ACT No. VIII of 2020 AN ACT to implement Budget measures for the financial year 2020 and other administrative measures.

I assent.

(L.S.)

GEORGE VELLA

President

20th March, 2020

ACT No. VIII of 2020

AN ACT to implement Budget measures for the financial year

2020 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, 2020.

PART I

The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2020.

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 Authority to

Government of Malta may raise, by way of loan, a sum of money not raise loan.

exceeding four hundred fifty million euro (€450,000,000).

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

for Finance is hereby authorised to raise such loans under the

provisions of the Government Borrowing and Management of Public Cap. 575.

Debt Act, on such terms and conditions as the said Minister may

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

be appropriated and applied for the purpose of

(a)

redeeming registered stocks which are due for

redemption during 2020; and

(b)

contributing funds in the sinking funds; 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

This Part amends the Customs Ordinance and it shall be Amendments to

read and construed as one with the Customs Ordinance, hereinafter in the

Ordinance.

this Part referred to as "the Ordinance".

The proviso to article 62A of the Ordinance shall be Amendment of

article 62A of

substituted by the following

the Ordinance.

"Provided that in the circumstances mentioned in

paragraph (b) above, when it is a case of a refund of

duty and, or taxes, it shall be deemed that an offence

has not been committed. The refund of duty and, or

taxes shall be subject to the payment of a fee as

provided in the Customs Regulations

Provided also that in the circumstances

mentioned in paragraphs (a), (b) and (c) above, a

person who makes an incorrect declaration and

informs the Commissioner in writing about the said

incorrect declaration

(a)

before the Commissioner informs the

person that the particulars of the customs

declaration are not correct; and

(b) during the period where it is not yet

known, in the systems relating to the processing

of customs declarations, whether manual or

electronic, if there shall be control of the goods,

or when it is established that there shall not be

such control; and

(c)

such information is given to the

Commissioner by not later than ten (10) working

days from the date of release of the goods; and

(d) such incorrection 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 article.".

Article 63 of the Ordinance shall be amended as follows

(a)

in paragraph (g) of sub-article (1) thereof,

immediately after the words "or 10% of the value of the goods"

there shall be added the words "up to a maximum of six hundred

euro (€600),"; and

(b) immediately after sub-article (3) thereof there shall

be added the following new sub-article

"(4) For the purposes of this article, the signing of

this agreement shall also mean that the person is

renouncing to any claim he may have against the

Commissioner, the State Advocate or the Attorney General

resulting from the case.".

In article 63A of the Ordinance, immediately after sub-

article (4) there shall be added the following new sub-article

"(5) For the purposes of this article, the signing of this

agreement shall also mean that the person is renouncing to any

claim he may have against the Commissioner, the State

Advocate or the Attorney General resulting from the case.".

In article 65 of the Ordinance, immediately after sub-

article (3) there shall be added the following new sub-article

"(4) For the purposes of this article, the term "system

based audit" means "an audit procedure including auditing of

electronic systems, designed to obtain audit evidence as to

whether key controls are operating continuously, consistently

and effectively as planned in preventing, or detecting and

correcting, material mis-statements or instances of non-

compliance throughout the period being audited. This audit is

also conducted through different types of tests of controls, such

as documentation review, enquiry and confirmation, inspection,

observation, recalculation and re-performance".".

Immediately after article 70B of the Ordinance there shall Addition of new

article 70C to

be added the following new article

the Ordinance.

70C. (1) For the purposes of investigation

related to crimes of contraband, fraud, evasion of tax

or duty, money laundering or financing of terrorism, in

order to fulfil his obligations under customs laws, the

Commissioner may, without prejudice to any

obligation of professional secrecy imposed by an

explicit provision of the law, demand and collect

details of transactions that have taken place, are taking

place or which still have to take place, both if

involving the person or entity to which the demand is

made and if the said transactions are between third

parties, from any person or entity, and every said

person or entity shall give to the Commissioner the

requested details within the time frame established by

him. The said obtained details may be used by the

Commissioner as evidence in proceedings before any

court.

(2) When the Commissioner suspects that the

details of transactions collected could amount to proof

of the crimes of money laundering or financing of

terrorism, the Commissioner shall pass on the said

details to the Financial Intelligence Analysis Unit.".

PART III

(1)

This Part amends the Income Tax Act and shall be Amendments to

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

Act.

Part referred to as "the principal Act".

(2)

The articles of this Part shall come into force as follows

(a)

the article that amends article 5A(2)(d) of the

principal Act, from 1 January 2020;

(b) the article that amends article 12 of the principal

Act, as from the year of assessment 2020;

(c)

the article that amends article 14 of the principal

Act, as from 1 January 2019; and

(d) the articles that add new articles 49A and 90B to the

principal Act and articles that amend articles 50, 56 and 90A of

the principal Act, as from the year of assessment 2021.

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

and second provisos to the definition "company" shall be substituted

by the following

"Provided that in the case of a cell company as

defined in any regulations made in terms of the

Companies Act (hereinafter in this proviso referred to as

"the Regulations") as these may be amended from time

to time, or in any other law or regulations replacing the

Regulations, for all intents and purposes of the Income

Tax Acts, every cell of a cell company and that part of a

cell company in which non-cellular assets are held, shall

each be deemed to be a separate company and any

words and expressions in the Income Tax Acts which

are relevant to a company shall be construed

accordingly. The interpretation of such words and

expressions insofar as applicable to a cell company shall

be made on the basis of the relevant provisions of the

Companies Act and of the Regulations:".

Article 5A of the principal Act shall be amended as

(a) paragraph (d) of sub-article (2) thereof shall be

substituted by the following

"(d) The assignment of any right obtained in terms

of a promise of sale of immovable property (konvenju),

including a promise to alienate immovable property in any

manner and a promise of an emphyteutical grant, shall not

be treated as a transfer of property to which this article

applies

Provided that the Minister may, by rules,

prescribe

(i) the conditions for the validity of any such

assignment;

(ii) the deductions that may be allowed for the

purpose of determining the income resulting from

any such assignment;

(iii) the tax chargeable

on

the

income

determined as aforesaid;

(iv) the time within which and the manner in

which the tax so chargeable shall be paid."; and

(b) in the second proviso of paragraph (e) of sub-article

(5) thereof, the words "at such time." shall be substituted by the

words "at such time:" and immediately after there shall be added

the following new proviso

"Provided further that, unless the transferor

had acquired the property for the purpose of

establishing therein or constructing thereon his

sole ordinary residence and declared such

intention in the deed of acquisition for the

purposes of article 32(4)(a) of the Duty on

Documents and Transfers Act, this paragraph (e)

shall not apply if, at any time during the period of

five (5) years preceding the transfer, the

transferor, or a person related to the transferor,

carried out on that property any works for which a

development permission was required in terms of

the Development Planning Act but excluding any

works for which a permission is granted without

the need for an application in terms of an order

made under that Act.".

The third proviso to paragraph (u)(1) of sub-article (1) of Amendment of

article 12 of the

article 12 of the principal Act shall be amended as follows

principal Act.

(a) in paragraph (a) thereof, the words "in a company,

partnership," shall be substituted by the words "in a company or

in a partnership,"; and

(b) in paragraph (b) thereof, the words "in a company,

partnership," shall be substituted by the words "in a company or

in a partnership,".

Sub-article (1) of article 14 of the principal Act shall be Amendment of

article 14 of the

amended as follows

principal Act.

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

following

"(a) borrowing costs incurred by such person

where the Commissioner is satisfied that they were wholly

and exclusively incurred for the purpose of that person’s

trade, business, profession or vocation, or on capital

employed for the purpose of acquiring income

Provided that the deduction allowable under

this paragraph shall be subject to such limitations, and may

be carried forward, in such manner as may be prescribed

and in accordance with guidelines issued under article

96(2);";

(b) in the second proviso to paragraph (h) thereof, the

words "paragraphs (f) and (j):" shall be substituted by the words

"paragraphs (f) and (j)."; and

(c)

the third proviso to paragraph (h) thereof shall be

deleted.

In sub-article (2) of article 31D of the principal Act, the

words "tax so charged." shall be substituted by the words "tax so

charged:" and immediately thereafter there shall be added the

following new proviso

"Provided that the tax chargeable on rent derived from a

long private residential lease shall be abated in such

circumstances and by such amounts as may be prescribed.".

In the Maltese version of sub-article (3) of article 49 of the

principal Act, the words "r-raġel jew il-mara" shall be substituted by

the words "wieħed mill-konjuġi", and the words "mir-raġel jew mill-

mara" shall be substituted by the words "minn wieħed mill-konjuġi".

Immediately after article 49 of the principal Act there

shall be added the following new article

" Separate return.

(1) In the case of a married couple,

where both spouses are living together, any of the

spouses may make an election for the purposes of this

article (hereinafter referred to as "a separate return

election") where

(a)

during the year in which the election

is made, each of the spouses derives income that

is subject to tax under the provisions of article

4(1)(a) or (b), insofar as it does not refer to any

fees derived from the holding of an office of a

director, or of article 4(1)(d) insofar as it refers to

a pension which is received in view of a past

employment; or

(b) in terms of a public deed concluded

by the spouses, the property they acquire during

their marriage is governed by the system of

separate property or by the system of community

of residue with separate administration as

provided in article 1237(2) of the Civil Code or

in terms of a foreign law that may be applicable

to the property of the spouses that provides for

any similar system, and that system still

applies to them at the time that the election is

made.

(2) A separate return election shall be made on

such form and in such manner as the Commissioner

may direct.

(3) Unless the Commissioner approves

otherwise, a separate return election shall have effect

in respect of the year of assessment commencing on 1

January of the year immediately following that in

which the election is made and shall continue to have

effect in respect of each subsequent year of assessment

unless and until it is revoked

Provided that an election submitted to the

Commissioner before 1 January 2020 shall have effect

as from the year of assessment 2021.

(4) Notwithstanding the provisions of article

49, and subject to the other provisions of this article,

for any year of assessment in respect of which a

separate return election is effective

(a)

the income of each spouse shall be

charged to tax in the name of the respective

spouse separately from the income of the other

spouse, and each spouse shall be responsible for

complying with the provisions of the Income Tax

Acts relating to the submission of returns of his

or her income and the ascertainment of that

income;

(b) the income of a spouse shall

comprise all income derived by that spouse

regardless of any right which the other spouse

may have in respect of that income in virtue of

the provisions of any law regulating the rights of

the spouses over their property and income;

(c) in the application of the provisions of

this Act relating to the deductions allowable

against the income of a spouse, expenses shall be

deemed to have been incurred by the spouse in

whose name the relative receipt is issued, and

where a receipt is issued in the joint name of the

spouses, the relative expense shall be deemed to

have been incurred by the spouses in equal

portions; and

(d) any amounts of unabsorbed losses,

unabsorbed capital allowances or unabsorbed tax

credits brought forward from any year of

assessment preceding that as from which a

separate return option becomes effective shall be

accounted for in the computation of the income

of the spouse in whose name the income derived

from the source that had given rise to the losses,

capital allowances or tax credits in question is

chargeable

Provided that any unabsorbed capital

loss that had been incurred in a transfer made by

a spouse shall be available as a deduction from

any capital gains that may be derived by that

spouse, and if the transfer had been made by the

spouses jointly, the unabsorbed capital loss shall

be available to the two spouses in proportion to

the undivided shares transferred by them

respectively.

(5) (a)

when, in the year immediately

preceding a year of assessment in respect of which a

separate return election is effective

(i) a spouse derives rental income

to which article 31D applies, that spouse

shall be deemed to have exercised the

option for the final tax as provided for in

sub-article (2) of article 31D and shall

consequently be liable for the payment of

the final tax in accordance with sub-article

(7) of article 31D; or

(ii) a spouse derives investment

income as defined in article 41(a) without

deduction of tax, that spouse shall be

required to report that income in his tax

return for the said year of assessment and to

pay tax on that income at the rate or rates

determined in accordance with article 33,

which tax shall be payable in such manner

and by not later than such time as may be

prescribed;

(b) the provisions of article 31D and the

investment income provisions shall apply

without regard to paragraph (a) if the chargeable

income of the spouse for that year of assessment,

disregarding the rental and investment income in

question, is not less than the amount on which

tax is chargeable at the rate of zero per cent (0%)

in terms of article 56(1)(b)(i).

(6) A married couple living together may

revoke a separate return election by means of a notice

in writing to the Commissioner subject to the

following conditions

(a) the notice of revocation shall be

made on such form and in such manner as may

be approved by the Commissioner and shall be

signed by both spouses; and

(b) unless the Commissioner approves

otherwise, the separate return election shall cease

to have effect as from the year of assessment

commencing on 1 January of the year

immediately following that in which the notice

of revocation is delivered to the Commissioner,

and shall not be available again to the spouses in

respect of that year or any one of the four (4)

succeeding years of assessment.".

20. Immediately after sub-article (3) of article 50 of the Amendment of

article 50 of the

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

principal Act.

"(4) The responsible spouse may not make an election

under this article for any year of assessment in respect of which

an election made by any of the spouses for a separate return for

the purposes of article 49A is effective.".

21. Sub-article (1) of article 56 of the principal Act shall be Amendment of

article 56 of the

amended as follows

principal Act.

(a)

in paragraph (a) thereof, the words "saving where

the responsible spouse" shall be substituted by the words

"saving where an election has been made for a separate return

for the purposes of article 49A or where the responsible

spouse"; and

(b) in paragraph (b) thereof, the words "including each

spouse where the responsible spouse has opted for a separate

computation for the purposes of article 50" shall be substituted

by the words "including each spouse where an election has been

made for a separate return for the purposes of article 49A or

where the responsible spouse has opted for a separate

computation for the purposes of article 50".

22. In sub-article (9) of article 90A of the principal Act, the

words "In the case of a married couple" shall be substituted by the

words "In the case of a married couple where the spouses are living

together, other than spouses in respect of whom an election for a

separate return for the purposes of article 49A is effective,".

23. Immediately after article 90A of the principal Act there

shall be added the following new article

" Tax on overtime.

90B. (1) With effect from 1 January 2020,

income derived by an individual that represents

qualifying overtime income shall be subject to tax at the

rate of 15 cents on every euro.

(2) Except where the individual deriving

qualifying overtime income elects otherwise, the tax

charged in accordance with sub-article (1) shall be final

and shall not be available as a credit or set off against

the tax liability of any person or as a refund.

(3) The Minister may, by rules, prescribe

(a)

the circumstances in which, the limits

up to which and the conditions under which,

income shall represent qualifying overtime

income for the purposes of this article; and

(b) the manner in which the election

referred to in sub-article (2) shall be exercised.".

PART IV

24. This Part amends the Immovable Property (Acquisition by

Non-Residents) Act and it shall be read and construed as one with the

Immovable Property (Acquisition by Non-Residents) Act, hereinafter

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

25. Article 2 of the principal Act shall be amended as follows: Amendment of

article 2 of the

principal Act.

(a) the definition "non-resident person" shall be

amended as follows

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

"Member State; or" shall be substituted by the

words "Member State, excluding third country

nationals holding long-term resident status in

terms of the Immigration Act and subsidiary

legislation thereof; or"; and

(ii) in paragraph (b) thereof, the words

"even in either case, if in possession of a valid

residence permit," shall be deleted;

(b)

the definition "residence permit" shall be deleted;

and

(c) in the definition "resident of Malta", immediately

after paragraph (b) thereof, there shall be added the following

new paragraph

"(c) a third country national holding long-

term resident status in terms of the Immigration

Act and subsidiary legislation thereof;".

PART V

26. 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".

27. Paragraph (d) of sub-article (2) of article 16 of the Amendment of

article 16 of the

principal Act shall be amended as follows

principal Act.

(a) immediately after the words "a serious disability"

thereof there shall be added the words "or rare disease or

disorder"; and

(b) immediately after the second proviso thereof there

shall be added the following new proviso

"Provided further that in the case of a parent

who proves to the Director that he is taking care of a child

suffering from a rare disease or disorder which affects less

than one (1) in two thousand (2,000) Maltese residents, as

certified by a medical consultant or practitioner

specialising in such field and that such condition requires

constant care and attention in a manner that such parent is

unable to maintain full-time or part-time employment,

during such period of which contribution credits are

requested, the sum total of such credited contributions that

may be awarded in respect of each and every such child

shall not exceed two hundred and eight (208) contributions

in any period of four (4) years where the parent was born

between 1 st January 1952 and 31 st December 1961, and

shall not exceed four hundred and sixteen (416)

contributions in any period of eight (8) years where the

parent was born on or after 1 st January 1962:".

28. In sub-article (2) of article 18 of the principal Act, the

words "sub-article (1) hereof," shall be substituted by the words "sub-

article (1) hereof:" and immediately thereafter there shall be added

the following new provisos

"Notwithstanding the provisions of sub-article (2), for a

person who proves to the satisfaction of the Director that he is

under ongoing treatment in or by means of the Sir Anthony

Mamo Oncology Centre, the payment of sickness benefit may be

approved by the Director for any further number of days,

including the first three (3) days of each spell of incapacity for

work, during an effective period not exceeding one (1) year from

commencement of such treatment, however such effective period

may be extended for more than one (1) year following medical

advice obtained from the Sir Anthony Mamo Oncology Centre

Furthermore, for a person who is certified by a multi-

disciplinary panel, appointed as provided by article 106, to be

suffering from Fibromyalgia or Myalgic Encephalomyelitis, and

satisfies the medical eligibility criteria, as updated from time to

time by the Ministry responsible for Health, the payment of

sickness benefit may be approved by the Director for any further

number of days, including the first three (3) days of each spell of

incapacity for work, during an effective period not exceeding the

calender year (1) in which the first claim for sickness benefit is

submitted.".

29. In paragraph (d) of sub-article (1) of article 26 of the

principal Act, the words "are satisfied." shall be substituted by the

words "are satisfied:" and immediately thereafter there shall be added

the following new provisos

"Provided that, with effect from 6 th January 2020, a

person who is awarded the highest impairment rating, as

per Impairment Tables Regulations, by the medical panel

appointed under article 106, shall be entitled to a rate

equivalent to the rate of the Increased Severe Disability

Assistance, as specified in Part III of the Sixth Schedule,

provided that the contribution conditions are specified in

article 17, are satisfied and such person has a

contribution average of not less than fifty (50)

Provided further that, in case of a person who has a

contribution average of less than fifty (50), a pro-rata

payment may be awarded as specified in item E of the

Twelfth Schedule.".

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

article 27 of the

amended as follows

principal Act.

(a) in paragraph (b) thereof, the words "or lower limbs;

and" shall be substituted by the words "or lower limbs; or";

(b) paragraph (c) thereof shall be renumbered as

paragraph (d); and

(c) immediately after paragraph (b) thereof there shall be

added the following new paragraph

"(c) is certified to be totally and permanently mute

or permanently deaf to a degree of no less than seventy

(70) decibels; and".

31. In paragraph (b) of article 31 of the principal Act, the Amendment of

words "in paragraph (a)." shall be substituted by the words "in article

principal Act.

paragraph (a):" and immediately thereafter there shall be added the

following new proviso

"Provided that, notwithstanding the provisions of

paragraphs (a) and (b), with effect from the 6 th January 2020, the

applicable additional allowance in accordance with the

provisions of item I of the Twelfth Schedule shall still be paid to

a widow or widower, even if such widow or widower is in an

insurable employment or self-occupation and such child has not

yet reached the age of eighteen (18).".

32. Article 85 of the principal Act shall be amended as

article 85 of the

principal Act.

(a)

in sub-article (6) thereof, the words "three hundred

euro (€300) per year." shall be substituted by the words "three

hundred euro (€300) per year:" and immediately thereafter there

shall be added the following new proviso

"Notwithstanding the provisions of sub-article (6),

with effect from 1st January 2020, the rate due as provided

for in sub-article (6) shall not cease to be paid even when

the person reaches the age of seventy-five (75) years."; and

(b) immediately after sub-article (6) thereof there shall

be added the following new sub-article

"(7) Subject to the provisions of this Act, with

effect from 1 st January 2020, it shall be the right of a

parent to be paid a one-time child birth or adoption bonus

of three hundred euro (€300) upon the birth of a child or in

the case of an adoption for such births or adoptions

registered with the Malta Public Registry

Provided that, any claim for child birth or

adoption bonus shall not be accepted by the Director

unless it is made by a citizen of Malta or of the European

Union or by a person married to a citizen of Malta,

provided that the parent has been an ordinarily resident of

Malta for a period of at least ten (10) years immediately

prior to the claim.".

33. The Second Schedule to the principal Act shall be

amended as follows

(a) paragraph (c) to paragraph (h) of item 4 of Part II

thereof shall be renumbered as paragraph (d) to paragraph (i)

respectively;

(b) immediately after paragraph (b) of item 4 of Part II

thereof there shall be added the following new paragraph

"(c) any Increased Severe Disability Assistance,

Severe Disability Assistance, Assistance for the Visually

Impaired and Disability Assistance being paid to one (1) of

the spouses, provided that such spouse is neither in

insurable employment nor self-occupied;";

(c)

item 6 of Part II thereof shall be substituted by the

following

"6.

Where a head of household or the spouse is in

receipt of Sickness Assistance under this Act, any increase

taking effect at any time after the 6th January, 1989, to

which they or any other member of the household (as

aforesaid in this Part) may become entitled in respect of

any pension, benefit, assistance or Supplementary

Allowance as is payable to them or to any other member of

the household under this Act during the same period within

which they are in receipt of the aforesaid Sickness

Assistance, shall not be taken into account in calculating

the means of that household for the purposes of

establishing the continued right or otherwise to such

Sickness Assistance.";

(d)

item 2 of Part IV thereof shall be amended as

follows

(i) paragraph (d) thereof shall be renumbered as

paragraph (e); and

(ii) immediately after paragraph (c) thereof there

shall be added the following new paragraph

"(d) any

Increased

Severe

Disability

Assistance, Severe Disability Assistance, Assistance

for the Visually Impaired and Disability Assistance

payable to the spouse who is not the head of

household; and"; and

(e)

in paragraph (d) of item 2 of Part VIII thereof, the

words "the Twelfth Schedule." shall be substituted by the words

"the Twelfth Schedule:" and immediately thereafter there shall

be added the following new proviso

"Provided that, the provisions of paragraph (d) do not

apply with effect from 1 st January 2020, or thereafter so

that from this date no part of such income is taken into

account.".

34. Part I of the Fifth Schedule to the principal Act shall be Amendment of

the Fifth

amended as follows

Schedule to the

principal Act.

(a)

items 10 and 11 thereof shall be renumbered as

items 12 and 13 respectively; and

(b) immediately after item 9 thereof there shall be added

the following new items

"10. Fibromyalgia

11. Myalgic Encephalomyelitis".

35. In the Seventh Schedule to the principal Act, under the

heading "Scale Rate", the words "€21.66" shall be substituted by the

words "€22.00".

36. The Twelfth Schedule to the principal Act shall be

amended as follows

(a) item E to item K thereof shall be renumbered as item

F to item L respectively; and

(b) immediately after item D thereof there shall be added

the following new item

"E.

Reduced rate of Invalidity Pension as per

provisions of article 26(1)(e) inclusive of any increases

under the provisions of article 90A, where the yearly

average of contributions paid or credited is between twenty

(20) and forty-nine (49).".

37. The Thirteenth Schedule to the principal Act shall be

amended as follows

(a)

item (6) thereof shall be renumbered as item (7); and

(b) immediately after item (5) thereof there shall be

added the following new item

"(6) Provided that, with effect from the 1 st January

2020, the pensionable income of an ex member of the

Malta Police Force, the Armed Forces of Malta, the Civil

Protection Department of Malta or of the Corradino

Correctional Facility, born before the 1 st January 1962,

who retires or has retired from the service with a full

Government pension as his main pension, on completion of

at least twenty-five (25) years of service prior to reaching

pension age and who is accordingly granted a service

pension, and who later becomes entitled to a pension in

respect of retirement or invalidity in accordance with this

Act, shall be that specified in this Thirteenth Schedule, or

the pensionable income which would have otherwise

resulted in accordance with the provisions of this Act, if

that person's last day of employment, after that person

would have accepted the arrangement to retire from

service, had been the date of retirement from the service or

the date of invalidity, whichever pensionable income is the

higher.".

PART VI

38. (1)

This Part amends the Duty on Documents and Amendments to

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

Documents and

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

"the principal Act".

(2) The provisions of this Part, except those relating to

articles which amend articles 10, 32, 35(2), 42C and 47 of the

principal Act, shall be deemed to have come into force on the 1 st

January 2020.

(3) The provisions of this Part relating to articles which

amend articles 10, 32 and 35(2) of the principal Act shall be deemed

to have come into force on the 15 th October 2019.

(4) The provisions of this Part relating to articles which

amend articles 42B, 42C and 47 of the principal Act shall be deemed

to have come into force on the 28 th June 2019.

39. In article 2 of the principal Act, in the definition Amendment of

article 2 of the

"document", the words "a banking credit card," shall be deleted.

principal Act.

40. Article 10 of the principal Act, shall be amended as Amendment of

article 10 of the

follows

principal Act.

(a)

in sub-article (1) thereof, the words "the real value at

the time of the execution of the document" shall be substituted

by the words "the real value according to the other provisions of

this Act and the rules prescribed under this Act"; and

(b) in sub-article (2) thereof, the words "pay by way of

penalty, an additional sum, equivalent to the amount of duty

calculated on the total value assessed by the Commissioner as

aforesaid." shall be substituted by the words "pay an additional

duty equivalent to twenty per centum (20%) of the amount of

duty assessed by the Commissioner as aforesaid, and interest at a

rate as prescribed by the Minister on any duty assessed by the

Commissioner.".

41. Immediately after sub-article (2) of article 22A of the Amendment of

article 22A of

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

the principal

Act.

"(3) The Commissioner shall by means of instructions

make available those forms and notices which shall be used in

terms of this Act.

(4)

The Commissioner may make available guidelines

to explain those forms and notices which shall be used in terms

of this Act and they shall be read and construed as one with the

provisions of this Act to the extent that they are not in conflict

with this Act.".

42. Immediately after sub-article (2) of article 30 of the

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

"(3) Any person who fails to comply with the provisions

of sub-article (1) shall together with the duty assessed in

accordance with this Act be liable to interest at a rate as

prescribed by the Minister.".

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

amended as follows

(a)

in paragraph (a) thereof, the words "one hundred

and fifty thousand euro (€150,000)" shall be substituted by the

words "one hundred and seventy-five thousand euro

(€175,000)" and the words "at the rate of three euro and fifty

cents per one hundred or part thereof." shall be substituted by

the words "at the rate of three euro and fifty cents (€3.50) per

one hundred euro (€100) or part thereof.";

(b) in paragraph (b) thereof, the words "one hundred

and fifty thousand euro (€150,000)" shall be substituted by the

words "one hundred and seventy-five thousand euro

(€175,000)"; and

(c)

in paragraph (c) thereof, the words "one hundred

and fifty thousand euro (€150,000)" shall be substituted by the

words "one hundred and seventy-five thousand euro

(€175,000)".

44. Article 35 of the principal Act shall be amended as

follows

(a)

in paragraph (i) of sub-article (2) thereof, the words

"one hundred and fifty thousand euro (€150,000)" shall be

substituted by the words "one hundred and seventy-five

thousand euro (€175,000)" wherever they occur;

(b) in paragraph (ii) of sub-article (2) thereof, the words

"one hundred and fifty thousand euro (€150,000)" shall be

substituted by the words "one hundred and seventy-five

thousand euro (€175,000)" wherever they occur; and

(c)

in paragraph (ii) of sub-article (4) thereof, the words

"interest at the rate of eight per centum per annum, or such rate

as may be prescribed" shall be substituted by the words "interest

at a rate as prescribed by the Minister".

45. In sub-paragraph (i) of paragraph (a) of sub-article (1) of Amendment of

article 42 of the principal Act, the words "person resident in Malta;" article

principal Act.

shall be substituted by the words "person resident in Malta:" and

immediately thereafter there shall be added the following new

proviso

"Provided that no duty shall be chargeable on such

transfers where such duty has been paid outside Malta in the

country where the transfer is executed or where the company is

registered;".

46. Article 42B of the principal Act, in its entirety, shall be Amendment of

renumbered as sub-article (1) thereof and immediately thereafter article

the principal

there shall be added the following new sub-article

Act.

"(2) The provisions of this article shall apply

mutatis mutandis to any reduction in the real value of an

interest in a partnership, and for the purposes of this

article

(a)

any reference to a "property

company" shall include a "property partnership"

as defined in article 2(1) of the Income Tax Act,

excluding the provisos of such definition; and

(b) any reference to "shares", "share

capital" and "voting rights" shall include a

partnership’s interests, capital and voting rights.".

47. In sub-article (1) of article 42C of the principal Act, the Amendment of

words "but the provisos to the said definition shall not apply." shall be article

the principal

substituted by the words "but the provisos to the said definition shall Act.

not apply:" and immediately thereafter there shall be added the

following new proviso

"Provided that upon any restructuring of

holdings through mergers, de-mergers, amalgamations

and reorganisations, no duty shall be chargeable on

(a)

the transfer by an individual of a

partnership interest, held in his own name, where

had such partnership been a company, it would

have been considered as forming part of a group

of companies, in exchange of shares in a

company or companies or interests in another

partnership or partnerships, that would have been

considered to form part of the same group had

the partnership or partnerships referred to above

been a company or companies;

(b) the exchange of a partnership interest

for shares from one company to another where

the company receiving the shares and the

company whose shares are being exchanged are

companies forming part of the same group of

companies;

(c)

the transfer of a partnership interest

for consideration from a company or partnership

to another company or partnership, where the

transferor and the transferee form part of the

same group of companies or where any or both

of them are partnerships, would have been

considered to form part of the same group if they

had been a company or companies

Provided further that where any partnership

referred to in the immediately preceding proviso is a

"property partnership", the immediately preceding

proviso shall only apply where the individual, direct or

indirect, beneficial owners of the companies referred

to in the said proviso are the same and each such

individual holds, directly or indirectly, substantially

the same percentage interest in the nominal share

capital and voting rights in each of the said companies

both before and after the transfer or exchange, as the

case may be. The provisions of article 32(6)(b) shall

apply mutatis mutandis for the purpose of making such

determination.

For the purpose of this proviso "property

partnership" shall have the same meaning assigned to

it in article 2(1) of the Income Tax Act but the provisos

to the said definition shall not apply

Provided also that the immediately

preceding proviso shall not apply, where the said

companies are, directly or indirectly, owned as to

eighty percent (80%) or more by a company whose

securities are listed on a stock exchange recognised

under the Financial Markets Act.".

48. Article 47 of the principal Act shall be amended as Amendment of

article 47 of the

principal Act.

(a)

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

following

"(1) Acquisitions or disposals for any reason

whatsoever of marketable securities or of an interest in a

partnership by the persons defined in sub-articles (3) and

(4) and trusts and fiduciary arrangements referred to in

sub-article (3)(e) shall be exempt from the provisions of

this Act.";

(b) sub-article (2) thereof shall be substituted by the

following

"(2) Acquisitions or disposals for any reason

whatsoever of marketable securities or of an interest in a

partnership issued by the persons defined in sub-articles

(3) and (4) shall be exempt from the provisions of this

Act.";

(c)

paragraph (c) of sub-article (3) thereof shall be

deleted;

(d) paragraphs (d) and (e), including the provisos to

paragraph (e) of sub-article (3) thereof, shall be substituted by

the following

"(d) companies and partnerships falling within

the scope of sub-article (4);

(e) a trust or fiduciary arrangement the income

of which qualifies for exemption in terms of article

12(1)(d) of the Income Tax Act and whose

beneficiaries consist solely of individuals who are not

resident in Malta, or a company or partnership, which

satisfies the provisions of sub-article (4)(a), where the

trustee, fiduciary, company or partnership, as the case

may be, proves to the satisfaction of the Commissioner

that the trust, fiduciary arrangement, company or

partnership carries on, or intends to carry on (within a

reasonable time frame as may be applicable), business,

or has, or intends to have (within a reasonable time

frame as may be applicable), business interests to the

extent of more than ninety percent (90%) outside

Malta, by demonstrating that it satisfies such

conditions as to the Commissioner may appear

appropriate

Provided that the holding of marketable

securities in a company or companies referred to in

paragraphs (c), (d) or (e) or holding of an interest in a

partnership referred to in paragraphs (d) or (e), as the

case may be, and the carrying on of business activities

therewith shall be deemed to constitute business

interests outside Malta

Provided further that for the purpose of

determining whether a company or partnership

referred to in article 384 of the Companies Act

satisfies the provisions of this paragraph, only such

company’s or partnership’s operations in Malta shall

be taken into consideration.";

(e) sub-articles (4), (5), (6), (7) and (8) thereof shall be

substituted by the following

"(4) A company or partnership, as the case may

be, is a company or partnership falling within sub-

article (3)(d) if

(a) in the case of a company, more than

half of the company’s ordinary share capital,

voting rights and rights to profits or in the case of

a partnership, more than half of the partnership’s

capital, voting rights and rights to profits are held

by

(i) any person who is not resident

in Malta and who is not owned and

controlled by, directly or indirectly, nor acts

on behalf of, an individual or individuals,

who are ordinarily resident and domiciled

in Malta; or

(ii) a trustee of a trust the

beneficiaries of which are all persons who

are not resident in Malta and who are not

owned and controlled by, directly or

indirectly, nor act on behalf of, an

individual or individuals, who are

ordinarily resident and domiciled in Malta;

and

(b) such company or partnership has

been determined by the Commissioner as having

the majority of its business interests outside

Malta.

(5) A company or partnership which is not

owned and controlled by, directly or indirectly, nor

acts on behalf of, an individual or individuals, who are

ordinarily resident and domiciled in Malta, shall be

deemed to fall within the ambit of sub-article (4).

(6) A company or a partnership may apply to

the Commissioner, on such form as the Commissioner

shall provide, for a determination pursuant to sub-

article (7) or sub-article (8).

(7) The Commissioner shall determine that a

company or partnership falls within sub-article (3)(d)

if, in addition to satisfying the requirements of sub-

article (4)(a) and (b)

(a) in the case of a company, more than

half of the distributable profits of the company

were allocated to the foreign income account

(within the meaning of the Income Tax Act) in

the last complete financial year of the company

or in the case of a partnership, more than half of

the profits of the partnership would have been

allocated to the foreign income account (within

the meaning of the Income Tax Act) in the last

complete financial year of the partnership, had

the partnership been a company; or

(b) none of the assets held by the

company or partnership are situated in Malta.

For this purpose, the term ''assets'' shall not

include marketable securities in companies

referred to in sub-article (3)(c), (d) and (e) or

interests in a partnership referred to in sub-article

3(d) and (e) or any other assets in Malta held by

the company or partnership for the purposes of

carrying on its business as long as the majority of

the business interests of the company or

partnership are located outside Malta.

(8) The Commissioner may, in his discretion,

determine that a company or partnership falls within

sub-article (3)(d) if it is likely that, in the case of a

company, more than half of its distributable profits

will be allocated to the foreign income account in its

first financial year or in the case of a partnership, more

than half of its profits would be allocated to the

foreign income account in its first financial year, had

the partnership been a company."; and

(f)

sub-article (10) thereof shall be substituted by the

following

"(10) The provisions of this article shall not

apply

(a) where the marketable securities or

interest in a partnership in question are held in a

"property company" or in a "property

partnership", as the case may be, as defined in

article 2(1) of the Income Tax Act; or

(b) where the said exemption arises by

virtue of sub-article (3)(d) or sub-article (3)(e),

the said marketable securities or interest in a

partnership, as the case may be, are acquired by

an individual who is ordinarily resident and

domiciled in Malta or by any other person (other

than any person referred to in sub-article (3))

who is owned or controlled, or acts on behalf of,

an individual who is ordinarily resident and

domiciled in Malta.".

49. In article 48 of the principal Act, the words "for each

omission." shall be substituted by the words "for each omission and

interest at a rate as prescribed by the Minister on any duty assessed by

the Commissioner.".

In sub-article (2) of article 51 of the principal Act, the Amendment of

words "interest at the rate of point seven per centum (0.7%) for every article

principal Act.

thirty (30) days or part thereof" shall be substituted by the words

"interest at a rate as prescribed by the Minister".

Article 52 of the principal Act shall be amended as Amendment of

article 52 of the

principal Act.

(a)

in the first proviso to paragraph (a) of sub-article (4)

thereof, the words "interest at the rate of point seven five per

centum (0.75%) for every thirty (30) days or part thereof" shall

be substituted by the words "interest at a rate as prescribed by

the Minister"; and

(b) the second proviso to paragraph (a) of sub-article (4)

thereof shall be substituted by the following

"Provided further that interest shall in no case

exceed the duty assessed by the Commissioner in respect

of each assessment.".

In sub-article (2) of article 53 of the principal Act, the Amendment of

words "shall be liable to the same penalty as would be applicable to article

principal Act.

the default" shall be substituted by the words "shall be liable to the

same penalty as would be applicable to the default together with

interest at a rate as prescribed by the Minister on any duty assessed by

the Commissioner".

Article 60A of the principal Act shall be amended as Amendment of

article 60A of

the principal

Act.

(a) in sub-article (2) thereof, the words "within fifteen

days from the date of the service" shall be substituted by the

words "within thirty (30) days from the date of the service"; and

(b) immediately after sub-article (2) thereof there shall

be added the following new sub-article

"(3) Upon the lapse of the period of two (2) days

mentioned in sub-article (2), the Commissioner shall be

entitled to register in the public registry or land registry, as

the case may be, a note of privilege for the amount

demanded in the judicial act which note of privilege shall

be registered by an advocate or notary.".

PART VII

(1)

This Part amends the Income Tax Management Act

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

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

Act".

(2)

The articles of this Part shall come into force as follows

(a) the article that amends article 5 of the principal Act

shall come into force as from 1 June 2020; and

(b) the articles that amend articles 12 and 48 of the

principal Act shall come into force as from the year of assessment

2021.

In sub-article (3) of article 5 of the principal Act, the

words "as beneficially entitled to it." shall be substituted by the words

"as beneficially entitled to it:" and immediately thereafter there shall

be added the following new proviso

"Provided that this sub-article shall only apply where the

certificate referred to herein includes the names and taxpayer

identification numbers of the person or persons for the benefit of

which the share is held and of their ultimate beneficial owners,

and any other details as the Commissioner may require.".

In paragraph (d) of sub-article (3) of article 12 of the

principal Act, the words "With respect to a married individual living

with his or her spouse" shall be substituted by the words "With

respect to a married individual living with his spouse, other than an

individual in respect of whom an election for a separate return for the

purposes of article 49A of the Income Tax Act is effective".

In the third proviso to paragraph (b) of sub-article (1) of

article 43 of the principal Act, the words "referred to in the said sub-

article." shall be substituted by the words "referred to in the said sub-

article:" and immediately thereafter, there shall be added the

following new proviso

"Provided, moreover, that notwithstanding the

foregoing provisions of this paragraph, in the case of a

transfer of securities in a property company or of an

interest in a property partnership, the provisional tax

payment shall be equivalent to such amount as may be

prescribed under this Act or under the Income Tax Act

but not exceeding thirty-five (35%) percent of the

higher of the market value and the consideration for

the transfer, and for the purpose of this proviso, the

proviso to the definition "property company" and the

proviso to the definition "property partnership" in

article 2(1) of the Income Tax Act shall be

disregarded.".

In sub-article (2B) of article 48 of the principal Act, the Amendment of

words "twelfth month" shall be substituted by the words "sixth (6th) article

principal Act.

month", wherever they occur.

PART VIII

This Part amends the Excise Duty Act and it shall be read Amendments to

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

Act.

referred to as "the principal Act".

In the Maltese version of the principal Act, the word General

"bolli" shall be substituted by the words "bolli tas-sisa", wherever it amendment

the principal

occurs, and the words "bolol" and "bolol tas-sisa" shall be substituted Act.

by the words "bolli tas-sisa", wherever they occur.

In sub-article (1) of article 10C of the principal Act, Amendment of

immediately after the words "excise duty, mentioned" there shall be article

the principal

added the words "in Part B of the Fourth Schedule and,".

Act.

In paragraph (o) of sub-article (1) of article 16 of the Amendment of

principal Act, the words "knowledge thereof," shall be substituted by article

principal Act.

the words "knowlegde thereof; or" and immediately thereafter there

shall be added the following new paragraph

"(p) stores and, or offers for sale containers of alcohol or

wine to which there is affixed an excise stamp that was already

affixed to another alcohol or wine container,".

Immediately after sub-article (2) of article 16A of the Amendment of

article 16A of

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

the principal

Act.

"(3) For the purpose of this article, the signing of this

agreement shall also mean that the person is renouncing to any

claim that he may have against the Commissioner, State

Advocate or Attorney General resulting from the case.".

The proviso to sub-article (3) of article 29A of the

principal Act shall be amended as follows

(a)

in sub-paragraph (i) thereof, the words "or in terms

of article 16A of this Act is not to" shall be substituted by the

words "or in terms of article 16A, except if it is an agreement

related to manufactured tobacco products mentioned in the

Third Schedule, shall not" and the words "five years" shall be

substituted by the words "one (1) year";

(b) in sub-paragraph (ii) thereof, the words "article 16A

of this Act" shall be substituted by the words "article 16A,

except if it is an agreement related to manufactured tobacco

products mentioned in the Third Schedule," and the words

"fifteen years" shall be substituted by the words "three (3)

years";

(c) in sub-paragraph (iii) thereof, immediately after the

words "irregularity or more thereafter," there shall be added the

words "except if it is an irregularity related to manufactured

tobacco products mentioned in the Third Schedule," and the

words "sub-article (3)." shall be substituted by the words "sub-

article (3);"; and

(d) immediately after sub-paragraph (iii) thereof there

shall be added the following new sub-paragraph

"(iv) A person who enters into an

agreement with the Commissioner under article

63 of the Customs Ordinance or article 16A

relating to manufactured tobacco products

mentioned in the Third Schedule shall not be

considered as a fit and proper person for the

purposes of this article".

The column entitled "Description of excise goods" in the

Fourth Schedule to the principal Act shall be amended as follows

(a)

immediately before the words "Leaded Petrol falling

within CN Codes 2710.12.31" thereof there shall be added a

new sub-title with the words "Part A";

(b) the words "Gas Oil falling within CN Codes" till the

words "if used for heating purposes" thereof shall be substituted

by the words "Gas Oil falling within CN Codes 2710.19.31,

2710.19.35, and CN Codes 2710.19.43 to 2710.19.48 and

2710.19.55 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";

(c) the words "Heavy fuel oil" till the words

"2710.20.39" thereof shall be substituted by the words "Heavy

fuel oil falling within CN Codes 2710.19.51, 2710.19.62 to

2710.19.68 or 27.10.20.31 to 2710.20.39";

(d) immediately before the words "Petroleum oils

falling within CN Code 2710 1971" thereof there shall be added

a new sub-title with the words "Part B";

(e)

immediately before the words "Electricity falling

under CN Code 2716" thereof there shall be added a new sub-

title with the words "Part C"; and

(f)

immediately before the words "REDUCED EXCISE

DUTY RATES" thereof there shall be added a new sub-title

with the words "Part D".

The Sixth Schedule to the principal Act, shall be amended Amendment of

the Sixth

as follows

Schedule to the

principal Act.

(a)

regulation 13 of Part A thereof shall be amended as

follows

(i) sub-regulation (3) thereof shall be substituted

by the following

"(3) When an alcohol excise stamp is lost,

stolen or for any other reason is unaccounted for, the

Commissioner may issue a replacement excise stamp

subject to the payment of a fee equivalent to the

prevailing highest excise duty at the time on a litre of

forty percent (40%) alcohol by volume bottle.";

(ii)

sub-regulations (4) and (5) thereof shall be

renumbered as sub-regulations (5) and (6)

respectively;

(iii) immediately after sub-regulation (3) thereof

there shall be added the following new sub-regulation

"(4) When a wine excise stamp is lost, stolen

or for any other reason is unaccounted for, the

Commissioner may issue a replacement excise stamp

subject to the payment of a fee equivalent to the

prevailing highest excise duty at the time on a litre

bottle of wine.";

(iv) in sub-regulation (5) thereof, as renumbered,

the word "Comptroller" shall be substituted by the word

"Commissioner"; and

(v) in the Maltese version of sub-regulation (6)

thereof, as renumbered, the word "boll" shall be substituted

by the words "bolla tas-sisa", wherever it occurs;

(b)

Part B thereof shall be amended as follows

(i) sub-regulation (1) of regulation 11 thereof

shall be substituted by the following

"(1) (a) No person may manufacture,

process, prepare for sale, expose or offer for sale, sell

or otherwise dispose of any ethyl alcohol as defined

in the Second Schedule with an actual alcoholic

strength by volume of between ten percent (10%

vol.) and twenty-four percent (24% vol.) in

containers of fifty (50) centilitres capacity or above

unless a band or an excise stamp has been affixed

thereon showing this percentage of alcohol as

indicated by the Commissioner and as provided for in

regulation 12.

(b) No person may manufacture,

process, prepare for sale, expose or offer for

sale, sell or otherwise dispose of any ethyl

alcohol as defined in the Second Schedule with

an actual alcoholic strength by volume of

twenty-five per cent (25% vol.) or more and in

containers of fifty (50) centilitres capacity or

above as indicated by the Commissioner unless

a band or an excise stamp has been affixed

thereon as provided for in regulation 12."; and

(ii) regulation 12 thereof shall be amended as

follows

(aa) sub-regulation (1)

thereof

shall

be

substituted by the following

"(1) No

containers

immediately

enclosing ethyl alcohol shall be released by

Customs or from a tax warehouse unless a band

or an excise stamp has been affixed thereon.

This band or an excise stamp shall be the

correct one as indicated by the Commissioner

and it shall be affixed in the correct manner, as

indicated by the Commissioner.";

(bb) in sub-regulation (2) thereof, the words

from "is ensured. The bands or stamps shall be

approved" till the words "notice in the Gazette." shall

be substituted by the words "is ensured:" and

immediately thereafter there shall be added the

following new proviso

"Provided that if it is not possible to affix

the band or excise stamp in this way because of

the shape of the container, the band or excise

stamp shall be affixed in any other way so long

as the destruction of the band or excise stamp is

ensured when the container is opened.";

(cc) sub-regulations (3) and (4) thereof shall

be renumbered as sub-regulations (4) and (5)

respectively;

(dd) immediately after sub-regulation (2)

thereof there shall be added the following new sub-

regulation

"(3) The bands or excise stamps shall be

approved by the Commissioner and shall be

supplied at the Custom House or at any other

place to be appointed by the Minister by means

of a notice in the Gazette."; and

(ee) in the Maltese version of sub-regulation

(5) thereof, as renumbered, the word "bolla" shall be

substituted by the words "bolla tas-sisa";

(c)

Part C thereof shall be amended as follows

(i) in the Maltese version of sub-regulation (1) of

regulation 5 thereof, and in sub-regulation (4) of regulation

6 thereof, the word "bolla" shall be substituted by the

words "bolla tas-sisa";

(ii) immediately after regulation 7 thereof there

shall be added the following new regulation

" Water-pipe

7A. No water-pipe tobacco (also

tobacco.

known as shisha tobacco) shall be placed on

the market unless the packet, box or

container immediately enclosing the water-

pipe tobacco has been sealed by a band or an

excise stamp affixed as indicated by the

Commissioner in a way so as to ensure the

destruction of the band or excise stamp upon

the opening of such packet, box or container.

(2) Such bands or excise stamps shall

be issued by the Commissioner against

payment, as may be prescribed by

regulations under the Act, on application by

the authorised warehouse keeper of water-

pipe tobacco.

(3) The said bands or excise stamps

shall be supplied at the Custom House or at

any other place to be appointed by the

Minister by means of a notice in the Gazette.

(4) The band or excise stamp shall be

affixed to the packet, box or container by not

later than five (5) days after it was bought.

(5) Any quantity of water-pipe

tobacco found in the possession of any

person in contravention of the provisions of

this regulation shall, without prejudice to

any other penalty provided for under the Act

or any other law, be forfeited to

Government."; and

(iii) in the Maltese version of sub-regulations (1)

and (2) of regulation 10 thereof, and in sub-regulation (1)

of regulation 14 thereof, the word "bolla" shall be

substituted by the words "bolla tas-sisa";

(d)

immediately after regulation 16 of Part D thereof

there shall be added the following new regulation

" Products

16A. (1) No product mentioned in Part B

mentioned in

of the Fourth Schedule shall be placed on the

Part B of the

market, unless a band or an excise stamp has

Fourth Schedule.

been affixed to the container immediately

enclosing the product, as indicated by the

Commissioner.

(2) Such bands or excise stamps shall be

issued by the Commissioner against payment, as

may be prescribed by regulations under the Act,

on application by the authorised warehouse

keeper of petroleum oils.

(3) The said bands or excise stamps shall

be supplied at the Custom House or at any other

place to be appointed by the Minister by means

of a notice in the Gazette.

(4) The band or excise stamp shall be

affixed to the container by not later than five (5)

days after it was bought.

(5) Any quantity of products mentioned in

Part B of the Fourth Schedule found in the

possession of any person in contravention of the

provisions of this regulation shall, without

prejudice to any other penalty provided for under

the Act or any other law, be forfeited to

Government."; and

(e)

in sub-regulation (1) of regulation 12 of Part F

thereof, the words "affixed with a band or stamp in a manner as

indicated by the Commissioner" shall be substituted by the

words "affixed with a band or an excise stamp. This band or

excise stamp shall be the correct one as indicated by the

Commissioner and it shall be affixed in the correct manner as

indicated by the Commissioner.".

PART IX

This Part amends the Arbitration Act and it shall be read Amendments to

and construed as one with the Arbitration Act, hereinafter in this Part the

Act.

referred to as "the principal Act".

Immediately after sub-article (2) of article 12 of the Amendment of

article 12 of the

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

principal Act.

"(3) The Centre shall be exempted from any liability for

the payment of income tax and duty on documents under any

law in force at that time.".

PART X

This Part amends the Value Added Tax Act and it shall be

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

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

In paragraph (d) of sub-article (1) of article 42 of the

principal Act, the words "together with payment of the tax due on the

return," shall be deleted.

PART XI

This Part amends the Commissioner for Revenue Act and

it shall be read and construed as one with the Commissioner for

Revenue Act, hereinafter in this Part referred to as "the principal

Immediately after article 8 of the principal Act there shall

be added the following new article

9. A document that is certified by the

Commissioner, or by a person authorised by him for

this purpose, as being a true reproduction of an

electronic copy, prepared by or under the authority of

the Commissioner, of a document that was furnished to

or issued by the Commissioner, shall be deemed for all

purposes of the law as an authentic copy of the original

document and shall constitute and be admissible as

evidence in any proceedings to the same extent as the

original.".

PART XII

This Part amends the Arbiter for Financial Services Act

and it shall be read and construed as one with the Arbiter for

Financial Services Act, hereinafter in this Part referred to as "the

principal Act".

Immediately after the first proviso to article 20A of the

principal Act there shall be added the following new proviso

"Provided further that the holder of the office of Arbiter for

Financial Services shall be eligible to receive the pension

referred to herein, if the holder of such office is compelled to

discontinue in office due to serious medical reasons, even if the

said individual has not served a full term of office:".

In paragraph (d) of sub-article (2) of article 25 of the Amendment of

25 of the

principal Act, immediately after the words "courier service" there article

principal Act.

shall be added the words "or by electronic means".

PART XIII

Amendments to Subsidiary Legislation

The Fees for the Refund of Deposits Regulations are Repeal of the

Fees for the

hereby repealed.

Refund of

Deposits

Regulations.

Immediately after regulation 17 of the Customs Addition of new

regulation 17A

Regulations there shall be added the following new regulation

to the Customs

Regulations.

17A. (1)

There shall be paid to the

" Fee that shall be

paid to the

Comptroller of Customs a fee of fifteen euro (€15) for

Comptroller of

Customs.

every refund made by the Comptroller of Customs to

the importer in the circumstances mentioned in the

first proviso to article 62A of the Customs Ordinance.

(2) The fee provided for in sub-regulation (1)

shall be deducted from the amount to be refunded at

the time of the refund.".

In regulation 24 of the Customs Regulations, the words Amendment of

"dutiable goods:" shall be substituted by the words "dutiable goods." regulation

24 of

the Customs

and the proviso thereafter shall be deleted.

Regulations.

In the Maltese version of sub-regulation (2) of regulation 2 Amendment of

of the Certain Powers of Officers of Customs Regulations, the words regulation

2 of

the Certain

"Dwana ta’ Malta" shall be substituted by the word "Dwana".

Powers of

Officers of

Customs

Regulations.

(1)

In regulation 2 of the Excise Duty (Goods Amendment of

Imported by Persons Travelling from Third Countries) Regulations, regulation

2 of

the Excise Duty

in paragraph (b) of the definition "territory where the Community (Goods

Imported by

provisions on excise duty do not apply", the words "Livigno, Persons

Campione d’Italia and the Italian waters of Lake Lugano;" shall be Travelling

from

Third Countries)

substituted by the word "Livigno;".

Regulations.

(2)

This article shall come into force on the 1st January 2020.

Immediately after regulation 6 of the Excise Duty (Goods

Imported by Persons Travelling from Third Countries) Regulations,

there shall be added the following new regulation

" Exemption from

6A. (1)

The importation of goods, other

excise duty.

than the goods mentioned in regulations 7, 8 and 10,

the total value of which does not exceed four hundred

and thirty euro (€430) per person, shall be exempt

from excise duty.

(2) For the purposes of applying the monetary

thresholds, the value of an individual item of goods

shall not be split up.

(3) The value of the personal luggage of a

traveller, which is imported temporarily or is re-

imported following its temporary export, and the value

of medicinal products required to meet the personal

needs of a traveller shall not be taken into

consideration for the purposes of applying the

exemptions referred to in sub-regulation (1).".

Immediately after regulation 11 of the Excise Duty

(Goods Imported by Persons Travelling from Third Countries)

Regulations there shall be added the following new regulation

" Application of

12. The value of goods referred to in regulations

the exemption

7, 8 or 10 shall not be taken into consideration for the

from excise duty.

purposes of applying the exemption from excise duty

provided for in regulation 6A.".

PART XIV

AMENDMENTS TO VARIOUS LAWS ON

ATTACHMENT ORDERS

In sub-article (11) of article 24A of the Dangerous Drugs

Ordinance, the words "on the expiration of forty-five days" shall be

substituted by the words "on the expiration of six (6) months" and in

the proviso thereof, the words "the said period of forty-five days" shall

be substituted by the words "the said period of six (6) months".

In sub-article (5) of article 17A of the Malta Financial

Services Authority Act, the words "on the expiration of thirty days"

shall be substituted by the words "on the expiration of six (6) months"

and in the proviso thereof, the words "the said period of thirty days"

shall be substituted by the words "the said period of six (6) months".

In sub-article (11) of article 4 of the Prevention of Money Amendment of

4 of the

Laundering Act, the words "on the expiration of forty-five days" shall article

Prevention of

be substituted by the words "on the expiration of six (6) months" and Money

Laundering Act.

the words "another forty-five days" shall be substituted by the words Cap. 373.

"another six (6) months".

The provisions of this Part shall apply to any orders which Transitory

are in force at the time when the provisions of this Part come into Provision.

force.

Passed by the House of Representatives at Sitting No. 310 of the

16th March, 2020.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€3.60