principal Act.
Cap. 123.
"(c) for fees to be levied in relation to the issue of certificates, the processing of registrations and applications for rulings in terms of article 52 of the Income Tax Act; and".
(2) The provisions of this Part shall be deemed to have come into force on the 26th October, 2010, except for article 70(e), which shall be deemed to have come into force on 1st January, 2011.
(a) immediately beneath the item "Mobile Telephony Services" in the "First Column - List of Excise Goods"
Column there shall be added the item "Cement"; and
(b) immediately beneath the item "Fifth Schedule" in
Amendment of the Excise Duty Act.
Cap. 382.
Amendment of the First Schedule to the principal Act.
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Amendment of the Second Schedule to the principal Act.
Amendment of the Third Schedule of the principal Act.
the "Second Column - Relevant Schedule" column there shall be added the item "Schedule Five A".
(a) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Beer", there shall
be substituted the following:
"€1.50 per hectolitre per degree Plato";
(b) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Beer if produced by small
and independent breweries with an annual production not exceeding
200,000 litres", there shall be substituted the following: "€0.75 per hectolitre per degree Plato"; and
(c) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Products containing a mixture
of beer with non-alcoholic drinks", there shall be substituted the following:
"€0.25 per hectolitre per degree Plato".
(a) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Cigarettes", there
shall be substituted the following:
"47.0% of the retail price plus €28.00 per 1000 cigarettes but not less than €120.50 per 1000 cigarettes";
(b) for the words in paragraph 1.b. in the "Description of Excise Goods" Column under the heading "Cigarettes",
there shall be substituted the following:
"A roll of tobacco referred to in paragraph 1.a.i. shall, for excise duty purposes, be considered as two cigarettes where,
excluding filter or mouthpiece, it is longer than 8 cm but not longer than 11 cm, as three cigarettes where, excluding filter
or mouthpiece, it is longer than 11 cm but not longer than 14 cm, and so on.
Products consisting in whole or in part of substances other than tobacco but otherwise conforming to
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the criteria set out in sub-paragraph a.i. to iii. above shall be treated as cigarettes and the provisions of this sub- paragraph
shall apply thereto.";
(c) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Cigars and Cigarillos",
there shall be substituted the following:
"€16.90 per 1000 units";
(d) for the words from "The following shall be deemed to be cigars or cigarillos" to the words "- a wrapper of
reconstituted tobacco." under the heading "Cigars and Cigarillos" in the "Description of Excise Goods"
Column there shall be substituted the following:
"The following shall be deemed to be cigars or cigarillos if they can be and, given their properties and normal consumer expectations,
are exclusively intended to be smoked as they are:
i. rolls of tobacco with an outer wrapper of natural tobacco;
ii. rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal colour of a cigar, of
reconstituted tobacco, covering the product in full, including, where appropriate, the filter but not, in the case of tipped
cigars, the tip, where the unit weight, not including filter or mouthpiece, is not less than 2,3 g and not more than 10 g, and the
circumference over at least one third of the length is not less than 34 mm.
Products which consist in part of substances other than tobacco but otherwise fulfil the criteria set out above shall be treated as
cigars and cigarillos.";
(e) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Hand-Rolling Tobacco",
there shall be substituted the following:
"€75.40 per kg.";
(f) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Other Smoking Tobacco",
there shall be substituted the following:
"€75.40 per kg.";
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(g) for the words from "The following shall be deemed to be smoking tobacco" to the words "set out in indents (i)
and (ii) above shall be treated as smoking tobacco." under the heading "Other Smoking Tobacco" in the "Description
of Excise Goods" Column there shall be substituted the following:
"The following shall be deemed to be smoking tobacco:
i. tobacco which has been cut or otherwise split, twisted or pressed into blocks and is capable of being smoked without further
industrial processing;
ii. tobacco refuse put up for retail sale which does not fall under the definition of cigars and cigarillos or cigarettes
and which can be smoked. For the purpose of this paragraph, "tobacco refuse" shall be deemed to be remnants of tobacco
leaves and by-products obtained from tobacco processing or the manufacture of tobacco products.
Smoking tobacco as defined above in which more than 25% by weight of the tobacco particles have a cut width of less than 1.5 mm shall
be deemed to be fine-cut tobacco for the rolling of cigarettes.
Smoking tobacco in which more than 25% by weight of the tobacco particles have a cut width of 1.5 mm or more and which was sold or
intended to be sold for the rolling of cigarettes may also be deemed to be fine-cut tobacco for the rolling of cigarettes.
Products consisting in whole or in part of substances other than tobacco but otherwise conforming to the criteria set
out in sub-paragraphs i. and ii. above shall be treated as smoking tobacco.";
(h) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Pipe Tobacco", there
shall be substituted the following:
"€23.96 per kg."; and
(i) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Chewing Tobacco and Snuff",
there shall be substituted the following:
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"€32.82 per kg.".
(a) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Leaded Petrol", there
shall be substituted the following:
"€588.18 per 1,000 litres";
(b) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Unleaded Petrol", there
shall be substituted the following:
"€469.38 per 1,000 litres";
(c) for the words in the "Description of Excise Goods" column "Gas Oil falling within CN Codes 2710.19.41
to
2710.19.49 excluding Gas Oil falling within 2710.19.49 if used
for heating purposes" there shall be substituted the words "Gas Oil falling within CN Codes 2710.19.41 to 2710.19.49
and blends of the foregoing with Biodiesel, excluding Gas Oil or Gas Oil blended with Biodiesel, with a sulphur content not exceeding
0.1% sulphur by weight if used for heating purposes"; and for the words "€352.40 per 1000 litres"
in the relative "Rate of Excise Duty" column thereof there shall be substituted the words "€382.40 per 1000 litres";
(d) for the words in the "Description of Excise Goods" column "Gas Oil falling within CN 2710.19.49 if
used for heating purposes" there shall be substituted the words "Gas Oil or Gas Oil blended with Biodiesel, with a sulphur
content not exceeding 0.1% sulphur by weight if used for heating purposes"; and for the words "€96.79
per 1000 litres" in the relative "Rate of Excise Duty" column thereof there shall be substituted the words "€142.09
per 1000 litres";
(e) for the words in the "Description of Excise Goods" column "Biodiesel (a mixture of biomass and gas oil)"
there shall be substituted the words "Biodiesel, a diesel quality liquid fuel produced from biomass or waste cooking oil, with
an ester content of not less than 96.5% by weight and a sulphur content not exceeding 0.005%, whether in blend or not"; and
for the words "€352.40 per 1000 litres" in the relative "Rate of Excise Duty" column thereof there shall
be substituted the words "€382.40 per 1000 litres";
Amendment of the Fourth Schedule to the principal Act.
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(f) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Heavy Fuel Oil", there
shall be substituted the following:
"€30.00 per 1000 Kgs.";
(g) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Kerosene", there shall
be substituted the following:
"€382.40 per 1000 litres";
(h) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Electricity", there
shall be substituted the following:
"€1.50 per MWh"; and
(i) the following words in the "Description of Excise Goods" column under the title "EXEMPTIONS" shall
be deleted:
"The biomass content (i.e. the percentage element) in Biodiesel is exempted from the payment of excise duty under fiscal control
where such energy products are made up of, or contain, one or more of the following products:
- products falling within CN Codes 1507 to 1518;
- products falling within CN Codes
3824.90.55 and 3824.90.80 to 3824.90.99 for their components produced from biomass;
- products falling within CN Codes
2207.20.00 and 29 05 11 00 which are not of synthetic origin;
- products produced from biomass, including products falling within CN Codes 4401 and 4402;
- products which contain water (CN Codes
2201 and 2851.00.10).
"Biomass" shall mean the biodegradable fraction of products, waste and residues from agriculture (including vegetal and
animal substances), forestry and related industries, as well as the biodegradable fraction of
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industrial and municipal waste.".
"SCHEDULE FIVE A
Description of excise goods | Rate of Excise Duty |
Portland Cement excluding white cement | €9.00 per 1000 Kg"s. |
(2) The provisions of this Part shall come into force as follows:
(a) article 73 shall be deemed to have come into force on the 1st January, 2011; and
(b) the remaining provisions of this Part shall come into force on such a date as the Minister of Finance may by notice in the
Gazette establish, and different dates may be so established for different provisions or different purposes of this Part.
"(5) The Commissioner may, for the purposes of this Act, cancel any provisional assessment raised by him, and issue a fresh
provisional assessment, and such cancellation shall be without prejudice to the raising of a fresh provisional
assessment required to be raised under this Act in replacement of the provisional assessment so cancelled which shall be deemed not
to have been raised.
Such fresh provisional assessment has to be raised within the time limit specified in subarticle (1).".
Addition of new Schedule to the principal Act.
Amendment of the Value Added Tax Act.
Cap. 406.
Amendment of article 4 of the principal Act.
Amendment of article 32 of the principal Act.
Amendment of article 50 of the principal Act.
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Amendment of article 77 of the principal Act.
(a) in paragraph (d) thereof, for the words "documents or accounts;", there shall be substituted the words "documents
or accounts, or is in possession of or supplies to another person any software application that would erase, destroy, damage or conceal
any stored information or any such records, documents or accounts;";
(b) in paragraph (e) thereof, for the words "which is incorrect or misleading in any material respect", there shall
be substituted the words "which is incorrect or misleading in any material respect or fails to provide to the Commissioner,
without any valid reason, all copies of any used or unused manual fiscal receipts where required by the Commissioner"
and
(c) for the words "shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand five hundred euro (€3,500) and, except for paragraph
p(), to a further fine (multa) equal to ten times the endangered tax or to imprisonment of not more than six months or to both such fines and imprisonment"
there shall be substituted the words:
"shall be guilty of an offence and shall, on conviction, be liable -
(i) to a fine (multa) of not less than six thousand euro (€6,000) and not exceeding ten thousand euro (€10,000) for an offence committed under
paragraphs (c) and (d); and
(ii) to a fine (multa) of not less than seven hundred euro (€700) and not exceeding three thousand five hundred euro (€3,500) for an offence
under the other paragraphs,
Amendment of article 86 of the principal Act.
and, in addition, for any offence as above referred to in all paragraphs, except for paragraph (p), to a further fine (multa) equal to ten times the endangered tax or to imprisonment of not more than six months or to both such fines and imprisonment.".
(a) subarticle (2) thereof shall be substituted by the
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following new subarticle:
"(2) Where in the execution of a contract made before the date of coming into force of any change made in the rate of tax in
terms of article 19, any goods or services are supplied on or after the date of coming into force of such change, and the supply
is a taxable supply, that contract shall, for all the purposes of any law, be interpreted as if the parties to that contract
had agreed to a change in the consideration stipulated therein to reflect the difference between the rate of tax applicable before
the change and the rate of tax applicable after the change."; and
(b) in paragraph (b) of subarticle (4) thereof, for the words "or the 1st January 2004," there shall be substituted
the words "or the date of coming into force of any change referred to in subarticle (2),".
(2) The provisions of this Part shall be deemed to have come into force on 1 January 2011.
Amendment of the Eco- Contribution Act.
Cap. 473.
Amendment of article 23 of the principal Act.
Passed by the House of Representatives at Sitting No. 328 of the
16th March, 2011.
MICHAEL FRENDO
Speaker
PAULINE ABELA
Clerk to the House of Representatives
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