ACT No. VIII of I\lS7 An Act {I",ha 10 amend Ihe [neom<! Tax ACI. 1948 BE IT ENACfED by the Preside nt. by and with the advice and consent of the House of Representatives, in this present Parliament assembled. and by the authority of Ihe same, as follows:-

I assent

AGATHA BARBARA

President

6th February, 1987

ACT No. VIII of I\lS7

An Act {I",ha 10 amend Ihe [neom<! Tax ACI. 1948

BE IT ENACfED by the Preside nt. by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled. and by the authority of Ihe same, as follows:-

This Act may be cited as the IlIeomc Tax (Amendment)

(I )

romm,,,,,,, ... nl. Act. 1987, and shall be read and construed as one with the Income

Tax Act , 1948. hereinafter referred to as "the principal Act"

(2)

The provisions of this Act shall come into force as fol-

lows: -

(a) the provisions of this section and of section 5 shall come

into force upon the publication of this Act in the Gazette;

(b) the provisions of section 2. of paragraph (b) of section

3, of sections 4 and 6 , and of paragrapbs (a) and (c) of section 7

sball come in to force as from [he [stlanuary, [988 in respect of

the year of assessment commenci ng on tbat dale and of subsequent

years of assessment;

(e) the provisions of paragrapb (b) of section 7 shall be

deemed [0 have come into force as from the 1st January, 1976 in

respect of [he yea r of assessment commencing on that date and of

subsequent years of assessment.

(d) the provisions of paragraph (a) of section 3 sha ll be

deemed [0 have come into force as from the 1st January, 1949 in

respect of the yea r of assessment commencing on that date and

of subsequent years of assessment.

For the proviso to paragraph (c) of subsection (I) of ~ction

5 of the principal Act there shall be substituted the following

"Provided that no income shall be subject 10 tax under th is

paragraph in the case of -

(i) any individual who was ordinarily resident and

domiciled in Ma!ta in the year immediately preceding thc

year of assessment;

(ii) any property which cons,sts of churchcs and of a ny

property owned and used, or o<xupied, by the dIOcese of

Malta or of Gozo for their respective purposes

(iii) any ecclesiastical community entitled 10 personal

deductions under the provisions of subsection (6) of section

22 of this Act.··.

Subse<;;tion (I) of section 8 of the principal Act, shall be

amended as follows

(a) immediately after paragraph (t) thereof the re shall be

added the following new paragraph

"(g) the income of any political party including the

income of clubs adhering 10 political parties;" amJ

(b) immediately after pa ragraph (n) the reof there shall be

added the following new paragraph

"(nn) the income of a club or similar institution which

the Commissione r is satisfied constitutes a bona fide sports

club, provided that no part of the income of which is payable

(a) fil -proviso li hemm mas-subarti kolu (4) tieghu minllo k

il· kliem "iijed rmnn hames mija u hamsa u erbghin lira Mahija"

gh;lIldhom jidhlu I-klicm "iijed min n h:lmcs mija u humsa u Imenin

lira Mallija"

fil-paragra fu (b) tas-s uba rtik olu (5) tieghu -

(b)

(i) minl1o~ il -klie m "tal-p.1ragrafi (c). (d), (e) u (t)"

ghand hom jidhlu I-klicm "tal- p ~ ragrafi (d), (c) u (f)"; u

(i i) fis-sub-paragrafu (ii i) ticghu minl10 k il- klicm "iijcd

minn hames mija u hamsa u crhghin lira Maltija" ghandhom

jidhlu I- klicm "iijcd minn hamcs mija u hamsa u tmenin li ra

Maltija".

5, M'nl1ok il-par;lgrafu (b) lal-proviso li hcmm mas-subart ikolu

(I) ta' I-artikolu 16 ta'I- At! principa li ghandu jidhol dan li gcj

"(b) ebda ordni mahrug ta ht d"11 is·sub"rtikolu ma ghandu

jkol[u cffcH -

(i) mela Jkun maghm ul dwur x, profi t!i taxxabbli

fidej" d-~umpannij a dwar xi scna ta " stirna qabcl di k li lihda

11-1 ta' Jannar, 1976, jckk IklHl sarCI li kwidazzjon i gha l di k

is-sena jew, meta ma tkun saret ebda likwidazzjoni kif intqa l

qabel , jekk l-ordni isir wara 1-31 la' Dicembru, 1919;

(ii) meta jkun mBghmul dwar xi profitti lauabbli

fidejn il-kumpannija dwar xi sena la' 51im a qabel dik li libda

fl-I ta' JannaT, 1984, jekk dan isir wara 1-31 ta' Ditembru,

1986; u

(iii ) mela jkun maghmuI dwar xi profitti hekk la xxabbli

gl'tal xi sena ol'tra ta' slima, jekk isi r wara 1i jghaddu Imien

snin minn mela tispitta s-sena ta' stima 1i fiha I-profitti li

gl'talihom jirrefe ri I-ordni kienu slIggelli ghal-Iaua;",

L-artikolu22 ta'l-Att print ipalighandu jig; emendat kifgej

(a) fil-paragmfu (a) tas-subartikolu (I) ticghll minflok il - .. '1 -"'''

kliem "elf mitejn u Ilet;n lira Mal tija" ghandhom jidhlu I-kliem orintiJ>oli.

"elf seba' mija u tletin lira Maltija";

(b)

fis-suhartikolu (2) tieghu -

(i) minflok iI-kliem "seba' mija u tlelin lira Mallija"

ghandhom jidl'tlu I-kliem "elf u tletin lira Maltija";

(ii) m'proviso li hemm gl'lalih minflok il- kl iem "l'tames

mitt lira Maltija" ghandhom jidl'tlu I- kliem "seoo' mitt lira

Maltija"; u

(c) fis-subartikolu (6) li eghu minflo k il -kliem "l'tames mija

u hamsa II erbgliin lira Maltija" gl'tandhom jidtilu I-kliem ~ hames

mija u liamsa u Imenin lira Maltija",

L-artikolll 25 ta' I- A !I prinCipali ghandu jig; emendal kif gej

(a)

minfl ok is-s ubartikolu (I) tieghu gl'landu jidhol dan li gej

(1) Bla hsara ghad-dispotizzjonijiell-ohra ta' dan

"""n.li .. ' l-artikolu, it-taxxa fuq I-income taxxabbli ta' ku1l persuna

Ikun inlaxxata bir-rati 1i gejji n

(a) fil-kat ta' individwu li jkun intitolat ghal tnaq-

qis taht il-paragrafu (a) tas-subart ikolu (I) la' l-artikol u

22 la' dan I-Att gliall-istcss sena ta' stima -

Gl'tal kul! Lm fuq l-ewwel Lml OO

HI<

15,

Ghal kuJl Lm fuq ll-Lm200 ta' wara

Ghat kull Lm fuq il- Lm200 ta' wara

211<

22,

Ghal kul1 Lm fuq l-Lm400 ta' wara

",

Ghal kull Lm fuq is- Lm700 ta' wara

Ghal ku1l Lm fuq t-Lml,500 ta ' wara

3lI<

Ghal kull Lm fuq is-Lm700 ta' wara

4lI<

Ghal kul1 Lm fuq is- Lm700 ta' wara

511<

Ghal kull Lm fuq l-Lm2,OOO ta' wara

""

65,

Ghat kul1 Lm mill-bqija

fiI -kat ta' !tull persuoa ohra -

(b)

Glial kun Lm fuq J·ewwcl LmlOO

Ghal kuU Lm fuq il -LmlOO ta' wara

" '"

15,

Glial kuB Lm fuq l-Lm400 ta' wara

2<k

Glial !tull Lm fuq il· Lm500 ta' wara

25,

Glial kull Lm fuq is- Lm700 ta' wara

Glial !tull Lm fuq ]-Lml.500 ta' W3T3

30<

Glial ku!] Lm fuq is- Lm700 ta' wara

'"

Glial kull Lm fuq is-Lm700 ta' wara

'0<

Gbal !tull Lm fuq l-Lm2,OOO ta' wara

6Ik

65c";

Ghal kull Lm mill-hqija

minflok is-subartikolu (3A) lieghu ghandu jidhol dan I;

(b)

(3A) Bla hsara gliad -dispoiizzjonijicl tas-subar-

tikolu (6) la ' dan l-a rhkolu , it -t .. x~a li gliandha liSi ntaxxata

skond id-dispoiizzjonijicl I-ohra la' dan ]·artikolu m 'ghandha

febda kat (kun ii.jed mir-rata ta ' -

(a) 100::: fuq kulllira Maltija ta' I-income lauabbli

la' kullrrade union; u

(b) 30c fuq kulllira Maltija la' I-income laxxabbli

la' kull kazin jcw iSlituzzjoni ohra simili li ma Ikull propr-

jetti t~' hadd jekk il-K ummissa rju jkun sodisfatt li ebda

parti mill·income ma jkun jista' jilqassam lil, jew

)[Ort'ohf~ jkun dispon ibbli ghall-benefici:ju perwnali la'

xi sid jcw membru bhala taiL"';

(i:)

minflok is-subarlikolu (4) tieghu ghandu jidhol dan li gej

Minkejja d·dispozizzjonijiel tas·s ubartikolu

(4)

(I) la' dan I-artikolu. it-taxxa fuq I·income laxxabbli la' kull

mdividwu h j"un inghata permess ghal residenza lahl I·ar·

tikolu 7 ta' I·At! ta' 1- 1970 dwaf I-Immigrazzjoni, f1-erbatax

jcw wara l-crbatax la' Novcmbru , 19n, ghandha ligi ntauala

biHali li gejjin

(a) fiI-kaz ta' dak Hndividwu li jkun intilolal glial

Inaqqis I~hl il·paragrafu (a) las-suharti kolu ( I ) la' [-ar-

likolu 22 ta' dan I-All ghall·islcss sena ta' Slima-

Glial kull Lm fuq I·ewwel LmlOO

IQc

Glial kull Lm fuq il-Lm200 la' wara

lSe

20c

Glial kull Lm fuq il-Lm200 ta' wara

Ghat kull Lm fuq I-Lm400 ta' wara

22c

25e

Glial kull Lm fuq is-Lm700 t3' wara

Ghal kull Lm mill-bqija

30c

A

(b)

fiI·kai: ta" kull individwu iellOr bhal dak-

Ghal kull Lm fllq I~wwel Lml00

Se

Ghal kull Lm fuq il -LmlOO ta' wara

&

Ghal kull Lm fuq 1·Lm400 ta ' wara

15c

Ghat kull Lm fuq il- Lm500 ta' wara

20c

Ghal kull Lm fuq is-Lm700 ta' wara

25c

3Oc

Ghal kull Lm mill-bq ija

Ji da I-inqas tana li gha ndha tithallas minn xi

illdividwu bhal dak dwar ~ i sena ta' st ima tkun elf lira

Maltija.·· .

Mghoddi mill-Kamra tad· Deputati fis-Seduta Nru. 441 tat-3 ta' Ftar, 1987.

P AU LX UEREB

Speaker

P. M USCAT T E R/UB!L£

Agent Skri~an la/·Kamra lad-DepUlati

or is otherwise available for the perwnal benefit of. any

proprietor. member or shareholder, and provided also on

winding up of such cl ub or institution, no fu nds are distributed

or available to such proprietor, member or shareholder;".

4. Section 14A of the principal Act shall be amended as follows

(a) in the proviso to subsection (4) thereof for the words

"in excess of five hund red and forty-five Maltese liri" there shall

be substi tuted the words "in excess of five hundred and eighty-five

Maltese liri;"

(b)

in paragraph (b) of subsection (5) thereof -

(i) for Ihe words "paragraphs (c). (d), (e) and (f)~

there shall be substi tuted the words "paragraphs (d). (eland

(f)"; and

(ii) in sub-paragraph (iii) thereto for the words "in C K-

cess of five hundred and forty-five Maltese liri" there sha ll

be substituted the words "in excess of five hundred and eighty-

five Maltese liri".

For paragraph (b) of the proviso to subsection (1) of section

16 of the principal Act there shall be substituted the following

"(b)

no order issued under tbis subsection shall have effect

(i) where it is made in respect of any profits chargeable

in the company's hands in respect of any year of assessment

prior to that beginning on 1st January, 1976, i f an assessment

has been raised for that year or, where no such assessment

has been raised, if the order is made after 31st December 1979;

(ii) where it is made in respect of any profits chargeable

in the company's hands in respect of any year of assessment

prior 10 that beginning on 1st January, 1984, if it is made

after 31st De cember. 1986; and

(iii) where it is made in respect of any profits so charge·

able for any other year of assessment. if it is made after the

lapse of eight years from the end of the yea r of assessment

in which the profits to whiCh the order relates were chargeable

to tax;".

Section 22 of the principal Act shall be amended as follows

6. (a) in paragraph (a) of subsection (I) thereof for the word~

"one thousand two hundred and thirty Maltese \iri" there shall be

substitutcd the words "one thousand seven hundred and thirty

Maltese liri";

(b)

in subsection (2) thereof ~

(i) for the words "seven hundred and thi rty Maltese

li Ti" there shall be substituted the words "one thousand and

thirty Mal tese liri";

(ii) in th e proviso th ereto for the words "five hundred

Maltese liri~ there shall be substituted the words ~seven

hundred Maltese liri ~; and

(c) in subsection (6) the reof for the words "five hun dred

and forty·five Maltese liri" there shall be substituted the words

"five hundred and eighty·five Maltese liri~.

Section 25 of the principal Act shall be amended as follows

7. (a) for subsection (I) thereof there shaH be substitu ted the

following

(I) Saving the other provisions of thi s section, the

- Nornu.1

tax upon the chargeable income of every person shall be

;o<!i';d ... 1o charged at the following rates

and <m';"

(a) in the case of an irtdividual who is entitled to

_cl

a deduct ion under paragraph (a) of subsection (I) of

sectiort 22 of this Act forthe same yearofasscssment -

For every Lm of Ihe first Lml00

IOc

For every Lm of Ihe neXI Lm 200

15c

For every Lm of Ihe ne"l Lm200

200

For every Lm of Ihe neXI Lm400

22c

For every Lm of Ihc ne xt Lm700

25c

30c

For every Lm of the next Lm 1500

40c

For every Lm of the next Lm700

For every Lm of the next Lm700

50c

60c

For every Lm of the next Lm2.000

For every Lm of Ihe remainder

6Sc

(b)

in the case of any o ther person -

For every Lm of the first LmlOO

5c

Se

For every Lm of the next LmlOO

For every Lm of Ihe neXI Lm 400

1.Se

Fo r every Lm of the next Lm5(X)

20c

For every Lm of Ihe next Lm700

25c

30c

Fo r every Lm of the next Lm I ,500

For cvery Lm of the ne XI Lm700

400

For eve ry Lm of the next Lm700

50c

60c

For every Lm of the neXI Lm2 ,O()()

For every Lm of the remainder

65c"

(b) for ~ubseclion (3A) thereof Ihere shall be substi tuted

the following

(3A) Saving the provisions of subsection (6)

of this section, the ta" chargeable under the other pro-

visions of this sect ion shall in no case exceed the rale

01 -

(a) IOc on every Maltese lira of th e chargeable

income of every trade union; and

(b) JOc on every Maltese lira of the chargeahle

income of every club or other similar non·proprietary

institution if the Commissione r is satisfied that no part

of The income is distribUTable 10. or is otherwise available

for Thc personal be nefit of any proprietor or member

thereof in his ca pacity as such. "

(c) for subsection (4) thereof There shall be substituted the

following

(4) NotwithsTanding the provisions of subseclion

(1) of Ihis S<!ction . Ihe tax upon the chargeable income of

any individual who has been granTed a residence permi t under

section 7 of th e Immigration Act. 1970, on or after the four·

Teemh day of November. 1972. shall be charged at the follow-

ing rales

(a) in Ihe case of such an indl vidual who is entitled

10 a deduction under par;lgraph (a) of subse~1ion (1) of

section 22 of this ACT for the same year of assessme nt -

A

For every Lm of the fi rst Lm 100

lOe

For every Lm of the next Lm200

15e

For every Lm o f the next Lm200

20c

For evcry Lm or the next Lm400

22c

For every Lm of the next Lm700

25c

30c

For every Lm of Ihe rema inder

(b)

in the case of any other such individual -

For eve ry Lm of the first Lm lOO

5e

&

For every Lm of the neXI Lm lOO

For every Lm of the ne xt Lm400

15e

For every Lm of the nexl Lm500

20c

For every Lm of the neXI Lm 700

25c

3Oc

For every Lm of the remainder

Provided that Ihe minimum liabili ty of any such

individual in respect of any year of assessmem shall be

onc thousand Ma ltese liei.".

Passed by the House of Rcprcsell1atives al Sitting No . 441 of the 3rd Feb ruary ,

1987. P AUL X U E REIl

Speaka

P. M USCAT T I2 RRIIJ IU S

A clillg Clerk 10 the House of Represetllatives

Ippubbhb' mid-Dipartmon' la ' l-InfotmaZZJoni KEnl). ?bI"W l>y tIJ. Depar11Mnl of I"formatiO" K4>(j~.~

Mithllb fi _l.wq><nl" t1!.(1,."", - hmtod at tIw Go>om ..... , hmtinf l'Nu

fuzz 4< - l'ri<lI 4<