ACT No. XII of 2014 AN ACT to implement Budget measures for the financial year 2014 and other administrative measures.

I assent.

M ARIE L OUISE C OLEIRO P RECA

(L.S.)

President

29th April, 2014

ACT No. XII of 2014

AN ACT to implement Budget measures for the financial year

2014 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:-

The short title of this Act is the Budget Measures

Implementation Act, 2014.

PART I

The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2014.

For the purpose of this Part, "revenue" has the same

meaning as is assigned to it in article 2 of the Financial

Administration and Audit Act, but does not include proceeds from

loans.

(1) Subject to the provisions of this Act, the

Government of Malta may raise in Malta, by way of loan, a sum of

money not exceeding six hundred and fifty million euro.

(2) For the purpose of raising the aforesaid loan the Minister

for Finance is hereby authorised to issue stock in Malta under the

provisions of the Local Loans (Registered Stock and Securities) Cap. 161.

Ordinance on such terms and conditions as the said Minister may

approve.

Any money borrowed under the authority of this Part shall Purpose.

be appropriated and applied for the purpose of

(a)

meeting excess expenditure over revenue incurred in

the Consolidated Fund for year 2014 and, or subsequent years;

(b) redeeming registered stocks which are due for

redemption during 2014; and

(c)

effecting portfolio changes in relation to amounts

raised through Treasury Bills, amounts raised through

Government Stocks, and in respect of loans raised outside Malta

as and when required in line with Government’s debt

management policies.

PART II

(1) This Part amends the Customs Ordinance and it Amendments to

shall be read and construed as one with the Customs Ordinance, the

Ordinance.

hereinafter in this Part referred as "the principal law".

In article 2 of the principal law, immediately after the Amendment of

definition "place beyond the seas", there shall be added the following article

principal law.

new definition

" "tax" or "taxes" includes the value added tax;".

In article 61A of the principal law, for the words "For the Amendment of

purpose of an offence", there shall be substituted the words "Without article

the principal

prejudice to the proviso to paragraph (m) of article 62, for the purpose law.

of an offence".

In paragraph (m) of article 62 of the principal law, for the Amendment of

words "in any of its material particulars; or", there shall be substituted article

principal law.

the words "in any of its material particulars:", and immediately

thereafter there shall be added the following new proviso

"Provided that a person who makes an incorrect

declaration and informs the Commissioner in writing about the

said incorrect declaration -

(i) before the Commissioner informs the person

that the particulars of the customs declaration are not

correct, and

(ii) during the period where it is not yet

established, in the systems relating to the processing of

customs declarations, whether manual or electronic, if

control of the goods will be exercised, or when it is

established that such control is not to be exercised, and

(iii) such information is given to the

Commissioner by not later than ten working days from the

date of release of the goods, and

(iv) such incorrect declaration does not tend to

make the declaration applicable to goods, other than those

which were originally covered by the declaration,

such person shall be deemed not to have committed an offence

under this paragraph; or".

Article 63 of the principal law shall be substituted by the

following

"63. (1) Notwithstanding any other provision of this

Ordinance, and without prejudice to any other proceedings to

which the offender may be liable under any other law, in the

case of any irregularity in any of the circumstances referred to

in the following paragraphs of this sub-article, the

Commissioner may, with the concurrence of the person

committing the irregularity, impose the penalty hereunder as an

alternative to proceedings in court

(a) where the endangered duty does not exceed

two thousand euro (€2,000), the Commissioner may collect

the endangered duty and impose a penalty equivalent to the

endangered duty;

(b) in the case where there is no endangered duty

but there exist endangered taxes, the Commissioner may

collect the endangered taxes and impose a penalty

equivalent to five per cent (5%) of the difference in the

value of the goods or, if there is no difference in the value,

a penalty equivalent to one per cent (1%) of the value of

the goods, together with a penalty equivalent to the

endangered taxes;

(c) in the case where both duty, of not more than

two thousand euro (€2000), as well as taxes on the goods

are endangered, the Commissioner may collect the

endangered duty as well as the endangered taxes and

impose a penalty equivalent to the endangered duty and the

endangered taxes;

(d) in the case where no other duty or tax on the

goods is due or endangered, and there exists no restriction

or prohibition on the importation of the goods, the

Commissioner may impose a penalty of one hundred euro

(€100);

(e) in the case where no other duty or tax on the

goods is due or endangered, but there exists a restriction or

prohibition on the importation of the goods, the

Commissioner may impose a penalty of two hundred euro

(€200).

(2) In the case where one of the irregularities referred to

in the Second Schedule to the Ordinance is committed, which

irregularity is committed after the 30 April 2013, and the

agreement relating to the irregularity referred to in sub-article

(1) is entered into, or where the irregularity was committed

before the 30 April 2013 but the agreement relating to such

irregularity was entered into after the 30 April 2013, the penalty

on the person committing the irregularity -

(a) for the first time over the twelve months

immediately before the date on which the irregularity is

committed, shall be equivalent to 25% of the endangered

duty and taxes, as the case may be, or fifty euro (€50)

whichever is the higher, and

(b) for the second time over the twelve months

immediately before the date on which the irregularity is

committed, shall be equivalent to 50% of the endangered

duty and taxes, as the case may be, or seventy-five euro

(€75) whichever is the higher, and

(c) for the third time or more over the twelve

months immediately before the date on which the

irregularity is committed, shall be equivalent to 100% of

the endangered duty and taxes, as the case may be, or one

hundred euro (€100) whichever is the higher.''.

In sub-article (1) of article 63A of the principal Act, Amendment of

immediately after the words ''as far as the provisions of this article

the principal

Ordinance are concerned,'' there shall be added the words ''and Act.

without prejudice to any other proceedings to which the offender may

be liable under any other law,''.

PART III

(1) This Part amends the Income Tax Act and it shall be

read and construed as one with the Income Tax Act, hereinafter in this

Part referred as "the principal Act".

(2) The provisions of this Part shall come into force as

(a)

articles 13, 14(b) and (d), 15(c) and (d), 16 to 24,

25(a)(i)(ii)(iv)(v), 25(b) and 26 shall come into force as from

the year of assessment 2015; and

(b) articles 15(a) and 25(a)(iii) shall come into force as

from the year of assessment 2014.

Article 5 of the principal Act shall be amended as follows

(a)

sub-paragraph (ii) of paragraph (a) of sub-article (1)

thereof shall be substituted by the following

"(ii) gains or profits arising from the transfer of

the ownership or usufruct of or from the assignment or

cession of any rights over any securities, business,

goodwill, business permits, copyright, patents, trademarks

and trade-names and any other intellectual property;"; and

(b) in sub-article (9) thereof, immediately after

paragraph (iii) and its provisos, there shall be added the

following new paragraph

"(iv) Where an asset, qualifying for tax relief under

this article, is transferred from one company to another

company and the company acquiring the asset issues

shares in exchange for the acquired asset, whether to the

transferring company or to any other person, the cost of

acquisition of the said shares shall, for the purpose of

calculating the gains or profits derived from the

subsequent transfer of the said shares, be reduced (but not

below zero) by an amount determined by deducting from

the transfer value of the asset its cost of acquisition to the

transferring company

Provided that this paragraph shall not apply where

the said asset is charged to tax under the provisions of sub-

article (9A) of this article or article 5A(12A).".

Article 5A of the principal Act shall be amended as Amendment of

article 5A of the

follows

principal Act.

(a)

in the Maltese version of sub-article (3) thereof, for

the words "Dan l-artikolu japplika" there shall be substituted the

words "Bla ħsara għad-dispożizzjonijiet l-oħra ta’ dan l-

artikolu, dan l-artikolu japplika";

(b)

in in the first proviso to paragraph (f) of sub-article

(4) thereof, for the words "article 5(9)(ii) shall also apply to the

said transfer" there shall be substituted the words "article

5(9)(ii) and (iv) shall also apply to the said transfer";

(c)

in paragraph (g) of sub-article (12) thereof, for the

words ''the said amount of tax.'', there shall be substituted the

words ''the said amount of tax:'', and immediately thereafter

there shall be added the following new proviso

''Provided further that for any period or part thereof

commencing on or after 1st January 2014 interest shall be

calculated at the rate established by the provisions of

article 44(2A) of the Income Tax Management Act and the

total interest shall not exceed the said amount of tax."; and

(d) in the second proviso to paragraph (c) of sub-article

(12A) thereof, for the words "acquires shares" there shall be

substituted the words "acquires shares consequent to a judicial

or consensual separation,", and for the words "the date of the

donation" there shall be substituted the words "the date of the

judicial or consensual separation, donation".

Sub-article (1) of article 12 of the principal Act shall be Amendment of

article 12 of the

amended as follows

principal Act.

(a)

immediately after the proviso to sub-paragraphs (i)

and (ii) of paragraph (c) thereof, there shall be added the

following new sub-paragraph

''(iii)(A) any dividend paid by a company

registered in Malta to an individual out of profits allocated

to the any of the taxed accounts, other than the final tax

account and the untaxed account, where such individual’s

chargeable income, excluding such dividend, is equal to or

exceeds the relevant threshold

Provided that, in the case where such individual is

entitled to claim a deduction against a dividend declared in

a tax return, the amount or portion of such dividend, up to

the amount of the said deduction, shall not be exempt from

tax

Provided further that in the case where the said

individual’s chargeable income excluding such dividend is

less than the relevant threshold, the amount or portion of

such dividend to be exempt from tax shall be an amount

determined by deducting from his chargeable income the

relevant threshold

Provided also that the preceding proviso shall not

apply where the said individual’s chargeable income does

not exceed the relevant threshold.

(B) Any dividend or part thereof, exempt from

tax under paragraph (iii)(A), shall, for the purpose of

paragraph (a) of the last proviso to article 60 and paragraph

(a) of the last proviso to article 48(1) of the Income Tax

Management Act, be a dividend to which the said

paragraphs refer.

(C) For the purpose of article 12(1)(c)(iii)

(a) Where such individual has more than

one such dividend, the aggregate amount of such

dividends shall be treated as one dividend;

(b)

''Relevant threshold'' is as follows

(i) in the case where the rates

prescribed under article 56(1)(a) apply, the

relevant threshold is €28,700;

(ii) in the case where the rates

prescribed under article 56(1)(b) apply, the

relevant threshold is €19,500;

(iii) in the case where the rates

prescribed under the last proviso to article

56(1)(b) apply, the relevant threshold is

€21,200.'';

(b)

in paragraph (h) thereof, for the words

''commutation of pension'' there shall be substituted the words

''commutation of pension (up to a maximum of thirty percent

(30%) of the total pension) '', and immediately after the words

''or injuries;'' there shall be added the words ''(for the purposes

of this paragraph, ''total pension'' means the total value of the

pension available to provide pension payments);'';

(c)

paragraph (t) thereof shall be substituted by the

following

"(t) any financial assistance, as determined by the

courts of a European Union or a European Economic Area

(hereinafter "EU/EEA") Member State or by the courts of

another country as the Commissioner may approve or as

agreed by a public deed of personal separation under the

authority of the courts of a EU/EEA Member State or by

the courts of another country as the Commissioner may

approve, or as ordered by the courts of a EU/EEA Member

State in a divorce judgment or decree or by the courts or

other authorities of another country as the Commissioner

may approve, received by an individual from his estranged

spouse in respect of the maintenance of a child;"‘

(d) immediately after paragraph (v) thereof, there shall

be added the following new paragraph

''(w) the income from employment (other than

income derived from the holding of an office of director)

of a married woman who is over forty years of age and

starts in employment after having been absent from any

gainful occupation for at least five years and where such

income does not exceed nine thousand one hundred and

fifty euro (€9,150) and the said woman is chargeable to tax

jointly with her spouse at the rates specified in article

56(1)(a)

Provided that this paragraph shall apply for a

period of five consecutive years of assessment

commencing from the basis year in which the woman

started work.''.

In the proviso to paragraph (m) of sub-article (1) of article Amendment of

14 of the principal Act, for the words "succeeding years;" there shall article

principal Act.

be substituted the words "succeeding years:", and immediately

thereafter there shall be added the following new proviso

"Provided further that any sums receivable from any sales

of such intellectual property rights and all other income

receivable in respect thereof shall be included as total income

for the year when receivable;".

Article 14A of the principal Act shall be substituted by the

following

"14A. Notwithstanding anything to the contrary contained

in this Act, if an individual proves to the satisfaction of the

Commissioner that in the year preceding a year of assessment

he has paid to his estranged spouse an alimony payment as

determined by the courts of a European Union or a European

Economic Area (hereinafter "EU/EEA") Member State or by the

courts of another country as the Commissioner may approve or

as agreed by a public deed of personal separation under the

authority of the courts of a EU/EEA Member State or by the

courts or other authorities of another country as the

Commissioner may approve, or as ordered by the courts of a

EU/EEA Member State in a divorce judgment or decree or by

the courts of another country as the Commissioner may

approve, he shall be allowed as a deduction against his income

the lesser of these amounts -

(a) the amount actually paid in accordance with

the Court order or public deed;

(b)

the individual’s chargeable income for the

year.".

In paragraph (b) of article 14C of the principal Act, for the

words "one thousand three hundred euro (€1300)" there shall be

substituted the words "two thousand euro (€2000)".

In the proviso to article 14E of the principal Act, for the

words "as determined by the Commissioner." there shall be

substituted the words "as determined by the Commissioner:", and

immediately thereafter there shall be added the following new

proviso

"Provided further that in the case of attendance at regular

sports activities organised by entities outside Malta, registration

as aforesaid shall not be necessary and the claim for deduction

shall be made directly by the individual concerned in such

format and content as determined by the Commissioner.".

In the proviso to article 14G of the principal Act, for the

words "as determined by the Commissioner." there shall be

substituted the words "as determined by the Commissioner:", and

immediately thereafter there shall be added the following new

proviso

"Provided further that in the case of attendance at creative

or cultural courses organised by entities outside Malta,

accreditation as aforesaid shall not be necessary and the claim

for deduction shall be made directly by the individual concerned

in such format and content as determined by the

Commissioner.".

Immediately after article 31C of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

" Taxation of

(1) Notwithstanding any other

rental income

provision of the Income Tax Acts or any

derived from

regulations made thereunder, the provisions of

the letting of

residential

this article shall apply where, during a relevant

tenement.

year, any person rents immovable property,

being a tenement leased as a residence or

garage, to an individual or individuals.

(2) The tax chargeable in the

circumstances mentioned in sub-article (1)

shall, at the option of the person referred to in

the said sub-article, be at the rate of fifteen

cents (0.15) on every euro of the gross rental

income received. Such tax shall be final and

notwithstanding any other provision of the

Income Tax Acts, no set-off or refund shall be

granted to any person in respect of the tax so

charged.

(3) Where the option referred to in sub-

article (2) has been exercised, such income

shall be deemed to constitute separate

chargeable income for the purpose of the

Income Tax Acts and shall not form part of the

chargeable income of the person exercising the

said option and where such person is an

individual he shall not be required to declare

such income, in any return made pursuant to

the Income Tax Acts.

(4) Where a person, in a relevant year,

derives rental income from the letting of more

than one tenement and the option referred to in

sub-article (2) has been exercised for such

year, the said sub-article shall apply to the total

rental income received in the said year from all

the tenements let out by such person.

(5) Irrespective of whether the option

referred to in sub-article (2) is exercised or not,

where an enquiry has been conducted and the

Commissioner determines that any rental

income which should have been declared was

not so declared, such income shall be charged

to tax at the rate of 35 cents (0.35) on every

euro of the gross rental income received and

such tax shall be in addition to any interest and

additional tax payable under the Income Tax

Acts. Such tax shall be final and

notwithstanding any other provision of the

Income Tax Acts, no set-off or refund shall be

granted to any person in respect of the tax so

charged.

(6) Every company resident in Malta

shall allocate the distributable profits resulting

from income to which this article applies, and

on which tax is payable in accordance with this

article, to the final tax account.

(7) The person exercising the option

referred to in sub-article (2) shall pay to the

Commissioner the tax referred to in the said

sub-articles in such manner as may be

prescribed in accordance with the provisions of

article 42 of the Income Tax Management Act.

(8)

For the purposes of this article

(a)

"tenement"

means

a

tenement, not being a commercial

tenement as defined in article 1525 of the

Civil Code, which consists of either a

dwelling house or part thereof which is to

be occupied or is occupied as a home or

residence by the occupier or a garage,

excluding a tenement which, for the

purpose of the said letting, is required to

be licensed by virtue of the Malta Travel

and Tourism Services Act, or any Act

which may be substituted therefor; and

(b) "relevant year" means the

calendar year during which the gross

rental income is received.".

22. Article 37 of the principal Act shall be substituted by the

Substitution of

article 37 of the

principal Act.

following

'' Tax withheld

Where any tax has been withheld

under article

under article 33(1), such tax shall not be

33(1).

available as a credit against the recipient’s tax

liability or for a refund, as the case may be, for

the relevant year of assessment.".

23. Paragraph (b) of article 39 of the principal Act shall be Amendment of

article 39 of the

substituted by the following

principal Act.

"(b) no person shall be charged to further tax in respect

of the investment income under this Act.".

24. Paragraph (c) of article 41 of the principal Act shall be Amendment of

article 41 of the

amended as follows

principal Act.

(a)

in sub-paragraph (iii) thereof, for the words "sub-

paragraph (i):" shall be substituted by the words "sub-paragraph

(i), or"; and

(b) immediately after sub-paragraph (iii) thereof, as

amended, there shall be added the following new sub-

paragraph

"(iv) an EU/EEA individual (and his or her spouse

where applicable) in the circumstances envisaged by the

first and second provisos to article 56(1)(c):".

25. Article 56 of the principal Act shall be amended as Amendment of

article 56 of the

follows

principal Act.

(a)

subarticle (1) thereof shall be amended as follows

(i) in paragraph (a) thereof, the rates specified

therein shall be substituted by the following

"For every euro of the first €11900 ........... 0c

For every euro of the next €9300 ............ 15c

For every euro of the next €7500 ............ 25c

For every euro of the next €31300 .......... 29c

For every euro of the remainder ........... 35c;";

and immediately thereafter there shall be added the

following new proviso

"Provided that in the case of an individual

who is a national of a European Union or European

Economic Area member state, such individual may

qualify for the rates specified in this paragraph

even where his or her spouse is not resident in

Malta if the other conditions mentioned in this

paragraph are satisfied and the Commissioner is

satisfied that at least 90% of the couple’s world-

wide income is derived from Malta;";

(ii) in paragraph (b) thereof, the rates specified

therein shall be substituted by the following

"For every euro of the first €8500 ............. 0c

For every euro of the next €6000 ............ 15c

For every euro of the next €5000 ............ 25c

For every euro of the next €40500 .......... 29c

For every euro of the remainder ........... 35c:";

(iii) in the second proviso to paragraph (b)

thereof, for the words "(or not over 21 years if receiving

full-time

instruction

at

a

tertiary

education

establishment)", there shall be substituted the words "(or

not over 23 years if receiving full-time instruction at any

university, college or other educational establishment)";

(iv) in the second proviso to paragraph (b), the

rates specified therein shall be substituted by the

following

"For every euro of the first €9800 ............. 0c

For every euro of the next €6000 ............ 15c

For every euro of the next €5400 ............ 25c

For every euro of the next €38800 .......... 29c

For every euro of the remainder .... 35c;"; and

(v) immediately after paragraph (c) thereof, there

shall be added the following new proviso

"Provided that -

(i) in the case of an individual who is

a national of a European Union or European

Economic Area Member State (hereinafter

"EU/EEA

individual"),

where

the

Commissioner is satisfied that at least 90% of

the said individual’s worldwide income is

derived from Malta, the rates specified in

paragraph (b) of this sub-article shall apply;

(ii) the EU/EEA individual may

alternatively qualify for the rates specified in

paragraph (a) of this sub-article even where

his or her spouse is not resident in Malta if the

other conditions mentioned in paragraph (a)

are satisfied and the Commissioner is

satisfied that at least 90% of the couple’s

worldwide income is derived from Malta;

(iii) where the rates specified in

paragraphs (a) or (b) are applicable, the

provisions of the Income Tax Acts that are

applicable with regards to exemptions,

deductions, credits and refunds shall be the

same as those applicable to persons resident

in Malta;

(iv) in the case of an EU/EEA

individual who does not qualify for the

treatment under sub-paragraphs (i) to (iii) of

this proviso, the tax resulting after applying

the rates under this paragraph shall not be

higher than the amount that results after

dividing the income charged to tax at the rates

under this paragraph by the individual’s

worldwide income and multiplying the result

thereof by the amount of tax that would result

by charging the said individual’s worldwide

income at the rates under paragraph (a) or (b),

as applicable."; and

(b) immediately after sub-article (25) thereof, there

shall be added the following new sub-article

"(26) An individual who derives football income

shall, unless he opts to have the said income charged to tax

at the rates laid down in sub-article (1)(a) or (1)(b), be

charged to tax on all such income at the rate of seven point

five cents (0.075) on every euro.

For the purposes of this sub-article the term

"football income" shall mean income from an employment

contract in Malta for playing football, such income being

chargeable under article 4(1)(b) and earned by a full-time

or part-time professional football player who is duly

registered as a professional football player with the Malta

Football Association, and such a professional football

player has in effect an employment contract with a Maltese

football club duly registered as a Member Club with the

Malta Football Association.".

26. Paragraph (a) of article 61 of the principal Act shall be

amended as follows

(a)

in sub-paragraph (iii) thereof, for the words

"subparagraphs (i) and (ii);", there shall be substituted the words

"sub-paragraphs (i) and (ii); or"; and

(b) immediately after sub-paragraph (iii) thereof, as

amended, there shall be added the following new sub-

paragraph

"(iv) an EU/EEA individual (and his or her spouse

where applicable) in the circumstances envisaged by the

first and second provisos to article 56(1)(c);".

27. The Schedule to the principal shall be amended as follows

(a)

in item (2) thereof, the words "calculated on the tax

chargeable before taking into account the additional tax itself on

the total income of that individual for that year" shall be

deleted; and

(b) in item (3) thereof, the words "calculated on the tax

chargeable before taking into account the additional tax itself on

the total income of that person for that year" shall be deleted.

PART IV

28. This Part amends the Local Loans (Registered Stock and

Securities) Ordinance and it shall be read and construed as one with

the Local Loans (Registered Stock and Securities) Ordinance,

hereinafter in this Part referred as "the principal law".

29. Immediately after the definition "security" in article 2 of

the principal law, there shall be added the following new definitions

" "sinking fund" means a sinking fund established in terms

of article 25;

"special sinking fund" means a special sinking fund

established in terms of article 26(2);".

30. Article 25 of the principal law shall be amended as Amendment of

article 25 of the

principal law.

(a)

the present provision shall be re-numberd as sub-

article (1) of the said article; and

(b) immediately after sub-article (1) thereof, as re-

numbered, there shall be added the following new subarticle

"(2) The Minister may further authorise the

appropriation out of the general revenue and assets of the

Government of Malta a contribution towards a special

sinking fund established in accordance with article 26(2).".

31. Article 26 of the principal law shall be amended as Amendment of

article 26 of the

principal law.

(a)

the present provision shall be re-numberd as sub-

article (1) of the said article; and

(b) immediately after sub-article (1) thereof, as re-

numbered, there shall be added the following new subarticle

"(2) A special sinking fund shall be established for

the purpose of the repurchase of loans raised under this

Ordinance.".

PART V

32. This Part amends the Social Security Act, and it shall be Amendments to

read and construed as one with the Social Security Act, hereinafter in the

Security Act.

this Part referred to as ''the principal Act''.

33. The definition ''Service Pension'' in article 2 of the Amendment of

article 2 of the

principal Act shall be amended as follows

principal Act.

(a)

paragraph (x) thereof shall be re-numbered as

paragraph (xi); and

(b) immediately after paragraph (ix) thereof there shall

be added the following new paragraph

''(x) with effect from the 4th January 2014, for the

purpose of calculating the rate of a pension under this Act,

a service pension net of another two hundred euro (€200);

and''.

34. In sub-article (6) of article 15 of the principal Act, for the

words ''as an employer in terms of this Act.'', there shall be substituted

the words ''as an employer in terms of this Act:'', and immediately

thereafter there shall be added the following new proviso

''Provided that, notwithstanding the provisions of this

article, with effect from the 6th January 2014, an old person

and, or a person who is certified to suffer from a disability upon

the advice given by the medical panel in accordance with article

106, who employs another person to take care of him or her,

shall be exempted from the payment of the employer’s part of

the Social Security contributions payable according to this

Act.''.

35. Immediately after sub-paragraph (v) of the proviso to sub-

article (6) of article 30 of the principal Act, there shall be added the

following new sub-paragraph

''(vi) where a person, who is in receipt of Social

Assistance for a minimum of two years in the three years

preceding the claim, partakes in insurable employment, the

entitlement for Social Assistance shall not cease, and that

person shall be entitled to 65% of the rate for the first year, to

45% of the rate for the second year and 25% of the rate for the

third year. The employer shall be entitled to 25% of the rate for

every year for a maximum of three years. The differences of

10% for the first year, 30% for the second year and 50% for the

third year shall be transferred to a training fund set up for this

purpose.''.

36. Immediately after paragraph (c) of sub-article (2) of article

32 of the principal Act, there shall be added the following new

proviso

''Provided that with effect from the 4th January 2014,

entitlement for the full Pension under Part IV shall not cease

notwithstanding such widow is gainfully occupied and the

earnings from such gainful occupation exceed the national

minimum wage.''.

37. Immediately after sub-article (6) of article 107 of the

principal Act, there shall be added the following new sub-article

''(6)

The Minister may, from time to time, as he shall

deem fit and as provided in sub-article (1), vary the composition

of the panel referred to in that sub-article, but a person actually

serving as Umpire shall, notwithstanding the removal of his

name from the panel, continue so to serve in the proceedings in

which he is serving as Umpire until the conclusion of those

proceedings and for the purpose of the interpretation of any

decision given therein.''.

Immediately after paragraph 6 of Part II of the Second Amendment of

Schedule to the principal Act, there shall be added the following new the

Schedule to the

paragraph

principal Act.

''7. With effect from the 4th January 2014, where a

person who is divorced or is married but legally or de facto

separated from the other spouse proves to the satisfaction of the

Director that he is paying an amount of money to his spouse or

to his former spouse as an integral part of their separation or of

their divorce, that amount of money shall be deducted when the

means of that person are calculated.''.

PART VI

(1) This Part amends the Duty on Documents and Amendments to

Transfers Act and it shall be read and construed as one with the Duty the

Documents and

on Documents and Transfers Act, hereinafter in this Part referred as Transfers

"the principal Act".

(2) The provisions of this Part shall be deemed to have come

into force on the 1st January, 2014.

In article 2 of the principal Act, immediately after the Amendment of

definition "court", there shall be added the following new definition: article

principal Act.

" "decuius" means any individual from whom a transfer

causa mortis originates;".

Article 19 of the principal Act shall be amended as Amendment of

article 19 of the

follows

principal Act.

(a)

in sub-article (1) thereof, for the words "and may

seize the document", there shall be substituted the words "and

may, unless such document is a notarial public deed, seize the

document";

(b) in sub-article (4) thereof, for the words "shall be

carried out by the Court of Revision of Notarial Acts which

shall make a report", there shall be substituted the words "shall

be carried out by the review officers appointed under the

Notarial Profession and Notarial Archives Act and the Court of

Revision of Notarial Acts shall make a report"; and

(c)

in sub-article (5) thereof, for the words "which is

protected by the same duty.", there shall be substituted the

words "which is protected by the same duty, unless voluntarily

released by the owner of the said document or record and only

when such record shall tend to establish the correct value of the

said asset.",

Sub-article (4) of article 32 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, for the words "of the

aggregate value of the consideration paid for the acquisition and

for the redemption of such property", there shall be substituted

the words "of the aggregate value of the consideration paid for

the acquisition or in the case of a transfer by a gratuitous title

which does not qualify for duty relief under article 32C, of the

value of such property and for the redemption of such property";

(b) paragraph (b) thereof shall be substituted by the

following new paragraph

"(b) Where such residence is acquired by an

emphyteutical or subemphyteutical grant, and whether or

not there is also payable on such deed any other

consideration, the duty chargeable under this Act shall be

reckoned at the rate of three euro and fifty cents (€3.50) for

every one hundred euro (€100) or part thereof on the first

one hundred and fifty thousand euro (€150,000), or such

amount as may be prescribed, on the taxable value

established in accordance with the provisions of article 40

and any additional taxable value shall incur a duty of five

euro (€5) per one hundred euro (€100) or part thereof on

the said taxable value."; and

(c)

in sub-paragraph (i) of paragraph (e) thereof, for the

words "within five hundred metres of such residence or block of

apartments, where such garage has been acquired together with

such residence on the same deed;", there shall be substituted the

words "within five hundred metres of such residence or block of

apartments:", and immediately thereafter there shall be added

the following new provisos

"Provided that for the purposes of this article and

for the purposes of article 32C such garage shall also be

acquired together with such residence on the same deed

Provided further that for the purposes of article 35,

such a garage need not have been previously acquired by

the decuius together with such residence on the same

deed;".

Article 35 of the principal Act shall be amended as Amendment of

article 35 of the

principal Act.

(a)

sub-article (2) thereof shall be amended as follows

(i) sub-paragraph (a) of paragraph (iv) thereof

shall be substituted by the following new sub-paragraph

"(a) the property transferred causa mortis

consists of any immovable or any real right over an

immovable;";

(ii) sub-paragraph (d) of paragraph (iv) thereof

shall be deleted;

(b)

sub-article (4) thereof shall be amended as follows

(i) in paragraph (i) thereof, for the words

"granted under this article", there shall be substituted the

words "granted under subarticles (2)(iv) and (2)(v) of this

article"; and

(ii) in paragraph (ii) thereof, for the words "and

the date of the making of the declaration.", there shall be

substituted the words "and the date of the making of the

declaration:", and immediately thereafter there shall be

added the following new proviso to the whole sub-

regulation

"Provided that in all cases the said interest

shall not exceed the duty due.".

Article 39 of the principal Act shall be deleted.

Deletion of

article 39 of the

principal Act.

Article 40 of the principal Act shall be amended as Amendment of

article 40 of the

principal Act.

(a)

sub-article (1) thereof shall be substituted by the

following new sub-article

"(1) There shall be charged on every contract of

emphyteusis and sub-emphyteusis, whether or not there is

also payable on such deed any other consideration, a duty

to be assessed on the taxable value established in

accordance with this article, at the rate of five euro (€5) on

every one hundred euro (€100) or part thereof.

The taxable value shall be established as follows

Where the grant was made for a period of not less

than one hundred years (100) years or in perpetuity, the

groundrent or sub-groundrent imposed on the deed shall be

rounded up to the nearest one hundred euro (€100) and

shall then be capitalised at the rate of five per centum

(5%), hereinafter referred to as the "capitalised

groundrent".

Where the emphyteutical concession is for a

definite period of time, that does not exceed one hundred

(100) years, the capitalised groundrent shall be reduced to

(a) twelve per centum (12%) where the

term is less than twenty-five (25) years;

(b) thirty-three per centum (33%) where

the term is twenty-five (25) years or more but is

less than fifty (50) years;

(c) sixty-five per centum (65%) where the

term is fifty (50) years or more but is less than

seventy-five (75) years;

(d) eighty per centum (80%) where the

term is seventy-five (75) years or more but is less

than one hundred (100) years.

The capitalised groundrent, shall then be added to

any other consideration, and is thus referred to as "the

taxable value"

Provided that where the groundrent so imposed is

to be revised or increased at specified amounts or rates, the

amount of ground-rent specified in the deed to be rounded

up to the nearest one hundred euro (€100) and then

capitalised at the rate of five per centum (5%), shall be the

highest rate of groundrent payable in any particular year in

the first ten (10) years of such emphyteutical concession

Provided further that where the groundrent so

imposed is to be revised or increased at a rate which cannot

be calculated in whole or in part according to the

stipulations mentioned in the deed, the amount of ground-

rent specified in the deed which is to be rounded up to the

nearest one hundred euro (€100) shall be increased by

seventy-eight per centum (78%);";

(b) in sub-article (2) thereof, for the words "Where the

duration of the emphyteusis may be extended", there shall be

substituted the words "Where the duration of an emphyteusis

may be extended"; and

(c)

subarticle (3) thereof shall be deleted.

In article 48 of the principal Act, for the words "a penalty Amendment of

of not less than twenty-three euro (€23) but not exceeding one article

principal Act.

thousand, one hundred and sixty euro (€1,160) for each omission",

there shall be substituted the words "a penalty of not less than twenty-

five euro (€25) but not exceeding one thousand euro (€1,000) for each

omission".

Paragraph (a) of the proviso to sub-article (1) of article 49 Amendment of

article 49 of the

of the principal Act shall be amended as follows

principal Act.

(a)

in sub-paragraph (ii) thereof, for the words

"declared in the deed; and", there shall be substituted the words

"declared in the deed;";

(b) in sub-paragraph (iii) thereof, for the words "in

articles 50 and 51;", there shall be substituted the words "in

articles 50 and 51; and"; and

(c)

immediately after sub-paragraph (iii) thereof, there

shall be added the following new sub-paragraph

"(iv) any result established or indicated through

any electronic portal for the submission of tax due on

public deeds, provided that correct information is

submitted by such notary for the attainment of the said

result;".

Article 51 of the principal Act shall be amended as Amendment of

article 51 of the

principal Act.

(a)

in sub-article (1) thereof, for the words "he shall,

within forty (40) days and together with the payment", there

shall be substituted the words "he shall, within fifteen (15) days

and together with the payment";

(b) in the proviso to sub-article (1) thereof, for the

words "the Housing Authority is the transferee", there shall be

substituted the words "the Housing Authority is the transferee

and in the case of transfers referred to in article 32(3) with the

exclusion of transfers of transferable securities mentioned in

article 32(3)";

(c)

in sub-article (2) thereof, for the words "who fails to

give such notice together with any relative payment", there shall

be substituted the words "who fails to give such notice within

forty (40) working days together with any relative payment";

and

(d) in sub-article (2) thereof, for the words "shall not

exceed the amount of the said duty.", there shall be substituted

the words "shall not exceed the amount of the said duty:", and

immediately thereafter there shall be added the following

proviso

"Provided that no notice shall be given where the

Government or the Housing Authority is the transferee and

in the case of transfers referred to in article 32(3) with the

exclusion of transfers of transferable securities mentioned

in article 32(3).".

Sub-article (3) of article 62 of the principal Act shall be

substituted by the following new sub-article

"(3) Where in the case of the persons mentioned in

articles 32(4)(a) and 32C who acquire a second residence it is

proved to the satisfaction of the Commissioner that their former

residence was sold within one year from the date of acquisition

of their second residence, such persons shall be entitled to a

refund of the duty paid in excess of the duty properly chargeable

in respect of the acquisition of such residence as established

under the provisions of articles 32, 32C and 40, as applicable.".

Sub-article (1) of article 65 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, for the words "to record in

the deed all relevant details;", there shall be substituted the

words "to record in the deed all relevant details:", and

immediately thereafter there shall be added the following new

proviso

"Provided that, where the notary is not engaged to

examine the title of property so transferred in accordance

with article 84C of the Notarial Profession and Notarial

Archives Act, he may make such statement by basing

himself on the declarations of the transferors on the

relative deed;";

(b) immediately after paragraph (b) thereof, and before

the present proviso to the whole sub-article, there shall be added

the following new paragraph

"(c) saving the provisions of article 62, where the

parties to a deed correct the said deed by means of a deed

of correction or where a Notary publishes any notarial

corrective deed in terms of article 45A of the Notarial

Profession and Notarial Archives Act and which deed has

the effect of altering the amount of tax which was due on

the said original act, such Notary shall also give notice in

terms of this Act and pay any difference in tax, if due. The

said deed of correction or notarial corrective deed may also

be used as a basis to make a claim for refund of any

overpaid tax

Provided that the provisions of article 51(2) shall

only apply as from the date of the said deed of correction

or the notarial corrective act:"; and

(c)

in the present proviso to the whole sub-article, for

the words "Provided that", there shall be substituted the words

"Provided further that".

PART VII

(1) This Part amends the Motor Vehicles Registration Amendments to

the Motor

and Licensing Act, and it shall be read and construed as one with the Vehicles

Motor Vehicles Registration and Licensing Act, hereinafter in this Registration

Licensing Act.

Part referred to as "the principal Act".

(2) The provisions of articles 52, 53, 54, 56, 57 and 58(c) shall

be deemed to have come into force on the 5th November, 2013.

(3) The provisions of articles 55 and 58(a) and (b) shall be

deemed to have come into force on the 1st January, 2014.

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

immediately after the definition "brought into

Malta" there shall be added the following new definition

" "business use" means the use of a vehicle in the

direct exercise of an activity carried out for consideration

or financial gain;";

(b) for the definition "certificate of conformity" there

shall be substituted the following

" "certificate of conformity" means the document

set out in Annex IX of Directive 2007/46/EC, as amended,

or in Annex IV-A of Directive 2002/24/EC, as amended, as

the case may be, issued by the manufacturer and certifying

that a vehicle belonging to the series of the type approved

in accordance with Directive 2007/46/EC or with Directive

2002/24/EC complies with all regulatory acts at the time of

its production;"; and

(c)

immediately after the definition "person residing in

Malta" there shall be added the following new definition

" "private use" means any use other than business

use;".

Immediately after sub-article (7) of article 10 of the

principal Act there shall be added the following new sub-articles

"(8) Where a vehicle that was manufactured as an M1

vehicle is presented for registration as, or has been converted to,

an N1 vehicle -

(a) the Authority shall classify that vehicle under

the Second Schedule and for registration tax purposes shall

apply the rate applicable to an M1 motor vehicle; and

(b) the circulation licence fee payable on that

vehicle shall be that applicable to an M1 vehicle as

provided for in the Fourth Schedule.

(9) Where a vehicle that was manufactured as an N1

vehicle with three or less seats is presented for registration as, or

has been converted into an N1 vehicle having more than three

seats after the date of manufacture -

(a) the Authority shall classify that vehicle under

the Second Schedule and for registration tax purposes shall

apply the rate applicable to an M1 motor vehicle; and

(b) the circulation licence fee payable on that

vehicle shall be that applicable to an M1 vehicle as

provided for in the Fourth Schedule.

(10) Where a vehicle was manufactured as an N1 vehicle

with more than three seats, and which vehicle model is also

manufactured as an M1 vehicle, and which vehicle is included

in a list published by the Authority from time to time in the

Government Gazette -

(a) the Authority shall classify that vehicle under

the Second Schedule and for registration tax purposes shall

apply the rate applicable to an M1 motor vehicle; and

(b) the circulation licence fee payable on that

vehicle shall be that applicable to an M1 vehicle as

provided for in the Fourth Schedule

Provided that the list which shall be published by the

Authority from time to time in the Government Gazette shall

not be construed as an exhaustive list and the Authority shall

have the right to classify as an M1 vehicle rather than as an N1

vehicle any vehicle which it may deem to be a vehicle not

primarily used for the carriage of goods and this in spite of the

fact that the vehicle is presented for registration with a

certification as an N1 vehicle, so that it shall be incumbent on

the person seeking to register a vehicle which is to be imported

or brought into Malta to verify with the Authority as to whether

such vehicle shall be classified as an M1 vehicle or an N1

vehicle.

(11) In establishing whether a vehicle was manufactured

as an N1 or M1 vehicle, the Authority may ask the person

presenting the vehicle for registration for a copy of the

Certificate of Conformity, or a declaration from the

manufacturer to confirm whether the vehicle was manufactured

as an N1 or M1 vehicle, and the number of seats at

manufacturing stage.".

In paragraph (f) of sub-article (1) of article 21 of the Amendment of

principal Act, for the words "knowledge thereof," there shall be article

principal Act.

substituted the words "knowledge thereof; or", and immediately after

paragraph (f) there shall be added the following new paragraph

"(g) without the authorisation of the Authority, increases

the seating capacity of the vehicle, alters or performs any

changes to the vehicle which are not prescribed in the

registration certificate,".

Article 24 of the principal Act shall be deleted.

Deletion of

article 24 of the

principal Act.

Category C of the First Schedule to the principal Act shall

be amended as follows

(a)

for the title thereof there shall be substituted the following

"Category C: classic, vintage and veteran goods

vehicles for private use"; and

(b) the words "N1 vehicles", "N2 vehicles" and "N3

vehicles", wherever they appear, shall be substituted by the

words "N1 vehicles for private use", "N2 vehicles for private

use" and "N3 vehicles for private use" respectively.

The Second Schedule to the principal Act shall be

amended as follows

(a)

in the table of Category B thereof, the columns

showing years 5, 6 and 7 shall be substituted by the following

"

€

€

€

1,000

1,000

1,100

1,200

1,200

1,300

1,400

3,500

3,920

4,390

4,000

4,480

5,018

7,000

7,840

8,781

12,000

13,440

15,053

13,500

15,120

16,934

";

(b) the table in Category C thereof shall be substituted

by the following

Engine capacity

Not exceeding 250cc

0%

Exceeding 250cc but not exceeding 500cc

cc x RV x 0.033%

Exceeding 500cc but not exceeding 800cc

cc x RV x 0.034%

Exceeding 800cc

cc x RV x 0.035%

";

Battery electric motor cycle

RV x 1.71%

(c)

in Category F thereof, for the table showing the

different Euro standards there shall be substituted the following

Cate-

Euro 2/II

Euro 3/III

Euro 4/IV

Euro 5/V

Euro 6/VI

gory

2001 - 2005

2006 - 2008

2009 - 2013

2014 onwards

";

2001 - 2005

2006 - 2008

2009 - 2013

2014 onwards

and

(d)

Category H thereof shall be amended as follows

(i) for the title thereof there shall be substituted

the following

"Category H: Classic, vintage and veteran M

vehicles and motor cycles for private use"; and

(ii) for the words "M vehicles" and "Motor

cycles", wherever they appear, there shall be substituted

the words "M vehicles for private use" and "Motor cycles

for private use" respectively.

The Fourth Schedule to the principal Act shall be amended Amendment of

the Fourth

as follows

Schedule to the

principal Act.

(a)

the tables in item 1 thereof shall be substituted by

the following

Petrol-engined

Year

CO 2

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

and including 250g/km

More than 250g/km

Year

14+

CO 2

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

1,042

and including 250g/km

More than 250g/km

1,017

1,110

1,110

1,110

1,110

Diesel-engined with particulate matters of 0g/km up to and including 0.005g/km

Year

CO 2

€

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

and including 250g/km

More than 250g/km

Year

14+

CO 2

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

1,042

and including 250g/km

More than 250g/km

1,017

1,110

1,110

1,110

1,110

Diesel-engined with particulate matters exceeding 0.005g/km but not exceeding

0.025g/km

Year

CO 2

€

€

€

€

€

€

€

0g/km up to and

including 100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

and including 250g/km

More than 250g/km

Year

14+

CO 2

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

1,093

and including 250g/km

More than 250g/km

1,067

1,135

1,135

1,135

1,135

Diesel-engined with particulate matters exceeding 0.025g/km but not exceeding

0.035g/km

Year

CO 2

€

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

and including 250g/km

More than 250g/km

Year

14+

CO 2

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

1,044

1,147

and including 250g/km

More than 250g/km

1,019

1,120

1,160

1,160

1,160

1,160

Diesel-engined with particulate matters exceeding 0.035g/km

Year*

CO 2

€

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

and including 250g/km

More than 250g/km

Year

14+

CO 2

€

€

€

€

€

€

€

0g/km up to and including

100g/km

More than 100g/km up to

and including 130g/km

More than 130g/km up to

and including 140g/km

More than 140g/km up to

and including 150g/km

More than 150g/km up to

and including 180g/km

More than 180g/km up to

and including 220g/km

More than 220g/km up to

1,096

1,204

and including 250g/km

";

More than 250g/km

1,069

1,175

1,210

1,210

1,210

1,210

(b) the tables in item 2 thereof shall be substituted by

the following

" Petrol-engined

Year

Engine capacity

€

€

€

€

€

€

€

€

Class 1 (up to and including

1300cc)

Class 2 (more than 1300cc up

to and including 1449cc)

Class 3 (more than 1449cc up

to and including 1500cc)

Class 4 (more than 1500cc up

to and including 1800cc)

Class 5 (more than 1800cc up

to and including 2000cc)

Class 6 (more than 2000cc)

Year

Engine capacity

€

€

€

€

€

€

€

€

Class 1 (up to and including

1300cc)

Class 2 (more than 1300cc up

to and including 1449cc)

Class 3 (more than 1449cc up

to and including 1500cc)

Class 4 (more than 1500cc up

to and including 1800cc)

Class 5 (more than 1800cc up

to and including 2000cc)

Class 6 (more than 2000cc)

Year

Engine capacity

€

€

€

€

Class 1 (up to and including

1300cc)

Class 2 (more than 1300cc up

to and including 1449cc)

Class 3 (more than 1449cc up

to and including 1500cc)

Class 4 (more than 1500cc up

to and including 1800cc)

Class 5 (more than 1800cc up

to and including 2000cc)

Class 6 (more than 2000cc)

€

€

€

€

€

€

€

€

Class 1 (up to and including

Class 2 (more than 1300cc up

to and including 1449cc)

Class 3 (more than 1449cc up

to and including 1500cc)

Class 4 (more than 1500cc up

to and including 1800cc)

Class 5 (more than 1800cc up

to and including 2000cc)

Class 6 (more than 2000cc)

€

€

€

€

€

€

€

€

Class 1 (up to and including

Class 2 (more than 1300cc up

to and including 1449cc)

Class 3 (more than 1449cc up

to and including 1500cc)

Class 4 (more than 1500cc up

to and including 1800cc)

Class 5 (more than 1800cc up

to and including 2000cc)

Class 6 (more than 2000cc)

€

€

€

€

Class 1 (up to and including

Class 2 (more than 1300cc up

to and including 1449cc)

Class 3 (more than 1449cc up

to and including 1500cc)

Class 4 (more than 1500cc up

to and including 1800cc)

Class 5 (more than 1800cc up

to and including 2000cc)

";

Class 6 (more than 2000cc)

and

(c)

in item 6 thereof, for the words "For the use of

motor vehicles", there shall be substituted the words "For the

private use of motor vehicles".

PART VIII

(1) This Part amends the Income Tax Management Act Amendments to

and it shall be read and construed as one with the Income Tax the

Management

Management Act, hereinafter in this Part referred as "the principal Act.

Act".

(2) Paragraph (a) of article 64 shall come into force as from

year of assessment 2014.

(3) Paragraph (b) of article 64 shall come into force as from

year of assessment 2015.

Sub-article (9) of the principal Act shall be substituted by Amendment of

article 4 of the

the following

principal Act.

"(9) Notwithstanding the provisions of the other

sub-articles of this article or of any other law, the

Commissioner shall furnish to the head of the Value Added

Tax Department such information, being information

obtained by the Commissioner for any of the purposes of

this Act, as may be directed by the Minister.".

Immediately after sub-article (2) of article 31 of the Amendment of

article 31 of the

principal Act, there shall be added the following new subarticle

principal Act.

"(2A) Where a person disagrees with the Commissioner’s

determination made in accordance with the provisions of sub-

articles (1) or (2), such person may file an adjustment form (AF)

on such form as the Commissioner may determine, within five

years from the date on which the person is notified of such

determination

Provided that, notwithstanding any other provision of this

Act, any interest payable by the Commissioner shall only

become due if paid later than one year from the filing of the said

adjustment form.".

Article 35 of the principal Act shall be amended as Amendment of

article 35 of the

follows

principal Act.

(a)

in sub-article (4) thereof, the words ''Notice of the

Tribunal’s decision, the date thereof, and of any amendments to

the assessment shall be sent to the Commissioner who shall

cause a copy thereof to be served either personally on, or by

registered post to, the person appealing together with a notice

informing such person of his rights under the provisions of

article 37.'' shall be deleted; and

(b) sub-article (7) thereof shall be substituted by the

following

''(7) The Tribunal may order the correction of any

arithmetical error incurred in any of its decisions on an

application served on the other party and filed within ten

days after the date of the decision.''.

Article 37 of the principal Act shall be amended as

(a)

in sub-article (1) thereof, for the words ''thirty days

from the date of service upon him of the decision of the

Tribunal'', there shall be substituted the words ''twenty days

from the date of the Tribunal’s decision''; and

(b) in sub-article (2) thereof, for the words ''thirty days''

there shall be substituted the words ''twenty days''.

Sub-article (4) of article 42 of the principal Act shall be

amended as follows

(a)

paragraph (a) thereof shall be substituted by the

following

"(a) Payment of tax due by individuals in terms of

article 90A(7)(b) of the Income Tax Act shall be made by

not later than the 30th June of the year following the

relevant year in respect of the income arising during the

period January to December of the relevant year. This

payment shall be accompanied by a statement of accounts

indicating the taxable net profits for the relevant year.";

and

(b) immediately after paragraph (b) thereof, there shall

be added the following new paragraph

"(c) Payment of tax due by persons in terms of

article 31D of the Income Tax Act shall be made by not

later than the 30th June of the year following the relevant

year, in respect of the gross rental income received during

the period January to December of the relevant year. This

payment shall be accompanied by the relevant form which

the Commissioner may prescribe indicating the gross

rental income received for the relevant year. For the

purposes of this paragraph "relevant year" means the

calendar year during which the gross rental income is

received.".

In paragraph (a) of sub-article (2A) of article 44 of the Amendment of

principal Act, for the words "amount of the said tax;" there shall be article

principal Act.

substituted the words "amount of the said tax:", and immediately

thereafter there shall be added the following new proviso

"Provided further that, for any period or part thereof

commencing on or after 1st January 2014, interest shall be

calculated at the rate mentioned in the preceding proviso or at

such lower rate as the Minister may, from time to time,

prescribe by rules and the total interest shall not exceed the

amount of the said tax;".

Article 48 of the principal Act shall be amended as Amendment of

article 48 of the

follows

principal Act.

(a)

in the proviso to sub-article (2D) thereof, for the

words "amount of the said repayment." there shall be substituted

the words "amount of the said repayment:", and immediately

thereafter there shall be added the following new proviso

"Provided further that for any period or part thereof

commencing on or after 1st January 2014, interest shall be

calculated at the rate established by the provisions of

article 44(2A) and the total interest shall not exceed the

amount of the said repayment."; and

(b) immediately after sub-article (10) thereof, there

shall be added the following new sub-article

"(11) The Minister responsible for finance may

from time to time make rules in relation to the carrying out

of the provisions of this article.".

In sub-article (2) of article 49 of the principal Act, for the Amendment of

words "to not less than three days imprisonment;" there shall be article

principal Act.

substituted the words "to not less than three days imprisonment or to a

fine (multa) of €1500;", and for the words "a term of not less than

three days," there shall be substituted the words "a term of not less

than three days or a fine (multa) of €5000,".

PART IX

(1) This Part amends the Bunkering (Fuels) Tax Act and Amendments to

it shall be read and construed as one with the Bunkering (Fuels) Tax the

(Fuels) Tax Act.

Act, hereinafter in this Part referred as "the principal Act".

(2) The provisions of this Part shall be come into force on

the1st January, 2014.

69 The Schedule to the principal Act shall be substituted by

the following

"SCHEDULE

(Article 3)

Fuel falling under sub-headings 2710.19.43 to 2710.19.48

or 2710.20.11 to 2710.20.19 of the Combined Nomenclature; a

tax of one euro and twenty-eight cents (€1.28) per metric ton or

part thereof.

Fuel falling under sub-headings 2710.19.62 to 2710.19.68

or 2710.20.31 to 2710.20.39 of the Combined Nomenclature; a

tax of eighty-two cents (€0.82) per metric ton or part thereof.".

PART X

L-Iskeda li tinsab mal-Att prinċipali għandha tiġi

sostitwita b’dan li ġej

" SKEDA

(Artikolu 3)

Żjut li jinsabu taħt is-subintestaturi 2710.19.43 sa

2710.19.48 jew 2710.20.11 sa 2710.20.19 tan-Nomenklatura

Magħquda; taxxa ta’ euro u tmienja u għoxrin ċenteżmu (€1.28)

għal kull tunnellata metrika jew parti minnha.

Żjut li jinsabu taħt is-subintestaturi 2710.19.62 sa

2710.19.68 jew 2710.20.31 sa 2710.20.39 tan-Nomenklatura

Magħquda; taxxa ta’ tnejn u tmenin ċenteżmu (€0.82) għal kull

tunnellata metrika jew parti minnha.".

TAQSIMA X

(1) This Part amends the Excise Duty Act and it shall be

read and construed as one with the Excise Duty Act, hereinafter in

this Part referred as "the principal Act".

(2) The provisions of articles 71, 72 and 74 shall be deemed to

have come into force on the 5th November, 2013.

(3) The provisions of article 73 shall be deemed to have come

into force on the 1st January, 2014.

The Second Schedule to the principal Act shall be

amended as follows

(a)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Spirit based flavoured beverages

of an alcoholic content over 1.2% but not exceeding 7%", there

shall be substituted the following

"€0.41 per % vol. per litre";

(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

"€0.86 per hectolitre per degree Plato"; and

(c)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Beer", there shall be substituted

the following

"€1.73 per hectolitre per degree Plato".

The Third Schedule to the principal Act shall be amended Amendment of

the Third

as follows

Schedule to the

principal Act.

(a)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Cigarettes", there shall be

substituted the following

"25.0% of the retail price plus €87.50 per 1000

cigarettes but not less than €142.50 per 1000 cigarettes";

(b) 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

"€21.65 per 1000 units";

(c)

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

"€96.58 per Kg";

(d) 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

"€96.58 per kg."; and

(e)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Pipe Tobacco", there shall be

substituted the following

"€30.69 per kg.".

The Fourth Schedule to the principal Act shall be amended Amendment of

the Fourth

as follows

Schedule to the

principal Act.

(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

"€628.18 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

"€509.38 per 1,000 litres";

(c)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Gas Oil falling within CN Codes

2710.19.43 to 2710.19.48 or 2710.20.11 to 2710.20.19 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", there shall be substituted the following

"€422.40 per 1,000 litres";

(d) for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Gas Oil or Gas Oil blended with

Biodiesel with a sulphur content not exceeding 0.1% by weight

if used for heating purpose", there shall be substituted the

following

"€182.09 per 1,000 litres";

(e)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "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", there shall be

substituted the following

"€422.40 per 1,000 litres";

(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

"€34.00 per 1,000 Kgs";

(g) for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Liquid Petroleum Gas falling

within CN Codes 2711.12 to 2711.13, when used for heating

purposes", there shall be substituted the following

"€38.94 per 1,000 Kgs";

(h) for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Methane falling within CN Code

2711.29.00", there shall be substituted the following

"€38.94 per 1,000 Kgs"; and

(i)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Kerosene falling within CN

Codes 2710.19.21 and 2710.19.25", there shall be substituted

the following

"€422.40 per 1,000 litres".

In Schedule Five A to the principal Act, for the words in Amendment of

the "Rates of Excise Duty" column thereof in respect of the item Schedule

to the principal

"Portland Cement excluding white cement", there shall be substituted Act.

the following

"€27.00 per 1,000 Kgs".

In Schedule Five A of the principal Act, in the column Amendment to

''Description of Excise Goods'' thereof, immediately after the item Schedule

in the principal

''Portland Cement excluding white cement'' there shall be added the Act.

following new item

"All other cements classified in commodity code number

25.23 of the Customs Nomenclature, including clinkers and

white Portland cement, but excluding grey Portland Cement

............................................................... €27.00 per 1,000 Kgs".

PART XI

(1) This Part amends the Value Added Tax Act and it Amendments to

the Value Added

shall be read and construed as one with the Value Added Tax Act, Tax

hereinafter in this Part referred as "the principal Act".

(2) The provisions of articles 79 and 81 shall be deemed to

have come into force with effect from 1st January, 2014.

In sub-article (1) of article 2 of the principal Act, Amendment of

immediately after the definition '' ''non-taxable person'' there shall be article

principal Act.

added the following new definition

'' ''notice of payment'' means the notice required to be

furnished in terms of article 30(2);''.

Sub-article (4) of article 27 of the principal Act shall be Amendment of

article 27 of the

substituted by the following

principal Act.

''(4) A tax return shall not be deemed to have been

furnished unless it is full and complete in all material aspects.''.

Article 38A of the principal Act shall be deleted.

Deletion of

article 38A of

the principal

Act.

In sub-article (3) of article 58 of the principal Act,

immediately after the words ''served through registered post'' there

shall be added the words ''or by publication of the notice in the

Gazette and in one or more daily newspapers''.

Article 67 of the principal Act shall be substituted by the

following

''67. (1) When a person furnishes a tax return or notice of

payment within the time laid down in the relevant provisions of

this Act and such tax return or notice of payment is

accompanied by a payment of all or part of the tax declared to

be payable therein, such payment shall be deemed to be made

on account of the tax payable on that tax return or notice of

payment.

(2) When a person furnishes a tax return or notice of

payment within the time laid down in the relevant provisions of

this Act and such tax return or notice of payment is not

accompanied by a payment of all the tax declared to be payable

therein, such person may request, by the furnishing of such form

as the Minister may by regulations prescribe, that any payment

accompanying such form shall be deemed to be made on

account of the tax declared to be payable in such tax return or

notice of payment, so however that

(a) such request shall not be valid if it is made

later than six months from the time within which the tax

return or notice of payment is required to be furnished in

terms of the relevant provisions of this Act;

(b) the provisions of sub-articles (3) and (4) shall

apply to such payment.

(3) Subject to the provisions of sub-articles (1) and (2),

when any interest is due by a person on any tax, other than tax

the payment of which may be kept in abeyance in terms of the

provisions of the Ninth Schedule to this Act, any payment made

by that person to the Commissioner shall, notwithstanding any

declaration made by that person, be appropriated to that interest

before it is appropriated to any tax.

(4) Subject to the provisions of sub-articles (1), (2) and

(3), when an administrative penalty is due by a person, other

than a penalty the payment of which may be kept in abeyance in

terms of the provisions of the Ninth Schedule to this Act, any

payment made by that person to the Commissioner shall,

notwithstanding any declaration made by that person, be

appropriated to such administrative penalty before it is

appropriated to any tax.

(5) Subject to the other provisions of this article, when

tax due by a person, other than tax the payment of which may be

kept in abeyance in terms of the provisions of the Ninth

Schedule to this Act, became due on more than one occasion

any payment made by that person to the Commissioner shall,

notwithstanding any declaration made by that person, be

appropriated to that amount of tax that became due at the

earliest of those occasions before it is appropriated to the tax

that became due on subsequent occasions.

(6) When a payment is made by a person to the

Commissioner in circumstances which indicate that that person

intended that payment to relate to a tax return or notice of

payment, that payment shall be deemed to relate to that tax

return or notice of payment for the purposes of this article

without prejudice to the power of the Commissioner under any

other provision of this Act to appropriate that payment in any

other manner.''.

Sub-article (2) of article 73 of the principal Act shall be Amendment of

article 73 of the

substituted by the following

principal Act.

''(2) Any notice required to be given under this Act by

the Commissioner or any other person may be served either

personally or by being sent by post. Unless the contrary is

proved service of a notice sent by post shall be proved by means

of evidence that the notice was properly addressed and posted

and shall be deemed to have been effected in the case of an

address in Malta not later than the third day following the day

when it was posted, and in the case of an address outside Malta

the day succeeding that on which the notice would have been

received in the ordinary course by post

Provided that, where such notice is not served on a person

because that person could not be found or for other reasons

attributable to that person 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 that person to

call for it as and where directed by the Commissioner, then such

notice shall also be deemed to have been duly notified on the

date of such publication on a daily newspaper

Provided further that a cheque or draft posted by the

Commissioner shall be deemed to be a payment for the amount

thereof made on the date it is posted.''.

The proviso to sub-article (6) of article 84 of the principal

Act shall be substituted by the following new proviso

"Provided that the Commissioner, as head of the

Department of Customs, may impose and collect penalties

relating to tax on importation due under this Act, in the case of

an agreement having been reached in accordance with the

provisions of article 63 of the Customs Ordinance, and may also

impose and collect penalties in the case of an agreement having

been reached in accordance with the provisions of article 63A of

the said Ordinance, so however that any reference to the duty in

the fine (multa) referred to in article 63A shall be construed as if

it were a reference to the tax due under this Act.".

Passed by the House of Representatives at Sitting No. 143 of the

16th April, 2014.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk to the House of Representatives