XVIII tal-1993

I assent.

CENSU T .... BONE

(L.S.)

Presi~nl

161 hJul y. I993

ACf No. XVIU nlt"J

"mm" Ih .. /,,,,,,,,, .. T,o' A, I. ('''1'_ 11.1

A N A (T '"

SE IT ENACfEO by IIle President. by and with th e ad~i« and

COll5Cnt of Ihe Hous.: of RcpTesenlat;~es. in this present Parliamen t

a~mbled. and by Ihe authority of the S3fM. as follows:-

I . (1) This Act may he cited as the Inoome Tax {Amcndmenn

Aet, 1993, and shall be rcad and oonslrued as one wilh the Income Tax

Act . herei nafter referred 10 as "the principal Act" .

The provisions of this Act shall come into fora: as

(2)

follows

the provisions of this s«lio" antI "fs<:clions 6. 7 and ~ of

(a)

this ACI shall come into force upon Ihe ptJblication of this Act in the

Gazelle, in re5pCCI of the year of IlSICUmcnl commenocing on the

1S1 January. 199-1 and of sul>!;cquenl rur.; o f a~mc:nt

(b)

Ihe provisions of section 10 of this Act shall come in lO

ro,« un Ih.: d~t.: of the pul>lieat ion of th is ACI in Ihe Gazette; and

tM provisions of Ihe other sections o f this ACI shall be

(c)

to have ~ inln fnrer o n TM 2.~lh Nnv~mhe • • 19Q'2.

~,""d

2, [mmedialel~ afte r the definition of " incapacitated person" in

subsection ( 1 ) of ~ction 2 of the p.incipal Act the • ., sh all be insc ned the

following new definition

•• " ;I1C<'Alc " e ~errt fn r ttoe f'UfI"""'<=" '" suho;ectinn (1) of s«tion

S and Part V o f this Act shall include capital gains as defined in

secti on SA of th is ACI;" ,

Scc~j(}n 5 orlh" prin,ipal Act shalll>c amended as fullow.

Ca)

in subsection (1) thereof. immediately after Ihe WQrds

··~pt .. ci r;cd hereafter" 1 here sh~ 11 he added ,h .. words "for the year

of assessment commencing on 151 January. 1993 btu only with

respect to any capital gains made: on Or after the 25th November .

1992 and for each .... hoequcnt year or ~nl upon the capilal

p ins as defined in section SA of this ACI accruing or derived from

M.!II or elsewhere, and whether received in Ma.ta or not. and";

.M

(b) the existing IWO provisos 10 subsection (I) sll311 be

sab!iliwted by the foliowilll ne w pray;$O

" r ",vided lh~t

in the case of income: arising outside Maltl 10 a

(i)

!X' 1'li<IR who is not ordinarily rcsident in Malla or not domiciled

in Malta. the IU sh.ll be payable on the amouOl received in

Malta

no tu ~hall he P'lyahlc on capital gains arising

(ii)

oul~de

Malla 10 a person who is nOI ordinarily residenl in

Malla or nol domiciled in Malta or 10 a person who is charged

10 lax at Ihe rale of 15 cenlS in the Lm as laid down in

sub5ection (9) of 5t:ction 31 of this Act;

(iii ) in the case of any penon who is charged 10 IU at the

<1Ile of 15 OCDI$ in the Lm as hUll down iD subsection (9) of

section 31 of this Act , the tu shall be: payable only 00 any

income or capital gains lrising in Malta and on ID)' amounl of

inwme arising outside Malta and received in Malla.".

dwar it-Tun fuq I-Income, u ghandu jinQa ra u jiftichocm hit. wBhda

ma' I-All dwar il·Tax~a fuq I-/ nco""" hawn hc kk itjed 'il quddiem KofJ- 12).

i~jjab Ml·An prinapalj H.

(2)

Id4ispotiujonijicl ta' dan I-An ghandhom jibdew

iseh hu ki f ~j

<a) id-d~potiu;o.ujicl la' dan I-I"ikolu U la ' 1·.rtikol; 6. 7 u

8 la' dan I-All ghandhom jibdew iser.r",. mal-pubblikaa;oni la' clan

I· AII fil-Guulla , dwar is-sena ta' slima I; libda fI · II.· Jannar , 1994

u dwar i5osn;n la' slima slI55Cgwcnti;

(b) id-d ispo.ti1,l'jonijicI la' I-anikolu 10 11' dan I-All

glJandoom jibdcw isc hhu fid-dala lal-pubblikazzjoni 11 ' dan I-An

fiI-GaXllcUa; u

(c) id.cispotizzjonijicI la' I,anikoli I-o hra la ' din I-An

glJandhom jitqiesu li bdcw isehhu fil·2S ta' Novcmbru, 1992.

Minnufih warB H ifsirl la' MimgIJu fuq obbligllIj"nijicl fi5-

M

subanikolu ( 1) 11· 1·.nikolu (2) la' l-AU prinCipali ghan<lha tidtlOi din il'

lifsira gdida li gejja

" Mj"com~" hlief glJall ·finijiel Ias-sub.nikolu (I ) la ' 1-8 rtikolu S

u lal -Taqsima V la' dan I-An linkludi qlicgIJ kapilali kif imrl'<5Crfl·

anikolu SA la' dan I·AU; M.

L,.-artikolu S la' I-All printipali allandu jigi eme nd. ! kif iej

Ca) fis-suban ikolu (I ) lieghu , minnufib wara i· kJicm

MspeCifikali hawn Ialu M ghandhom jiJ:diedu .-!tHem Mgl'Ias-sc:na la'

sum.li ti bda n· , ta' Jannar, 1993 i1da biss d .... T qliegl'l Itapitlli li

jkun saT fIl·:zs 11' N~mbru , 1992 jew wan u gbaJ t ull sen. ta'

Slim. ~lI§Soegwenli fuq il-qliegb It.pita)i kif imf\SSC r fl·artikolu SA

UI' dan '· Allli jkun OOVUI jew derival minn Maltajewband'obr" u

sew;eH jasal Malll jew k . I,IM; U

(b) minRok it·tcw. provi$OS li hemm mas-subanikolu (\)

ghandu jidllol dan I-proviso tdid ti ie;

" 11da

(i) fiI·kat la' income li jinqala ' baIT. rninn Malta rninn

persuna 1i ma ttuna ordinarjamcnt residenti fMaltajew mhlllt

oomitiJj ala rt.-1alta , i' -taua ghandha .;1118113$ ruq ]·ammon:]i

jasal rMaila;

(ii) m. lill'laUas ebda InXI fuq qliegl'l kapitali li j inqaJa'

ham! minn Malta minn penuna li ma tkun~ ordinarjamcnt

residenti fMaJla)cw mhu~ domitiljata fM alta jcw lil penuna

li Ikun QCghda liii nlUllala bi r.rat~ t~ ' ]5· il o!entctmu fiJ·lira

kifslipulal fis-subanikolu (9) 1l' l'lnill:olu 31 la' dan I·AII;

(iii) m.kat la' ~i pcrsuna li Ikun qcgl'lda tiA;i nla~ut. biT'

rala la' IS-il o!e ntd mu fiJ·lira kif Slipulal fis·subanikolu (9) la'

I·anikolu 31 ,,' dan I· AII . iHaxn ,ihandha li thaUas bin fuq

kull illCOl'lU' )cw qlic&fl kapilal i li jmqala' fMalta u fuq kull

ammonlla ' u.(()m4ii jioqala' barra minn Malta u li jigi riCevul

f Malta . ~,

Immediatel), after KCtion S of the principal Act Ihere s.hall be

introduced the following KClion

'

....

-c.;'oI SA . (1) (a) Capi lal gains Ikri"ed b)' a person from

the lransfer of a capi tal assoel shall be charged unlkT

subliection (1) of KCtion S of this Act. Notwilnstanding

anything eontaincd in In)' Dlher part of this Act , weh

p innhall be lsocnlined u laid down in thi! section and

in web manner u may be prescribed. The Cllpitll gli", 10

which the provisiorul of this section shallappl), Ire

(i) pi ns or profits arising from any IrlInder

of the ownenhip or usufruct of any immovable

properly Or the assignment or cession of any rights

over sucll properly: and

(ii) gains or profits arising from the tra ltSfe. of

the ownershiporusufruct of or from lhe Issignment

Or cession of any rigllts over any Kcurities, blJ$ines.s

goodwill. cop)'riah t, patents, trademarks and

traden~me~: and

(b)

Inthis$t!Clion_

"trander" irw:ludes any a .. ignm~nt . ~Ie.

emphyteusi$ or sulK mphyteusis . ~rtiti?n.

donation , sale by instalmenls. ~d any alteRatIon

under any title , but does not mdude a transfer

OI/UQ morri.r: and

" lIC'aIritjes" shall mean lharn and 510d.'I and

such like instrument thal participate in any way in

the profits of the company and .... ho$e u:tum i, not

limited to a fi~ed rale of return .

(2) For the purpose of ascertaining the pins or

profits aming from any trander of immovable property in

terms of sub-paragraph (i) of paragraph (a) of subsection (I)

of thi$ section -

(a) tbere shall be deducted in sUI,:h manner and

amounl as may be pracribcd, lhe cost of acqu ili lion . the

inflation element, any ground u:nt paid on the property

and for which a deduction is not due 10 tbe taxpa~r

under any ottler prnv;siQn of this Act. maintenance,

improvements. oltler upenscs that have iocu:ascd the

value of the immovahle property since it was acquired

and other upenses directly rdated to the transfer;

(b) I ny t .... nsfer of immovable property by means

of a Deed of EKChan~ stllll be consideu:d as if sepa .... te

deed$ of transfer weu: taking place between the parties

10 Ihe deed

(c)

.... heu: immovable property is granted on

emptlyt~u~is or sulKmptlyteusis for a period exceeding

fifty yea,.,. or utendable 10 such periods, Ihe following

rules s.hall apply

(i) .... heu: the premiu m exceeds the cosl of

acquisition in acoordance with paragraph (a)

hereof, such ucess shall be deemed 10 be pillS or

profits

(ii) .... heu: the CO$! of acquisition in

ac«lrdance wi th paTagTllph (,) hereof exceeds lhe

premium such e~cess shall be deductible from the

gains or profils arrived al in accordance with sub-

paragraph (iii) hereof

(iii) no acc:oonl shall be Uoken on any ground

rent or increasc in ground renl inyolved in the

Innsfer unl~ and until such ground renl or

increase in ground renl ill redeemed , or the dirrct"'"

domini"", or sub dirrct"", domUIj""" as the CllK

may be. is transfetTCd and in $UCh case the gains or

profits shall be dectTlc:d 10 be the price of

redemption Or sale less Iny deduction in acrordalKC

with sub-paragraph (ii) hereof;

(I) a UlInsfer shall ~ include a CX)IIlract of

(d )

partition where no owelty is due 10 any of the co-

partitioIlel'$, and upon a Iransfernf Bny property by

I ro-panilioner the cost of acqu i$ilion shall be

deemed 10 be Ihe 005t of acq uisition aflhe property

in question at the time of acquisillon by the co-

panilioner;

(ii) for the p Urpo$es of this paragraph only

the immovable property held in common and

partitioned sha ll be taken inlO account. and where

money or olher movables held in common is

a:;signed to a oo-partilionc r in oonsideralKJn for the

reduction in the share of immovables '!.Signed 10

him the partition , hall be deemed to be one where

an owelty ha$ been paid;

(iil ) where a person recei~es an owelty on a

con tract of partition he shall be deemed to ha~e

made capilal pins as is equivalent!o as much of the

increase in the value of the property between the

lime of the acquisi tion by the oo-partilioncrs and the

lime of partition, so howeve r Ihal tu on capital

gains shll only be payable al lhe lime o f partition on

wch part oflhecapitaJ pins made as is not included

in the increase in the value of the property assigned

10 Ihal co-partitioner belw«n Ihe lime of

acq uisilion b~ Ihe oo-partitioners and the partition,

and where su~h co-partitioner transfers the prope rty

assigned 10 him the 00!d of acquisilion shall be

deemed to be the: 1'0$\ of acquisilion of lhe

immovables when acquired by the co-partilioncrs

before the pa rlilio .. ;

(iv) where a co-partitioroer pa )., an owelty al

lhe lime oflhe paortilion. he mall be deemed 10 have

made no capital gain al the time of Ihe partition. and

where such co- partitiollCr transfers an~ immovable

property assigllCd 10 him in the partit ion. the COSI of

Icq uisilion shall be dee med 10 be wch portion of the

sum of the COR of acquisilion of lhe co-partiliollCr·s

~hare of all the immovable$ partitiQnc:d together

wilh the owe lty paid on lhe contract of partilion, IS

i$ equivalent 10 the portion of the value of Ihe

immovable ITansfelTed 10 Ihe 10lal value of

immovables assiped to lhe co-partilioner in lhe

deed of acqu isi tion ;

(e) a donalion shall be considered as a deemed

§ale made at the markel value of the property al the time

of lransfer . Provided that no tax shall be payable where

Ihe donation is made I>y a pcn;()n to

(i) his spouse, descendalltsand ascendants in

the direct line and their relative spou§eS, or in thoe

~~nce of descendants to his brothers or sisters and

thoeir desoi:nd, "ts. or

(ii ) philanthropic instiluti<.lll~ apprQved for

the purposes of paragraph (e) of subsection (I) of

sectiollll ohhis Act;

et) without prejudice to thoe provision of p.Jragraph

(e) of su~ctioll ( I) of sectioll 11, whoere thoe property

referred 10 in paragrtlph (e) of thi s subsection is disposed

of by the dollce within fivc years of the donatioll . the

donee shall be charged on the gain ascertained in

aeoordanee with the provisKms of Ihis secti<>II by takillg

inlO acoount the cost of acqu isi tion of thoe propert y I 1 the

time: it was acquired by the donor ; whoere the property is

sold by the donee afte r the lapse of five years the COSt of

acquisition shall be deemed to be the value of the

property asdeclared ill the deed of donation ;

(g) gains and profits relating to a tran~er by

donatioll shall melllthoe differellOC: in the market value of-

thoe propeny althe time of the donation alld 1111: cost of

acquisiti<.ln of the property at the time of acquisition by

the donor.

(3) For the ptJrpo'iI' of _ naini ng the gains or

profits arising from allY lransfer of property ill terms of sub-

paragraph (ii) of p.Jtagraph (a) of su bw:ction (I) of this

section

Ca) the attjuisilion cost of shares acquired before

tile 25t h November . 1992 shall be valued eithoer on the

Equity method of share valuation (net asset value) based

0 11 the last acooullts su bmiued to the Commissioner by

the 18th December. 1992 by taking into acootJllt the

value of immov able propeny exi~ting in the said

acrounts and adjust ed in lenm of paragraph (a) of

subsection (2) of this section Or 0 11 Ihe actual purchase

(h) listed share~ quoted 011 a Slock Exchange 0 11

the 25th November. 1992 shall be valued at the price

existing on that date; and in the case of shares quoted in

foreign currency. Ihe rale of exchange (middle rare of the

Cent ra] Bank) on Ihat dale shall be used;

(c) shares a<:quired after lile 25t h November.

1992. shall be valued on the c:o:st o f acqui:;itioll;

(d) ,",'he re on M share lra nsfer the rights pertaining

10 those shares are changed in any wa y, the transfer value

of the shares "hall be laken as if no such change has been

m~dt- ;

(e) any transfer consisting of an nchang<! shan be

considered as if two separate transfers were lak ina place;

,m!

(t) the provisions of parBgraph~ (dJ. (e). (r) and

(s) of subsc<:tion (2) of this $«lion shan apply mll/Dlis

mllltllldis \0 thno 5UOOection.

(4) The provi$ions of paragnph (d) of subsection

(2) shall apply mUlalis mutandis where the ~1S partitioned

include both assets under sub-paragraphs (i) Rod (il) of

paragraph <al of subse~tion (I) .

(5) 1bc provisions o f sub-paragraph (I) of

paragraph (a) of subscclion <I) of this $«lion shall 001 apply

10 gai ns Or profits relating \0 transfe r of immovable

property

(a)

where a ropy of Ihe relevanl deed of transre.

dated priortothe 25lh November, 1992orofthe relevant

promise to transfer or acquire also dated prior 10 Ihe 25lh

NQVember. 1\192. made in favour of Ihe transferee. has

been duly registered with ttle Inland Revenue

Department by lhe 1st December, 1992 and I certificate

\0 !hRl cITeel has been issued by the Comm issioner or. in

the case of a deed of transfe r , the deed has been duly

enrolled in the Publ ic Registry by the 1st December,

1992;

(b) where tile Commissioner is S3titfied tlla! tile

propeny or undivided pan of the property has been

owned and~pied fora period of at least three years as

the U'amferor'l own rQidence immediately p~ding

the date of t",nsfer and provi<kd thl tlhe propeny i$

di5p1»ed of within twelve months of vacating IlIe

premises;

(c) for the purpose~ of pa ragraph (b) of this sub-

seelion "own residence" means the principal residence

owned by the taxpayer or lIis spouse be ing a dwelling

house which has been the owner 's only or main

r~dcnce , A gan&C attached to or underlying a house or

• block of Oats, or a garage of not mon: thi n JO square

D1C'tres .ilU"ed within five hundred metres of the

dwelling house, and transferred through the same dced

with the principal residence shall be deemed to be

iocl uded a~ part of the residence . The periodofresidcnce

includes the physical occupation of the premises and an y

absences from Malta such as on 3cwunt of foreign

employment. illness. holiday or study. Any part of the

house which is usedexdusively for commercial purposes

for any lime within two yeanof the tra nsfer slulll 001 be

considered as ··own residcnce ·· and this part shall be

apportioned 011 the basis of the area occupied for this

purpose as a proportion of the whole area of the relative

dwelling house ;

(d) where the propeny was taken ove r by

Governmen t . nd in ~ ofwhidll dec:luation by the

Pre$ident of Malta has been iS5Ued in terms of lhe Land

Acquisition (Public Purposes) Ordinance before the

25th Novembe r. 1992;

where the propeny is assigned between

(e)

consequent to a judicial or o;onscnwal

1pOU5eS

separation;

(0 where the property formed part of the

oommunity of ..:quests betwee n the spouses Or was

otherwise owned in oommon between them and is

assigned 10 one of the spouses on the dissolution of the

oommunityor ili panitioned belween Ihe spouses, or the

surviving spouse .nd the heirs of the deceased spouse;

>od

(g) where the property is assigned on emphyteusis

for fifty years or less.

(h) The pf(lvi,i"n~ "r ,uh·par~~"'dph (ii) "f

paragraph <al of subsection (I) of this section shall not apply

10 gains Or profits relating 10

tran~fcr

of Malta Government Bond. al1d

(a)

Sto<;ks;

(b) Iransfer of listed securities of quoted

companies on the Ma lta Stock E~change: and

(,,) P"'l'<'rty 1T;""f.·rr~d in Ihe dn·um,la"'·'·'

listed In paragraphs (c) and (f) of subsection 5 of Ihis

section.

(7) Wh ... , ... H I'<'""n i, ... nlitl ... d hI ,·~pital

allowances under paragraphs (f) and (j) of sut>scction ( I) of

section 13 of this Act in respect of a capital asset which is sold

at " pri ... , ... xc· ...... din)!. it, c·,,,,t "f acyui,ili"n "nd any

improvementS made thereto. the COSt of acquisition shall he

computed on the cost of acqu isition and the 005t of any

impwwmcnt mad" th ... ,,,tn.

(8) Where an a5$ct referred 10 in parngraph (a) of

",ho.c,·linn (1) uf Ihi, ....,c.in n " ..... <1 in;, hu,in,·" r", It ro:ri".l ur

at least 3 years is transferred and replaced within one ye ar by

an a~t used !iQlcly for a si milar purpose in the business. any

cltpiwl ~"i,,' reali ..... ,! nn II\~ I <;o",fa ,I\;,n ,,<It lie t;,x~d hUI I h~

cost of acquisition of Ihe neW a'W:l ~hall be reduced by Ihe

[NIid gain. When the assc:~ is disposed of without replace ment ,

Ihe O\'crall gain shall take intu accou nl the Ira nsfer price and

the COSI of acquisition reduced as afore.aiel.

('I) Where all 3"-"" i~ tra nsfcrred fmm ono

company 10 anothe r wjthin It grou p of oompan ies, it mall Ix

deemed that no loss or gain has arisen from the transfer. In

a""".tain ing Ihe ca pital gain whe.e ,uch an a,..." "

subsequently tran sferred outside tile gro up of companies. the

base cost of the asset that would be considered is the origin al

cost ni!;linj!. hefore the first transfer look place.

In this subsection. ~a groupof companies means

M

(a)

;, hnldinj!. cHml""O)! lUld il .• ,,,,,,,jllia.;"',: It

compan y shall be deemed to be It subsidi ary if mor c Ihan

fifty pl'T cc m of ils voting shares are beneficially owned

11)/ ih h"kjinl! ."mp~n~ : and

(b) companies which .re ro.urolled and

benerlCially owned direct ly or ind irect ly 10 the ulC~nl o f

m".e than fift y per """l by the ume sharehokkr5.

(10) (a) A capital loss shall be compulC~d in tilt

same manner as It capital gain .

(h) Any h" ,,"'''hin~ fmm rh" r.;.""""ri"n,

fa lling under subsection (I ) of this section shall not be se l

off againSI Olher in~ for Ihe yur of assessmenl but

,hHIII>c ca rried fo"",:ull :md"":l off a,ainst caril~ 1 ,1Iins

in respect of$ubsequem yurs of assessment un lil Ihe full

Iou is absorbed.

C.-) BHd d"hr, i"cu .. ,,<1 in rc1Hli"n t" Ih~ "_

,,id

transactions proved 10 the satisfact ion of the

CommiMioner to h.ave become bad during the year

inunc<lial dy prox ..... ;nJ/- th., ~·"ar " f a,,,,,,mcnl.

not""ilh$tanding that such bad de bts ".'ere due and

payable prior 10 Ihe rom mence ment of Ihe said yea r,

,h:oll t..: .1I"""",I :!,:o <I.'<I"," i"l1 HJ/-diml Ih.: ''''I'; lal ~ain'

in Ihe ye ar in which Ihey we re incurred and if l~re are no

gains for that year shall be carried forward and set off

a~ain" fUIU"'!!:!in",

Provided that all sums .ecovered in respect of

"",,'unl , I're"i. ... ,ly ~1I" .. "<1 ~, ""<I <khr __ ,h~1I tit: l r~al,'d

as gains for the pufJlOSCs of Ihis §Celion and charged

aocordingly for the yea. in which they arc rCC(I\'ered .

Tt", !!ain, <I, I',,,fil, [",m any lra",a<1i"n

(11 )

cha rgeable unde r paragraph (a) of subsecti on ( I) ofse<:tion 5

of this Act shall not be chargeable aga in as capital gain s in

'<"l;Iri,," r" rh., ",m .. 1..-.. " ..; .... 1 in" un.k r rhi, '-C(li"",

(1 2) (a) The marke r , .. luenhn Bl'.",r ~halll"c the

market a' the li me of lransfer;

(b) whcr~ th~ market value uf an 8S~t is

required to be detcrmined by the Commission er he may

sec k the opinion or IssiSlance of any a pprai~r, arc hitect

Of othe r valuer: and

(c) the penon making the apprai~ment or

valuation on bo: half Ilf the CUmmiSlo,or>er shall for the

purpose of carrying out Ihe task so entrusted to lIirn be

deemed to be a person serving in the Depart ment orllle

Commissioner and as having an official duly under Ihi,

ACI,

(13) Ca) Where I person trl lUfen an _I

wlliell , at the time of .cquisi tion , formed an undivided

part of a largcr IIS5CI (hereinaftcr in this parapp/l

referred to as " the whole assct ~), the dc:dudiom allow·

able in ascertaining the gain arising from lhal transfer

shall be equivalent 10 such proportion of the CO$!. of

aeqlli5ition of Ihe whole a_I and of lhe other dcductiom

that would be due inlemu of this $oCClion had Ibat person

transferred Ihe whole asset, as the considcntion for the

transfer bean al the time of the In lUfer 10 tbe markel

n lue ofthe whole assel .

(11) A redllction of lhe share ClIpi lal of a

company shall be d«mcd to be a transfer of such

proportion of Ihe holding of the owncr as is equal to the

proport ion of the reduction of the capi lal of the company

and shall constitute a gain or ~ for the p!Jrpo$I' of this

section in the year in which sueh reduction is effc<.:\ed.

(e) On any slI'-qucnt transfer of the sh ares

in question . the cost of acquisi tion shall be deemed to be

the residual part of the COSt of acquisition nOllaken into

lI«'OUnt on I he reduction of capilal .

( 14) Where a transfer involving the uchange of

share., 00 rhlrLH:tu ring of holding up"n merger.. dcmcrge ...

ama lgamalion and reorganisation$ ta kC$ place it shall be

deemed that no 10$$ Or gain has arisen from such transfer and

the COSI of aeqllisition upon a subsequenl tran sfer shall be

d«mcd 10 be Ihe cost of acqllisition of the original sharC$.

(1$) Where a busir>eSl or a partnership en nom

coIkcti!, as a going concern is incorporatcd into a limitcd

Ii.bility company, which is beneficially owned to the C.lIcnl of

not ~ t ll.n 1S% by the lame persons who owned the

business or the partnership en nQm collu ti! and therc is a

traru;fer Qf asselS it shall be d«med tllal no loss or gain has

arisen from the transfer . Provided that where such asselS are

slI"bseqLlently transferred by the company, the buc COSI of the

assets that wOllld be considered is thc original COSI cllUlting

before lhe first transfe r to()k place.

(16) For the pllrpo$eS of this loCetion the value of

the usllfruet and of the nu,u, p,oprkuu shall be computed in

ac:cordance with the provisions 5<:1 out in the DUly on

Documents and Transfen Aet, 1993.

In paragrapt. (,) of suhscction (1 ) of >«1 ion I ~ "r ! h~ rrincipal

Act , immediately after Ihe words ~r;annot be SCI off against" and

"who Uy 5e1 -(lff against". Ihere shall be added the words "..apilal gains

Section 280' the principal Act shall be I lnC'ndcd as follow5

(a) sub5c:C1ions (3) and (4) therrof shall be-dclcled;

(b) subsect ion (5) shall be renumbered (3) and arM nd«l by

delelinglhc wo rds "subsections (2). (3) and (4 ) of lit is settion Hand

subslilu\inglhuefor Ihe words "subsection (2) of Ih is section "; and

(e) subsections (6), (7). (S) shall be renum be red (4) , (S) and

(6).

Section 31 A of Ih" pri ncipal Act sh ~1I "" umen dcd a, f" lIow.

(a) subsections (12). ( 13), ( 14) and (1 5) thereof shall be

re n umbered ( I S). ( 16) . (I7) a nd (UI) : amI

(b)

immediately after subsect ion (1 1) thereof. there shall be

added t he following new s ut>.edi<'>ns

M(12) In the case: ohn individm.l resident in Malta in the

yur immediatcly precedin, the ~ar of assessmenl , who

proyes to the satisfaction of the Commisstoner that in the ~ar

immedia lely preceding the ~Ir of assessmenll member of his

househoLd was sufferin, from onc or more pre$Cribed chronic

ilIncsses, Ihere shall be grlntcd I till re balC of twenly five liri

in ~spect of each soch member

Provided th~ t whe~ two or IT1Orl: individuals a~ enlit~d

to a deduction under paragraph (a) of sub$ection (I ) of sccti<:ln

28 of Ihis Act or 10 a till reMle under paragraph (b) of

$lJbscction (2) of this section in ~lipcct of the same dependant

or child , Iny rebate under this subsection in respect of tile

dependant or child shall be I pportioned betwcen the

individuitls in proportion to the deductions or rebates due to

each unde r the said paravaph"

( U ) In ~ut...c.:tiM (1 2) of this ,,",Cl ion " me mhoe r of hi,

house hoLd " mcaD'!' Ihc indiyidllaL bcncfi n ing from the rebate

her,clD , OOfIlcmpl,ated , his wife , if living with Or wholly

malnta.ned or h.m. " nd any olhu individ ual in r~1 "r

whom hc is ent itled to a peT$OD"] dedllCl ion under parngTll ph

(a) of subseclion ( L) of scetion 28 of lhis Act or 10 a tu ~batc

under I'an,,,ral'h (h ) of ~u"""cl ion (2) of thi, ""'lion ,

(14) For the purposes of subsections (12) and ( Il)

he!cof. any references 10 paragraph (b) of subsection (2) of

Ih,S secllon shall be construed as being ~fe renccs to the said

paragraph without haY;nl ~gard 10 thc provisions of

p3Tl1graph (i) of the proviw thcreto . w ,

In section 31 B of tile principal Act. tllere shall be substituted

the words ··,.,ve nty seven li ri- for tile word~ "fifty two liri - .

Sub5ection (1) of $tttion 42 0( the principal Act sllall be

amended by adding the words -or of section 74A - immediately after the

words -of section )2-.

Immediately after the proviso in subsection (11) oflCction SS,

o(!be principal Ao;t there shall be added the foUowilll further proviso

- Provided further Ihll the offence under thit. sub5ection shall

continue 10 subsist until the offender shall have conformed and

complied with Ihe provisions of this section or of any I1IIes made

Ihereunde r. -.

11 . Immediatcty afle r scction 74 of Ihe principal Act. there shall

be introduced lhe followingscclion

..

74A. ( t ) Where any person derives pins or profiU

:", ... _ 1'"

from the trln$fe r 0( property refeiTed 10 in suhparagraphs (i)

'""""'" ...... Ind (ii) of pangraph (I) 0( sub&ec:tion (1) ohectinn SA of this

Act , irrespective of whelher such pim or profits are

chargeable un6er the provisions of that JeCiion Or un6er any

other provision of this Act , he shall remit to the

Commissioner within fifteen dlys of !be relative tran$fer in

such manlloC'r 115 may be prescribed , a provisionallu ?&ymenl

equivalent 107% of !be collJidention relatin, 10 tbe tnlnsfer

of the property or 0( lbe nlue of the donalion

Provided Ihat in deed$ of em ph yteu5is or sub-

emph)'ieusis no account shall be tlken 0( Iny yearly ground

rent or sub-ground renl payable according 10 the deed .

(2) Provisional tu un6er Ihis section shall not be

f'ilyahle in re$p«1 of

(a) any uansfers of assets not subject to tu on

capital g~ins . Of 10 lax under scction S of the Act

(b) !ransfer of pTOpen yon 6eeds of partition;

(c) transfer of shares in puhlic ~ompank •.

(3) The Commissioner may aulhorise i1ny pelWll

rlla rgeahle under para~!faph fa) of subsec1ion (I) of seclion

SA of Ihis Act 10 pay provisional lu under this scction at a

rate lower than Ihal referred 10 in subsection ( I) of this

!;Cclion. if it can he proved Ihal Ihe gai n is less Ihan 20% of Ihe

consideration Or of the value of Ihe donation a~ IlIe case may

"".

(.-) Any pr< ... ·;,ional lax p;.id for lhe PUrpo:>foes of

Ihis scction during or in re.pect of the y~ar preceding any year

of aSSCSSlnenl ~.II be :;Cl off for the purpose of collection

again~t the ta~ charged in respect of the .aid year of

aSiSes:;;mcn( and if the re is an e xcess after lhe aforesaid set off

has been made . such e~(:(:ss shall be refunded in accordance

... ith th<: provisions of Sttti<>" 7'l o f t his Act . Such provisional

tu s hall be separate and distinct from that paid Or payable

umkT the provi sions of section 74 of Ihis An e~ccpt for

persons who have gallls or prnfib fmm imm"VMlllc pmpcrty

fall;lIg under paragraph (a) o f SlJbscclion (I) of :;ection 5 of

Ihis At'l.

(5) If any person f~i l, to pay allY provisiooallax as

provided under this section he s hall bcchargcablcwilh the tu

which should have bun sopaid and , in addition. with further

<.)

of ~uhsel;tion (I) of

lu as provided lilT in paragraph

section 75. and sucll tax and addit ional tax shall be recovered

from such person in Ihe same manner as olher tax as!.e~d

a nd chalged upon him_

(6) For Ihe pul'p05CS of subsection (S) of Ihis

....... 'Iiun a nOli,"" h y Ihe C()mmi"i()n~r hI any pen;on 'h" ... in~

IIIe tu which u.ould have been paid and any addilion al lU 10

which he is liable for having failed 10 pay tile laJ shall, unless

Ihe oonlrary is proved. be sufrKielll eviffiooce thall h" a mounl

shown in Ihe said notice is the amOUIIl due to be paid 10 Ihe

Commiuion.c:r by Ihe said pel'5On.

(7) The powe""conferred upn., lhoe Cnmmi ...... onu

by su~clions (S) and (6) of I hi s S«Iion shall be in addition 10

any righl con ferred upon him 10 commence proceedings in

r~pec1 of a n offeoce under suhsecliotl (Ill of th is ~tion .

(8) Any pel"SOn wi"looonlr&venesor fails toromply

with the provisions of Ihis !leCtinn shall be liable on conviction

10 a fine (mulUl) o f 001 Ius th"", LmSO and not exceeding

LmSOO o r to imprisonment for any term not e«ceding six

months or to both such fine and imprisonment. and to a

funher fine (mullll) of nOI less than Lm2 but nOI e xceeding

LmlO for e~ry day duri ng which the offence continues after

oonvktion . Provided t hat the Commi»ioner may oompound

any offence under this settion and may befon: judgemenl stay

or compound any proceedings thereunder .

(Q) (al 111<" p nw;,i"nal 11" p;<vahl~ UOOCf thi,

senion shall be made in SlH:h manner as may be

prescribed .

(h) NOI""iths\llndin)l ;"'ylhin)l thm may be

provided for in the rulo$ .... lIere imJl"lO\'able propeTl y Of

an y rightS annexed thereto are transferred by means ofa

puhlic deCllthe NOlary puoli,hin)l .,,,,·h dCC"J ,h,, 1I haw

the same duties and liability in COt1n.c:~lion wilh the

collection and payment of the provisional tn payable on

,,,ch Jeed in al"COrd an~~ ,,·ith thi, "'~Ii"n a, are hv Ill.

Duty On Documenls ~ nd Trandtrs Act , 1993. imruscd

on NOIaries puhlishing soch deeds, in connection with

th" dulv ch~rl!"ahl~ ~nd c .. lk,·I ~oJ " n .... dn'[c"" in

accordance wilh Ihat Act . Any failu re by a Notary in

COnneCtio n .... ilh Ihe OOIl""li()n and paymenl of

prrwi. io llal lax unde r Ihis se~ion shall for all purposes o f

the DUly on Documen ts a nd Transfers ACI 1993. be

deemed 10 be a fai lu re o f his dUlies under \h~t A~ .

(cl Where any UKUl lbe lransier of which is

subject 10 ID. 011 I;lIpilal pillS under section SA o f \his

Ad is sold in a judicial auction, the Registrar of Couns

!hall have lhe samedulies wilh regard 10lhe wilhholding

and paymenl o f Ihe provisional lIX under th is section liS

a rc unde r section 66 of Ihe Duty on Documellu a nd

T ransfers Act , 1993 impolCd on him in relalion 10 lhe

duly leviable on lransfen t'Q<U<J mortis under lhe said

Act . ~ .

In paragraph (cl o f subsection ( I 1 o f scct;on 7S o f lhe principlll

A ct. for lhe worcb Kof sections 32. 42 , SS, the re !hall be substituted the

M

words Mof scctions 32. 42 , SS. 74A,M.

The provisions o f section 10 of this Act shall apply in the

( I)

case of any person who on Ihe date of the ooming inlO force of this Act had

not conformed or had failed 10 comply wilh Ihe provisions o f section SS

of Ihe priocipal Act Or o f a ny rules made lhere under . and who sh all nol

have so conformed o r complied wilhin a month of the coming inlo force

o f \his Act .

(2) No action shall be compelenl 10 Iny person agaiM! Iny

Noul1' who be fore the pub~calion of Ihis Act has acted in COIIformity

wilh any instructions or directive given by Ihe Minister responsi ble for

I"' anee or tile l.'omm'5SKmCr . III respect ollhe COllectIon and payment

of provisional lax payable under section 74A of this Act , and has

collected from such person any such provisional tall in eltCleSS of Ihal

which is payable ill accordance with this Act . In any such cas.e lhe

Notary shall remil to the Commill&ioncr l ily provillional \.U so collected

but not yet paid 10 the Commissioner on the dale of publil;lllion o ( t hill

Act within such time as may have been established in such instructions

or directives.

(3) The Comm iS&ioncr $hall have an itction againsl any

Notary for lhe payment of any such provisiona l lax collected by him in

excess of that due in acrordanoe with this Act but which is in accordance

with a ny instructions o r directives as afo resaid .

Passed by the House of Repre5entatives at Si lting No . 1590f the 71h July. 1993.

LAWRENCE GoNZI

S",""u

RICHARI) J. C " UCIIl

Cluk fO fh~ HQlUr of R~p,a~"lati.·u

Do,.,.,_," ut''''''

Ipput.bOut .. ;,t. Dipo"""'nt to· 1. lol.",...".J<*j ~ KooIIlj>

hbJilMd bf u..

"' ~"""'II-l~taI .(Mn

,.,......, . . . ~-.,.,...

(I) Mcta pcrsuOl tiltseb qIiegb jcw profill mil-

:::;;::;0 tnsfcriment

ta' proprjclft IIIKmmi Hs-aubparacrafi (i) u (u)

taI-par.lgnUu. (a) bs-5ubartikolu ( I ) 1I' 1'lrtikolu SA ta' daD 1-

All , irrispcltivament jell dak il-qliegb iew profill i~

~ .. ";:;:. tuxlbbli taht id-dispotizzjonijiet ta ' dak I-artikolu jcw lab!

kull dispotizzioni ohra 11' dan I-All , hij. gblndha tibgbat liU-

Kummissarju fi tmic .. hmis!u _il ium miHrasferimc:nl relalli v

h'dak il·mod li jisla' jig; prnkritt. hlaslI ' lun prOV\'iiorja

ekwivaJenti gbal7%' laI·konsidcrau.joni Ii ghandha x'taqsam

mat-trasferimcnt tl/' proprjctl jcw tlll-VlluT lad.donau.loni

lida rkunlratti ta' enfitewsi jew su~nfilcwsi ma

, handu jiuiehed ebda qies la' xi tens Jew wb-«ns It jithalJ.as

la' tun Kna skond jl-kuntratt .

(2) Ma ghandhicx lilhall., liUU provvitorja tallt

dan l-anikoh.l dwar

(a) kull traricrimentll ' I ttiV li mhux $uUen &fIat-

taxxl f!.IQ qlicgh kapitali. jew gbat-taxxa tahl l'lrtitolu S

ta' I-An

(b)

trasferimcnt la' proprjclA fuq kUnlratli ta'

qSlm;

trasferimcnlla' ishma fkumpanniji pubbli~i .

(t)

(J) 11-KummiMarju jista' jawtorizza lil penuna li

hi ntauabbli taIIl il-paragrafu (a) t8S-!ubanikolu ( I) la' 1-

artitolu SA la' dan I-AI1 li thallu ;H UlIl provvitorja tatn

dan I-artikolu b'rata 1; thn iltta, baua minn dill. ill'l$emmija

li$-5IJbartikolu (I) ta' dan J-artilr.olu , jet" Itun 1;$11' tingieb

prova li l-qlicgl'l tapilali hllwa inqas minn 20% lal·

konsiderazzjoni jcw tal-nlur lad-donaujoni stood it-kat.

(4 J Kulllana provvitorja ml'lallsa &h.II·finij~t ta'

00n I-amkol .. rrultul Jew dwar iwc:na li I;gi qabel xi selll la'

stima gl'Iandha tinhalkm ghall-fi nijicl la' ibir rdanivamcnl

gJU I-laxxa m;III1OO dwar is-seoa la' slima mKmmija 11 jetk

ikun hemm xi ammonl iktar wara lijkunu nl'ladm", l·kontijiel,

dak I-ammanl iktar ghandu ;ingball Iura stond id-

d ispotizz;onijic\ ta' l-artil;:oIl1 79 11' dan 1-AII. Dik il-Iun

provviiorja ghandha Ikun scparaIJ u distinta minn dik

imhallsa jcw 1; ghandha lilhallas lahl id-dispoZiz:l:jonijicl la' 1-

artikolu 14 la' dan 1-AII hlicf ghal persuni li jaghmlu qliegh

jcw profill minn proprjelll immobbli slr.ond kif hemm fi1-

paragrafu (a) las- subarti kolu (1) ta ' 1·artikolu S ta ' dan I- All.

(S ) Jckk persuna lonqO!i milli lhallas it-Iau.

provvitorja kif hemm provdul laM dan l-artikol u. huwa

ghandu jinlalab ihallas il-Iun li kcllha hckk Illha11a5 u.

b'ticda ma' dan. lun addizzjonali kif provdul fiI-paragrafu

(a) tas-suba rtik olu (I) ta 'l·a rtikolu 7S, U dik il -Iuxa u IUU

addizzjonali ghandhom jintabru mifln dik il·persuna bl-islc!;!;

.moo bhalma lingabar taua ohra 1i tig; 51mBla u 1i lingabar

minghandu.

(6) Ghall-finijicl las-subanikolu (S) la ' dan 1-

anikolu aVYlt mill -Kummi!;!;arju lil penuna li jkun juri 1·laua

li kellha tithallas kuJilaua addizzjonali li kell ... wkoll ihallas

lalli naqu ihaJl as il-taua ghandu )kun, sa kemm ma lingiebx

prova ghall-kunlrarj .... prova bitl.cjjcd li I·ammonl muri n-

imsemmi avvit huwa I-ammonl dovul I; jilhallas lill.

Kummi!;Sa rju minn dik il-pcrsuna.

(7) Is-sclgllal mog/'Ilija li ll -Kummissarju bis-

subanikoli (S) u (6) la' dan I-artikolu ghandhom ikunu

b'ticda ma' kull jcdd mog/'Ili lilu sabiex jistilwiui

prOCedimcnli dwar reat lahl is-su bartikolu (8) I.' dan I·

anilr-olu.

(8) Kull min jiks-er jcw jonqos milli jikkonforma

ruhu mad-dispotizzjonijiel I. ' dan l·artikolu jista' jchc1. mcta

jinsab hati. multa la ' mhu~ inqas minn LmSO u mhux iklDr

minn Lm500. jcw prigunerija ghal kun t micn mhlu iklar minn

. itt xlun" j~w ~l~l rlik il-lnlllt~ 1I prig\Uwrij~ fliInki~ll, 1I ~l~l

mulla obra ta ' mhUll inqll$ mirm I.m2 itda mhUllaklar minn

LmlO gI'Ial kull ~mala li malulha Neal jibqa' ~bb 1II1Ira ..

sejbicn la' lIIija . Itda I-Kummissarju jiSla' jasal

farrangamcnli dwar kull re,.1 tabt clan l-ilnikolu u jilta',

qabcl is-sc nle nza , ii omm jcw jasal farrangamenli f\lq hI!

protedimcnti tabl dan 1-3ni1<0Iu.

(11) (a) [t-tuxa provviforja li lilhallas tabt dan 1-

anikolu gbandha tin tghamel b'dak il-mod li jislo' jigi

hckk prcskrill,

(b) Minkejja kun hat a Ii hemm dispoDzz}oni

dwarha fir-rcgoli dwar it-truferiment ta' proprjcli

immobbli jew jeddijicl relallivi penncn ta- all pubbliku,

in-Nutar Ii jippubblika dak I-all ikollu l-islc:5li jeddijiel u

responsabbillio d .... ar il-tbir u I-bias tat-tana provviiorja

I; ghandha lilballas b'dak \-.111 u skond dan l-anlkolu bhal

ma hemm imposta n-AII ta ' 1-\993 dwar TuXl (uq

Dokumcnti u T!'a$ferimcnli hlq Nutara li jippuhblikaw

dawt I-al ti , fdat li gI'Iandu x'jaqsam mat_taua U

gI'Iandha tithlllas u tinpbar hlq lrasferimenti skond dak

I-All , Kull nuqqas ,,' Nular dwar il-gbir u bi as la' taua

provviiorja lab! dan I-anikolu ghandu, gball-finijie t

kollhB ta ' I-At! ta ' [- 1\193 dwar Ta.ua fuq Dokumenti u

Trasferimenti, jitqics bbala nuqqll5 fiHwettieq ta '

dmirijielu labl dan I-Atl.

(t) Mela jinbicg.b bI·irkanl fiI--qorti xi

attiv Ii t-trasferiment tiegbu huwa suUett ghat-taua fuq

qliegb kapilali labl I-anikolu SA ta ' dan I-An , ir-

RegislTatur lal.()ral; &handu jkollu l-iSlcss jeddijiet ctwar

it-tamma u I-blas taHa.ua provvitnrja tabt dan I-

artikolu bbalma glllndu labl I-artikolu 66 la- I-AII la ' l_

19\13 dwarTaua fuq Dokumc:nli uTrasferimenti mpoJlla

fuqu dwar il-laua ti &fIandha linpbar fuq lTasferimcnti

c .. usa mortis lahll -i51ess AIl ,- ,

12_ Fil-paragrafn (~) Ias-subanikolu (\) la' [-anikolu 75 ta- I-All

printipaJi, minflok il- kliem Mta ' l,artikoli 32_ 42 , S5, ghandhom jidblu 1-

H

kHem Mta']-artikoli 32, 42, S5, 74A,",

13. {I} Id-disp0tiz2jonijicl la' I-a nikolu 10 la- dan I-All

gbandhom japplikaw !il-ut la' kull min fid-data lad-dhul lis-s.ebb la'

dan I-All ma jkunx ikkonfenna rubu jew naqas milli jaqbcl mad-

dispotizz}onijiclla- I-artikolu 55 la' I-All prinCipali jcw la' hl! regola

ma&flmula lablu , U li ma jkunx hekk ik konforma rubu jew qabcl !i tmicn

uhlr mid-dbul fiHchtt la' dan I-All _

(2) " add majisla- jiehu cbda au}oni konlra NUlar li qabcl il -

pubblikaujoni ta' dan I-AII ikun Ip.ua b'mod kon formi ma ' kull ordni

jew dircllivl moghtija mill -Mini5tru responsabbli gbaU,!inann jew mill-

Kummi»llrju, dwar il-gbir u bias laHUII provvitorja li tilbaUas t~tu 1-

In;ko[u 74A 11' dan I-A!I u Ii jkun •• bar min&fland dik il_persuna dik il-

tau. provvitorja ikta. minn dik li kellh. titllallas ,kolld dan I-All . F't""

bhal dak . in_Nutl' ahandu jgl'laddi lin·Kummissarju kull tuu

provvlZOI'JI 1lekJi: rruibu~ iida Ii IlIun gbadh. m. Ihallsieu: 1ilI-

Ku.mmmlu1u fid..data taI-pubblibujolli la ' dan I-AII fdak it-boien I;

sell' gic lillbbilil rdawt l-ordnijiet jew direllivi .

(3) Il-Kummi$$arju jtaLh.! jedd la' azzjoni kOl'1l ra NuUr

gbll·l'lliui UI' k,,1I tau. provviZorja migbura minD" ik'I ' minn dill

dcwull skood dad I-Al l itda Ii tkun inpbu! Jkond kull ordnl jew

direlliva. imsemmija qabel.

Mgboddi mill-Kamra Iad-Dcputati lis-Sedula Nru . IS'} tas-7 ta ' Lulju , 1993.

,-",WR ENCE GONZI

Sptaku

RlOIARD J . C"UCH I

Skriwlllla/-Kllmro /lld-lkpIlUlri