DUTY ON DOCUMENTS AND TRANSFERS ACT

DUTY ON DOCUMENTS AND TRANSFERS

CHAPTER 364

DUTY ON DOCUMENTS AND TRANSFERS ACT

To provide in place of the Duty on Documents Act for the imposition of duty on certain

documents and transfers.

25th November, 1992;

16th July, 1993

ACT XVII of 1993, as amended by Acts: X and XVI of 1994, XXV of 1995, I of 1998, IX of

1999, XI of 2000, IV and VI of 2001, II of 2002, II of 2003, II and XIII of 2004, II of 2005 and

II of 2006; Legal Notice 181 of 2006; Acts IV and XV of 2007; Legal Notice 425 of 2007; Acts

XIII and XXXII of 2007; Legal Notices 105 of 2008 and 245 of 2009; Acts II of 2009, I and

XIX of 2010, IV, XXIV and XXII of 2011, and V of 2012; Legal Notice 218 of 2012; Acts III of

2013, XII of 2014, XIII of 2015, and XV and XLVIII of 2016; Legal Notice 224 of 2016, XVI of

2017, VII of 2018 and Act VIII and XXVII of 2020 , VIII, XVIII of 2021, VII of 2022 and XXVII

and XXXV of 2023 , XIII of 2024 and IX and XXX of 2025.

The short title of this Act is the Duty on Documents and

Transfers Act.

(Articles 3 and 22)

Service

Fee

For the correction of a promise of sale

€5.00

For every copy of the promise of sale agreement

€10.00

In this Act, unless the context otherwise requires -

"body of persons" includes any company, partnership, fellowship,

society of persons, or other association of persons, whether corporate

or unincorporate, and whether vested with legal personality or not;

"cohabitant" means a person in a cohabitation enrolled by means of

a public deed under the Cohabitation Act;

"Commissioner" means the Commissioner for Tax and Customs;

"company" has the same meaning assigned to it in article 2(1) of the

Income Tax Act;

"court" means any of the courts mentioned in articles 3 and 4 of

the Code of Organization and Civil Procedure and any board or

tribunal established by law;

"decuius" means any individual from whom a transfer causa

mortis originates;

"document" includes a policy of insurance, a bill of sale, a notarial

deed, a schedule of redemption of ground rent filed in court, and a

judgment, decree or order of any court or other lawful authority

whereby any immovable or any real right over an immovable is

transferred;

"duty" means the duty imposed by this Act;

"immovable things" has the meaning assigned to it in article 311

of the Civil Code;

"insurance" does not include re-insurance, and expressions

which are derivatives thereof or related thereto shall be construed

accordingly;

"Malta" has the same meaning as is assigned to it by article 124

of the Constitution of Malta;

"marketable security" shall mean a holding of share capital in any

company and any document representing the same;

"Minister" means the Minister responsible for finance;

"partnership" means

(a) any partnership constituted under the Companies Act

or under the Commercial Partnerships Ordinance,

being either a commercial partnership en nom collectif

or commercial partnership en commandite the capital

of which is not divided into shares or any other

partnership having a legal personality distinct from

that of its members constituted, incorporated or

registered under any other law in force in Malta;

(b) any body of persons constituted, incorporated or

registered outside Malta, and of a nature similar to the

aforesaid partnerships;

"person" includes a body of persons;

"policy of life insurance" means a policy of insurance upon any

life or lives or upon any event or contingency relating to or

depending on any life or lives other than a policy of insurance for

any payment agreed to be made upon the death of any person only

from accident or violence or otherwise than from a natural cause;

"prescribed" means prescribed by regulations under this Act;

"resident in Malta" has the same meaning assigned to it in article

2 of the Income Tax Act;

"signature" includes any mark or declaration made in lieu of a

signature;

"spouse" includes a partner registered as being in a civil union;

"transfer" includes any assignment, conveyance, sale, partition,

donation, settlement of dowry, sale by instalments, redemption of

ground rent and any acquisition under any other title, including a

declaratory public deed as is referred to in article 371(4) and

354(3) of the Companies Act, and any occurrence that is deemed to

be a transfer in accordance with the provisions of article 42B, and

for the avoidance of doubt includes any transfer of an asset by a

company to its shareholders, or by a partnership to its members, in the

course of winding up the company or partnership or in the course of a

distribution of assets to its shareholders or members pursuant to a

scheme of distribution, but, except where specifically provided in

this Act, does not include any transfer causa mortis;

" Tr i b u n a l " m e a n s t h e A d m i n i s t r a t i v e R e v i e w Tr i b u n a l

established by article 5 of the Administrative Justice Act;

"usufruct" includes the right of use, the right of habitation and

any other similar or analogous right of enjoyment.

PART II

General Provisions

(1) There shall be levied by the Commissioner on account

of the Government, the duty specified in this Act in accordance

with the provisions contained in this Act.

(2) The duty chargeable under this Act shall be applied

according to the intrinsic nature and effects of the transaction to

which it refers even where the apparent title or form does not

correspond to such nature or effect.

(3) Where a transaction which reduces or would reduce the

amount of duty payable under this Act is artificial or fictitious or

has not in fact been given effect to, the Commissioner may

disregard any such transaction and shall determine the duty in

accordance with sub-article (2).

(4) Where any person, as a direct or indirect result of any

scheme of which the sole or main purpose was the obtaining of any

advantage which has the effect of avoiding, reducing or postponing

liability to duty, or of obtaining any refund of duty, has obtained or

is in a position to obtain such an advantage, the Commissioner shall

determine the duty in accordance with sub-article (2).

(5) In this article "scheme" includes any disposition,

agreement, arrangement, trust, grant, covenant, transfer of assets,

increase in the share capital of a limited liability company and

alienation of property, whatsoever.

(6) Notwithstanding the provisions of any other law a promise

of sale or of a transfer of immovable property or any real right

thereon shall not be valid unless notice thereof is given to the

Commissioner within such time and in such manner, and containing

such particulars, as may be prescribed. Such notification shall be

accompanied by a provisional payment equivalent to twenty per

centum of the amount chargeable in terms of articles 32 and 40

Provided that for the purpose of this sub-article the amount

so chargeable shall be deemed provisionally to be the amount

determinable by reference to the information available at the time

of the conclusion of the promise of sale or of a transfer and shall

not in any way be construed as relevant to the determination of the

a c t u a l a m o u n t c h a rg e a b l e o n t h e d o c u m e n t o f t r a n s f e r i n

a ccordance with the other pro vi sio n s o f t hi s Act a nd r u le s

prescribed under this Act.

(7) Corrections and copies of the promise of sale shall be

subject to fees in accordance with the Schedule.

Subject to the provisions of Part III, Title I of this Act, a

document subject to duty under this Act, shall become so subject

either from its origin if it is executed in Malta or by reason of its

use if it is executed outside Malta.

(1) Payment of duty in respect of any document or transfer

executed in Malta shall be made at such place and in such manner,

evidenced in such manner and effected within such term as may be

prescribed.

(2) In the case of documents executed outside Malta which are

liable to duty by reason of their use in Malta according to the

provisions of this Act, the duty shall be paid before use thereof is

made in Malta and shall be made in such place and in such manner,

and shall be evidenced in such manner as may be prescribed.

(3)

For the purposes of this article -

(a) where a document has to be signed by two or more

persons, it shall be deemed to be complete with the

signature of the person by whom it is last signed;

(b) a notarial deed shall be deemed to be complete when it

is signed by the notary by whom it is published;

(c) a schedule of redemption of ground-rent shall be

deemed to be complete when it is filed in court.

(1) Subject to the provisions of Part III, Title I of this Act,

a document executed outside Malta shall be chargeable with duty

when use thereof is made in Malta, if such document would have

been so chargeable according to the provisions of this Act, had it

been executed in Malta.

(2) For the purposes of this article, a document executed

outside Malta is deemed to be made use of in Malta, where it is

produced before a court, arbitrator or referee as evidence or is

produced before any person or authority in Malta for its

enforcement or registration.

Every document mentioned in this Act shall be preserved

by the owner thereof for at least four years after the day on which

duty thereon has or ought to have been paid, and any person who

destroys or mislays or fails to produce any such document before

the lapse of the said period shall be liable to the same penalty as if

the duty had not been paid.

Saving any other provision of law, if a document contains

or relates to several distinct matters, it shall be separately and

distinctly charged as if it were a separate document in respect of

each of such matters.

(1) Where in a document charged with ad valorem duty the

real value is not ascertainable from the document itself or from any

other document annexed to it, or referred to in it, the parties shall

make a declaration of such value according to their estimation and

the duty shall be charged and paid on the real value so declared.

(2) In a document of transfer of rural property, or land, or the

roof or airspace overlying urban property, the parties shall make a

declaration stating whether any construction exists on the property

on the date of the transfer and, where such construction exists, a

description thereof, and for this purpose ''construction'' includes

any improvements and any works in progress.

(3) A person who fails to make the declaration required under

sub-article (2) or who makes a declaration for the purpose of that

sub-article which he knows to be false or incomplete or misleading

shall be guilty of an offence and shall, on conviction, be liable to a

fine (multa) of not less than five hundred euro (€500) and not more

than three thousand euro (€3,000), or to imprisonment for a period

not exceeding six (6) months or to both such fine and imprisonment

in addition to any additional duty and liability to which he may be

liable in terms of any other provision of this Act.

* (1) Saving the provisions of article 52, where in the

opinion of the Commissioner the value expressed or declared in a

document is lower than the real value according to the other

provisions of this Act and the rules prescribed under this Act, he shall

proceed to determine by order in writing the amount of the duty

chargeable and shall raise an assessment accordingly.

(2) Where the value assessed by the Commissioner as aforesaid

exceeds the value expressed or declared in the document by more

than fifteen per centum of the value assessed by the Commissioner,

t he p e r s on l i a bl e to p a y d ut y s h a ll , i n a d di t io n to t h e d ut y

chargeable in accordance with sub-article (1), 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.

Any notary who receives any deed which does not contain

a declaration of value or of a description of the property, where this

is required under article 9, or who fails to warn the parties

particularly as to the importance of the truthfulness of such

declaration or to record in the deed that he has complied with such

requirement, shall be guilty of an offence under this Act, and shall

on conviction be liable to a fine (ammenda) of not less than eleven

euro (11) and not more than fifty-eight euro (58) and to the

payment of the duty due, to be assessed by the court, if necessary

with the assistance of referees, at the expense of the notary, saving

the latter’s right to recover the amount paid by him in respect of

duty from any other person liable for the payment of the duty

Provided that prosecution under this article shall only be

commenced at the instance of the Commissioner, and that no such

prosecution shall take place where the notary, upon a notice in

writing by the Commissioner, admits liability to pay such penalty

and such duty as may be declared to be due by the Commissioner,

in which case such penalty and duty shall be due by the notary to

the Commissioner as a civil debt.

The Minister may by rules prescribe the manner in which

the value of property or of the consideration for a transfer is to be

assessed for the purposes of the payment of duty calculated ad

valorem.

A document subject to duty under this Act and on which

duty has not been paid shall not, except in criminal proceedings, be

admitted in evidence before any court, arbitrator or referee.

(1) Where the production of a document has not been

allowed in terms of article 13, the Registrar of the Courts, the

arbitrator or the referee as the case may be, shall draw the attention

of the person intending to produce the document in evidence to the

fact that duty on such document has not been paid, and shall within

two days report this fact to the Commissioner.

(2) If any such officer or person fails to make such report, he

shall be liable to a penalty of not less than eleven euro (11) and not

more than fifty-eight euro (58).

*See article 69(6) of the Act as originally enacted, which sub-article has been omitted

under the Statute Law Revision Act, 1980.

(1) The payment of any penalty imposed under the

provisions of this Act shall not relieve any person liable to pay duty

under this Act from any obligation to pay any such duty or such

part thereof as may still be due.

(2) The payment of any duty shall not relieve any person from

any liability for any default for which a penalty could have been

imposed upon him in accordance with the provisions of this Act at

the time the duty was paid.

(1) Save as otherwise expressly provided, all penalties

which may be imposed under this Act shall be imposed by the

Commissioner and shall be paid to him, and all actions for the

recovery of any duty due and of any penalty incurred under this Act

shall be brought by the Commissioner before the courts of civil

jurisdiction, and the provisions of article 60A shall apply with regard

to any such penalty or duty.

(2) No proceedings, however, shall be instituted against any

defaulter who, within fifteen days from an intimation to that effect

made to him by the Commissioner, pays the duty due on the

document together with the minimum of the penalty due in

accordance with the provisions of this Act.

(3) The provisions of sub-article (2) shall not be applicable in

the cases to which the proviso to article 11 applies; or where, in the

opinion of the Commissioner, the default would not be adequately

punished by the application of the penalty in its minimum.

Saving the cases where a longer period of prescription

applies, criminal actions for offences under this Act is barred by

the lapse of five years.

Save as otherwise expressly provided, the action for the

recovery of any penalty imposed by virtue of this Act may not be

brought after the lapse of five years from the day on which the

default occurs or from the day of the receipt by the Commissioner

of the notice referred to in article 51, whichever is the later

Provided that no use shall be made of any document on

which duty chargeable under this Act has not been fully paid.

(1) Where the Commissioner, or any officer authorised by

him in writing, suspects that this Act has not been complied with in

respect of a document, he shall have the power to require any

person holding such document to produce it for the purposes of

verifying that this Act has been complied with in respect of such

document, and may, unless such document is a notarial public deed,

seize the document if there are reasonable grounds for it to appear

to him that the provisions of this Act have not been complied with

in respect of that document.

(2) Where the Commissioner, or any officer authorised by him

in writing, suspects that assets have been undervalued for the

purposes of the application of this Act, he or any architect or

surveyor authorised by him shall have full and free access to all

buildings or places to the extent that such access is likely to assist

him in determining the value of the said assets, but shall not have

any power to seize any item or remove it from the premises.

(3) If access to any of the premises referred to in the previous

sub-article requires access to premises occupied in whole or in part

for the purposes of habitation, such access shall not take place

between seven o’clock in the evening and nine o’clock in the

morning.

(4) The examination of notarial acts 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 to the Commissioner of any offence against this

Act which may come to its notice during such examination

Provided that such court may delegate the Chief Notary to

Government to examine in its name any wills, and it may delegate a

review officer appointed in terms of article 94A of the Notarial

Profession and Notarial Archives Act to examine in its name any

other notarial act to the exclusion of those published in terms of

Part IIIA of the said Act

Provided further that the provisions of this sub-article shall

not preclude any officer as is referred to in sub-article (1) from

inspecting inter vivos acts (to the exclusion of those published in

terms of Part IIIA of the said Act) at the premises or elsewhere of a

notary for the purpose of ascertaining compliance with this Act.

(5) In the exercise of the powers under this article, any

architect or surveyor referred to in sub-article (2) may not inspect

any document or other record whatsoever, and the Commissioner,

or any person authorised by him as aforesaid, may not inspect any

document, or other record which is protected by the duty of

professional secrecy, or listen to any conversation or recording

device 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. The Commissioner or his duly authorised officer may

require the holder of a document protected by professional secrecy

to communicate to him an abstract of the document so as to remove

references to any information protected by professional secrecy. If

such abstract does not enable the Commissioner or his duly

authorised officer to decide whether all the provisions of this Act

have been complied with in respect of such document, the matter

shall be referred to the competent Court of Voluntary Jurisdiction

which shall have the power to order the production of such

document before it by any person, and which shall make a report to

the Commissioner of any failure to comply with this Act which

comes to its notice during such, examination.

(6) Except as may be necessary for the purpose of this Act or

where the Commissioner otherwise directs, every person having an

official duty or being employed in the administration of this Act,

shall be bound by the duty of professional secrecy in respect of

anything which may come to his knowledge in the course of the

exercise of his powers under this Act and shall not disclose the

result thereof except to any authority competent in relation to the

collection of duty under this Act or for the purpose, or in the course

of an investigation or a prosecution for any offence committed

against the provisions of this Act, or in the course of an

investigation or prosecution for any relevant offence, or during any

judicial or quasi-judicial proceedings when ordered by a court or

tribunal to disclose information. Any such officer who otherwise

discloses such result shall be guilty of an offence and shall, on

conviction, be liable to a fine (multa) of not less than two hundred

and thirty euro (€230) and not more than two thousand and three

hundred euro (€2,300), or to imprisonment for a period not

exceeding six (6) months, or to both such fine ( multa) and

imprisonment.

For the purposes of this sub-article, "relevant offence" means a

criminal offence, not being one of an involuntary nature, consisting of

any act or omission which if committed in Malta, or in corresponding

circumstances, would constitute an offence liable to the punishment of

imprisonment or of detention for a term of one (1) year or more.

(7) Saving any provision of the Criminal Code, where the fact

constitutes a crime liable to a higher punishment, any person who

prevents or obstructs the said officer, architect or surveyor in the

execution of his duties under sub-article (2), or refuses to comply

with any request made by such officer in accordance with the

provisions of this article, shall, on conviction, be liable to a fine

(multa) not exceeding one hundred and fifteen euro (115) or to

imprisonment for a term not exceeding six months or to both such

fine and imprisonment.

(1) If any person -

(a) forges any die, mark or any other instrument used by

the Government or under its authority, to denote the

payment of duty; or

(b) sells or offers for sale, utters or makes use of any

forged die, mark, instrument used by the Government

or under its authority, to denote the payment of duty, or

any impression thereof, knowing the same to be

forged; or

(c) knowingly and without lawful excuse (the proof

whereof shall lie on the accused) keeps in his

possession any forged die, or mark or instrument used

by the Government or under its authority, to denote the

payment of duty, or any impression thereof,

he shall be liable to imprisonment from thirteen months to three

years.

(2) The same punishment established in sub-article (1) shall

apply to any person who without lawful authority makes use of any

genuine die, mark or other instrument used by the Government or

under its authority to denote the payment of duty.

In the crimes referred to in article 20, any of the offenders

who shall, prior to the commencement of any proceedings, give

information thereof to the Commissioner of Police or other

competent authorities shall be exempted from punishment.

(1) The Minister may make regulations for securing the

payment of duty and generally for giving effect to the provisions of

this Act, and in particular, but without prejudice to the generality of

the foregoing -

(a) for regulating the payment of duty on any category of

documents otherwise than at the office of the

Commissioner;

(b) for ordering the registration or the giving of a notice of

any class of documents chargeable with duty, and for

prescribing the form of such registration or notice, the

time within which such registration or notice must be

given, the persons bound to make or give the same, the

office in or to which the registration or notice is to be

made or given and the civil effects and sanctions

consequent upon the default of such registration or

notice;

(c) for regulating the manner in which duty on any

particular category of documents is to be denoted;

(ca) for extending all or part of the provisions of this Act,

including any regulations thereunder to any exclusive

economic zone area or environment protection area as

defined in the Exclusive Economic Zone Act and

making, amending, substituting or repealing rules or

regulations, prescribing or otherwise providing for

matters contemplated under this Act, in respect of such

areas;

(d) for prescribing anything that may be prescribed in

accordance with the provisions of this Act.

(2) The regulations may provide for the imposition of a penalty

of not more than two thousand and three hundred euro (€2,300) for

any failure to comply therewith, which penalty shall be recoverable

as is provided in article 16.

(3) * Until such time as regulations are made under this Act,

regulations made under the Duty on Documents Act or any law

saved thereunder, shall, where applicable be deemed to have been

made under this Act.

(1) The Minister responsible for finance may from time to

time make rules generally for carrying out the provisions of this Act and

for such matters as are authorised by this Act to be prescribed.

(2) Any guidelines, explanations or instructions relating to this Act

or of the rules referred to in sub-article (1) contained in a publication or

circular published by or under the authority of the Commissioner and

distributed or made available to persons in general, shall be read and

construed as one with such rules and shall have the same effect as the

rules to the extent that such guidelines, explanations or instructions are

not in conflict with this Act on the said rules or with guidelines,

*Article 68(2) of the Act as originally enacted.

explanations or instructions published at a later date and to the extent

that -

(a) they give a definition of any term or an interpretation of

any provision contained in this Act or the rules;

(b) they determine the manner in which any provision of this

Act or the rules is to be applied;

(c) they determine any matter which in accordance with this

Act or the rules may be determined by or is subject to the

approval or the discretion of the Commissioner.

(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.

(1) The Minister may by order direct that a specified

document or transfer chargeable with duty under this Act be

exempt from duty in whole or in part.

(2) * Any exemptions granted under the provisions of the Duty

on Documents Act and of the Stamp Duties Ordinance, repealed by

the said Act, shall be deemed to have been granted by the Minister

under the powers vested in him by sub-article (1).

Repealed by Act II.2003.32.

PART III

Documents chargeable with Duty on their Origin

TITLE I

Insurance Policies

Notwithstanding the provisions of any other article in this

Act, including articles 4 and 6, there shall be charged on any policy

of life insurance which is not renewable every year, wherever such

policy is executed or used, a duty of ten cents for every one

hundred euro or part thereof of the sum assured

Provided that duty under this article shall only be

chargeable on policies where the policyholder is resident in Malta,

or in the case where the policy holder is a legal person, where such

policy holder is incorporated or otherwise created in Malta

*Article 68(1) of the Act as originally enacted.

Provided further that persons referred to in article 47(3)

shall in no case be deemed to constitute persons referred to in the

first proviso of this article

Provided further that no duty shall be charged where

(i)

the policy holder is a legal person which is

incorporated or otherwise created in Malta, and

(ii) the said legal person holds the policy in the

capacity of a trustee or other fiduciary, and

(iii) the life assured and persons who can benefit

under the policy are all not resident in Malta,

and

(iv)

such trust or other fiduciary arrangement is

exempt under the provisions of article 12(1)(d)

of the Income Tax Act.

For the purpose of this article, the term ‘sum assured’ shall

refer to the fixed guaranteed amount payable by the insurer under

the policy on the death of the life assured

Provided that where the sum assured of a linked, long term

policy of insurance is a variable figure up to a maximum amount

and by reference to a percentage of the value of underlying assets

linked to such policy, the duty chargeable shall be calculated on the

maximum possible amount payable on maturity or surrender of

such policy but after first deducting the amount to be invested by

the policyholder through the payment of premium at the time of

issuance of the policy.

Notwithstanding the provisions of any other article in this

Act, including articles 4 and 6, there shall be charged on every

policy of life insurance, wherever such policy is executed or used

and in respect of which article 25 does not make specific provision,

a duty of ten cents for every euro or part thereof of the agreed

yearly premium

Provided that -

(a) the minimum duty chargeable under this article shall

be eleven euro and sixty-five cents (€11.65);

(b) where the premium payable is less than eleven euro

and sixty-five cents (€11.65), the minimum duty

chargeable shall be reduced to ten per centum of the

amount of premium so payable

Provided that the provisos to article 25 shall mutatis mutandis apply

to this article.

26. Repealed by: I.1998.3.

Notwithstanding the provisions of any other article in this

Act, including articles 4 and 6, there shall be charged on every

policy of insurance, wherever such policy is executed or used and

in respect of which articles 25 and 25A do not make specific

provision, a duty of eleven cents for every euro or part thereof of

the agreed yearly premium, or, if a compounded premium is agreed

upon as a lump sum payment, or a once only premium is otherwise

payable, then of that agreed consideration

Provided that -

(a) the minimum duty chargeable under this article shall

be thirteen euro (€13);

(b) where the premium payable is less than thirteen euro

(€13), the minimum duty chargeable shall be reduced

to eleven per centum of the amount of premium so

payable;

(c) no duty shall be chargeable on any policies of

insurance in respect of Aviation, Marine Cargo,

Marine Hull or Boat, Credit and Suretyship, and

Medical Cover;

(d) duty under this article shall only be chargeable on

policies relating to risks referred to in the definition of

the term "risk situated in Malta" contained in article

2(1) of the Insurance Business Act;

(e) persons referred to in article 47(3) shall in no case be

deemed to constitute persons as referred to in

paragraph (d) of the definition of "risk situated in

Malta" in the said article 2(1) of the Insurance

Business Act.

(1) Any endorsement of an insurance policy shall be

c h a rg e a b l e w i t h d u t y a s a n e w p o l i c y i f t h e e ff e c t o f t h e

endorsement is to make any alteration in the policy relating to -

(a) the person or thing insured; or

(b) the risks insured; or

(c) the duration of the policy.

(2) Where an endorsement increases the amount of the

insurance or of the premium, duty shall be payable on such policy

as endorsed but allowance shall be made for any duty paid in

respect of the policy.

(3) There shall be charged on endorsements of policies for

which provision is not made under sub-article (1) or (2), a duty of

two euro and thirty-three cents (2.33).

Any person who -

(a) becomes an insurer upon any insurance mentioned in

the foregoing articles, or in the capacity of insurer

enters into any contract for any such insurance, or

directly or indirectly receives, or contracts or takes

credit on account of any premium or consideration for

any such insurance, or knowingly takes upon himself

any risk or renders himself liable to pay, or pays, any

sum of money upon any loss, peril or contingency

relative to any such insurance, unless the insurance is

expressed in a policy of insurance; or

(b) in the capacity of insured, makes or effects or

knowingly procures to be made or effected, any

insurance under the foregoing articles, or directly or

indirectly gives or pays, or renders himself liable to

pay, any premium or consideration for any such

insurance, or enters into any contract for any such

insurance, unless the insurance is expressed in a policy

of insurance; or

(c) is concerned in any fraudulent contrivance or device,

or is guilty of any wilful act, neglect or omission, with

intent to evade the duties payable on policies of

insurance, or whereby the duties may be evaded

wholly or in part,

shall for every such offence, be liable to a penalty of not less than

twenty-three euro (23) but not exceeding two hundred and thirty

euro (230).

(1) Any person issuing or signing any policy of insurance

referred to in the foregoing articles, shall pay duty thereon in

accordance with the provisions of this Act or of any regulations

made thereunder.

(2) Any person who fails to comply with the provisions of sub-

article (1) shall be liable to pay a penalty of not less than twenty-

three euro (23) but not exceeding two hundred and thirty euro

(230).

(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.

Any person who makes or issues or causes to be made or

issued any document purporting to be a copy of a policy of

insurance chargeable with duty where there is not, at the time, in

existence, such a policy, shall, in addition to any other penalty to

which he may be liable, be liable to a penalty of not less than

twenty-three euro (23) but not exceeding two hundred and thirty

euro (230).

TITLE II

Sales and Other Transfers

(1) There shall be charged on every document and on

every judgment, decree or order of any court or other lawful

authority, whereby any immovable or any real right over an

immovable is transferred to any person, and on every declaration

made in accordance with article 33 in respect of persons from

whom the transfer causa mortis originates who died on or after the

23rd November, 1999, a duty of five euro (5.00) for every one

hundred euro (100) or part thereof of the amount or value of the

consideration for the transfer of such thing or of the value of such

thing, whichever is the higher.

(2)

Repealed by XI.2000.23.

(3) Notwithstanding any other provision of this Act, no duty

s h a ll b e ch a rg e d o n t h e t r a n s f e r o f i m m o v a b l e p r o p e r ty o r

marketable securities

(i)

between persons who are, or were formerly, married to

each other, when such assets are assigned between

them consequent to a consensual or judicial separation

or to a divorce between such persons

Provided that in such circumstances, the term

"immovable property" shall also include immovable

property owned by a company which is fully owned by

any or both spouses; or

(ii) between persons who are, or were formerly married to

each other, on the dissolution of the community of

acquests existing between them; or

(iii) between persons who are married to each other,

whether the community of acquests exists between

them or otherwise, on any transfer inter vivos of the

ordinary residence or part thereof, of any or both of the

spouses; or

(iv) on the death of one spouse, on any partition of any

property held in common between spouses, whether it is

community property or otherwise, between the surviving

spouse and the heirs of the deceased spouse; or

(v) between cohabitants whose cohabitation is enrolled by

2020. means of a public deed under the Cohabitation Act,

2020, when such assets are assigned between them

consequent to the dissolution of the cohabitation

Provided that in such circumstances, the term

"immovable property" shall also include immovable

property owned by a company which is fully owned by

any or both said cohabitants;

(vi) between cohabitants whose cohabitation is enrolled by

2020. means of a public deed under the Cohabitation Act,

2020, on the dissolution of the community between

said cohabitants;

(vii) between cohabitants whose cohabitation is enrolled by

2020. means of the public deed under the Cohabitation Act,

2020, whether the community of assets exists between

DUTY ON DOCUMENTS AND TRANSFERS

them or otherwise, on any transfer inter vivos of the

cohabitation home or part thereof, of any or both of the

cohabitants; or

(viii) on the death of one of the cohabitants, whose

2020. cohabitation is enrolled by means of a public deed under

the Cohabitation Act, 2020, on any partition of any

property held in common between the cohabitants,

whether it is the community property or otherwise,

between the surviving cohabitant and the heirs of the

deceased cohabitant.

(4)

(a) Subject to the provisions of paragraphs (b) and (d), in

the case of a person who does not require a permit by

th e Mini st er f or the p urp oses o f t he Imm ovabl e

Property (Acquisition by Non-Residents) Act and who

acquires, inter vivos, any immovable property or any

r e a l r i g h t o v e r s u c h p r op e r t y f o r t h e p u r p o s e o f

establishing therein or constructing thereon his sole,

ordinary residence, or who redeems any groundrent or

other burthen imposed on any such property acquired

by him by any title inter vivos, duty under this Title in

respect of the first two hundred thousand euro

(€200,000) or such greater amount as may be

prescribed, 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, shall be charged at the

rate of three euro and fifty cents (€3.50) per one hundred

euro (€100) or part thereof.

Provided that this paragraph shall not apply to a person who

would have required a permit by the Minister for the purposes of

the Immovable Property (Acquisition by Non-Residents) Act had

the property acquired not been situated in a special designated area.

(b) Where such residence is acquired by an emphyteutical

or sub-emphyteutical 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 two

hundred thousand euro (€200,000), 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.

(c) Where such property is not fully acquired by such

person the amount of the value that shall be charged at

the rates specified in this sub-article shall be such

amount as is proportionate to two hundred thousand

euro (€200,000) or the value of the property (whichever

is the less) as the proportion of the share so acquired

by such person is to the whole.

(d) Duty relief provided for in paragraph (a) shall not be

available where the person acquiring the property

owns, at the time of acquisition, any other property in

respect of which duty relief has been claimed under

paragraph (a) or article 32C. The notary who receives

any deed to which this article refers shall record in the

deed a declaration by the person so acquiring the

immovable that he does not own any other property in

respect of which duty relief has been claimed under

paragraph (a) or article 32C and that the said property

is being acquired by him for the purpose stated in

paragraph (a) and the said notary shall warn the said

person of the importance of the truthfulness of such

declaration.

(e) For the purposes of this article, article 32C, and article

35 "residence" shall also include

(i) a garage attached to or underlying such

residence or a garage situated in the same block

of residential apartments of which the residence

forms part or a garage of not more than thirty

square metres situated within five hundred

metres of such residence or block of apartments

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;

(ii) land which the owner has for his own occupation

and enjoyment with that residence as its garden

or grounds consisting of an area which, regard

being had to the size and character of the

dwelling house, is required for the reasonable

enjoyment of it as a residence;

and "ordinary residence" means the principal residence

being a dwelling house which is the only or main

residence of a person. Any part of the residence which

is used exclusively for commercial purposes shall not

be considered as "ordinary residence" and this part

shall be apportioned on the basis of the area occupied

for this purpose as a proportion of the whole area of

the relative dwelling house.

(5) Where any duty chargeable in respect of any immovable

property transferred causa mortis has been paid, or no duty is

payable on such transfer, and the notary declares on the relative

deed that the property in question came to the co-owners through a

transfer causa mortis and that a complete declaration, including the

property to which the partition refers, has been duly made in

accordance with article 33, the duty chargeable under this article on

deeds partitioning such immovable property between co-owners

shall not be levied. The notary shall on any such deed give the

relevant details of all the declarations made in accordance with

article 33.

(6) * (a) Notwithstanding the foregoing provisions of this

article, where the Commissioner issues a certificate

attesting that any immovable or any real right over an

immovable is transferred from one company to another

company forming part of the same group of companies,

and that he is satisfied that such requirements or

conditions, if any, as may be prescribed by regulations

under this Act are fulfilled, he shall, according to the

case, either refund the duty or order that no duty shall

be chargeable on such a transfer.

For the purposes of this sub-article, "a group of

companies" shall have the same meaning assigned to it

in article 42.

(b) The provisions of paragraph (a) shall only apply where

the individual, direct or indirect, beneficial owners of

the companies referred to in the said paragraph 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.

For the purpose of this paragraph an individual is

deemed to hold substantially the same percentage

interest in the nominal share capital and voting rights

in each of the said companies where the difference

between the percentage interest held in each company

does not exceed twenty percent

Provided that where an individual holds, directly or

indirectly, less than twenty percent of the nominal

share capital and voting rights in only one of the

companies referred to in paragraph (a), such

individual shall not be taken into account in

determining whether the individual direct or indirect

beneficial owners of the companies referred to in

paragraph (a) are the same

Provided further that if more than one individual

holds, directly or indirectly, less than twenty percent

of the nominal share capital and voting rights in one of

the said companies, the preceding proviso shall not

apply where together such individuals hold, directly or

indirectly, twenty percent or more of the nominal share

capital and voting rights in that company

Provided also that the whole of this paragraph shall

*this sub-article was originally added by Act XXV of 1995 as article 32A.

not apply, where the companies referred to in

paragraph (a) are directly or indirectly owned as to

eighty percent or more by a company whose securities

are listed on a stock exchange recognised by the

Commissioner for the purpose of this provision.

(c) Notwithstanding the foregoing provisions of this

article, no duty shall be chargeable on a transfer of

immovable property by a company to its shareholder

in the course of winding up or in the course of a

distribution of assets pursuant to a scheme of

distribution, where the said shareholder is an

individual or his spouse who owns or own, directly or

indirectly, not less than 95% of the share capital and

voting rights of the said company transferring the

property as aforesaid and the Commissioner issues a

certificate attesting that he is satisfied that the

requirements and conditions under this paragraph are

fulfilled

Provided that this paragraph shall only apply and the

Commissioner shall only issue a certificate, where all

the following conditions have been satisfied

(i)

the said shareholder held, directly or indirectly,

not less than 95% of the share capital and voting

rights of the company transferring the said

immovable property for a period exceeding five

years immediately preceding the date of the

transfer of the property as aforesaid;

(ii) the said property consists of any immovable

property, including land;

(iii) the said immovable property is held as a capital

asset by the company and has been so held for a

period exceeding five years immediately

preceding the date of the transfer of the property

as aforesaid.

(7) Notwithstanding any other provisions of this Act, no duty

shall be chargeable on a transfer of an undivided share of a dwelling

house, where the dwelling house was, immediately before the

transfer, co-owned by two individuals and the transfer is made by

one of the co-owners to the other

Provided further that where one of the co-owners dies, the

provisions of this sub-article shall apply to the transfer of an

undivided share of the dwelling house from the heirs of the

deceased co-owner to the other co-owner where any duty

chargeable in respect of the property transferred causa mortis has

been paid, or no duty is payable on such transfer, and the notary

declares on the relative deed that the property in question came to

the heirs of the deceased co-owner through a transfer causa mortis

and that a complete declaration has been duly made in accordance

with article 33. The notary shall on any such deed give the relevant

details of all the declarations made in accordance with article 33.'

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

owners had, for the purposes of sub-article (4)(a), declared in the

deed of the acquisition of that property that they had acquired it for

the purpose of establishing therein or constructing thereon their

sole ordinary residence.

(8) No duty shall be charged on a deed of partition of immovable

property which was acquired by the co-owners through a transfer inter

vivos, or partly through a transfer inter vivos and partly through a

transfer causa mortis where the real value of the share of the

property assigned under the said deed to each co-owner is equal to

the real value of the undivided share held by each co-owner before

the partition

Provided that where the real value of the share of the property

assigned to a co-owner exceeds the real value of the undivided share

held by such co-owner before the partition, duty shall be paid on such

excess

Provided further that where an undivided share held by a

co-owner would have been transferred causa mortis to such co-

owner, the provisions of this sub-article shall only apply where any

duty chargeable in respect of the property transferred causa mortis

has been paid, or no duty is payable on such transfer, and the notary

declares on the relative deed that the property in question came to

the co-owner through a transfer causa mortis and that a complete

declaration, including the property to which the partition refers, has

been duly made in accordance with article 33. The notary shall on

any such deed give the relevant details of all the declarations made

in accordance with article 33.

(1) Notwithstanding any other provisions of this Act, no

duty shall be chargeable on any transfer of immovable property or

any real right over an immovable property

(a) by a settlor to the trustees of a trust of which the settlor

is the sole beneficiary and where the settlor has an

irrevocable vested right to receive the trust property;

(b) by a settlor to the trustees of a trust created for the

purpose of a designated commercial transaction;

(c) by a settlor to the trustees of a trust created for the

purpose of a commercial transaction not being a

designated commercial transaction but which has been

approved by the Commissioner for the purposes of this

paragraph;

(d) between trustees consequent to a change in the trustees

(whether by addition, substitution or otherwise)

holding the immovable property upon trust provided

that no beneficial interest in the trust is also

transferred upon such change in trustees;

(e) by trustees to the settlor where the trust property

reverts back to the settlor; and

(f)

by trustees to a beneficiary of the trust where duty has

been previously charged on the initial transfer by the

settlor to the trustees in accordance with article 32(1);

provided that duty shall be chargeable in relation to

any increase in value between the date of the initial

transfer to the trustees and the subsequent distribution

to the beneficiaries

Provided that in all cases the trust must be established or

evidenced by means of a written instrument.

For the purposes of this sub-article, "designated

com mercial transact ions" m eans the cust ody of in vestm ent

instruments, the establishment or holding of real or personal

security interests (including hypothecs, privileges, pledges and

guarantees), and any other commercial transaction which may be

prescribed, while "commercial transaction" shall have the meaning

assigned to it in article 2 of the Trusts and Trustees Act.

(2) Where a beneficiary under a trust for immovable property

assigns or otherwise transfers inter vivos to a third party his

beneficial interest in such trust, such a transfer shall be deemed to

constitute a transfer for the purposes of this Act, and the transfer

value shall be deemed to be the amount limited to that part of the

value of the immovable property which is proportionate to the

value of the beneficial interest transferred by such beneficiary.

(3) The provisions of sub-article (2) shall apply mutatis

mutandis in those cases when there is any change in beneficiary,

including a disclaimer or renunciation whether in full or in part of a

beneficiary’s entitlement under a trust

Provided that where the Commissioner is satisfied that an

irrevocable disclaimer of a beneficial interest was not effected with

the sole or main purpose of avoiding, reducing or postponing

liability to duty, he may at his discretion order in writing that the

provisions of this sub-article shall not apply to such a disclaimer

and that no duty shall be chargeable.

Notwithstanding any other provision of this Act, in the

case of transfers by a gratuitous title by a person to his descendants

in the direct line who acquire immovable property for the purpose

of establishing therein or constructing thereon their sole, ordinary

residence, in assessing the duty otherwise chargeable in terms of

the said Act no account shall be taken of the first two hundred and

fifty thousand euro (€250,000) or such other greater amount as may

be prescribed of the value of the property transferred as aforesaid

and duty shall be charged on the remaining value thereof at the rate

of three euro and fifty cents per one hundred euro or part thereof,

provided that this is the first transfer by such a person to such a

descendant for this purpose and in this manner and provided that

the notary who receives any deed of such a transfer shall record in

the deed a written declaration by the person so transferring and the

person so acquiring that the property is being acquired for the said

purpose for the first time and the notary shall warn the said person

and descendant of the importance of the truthfulness of such

declaration

Provided that where such immovable property is not fully

owned or otherwise held by the said person, the amount of the

value that shall not be taken into account shall be such amount as is

proportionate to two hundred and fifty thousand euro (€250,000) or

such other greater amount as may be prescribed as aforesaid or the

value of the immovable property (whichever is the less) as the

proportion of the share of the ownership or other title under which

the immovable property is held by such person is to the whole

Provided further that where such immovable property is

transferred to more than one descendant, the amount of the value

that shall not be taken into account shall be such proportion of the

amount arrived at in accordance with the first proviso hereof as is

equal to the proportion of the share held by the said person that is

transferred to the descendant

Provided that if such immovable property or part thereof is

transferred inter vivos by the said descendant during the first five

years from the date of the transfer by a gratuitous title, the duty

which would have been payable on the transfer by a gratuitous title

of the property or part thereof that is so transferred, but for the

relief granted under this article, shall be levied on the said amount

not taken into account at the rate of three euro and fifty cents per

one hundred euro or part thereof at the time of the said transfer

inter vivos

Provided also that duty relief provided for in this article

shall not be available where the descendant owns, at the time of

acquisition of the said immovable property by a gratuitous title, any

other property in respect of which duty relief has been claimed

under paragraph (a) of article 32(4). The notary who receives any

d e e d t o w h ich t hi s ar t icl e r e fers shall record i n the deed a

declaration by the person so acquiring the immovable that he does

not own any other property in respect of which duty relief has been

claimed under paragraph (a) of article 32(4) and the said notary

shall warn the descendant of the importance of the truthfulness of

such declaration.

* (1) The administrators of a foundation may elect that the

foundation be treated as a trust in so far as relates to transactions of

the same type as those referred to in article 32B between the

founder and the foundation and between the foundation and any

beneficiaries. In such case the provisions of this Act relating to

trusts shall apply to foundations mutatis mutandis.

(2) The Minister may make regulations generally for the

c a rr y in g o ut o f t he pr o vi s i on s o f t hi s a rt ic le i ncl u di ng t he

application of the provisions of this Act relating to trusts to a

foundation as aforesaid as well as to any persons who are donors of

property to such foundation or are beneficiaries under or

administrators of such foundation.

*this article was originally added as article 32C.

* The Minister may make regulations in relation to the

application of this Act to any transfers required for or incidental to

any conversion of a legal person of one form into another legal

form or into a trust as is referred to in article 21 of the Second

Schedule to the Civil Code.

Notwithstanding the provisions contained in this Act, the

Minister may make rules regulating the duty treatment of

companies and their members and other similar bodies or persons

concerning mergers and divisions of companies, transfer of assets

between companies and exchange of shares concerning companies

and for the purposes of this article the definitions contained in

article 27A of the Income Tax Act shall apply.

(1)

Notwithstanding any other provision of this Act, but

subject to the other provisions of this article, when

(a) a transfer that is made on or after 1 January 2022 is a

transfer of property that had been leased for a period

of at least ten (10) years ending on the date of the

transfer; and

(b) during that whole period of ten (10) years the tenant

was entitled to a benefit in respect of that lease under

the Private Rent Housing Benefit Scheme, the Nikru Biex

Nassistu Scheme or the Rehabilitation of Vacant

Dwellings for Rent Scheme administered by the Housing

Authority; and

(c) that transfer is made to the tenant of that property,

no duty shall be chargeable on the first two hundred thousand euro

(€200,000) of the value of the transferred property and the duty on

the excess, if any, shall be chargeable at the normal rate.

(2)

When a transfer satisfies the conditions of sub-article (1)

except only that it is not made to the tenant but to another person, the

duty on the first two hundred thousand euro (€200,000) of the value of

the property shall be chargeable at the rate of one half of the normal

rate and the duty on the excess, if any, shall be chargeable at the

normal rate.

(3)

When a transfer satisfies the conditions of sub-article (1)

except only that the period of the lease and, or the period during which

the tenant was entitled to the said benefit was less than ten (10) years

but not less than three (3) years, the duty on the first two hundred

thousand euro (€200,000) of the value of the property shall be

chargeable at the rate of one half of the normal rate and the duty on the

excess, if any, shall be chargeable at the normal rate.

(4)

This article shall apply only if the parties to the transfer or

any of them produces to the notary who publishes the deed of the

transfer a document issued by the Housing Authority certifying the

*this article was originally added as article 32D.

period during which the tenant of the lease of the property had been

entitled to a benefit in respect of that lease under the Private Rent

Housing Benefit Scheme, the Nikru Biex Nassistu Scheme, or the

Rehabilitation of Vacant Dwellings for Rent Scheme, as the case may

be. The notary shall make a reference to that document in that deed

and shall produce that document to the Commissioner together with

the notice of the transfer referred to in article 51.

(5)

This article shall not apply to a transfer made to a person

who requires a permit by the Minister responsible for finance for the

purposes of the I m m o v a b l e P r o pe r t y ( A c q u is i ti o n b y No n -

Residents) Act or who would have required such permit had the

property acquired not been situated in a special designated area.

(6) For the purpose of this article, "normal rate" means the rate of

duty that would be chargeable on the relevant value of the property in

terms of this Act were it not for the provisions of this article.

(1) It shall be the duty of every person to whom

immovable property is transferred causa mortis, (hereinafter in this

a r t i c l e r e f e r r e d t o as " t r a n s f e r e e c a u s a m or t is " ) t o m a k e a

declaration of such transfer by means of a public deed within such

term as may be prescribed.

(2) The public deed referred to in sub-article (1) (hereinafter

referred to as "declaration") shall contain

(a) such particulars as may be prescribed in respect of the

transferee causa mortis and of the person from whom

the transfer causa mortis originates;

(b) the date and place of death of the person from whom

such transfer causa mortis originates;

(c) such particulars as may be prescribed of all the

immovable property or rights thereon transferred to

the transferee causa mortis; and

(d) such details as may be prescribed of the manner in

which the property devolved on the transferee causa

mortis.

(3) The declaration shall also contain a statement by the

transferee causa mortis of the true value of each property or share

therein transferred to him, and the provisions of article 11 shall

apply in relation to such statement.

(4) Article 50 of the Notarial Profession and Notarial Archives

Act shall apply to a declaration referred to in this article as if such

declaration were any of the acts referred to in article 50(1).

(5) Heirs or legatees who do not intend to declare or who have

not yet declared their intention to accept the inheritance or the

legacy may nonetheless make the declaration referred to in sub-

article (1), but such declaration shall not of itself be evidence of his

acceptance of the inheritance or of the legacy.

(6) Tutors or curators of heirs and legatees, curators of vacant

inheritances and testamentary executors and trustees shall be

responsible to make the declaration referred to in sub-article (1) in

like manner as the transferee causa mortis. If in any particular case

there is more than one tutor, curator or executor, they shall be

jointly and severally responsible for com pliance with such

obligation.

(7) Where the opening of a succession takes place in

consequence of the long absence of any person from Malta, a

transfer causa mortis shall be deemed to have taken place on the

date when a judgment given by a court declaring that the person is

presumed to be dead becomes a res judicata. If no such judgment is

given, the said transfer causa mortis shall be deemed to have taken

place on the date of the court order granting the absolute possession

of the property of the absent person and the absolute exercise of the

rights depending on his death.

The duty due in accordance with article 32 on declarations

shall be rebated to such extent and in such circumstances as may be

prescribed.

For the purpose of determining the applicability of the

benefits of this article whenever the immovable property or real

rights thereon are held on trust, reference shall be made to the

beneficiaries of the trust as indicated in the declaration, and the

trustee shall be ignored for such purpose.

(1) Saving the provisions of article 34 in assessing the

duty chargeable on declarations in accordance with this Act no

account shall be taken of

(a)

(i)

The first thirty-five thousand euro (35,000) or

such other greater amount as may be prescribed

of the value of a dwelling house, being an

ordinary residence of the person from whom the

transfer causa mortis originates, in any transfer

causa mortis of the ownership or usufruct or of

any real right over the said dwelling house

Provided that where such dwelling house is

not fully owned or otherwise held by the person

from whom the transfer causa mortis originates,

the amount of the value that shall not be taken

into account shall be such amount as is

proportionate to thirty-five thousand euro

(35,000) or such other greater amount as may be

prescribed as aforesaid or the value of the

dwelling house (whichever is the less) as the

proportion of the share of the ownership or other

title under which the dwelling house is held by

such person is to the whole

Provided further that where such dwelling

house is transferred to more than one transferee

causa mortis, the amount of the value that shall

not be taken into account shall be such

proportion of the amount arrived at in

accordance with the first proviso hereof as is

DUTY ON DOCUMENTS AND TRANSFERS

equal to the proportion of the share held by the

person from whom the transfer causa mortis

originates that is transferred to the transferee

causa mortis.

(ii) Where in respect of the dwelling house to which

this sub-article refers, relief has also been

granted in terms of article 6 of the Home

Ownership (Encouragement) Act, the relief

granted under this sub-article and under the said

article 6 of the said Act, shall not be

compounded, but the person otherwise liable to

pay duty shall have the right to opt for the relief

which is more advantageous to him.

(b) The value of the usufruct of any property chargeable

under this Act bequeathed by the person from whom

the transfer causa mortis originates in favour of his

surviving spouse or cohabitant.

(2)

Saving the exemptions granted in sub-article (1)

(i)

where such property consists of a dwelling

house, being the ordinary residence of the

person from whom the transfer originates, and

where such dwelling house is also occupied at

the time of such transfer causa mortis by any

one or more of the transferees causa mortis, duty

shall be charged at the rate of three euro and fifty

cents (€3.50) for every one hundred euro (€100) or

part thereof of such share transferred to each

transferee causa mortis occupying such dwelling

house as his ordinary residence as represents that

part of the value of such dwelling house which

exceeds thirty-five thousand euro (€35,000) but not

two hundred thousand euro (€200,000), or such

greater amounts as may be prescribed; and

where such dwelling house was not fully owned

or otherwise held by the person from whom the

transfer causa mortis originated, the amount of

the value chargeable at the said rate shall be such

amount as is proportionate to thirty-five thousand

euro (€35,000) or that part of its value which

exceeds thirty-five thousand euro (€35,000) but not

two hundred thousand euro (€200,000) or such

greater amounts as may be prescribed as aforesaid,

and the value of such house (whichever is the

less) as the proportion of the share of the

ownership or other title under which the

dwelling house was held by such person was to

the whole;

(ii) where such property consists of a dwelling

house not being a dwelling house to which

sub-paragraph (i) refers, but being the ordinary

residence occupied by any one or more of the

transferees causa mortis in a transfer causa

DUTY ON DOCUMENTS AND TRANSFERS

mortis of the ownership or usufruct of any real

right over the said dwelling house, duty shall be

charged at the rate of three euro and fifty cents

for every one hundred euro or part thereof in

respect of such share transferred to each

transferee causa mortis occupying such dwelling

house as his ordinary residence as represents the

first two hundred thousand euro (€200,000) or

such greater amount as may be prescribed as

aforesaid, of the value of such dwelling house;

and where such dwelling house was not fully

owned or otherwise held by the person from

whom the transfer causa mortis originated, the

amount of the value chargeable at the said rate

shall be such amount as is proportionate to two

hundred thousand euro (€200,000) or such greater

amount as may be prescribed as aforesaid, or the

value of the dwelling house (whichever is the

less) as the proportion of the share of the

ownership or other title under which the

dwelling house was held by such person was to

the whole;

(iii) where such property consists of a dwelling house,

being the ordinary residence of the person from

whom the transfer originates, and the beneficiary

of such residence is the surviving spouse or

cohabitant, no duty shall be levied at the time of

the transfer;

(iv) where all the following conditions are satisfied,

that is -

(a) the property transferred causa mortis

consists of any immovable or any real right

over an immovable;

(b)

the transferee causa mortis is a person who is

on the Register of Persons with Disability

kept by the National Commission Persons

with Disability set up in terms of the Equal

Opportunities (Persons with Disability) Act,

and identifies himself as such on the

declaration of the relative transfer causa

mortis by means of an identity card issued by

the said Commission;

(c) the person from whom the transfer causa

mortis originates is the parent or the legal

guardian of the said transferee causa

mortis,

no duty shall be levied at the time of the transfer

causa mortis of that property;

(v)

where all the following conditions are satisfied,

that is -

(a) the property transferred causa mortis

consists of a dwelling house or a part

thereof, or of any real right over a dwelling

house;

(b) the property is transferred by the person

from whom the transfer causa mortis

originates to his descendants in the direct

line;

(c) the said dwelling house was the ordinary

residence of the person from whom the

transfer originates,

no duty shall be levied at the time of the transfer

causa mortis of that property.

(3) For the purpose of determining the applicability of the

benefits referred to in sub-articles (1)(a) and (2) whenever the

dwelling house is transferred causa mortis to a trustee, reference

shall be made to the beneficiaries of the trust as indicated in the

declaration, and the trustee shall be ignored for such purpose. No

reference to the beneficiaries of a trust shall be made for the

purpose of sub-article (1)(b).

(4)

(i) Any exemption or relief granted under sub-articles

(2)(iv) and (2)(v) of this article shall only be available

where the deed of the transfer causa mortis is made

within one year from the relative succession and if

notice thereof is given to the Commissioner in

accordance with article 33 by not later than either

fifteen working days after the date of the publication of

the deed or the expiration of the said period of one

year, whichever is the later

Provided that for the purposes of a claim for the exemption

on a transfer causa mortis granted in accordance with sub-article

(2)(v), where

(a)

the right of the person making the declaration of the

transfer causa mortis to acquire the dwelling house in

question, or a part thereof, or a real right thereon, has

been the subject of litigation in a court of law which

has been concluded by a judgment which has become

res judicata; and

(b)

a copy of the said judgment is attached to the notice

required to be given to the Commissioner in

accordance with article 33,

the said period of one (1) year shall be reckoned to run from the

date on which the said judgment became res judicata.

(ii) Where the declaration is made more than one year

after the happening of the transfer causa mortis there

shall be payable together with the duty assessed in

accordance with this Act interest at a rate as prescribed

by the Minister on any duty remaining unpaid in

respect of each year or part thereof that elapses

between the first anniversary of the date of the transfer

causa mortis and the date of the making of the

declaration

Provided that in all cases the said interest shall not exceed

the duty due.

(5) Where a declaration refers to a usufruct that is transferred

causa mortis to several persons jointly or successively, or jointly

and successively, the duty on the said declaration in respect of such

transfer causa mortis shall be levied only at the commencement of

the usufruct.

(6) Notwithstanding any other provision of this Act, the

following provisions of this article shall apply to a declaration in

respect of a transfer causa mortis subject to a suspensive condition

which is not merely potestative or of a transfer causa mortis upon

trust

(a) the declaration shall be made and the duty shall be due

and paid by the administrator of the inheritance, or in

the absence of an administrator by the heirs, in

accordance with the provisions of this Act,

notwithstanding the contingent nature of the transfer

causa mortis, subject to any right of reimbursement

against the person benefiting under the said transfer

causa mortis;

(b) the duty chargeable under this Part shall be assessed as

if the transfer was one in favour of the person standing

to benefit from the transfer, failing the contingency.

(7) When the contingency referred to in sub-article (6)

happens, or where effect is given to the transfer of property before

the happening of the contingency -

(a) a declaration making a statement of the happening of

the contingency, or that effect has been given to the

transfer causa mortis, shall be given by the transferee

causa mortis benefiting thereunder; and such

transferee causa mortis shall, in addition to any

reimbursement of duty, be also liable for the payment

of any duty assessed in virtue of the provisions of this

sub-article; and

(b) the happening of the contingency or the earlier transfer

as aforesaid shall be deemed to be a transfer causa

mortis and the transferee causa mortis benefiting

thereunder shall reimburse to any person having made

a declaration and paid duty in accordance with sub-

article (6) hereof the duty so paid, and shall where the

duty payable pursuant to this sub-article is more than

the duty paid pursuant to sub-article (6) only the

difference between such duties shall be payable, and

where the duty payable is less he shall be entitled to a

refund paid in excess.

(8) When the person from whom the transfer causa mortis

originates is hospitalized or residing in an old people’s home at the

time of the transfer, the ordinary residence occupied by that person

before being hospitalized or going to reside in an old people’s home

shall be considered as that person’s ordinary residence for the

purposes of this article.

(9)

Notwithstanding the provisions of article 32, but without

prejudice to sub-articles (10) to (13), no duty shall be levied on the

transfer causa mortis of qualifying agricultural land.

(10)

For the purposes of sub-articles (9) to (13), "qualifying

agricultural land" means immovable property situated in Malta which is

certified by the competent authority responsible for the agriculture land

lease and ownership register within the Ministry responsible for

agriculture as land which, at the time of the transfer in question

(a)

is an agricultural activity as defined in the

Agriculture Act, is being undertaken by the heir or one (1) of the

heirs who classifies as a professional farmer and, or is being

inherited by an heir who is himself a professional farmer as shall

be established by the Minister responsible for agriculture by

means of the publication of a notice in the Gazette; or

(b)

is leased in accordance with the provisions of the

Agricultural Leases (Reletting) Act and is registered with the

competent authority responsible for the agricultural land lease

and ownership register.

(11) A certificate issued in accordance with sub-article (10) shall

be attached to the declaration of the transfer causa mortis of the property

in question drawn up in accordance with article 33 together with such

details and documents as the Commissioner may require.

(12) An exemption requested in terms of sub-article (9) shall be

granted on condition that before the lapse of five (5) years from the date

of the transfer causa mortis no transfer inter vivos is made of the

property in question or of a part of it

Provided that, where the qualifying agricultural land is

assigned to any of the co-owners who is himself a professional farmer

by deed of partition, such shall not be considered as a transfer in terms

of this sub-article.

(13) A claim for an exemption in accordance with sub-article (9)

may be withdrawn by means of a declaration of a transfer causa mortis

made in accordance with article 33 that modifies the declaration in

which the exemption had been requested and the payment of the duty on

that transfer, with interest at the prescribed rate which shall run as from

the date of the first anniversary of the transfer causa mortis.

(1) No duty shall be levied upon the transfer of any

immovable property to a disability trust or a disability foundation where

all of the following conditions are met

(i)

the main beneficiary shall be the disabled person whereas

the parents of the disabled person and/or the other

beneficiaries of the disability trust or foundation shall be

residual beneficiaries;

(ii)

the trust instrument or the foundation deed shall state that

the trustee of the foundation shall hold the immovable

property or any sale proceeds thereof solely for the benefit

of the disabled person during that person’s lifetime, and

that any income of the trust or foundation is to be used

exclusively for the maintenance of the disabled person.

(2) No duty shall be levied upon the transfer of any immovable

property by a trustee of a disability trust or by a disability foundation to

the beneficiaries of the disability trust or foundation and/or heirs of the

disabled person following his death where the immovable property was,

prior to the transfer whereby it becomes property of the disability trust

or disability foundation, a dwelling house used as the ordinary residence

of the parents of the disabled person and in which the disabled person

resided during his lifetime up to his death

Provided that such heirs are persons referred to in article

5(2)(e)(i) of the Income Tax Act in relation to the disabled person.

(3) For the purposes of this article, "disability trust" and "disability

foundation" shall have the same meaning as in article 12(l)(z) of the

Income Tax Act.

Repealed by Act II.2002.38.

Repealed by Act X.1994.25.

Repealed by Act II.2002.39.

Repealed by Act XII. 2014.44.

(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%).

(2) Where the duration of an emphyteusis may be extended, or

is extended, or where two or more emphyteutical grants are made in

respect of the same immovable in favour of the same emphyteuta or

his successor in title, duty shall be assessed at the rates applicable

to the total duration of the emphyteutical grant or grants, but

allowance shall be made for any duty already paid in respect

thereof.

A contract of exchange shall be deemed to constitute one

transfer and the duty chargeable thereon shall be assessed on the

higher of the values of the things transferred

Provided that if different rates apply, duty shall be charged

on the value of either of the things transferred at the rate or rates

which attract the higher amount of duty.

No duty shall be chargeable upon a division of a company

where the ultimate individual beneficial shareholders in the

recipient companies remain the same shareholders of the company

to be divided and each such shareholder shall have the same

proportion of shares in each of the recipient companies as he held

in the company to be divided.

The succession to all assets, rights, liabilities and

obligations of the commercial partnership that has been converted,

by the commercial partnership resulting from the conversion

referred to in article 335(1) of the Companies Act, shall not give

rise to any liability to the payment of any duty under this Act.

(1) Notwithstanding any other provision of this Act,

where a family business is transferred as a going concern by an

individual to family members as defined in the Family Business

Act and there is a transfer of immovable property being a

commercial tenement as defined in article 1525 of the Civil Code

(hereinafter referred to as "property"), that had been used in the

said business for a period of at least three years preceding the

transfer, in assessing the duty chargeable in terms of the said Act,

duty shall be charged on the first five hundred thousand euro

(€500,000) of the value of the property transferred as aforesaid at

the rate of three euro and fifty cents per one hundred euro or part

thereof, provided that the notary who receives any deed of such a

transfer shall record in the deed a written declaration by the

individual so transferring and the person so acquiring that the

conditions laid out in this article are satisfied and the notary shall

warn the said persons of the importance of the truthfulness of such

declaration

Provided that this sub-article shall also apply where the

said individual transfers property that had been used in a family

business carried out by the family members or business for a period

of at least three years preceding the transfer

Provided further that if such property or part thereof is

either transferred inter vivos by the family members or family

business, as the case may be, during the first three years from the

date of acquisition, or ceases to be used in the business within the

said period, the duty which would have been payable on the

acquisition of the property or part thereof that is so transferred, but

for the relief granted under this article, shall be levied at the time of

the said transfer inter vivos or at the time the property ceases to be

used by the business

Provided further that where such property or part thereof

transferred inter vivos by the family member or family business, as

the case may be, is replaced within one year by an immovable

property used solely for a similar purpose in the family business

(hereinafter referred to as the "replacement property"), in assessing

the duty chargeable in respect of the replacement property, duty

chargeable and paid in accordance with the previous proviso shall

be allowed as a deduction.

(2) For the purposes of paragraphs (a), (b) and (c) of article

42(1), in assessing the duty chargeable, when an individual

transfers shares or interests in a partnership, trust or foundation to

family members referred to in sub-article (1) and such shares or

interests in a partnership, trust or foundation are held in a family

business which carries on a business, no account shall be taken of

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

other greater amount as may be prescribed of the value of the

shares, or interests in a partnership, trust or foundation transferred

as aforesaid

Provided that this sub-article shall only apply where

(a) the said family business does not own, directly or

indirectly, any immovable property other than property

referred to in sub-article (1) used in the said business

for a period of at least three years preceding the

transfer;

(b) the said family business is controlled and beneficially

owned, directly or indirectly, to the extent of more

than eighty-five per cent by the said individuals or

family members.

(3) For the purpose of this article "business" shall mean a

family business registered with the Regulator in terms of the

Family Business Act and shall duly present an updated certificate

in accordance with the law.

(4) This article shall only apply where the Commissioner issues

a certificate attesting that he is satisfied that the conditions laid out

in this article are fulfilled.

(5) Where, in accordance with the second proviso to sub-article

(1), the property or part thereof is either transferred inter vivos by

the family members or family businesses, or ceases to be used in

the business, the duty chargeable under the said proviso shall be

due by the family members or business, as the case may be, and

shall be remitted to the Commissioner within fifteen working days

from the date on which the property is either transferred as

aforesaid, or ceases to be used in the business.

(1) A duty of two euro for every one hundred euro or part

thereof of the amount or value of the consideration or the real

value, whichever is the higher, of the marketable security shall be

charged

(a)

(i)

notwithstanding the provisions of article 4, on

every transfer inter vivos, whether executed in

Malta or outside Malta, of foreign marketable

securities held in a property company as defined

in article 2(1) of the Income Tax Act, made to or

by any person resident in Malta

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;

(ii) notwithstanding the provisions of article 4, on

every transfer inter vivos, whether executed in

DUTY ON DOCUMENTS AND TRANSFERS

Malta or outside Malta, of foreign marketable

securities held in a company having, directly or

indirectly, more than 50% of its business

interests in Malta, made to, or by any individual

who is ordinarily resident and domiciled in

Malta or by any other person (other than any

person referred to in article 47(3)) who is owned

or controlled, directly or indirectly, or acts on

behalf of, an individual who is ordinarily

resident and domiciled in Malta

Provided that the provisos to article 47(3)(e)

shall apply

mutatis mutandis to the

interpretation of the term "business interests in

Malta";

(iii) on every document whereby any other foreign

marketable security is transferred inter vivos to,

or by any person resident in Malta

Provided that where the marketable securities in

question are not held in a property company as

defined in article 2(1) of the Income Tax Act nor

in a company having, directly or indirectly, more

than 50% of its business interests in Malta as set

out above, no duty shall be chargeable where

such transfer is effected through a local bank or

through a person holding an investment services

licence under the Investment Services Act. For

the purpose of this proviso, the provisos to the

said definition of "property company" in article

2(1) shall not apply;

(b) on every document whereby a marketable security

other than those mentioned in paragraph (a) hereof is

transferred to or by any person in Malta

Provided that upon any restructuring of holdings

through mergers, demergers, amalgamations and re-

organisations within a group of companies, no duty

shall be chargeable on

(i)

the transfer by an individual of any shares, held

in his own name, forming part of a group of

companies in exchange of shares in a company

or companies forming part of the same group;

(ii) the exchange of shares from one company to

another where such shares are in companies

forming part of the same group of companies,

or 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;

(iii) the transfer of shares for consideration from one

company to another, where such companies form

part of the same group of companies,

or 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 company referred to in

the immediately preceding proviso is a "property

company", the immediately preceding proviso shall only

apply where the individual, direct or indirect, beneficial

owners of the companies referred to in the said proviso

are the same and each such individual holds, directly or

indirectly, substantially the same percentage interest in

the nominal share capital and voting rights in each of the

said companies both before and after the transfer or

exchange, as the case may be. The provisions of article

32(6)(b) shall apply mutatis mutandis for the purpose of

making such determination.

For the purpose of this proviso "property company" shall

have the same meaning assigned to it in article 2(1) of the

Income Tax Act but the provisos to the said definition

shall not apply

Provided also that the immediately preceding proviso

shall not apply, where the said companies are, directly

or indirectly, owned as to eighty percent or more by a

company whose securities are listed on a stock

exchange recognised by the Commissioner for the

purpose of this provision;

For the purpose of the above provisos to paragraph (b)

(i)

"company" shall include a "partnership", and

references to the transfer, acquisition or disposals of marketable

securities shall include the transfer, acquisition or disposals of

an interest in a partnership;

(ii)

"property company" shall include "property

partnership" and both these terms shall have the same meaning

assigned to them in article 2(1) of the Income Tax Act, but the

provisos to the said definitions shall not apply;

(iii) "group of companies" shall be applied in the case

of partnerships mutatis mutandis as if the partnership had been a

company;

(iv) references to a company’s ordinary share capital,

voting rights and rights to profits shall include a partnership’s

capital, voting rights and rights to profits;

(c) on every notice of the transfer causa mortis of

company shares made in accordance with article 45;

(d) on a transfer of real value in marketable securities as

provided for in article 42B.

In this sub-article, "a group of companies" means

(i)

a holding company and its subsidiaries; a

company shall be deemed to be a subsidiary if

more than fifty per cent of its voting shares are

beneficially owned by its holding company; and

(ii) companies which are controlled and beneficially

owned directly or indirectly to the extent of

more than fifty per cent by the same

shareholders

Provided that the Minister may by rules prescribe another

definition of "group of companies" and that definition shall apply to

transfers made after such date as may be prescribed by those rules.

(2)

(a) Where it results that seventy-five percent or more of

the assets, excluding all current assets other than

immovable property, of the company referred to in

article 42B or of the company whose marketable

securities are transferred inter vivos or are transmitted

causa mortis in respect of persons from whom the

transfer causa mortis originates who died on or after

the 1st January 2000, consists of any immovable

property or any right over an immovable, the duty

c h a rg e a b l e i n v i r t u e o f s u b - a r t i c l e ( 1 ) s h a l l b e

increased by three euro for every one hundred euro or

part thereof of the amount or value of the consideration

or the real value of the marketable security, whichever

is the higher.

(b) Where the company referred to in article 42B, or

whose marketable securities are transferred holds,

directly or indirectly, shares in a company having

seventy-five percent or more of its assets, excluding

all current assets other than immovable property,

consisting of any immovable property or any right

over an immovable, hereinafter referred to as the

"property company", the duty chargeable in virtue of

sub-article (1) shall be increased by three euro for

every one hundred euro or part thereof of the amount

or value of the consideration or the real value of the

marketable security, whichever is the higher

Provided that paragraph (b) shall only apply where the

aggregate value of

(i)

immovable property or any right over an

immovable owned by a property company or

companies (as represented by the percentage

interest held in such company or companies),

and

(ii) immovable property or any right over an

immovable owned by the company referred to in

DUTY ON DOCUMENTS AND TRANSFERS

article 42B or whose marketable securities are

transferred,

is equal to or exceeds seventy-five percent of the total

non-current assets of the property company or

companies (as represented by the percentage interest

held in such company or companies) and of the

company referred to in article 42B or whose

marketable securities are transferred, disregarding the

book value of shares held, directly or indirectly, in the

property company or companies and taking into

account total current assets consisting of immovable

property

Provided further that paragraph (b) shall not apply

where the duty chargeable in virtue of sub-article (1)

has been increased by three euro for every one

hundred euro or part thereof in accordance with

paragraph (a).

(c) For the determining of the amount or value of the

consideration or the real value of the marketable

security or of the real value of the company referred to

in article 42B, there shall not be deducted any liability

in excess of the value of all assets excluding the value

of any such immovable property or any real right

thereon other than -

(i)

a bank loan relating to the cost of acquisition

and improvements of the immovable property or

real right thereon; or

(ii) a debt registered at the Public Registry relating

to the acquisition cost of the aforesaid

immovable, where such debt is registered within

three months from the date of acquisition of the

said immovable,

proved in each case by the production of such

documents to the satisfaction of the Commissioner, as

the Commissioner may require

Provided that where the aforesaid immovable has been

acquired from a group company and such transfer

qualified for duty relief under article 32(6), the date of

acquisition taken into account in determining whether

the debt is registered within three months as aforesaid

shall be the date when the immovable was acquired by

the said group company

Provided also that for the purpose of this paragraph,

where the company has in issue any marketable

securities consisting of shares which do not participate

in any way in the profits of the company other than by

way of a fixed rate of return, which resulted from a

conversion of debt, other than a debt referred to in sub-

paragraph (ii), such marketable securities shall be

treated as a liability.

(3)

(Deleted by Act XIII. 2015.100).

(4) The Minister responsible for finance may make rules under

this Act or the Income Tax Act for the implementation of the

provisions of this article and article 42B and, without prejudice to

the generality of the foregoing, such rules may provide for

(a) the manner in which the real value of a company is to

be determined;

(b) the manner in which the real value of marketable

securities is to be determined;

(c) the manner in which a transfer of real value in

marketable securities as provided for in article 42B is

to be determined; and

(d) any matter that may be prescribed under this article.

The provisions of article 32B shall apply mutatis mutandis

to any transfers of marketable securities, and references to

"im m o va bl e prop ert y" i n arti cl e 32 B sha ll b e co nst r ued as

references to "marketable securities" for the purposes of this

article.

(1) Where the real value of shares held by a person

(hereinafter referred to as the "transferor") in a company, has been

reduced as a result of a change in the issued share capital of such

company, or a change in voting rights attached to such shares, and

such value so reduced passes into other shares in or rights over the

company, held by any other person (hereinafter referred to as the

"transferee"), the transferor shall be deemed to have made a

transfer of such value so reduced to the transferee, calculated by

taking into account the difference between the real value of the

shares held immediately before and after the said change and duty

shall be chargeable in accordance with article 42

Provided that this article shall not apply where

(i)

the change in the issued share capital or change in

voting rights does not produce any change in the

individual, direct or indirect, beneficial owners of the

said company and in the proportion in the real value of

the said company represented by the shares owned

beneficially, directly or indirectly, by each such

individual; or

(ii) the change in the issued share capital consists of an

allotment of shares in a company, as a result of an

exchange of shares from one company to another

exempt from duty under the provisions of article

42(1); or

(iii) the transfer of value is the result of a change in voting

rights and such transfer is made by the transferor to a

person referred to in paragraph (i) of article 5(2)(e) of

the Income Tax Act; or

(iv) the said company is a company whose securities are

listed on a stock exchange recognised by the

DUTY ON DOCUMENTS AND TRANSFERS

Commissioner for the purpose of this provision; or

(v) the said company is not a "property company" and it

can be shown to the satisfaction of the Commissioner

that the said change is effected for bona fide

commercial reasons and does not form part of a

scheme or arrangements of which the main purpose, or

one of the main purposes is avoidance of liability to

duty. For the purpose of this paragraph "property

company" shall have the same meaning assigned to it in

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

said definition shall not apply.

(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.

(1) A duty of two euro for every one hundred euro or part

thereof of the amount or value of the consideration or the real

value, whichever is the higher, of an interest in a partnership shall

be charged

(a) on every document whereby an interest in a

partnership, other than in a foreign partnership, is

transferred to or by any person in Malta;

(b) on a deemed transfer of an interest in a partnership

referred to in sub-article (3), other than in a foreign

partnership;

(c) on every notice of the transfer causa mortis of an

interest in a partnership made in accordance with

article 45.

For the purpose of this article a transfer of an interest in a

partnership shall include a transfer of a full or partial interest and

any alienation of any such full or partial interest in a partnership

and the term "foreign partnership" shall mean a partnership, which

satisfies all of the following conditions

(i)

it is not a "property partnership";

(ii) it does not hold marketable securities in a

company registered in Malta as defined in article

2 of the Income Tax Act;

(iii) it is not constituted, incorporated or registered

under the Companies Act or under the

Commercial Partnerships Ordinance or under

any other law in force in Malta.

For the purpose of this paragraph "property partnership"

shall have the same meaning assigned to it in article 2(1) of the

Income Tax Act but the provisos to the said definition shall not

apply

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 by the Commissioner for the purpose

of this provision.

(2)

The provisions of article 42(2) shall apply mutatis mutandis

to this article and references to the term "company", where

applicable, shall be deemed to be references to a "partnership" and

references to "sub-article (1)" shall be deemed to be references to

"sub-article (1) of article 42C".

(3) Where a person acquires or increases a partnership share,

there shall be a deemed transfer of an interest in the partnership (to

that partner and from the other partners). "Partnership share" means

the share to which a person is entitled in the income of the

partnership and to the assets available for distribution on the

winding up of the partnership

Provided that this sub-article shall only apply where the

partnership in question is a commercial partnership en nom collectif

or commercial partnership en commandite the capital of which is

not divided into shares.

(4) Notwithstanding the provisions contained in this Act, the

Minister may make rules determining the method of calculation of

the amount or value chargeable to duty in relation to a transfer or

deemed transfer of an interest in a partnership and to prescribe any

matter that may be prescribed in relation to such transfer.

(1) Every transfer inter vivos of marketable securities or

of an interest in a partnership executed in Malta shall, under pain of

nullity, be made in writing.

(2) Where the transfer of any foreign marketable security or of

an interest in a partnership is executed outside Malta upon an order

given directly in Malta by any person, such person shall give a

notice in writing to the Commissioner of such transfer in such

manner and in such term as may be prescribed

Provided that a notice given as aforesaid may stipulate that

it will apply also to other transfers of marketable securities and

interests in partnerships executed outside Malta that may be made

in the future by the same person, in which case that person will not

be required to give notice of such further transfers

Provided further that notice shall not be given where duty is

not chargeable under any of the provisions of this Act.

Where any person fails to produce to the Commissioner, or

to the officer referred to in article 19, any document chargeable

with duty, or, where the document is protected by professional

secrecy, the abstract of the document referred to in article 19(4), it

shall be presumed that duty on such document has not been paid

and it shall then be lawful for the Commissioner to proceed with

the collection of duty and penalty in accordance with this Act.

45.(1)(a) A person to whom an interest in a partnership

registered in Malta or shares in a company registered

in Malta, are transmitted causa mortis (hereinafter in

this article referred to as a "transferee causa mortis"),

shall not later than such term after the happening of the

transfer causa mortis as may be prescribed, give notice

to the Registrar of Companies.

(b) A transferee causa mortis of shares held in a company

which is registered in a jurisdiction outside Malta or of

interests in a partnership registered outside Malta,

having, directly or indirectly, more than 50% of its

business interests in Malta, where the transferee causa

mortis is ordinarily resident and domiciled in Malta,

shall, not later than such term after the happening of

the transfer causa mortis as may be prescribed, give

notice thereof to the Commissioner

Provided that the provisos to article 47(3)(e) shall

apply mutatis mutandis to the interpretation of the

term "business interests in Malta".

(2) The notice referred to in sub-article (1) shall contain such

particulars of the person from whom the transfer causa mortis

originates and of the transferee causa mortis, the details of the

shares or interest being the object of the transfer and the manner in

which the shares or interest devolved on the transferee causa

mortis, as may be prescribed.

(3) The Registrar of Companies shall register the notice referred

to in sub-article (1)(a) in a register which shall be open to public

inspection, and which shall be kept and indexed in such manner as

may be prescribed.

Any broker, agent or other person who as an intermediary

transfers any marketable security to which article 42 refers, shall

draw up the document evidencing such transfer if the transfer is

effected in Malta or if the transfer is effected outside Malta, give

notice of such transfer to the person on whose behalf he has acted

within two days from the transfer.

(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 t rusts and fid uci ary

arrangements referred to in sub-article (3)(e) shall be exempt from the

provisions of this Act.

(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.

For the purpose of this article acquisitions or disposals of

marketable securities shall include a transfer of real value in

marketable securities as referred to in article 42(1)(d).

(3)

The persons referred to in sub-articles (1) and (2) are

(a) collective investment schemes holding a collective

investment scheme licence under the Investment

Services Act;

(b) persons holding an investment services licence issued

under the Investment Services Act, and whose

activities comprise the provision of management,

administration, safekeeping, or investment advice to

collective investment schemes as defined in the

aforesaid Act;

(c) Deleted by Act VIII.2020.48.

(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.

(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.

(9) The provisions of this article shall only be applicable where

the Commissioner has so determined and such determination and

any determination made pursuant to sub-article (7) or sub-article

(8) shall continue to be applicable as long as the relevant conditions

and provisions are satisfied

Provided that any such determination made in relation to a

company which falls under sub-article (3)(c), shall, in so far as it is

valid as at 31st December, 2010, be considered, as from 1st January,

2011, to be a determination made in relation to a company which falls

under sub-article (3)(e)

Provided further that, without prejudice to the powers of the

Commissioner (including, for the avoidance of doubt, that of

determining at any time that any such determination is no longer

applicable due to the non-satisfaction of any of the relevant

conditions and provisions), any determination issued in terms of

paragraphs (d) or (e) of sub-article (3) shall apply for a term of

three years, so however that any such determination made before

1st December 2016 shall apply until 30th November 2019

Provided also that any determination issued in terms of

paragraphs (d) or (e) of sub-article (3) may, at the option of the

applicant, be renewed for further periods of three years. Any

application for renewal shall be submitted to the Commissioner,

stating whether or not there have been any material changes to the

facts and considerations contained in the original or previous

application, as the case may be, and the nature of any such changes

and such renewal shall not be unreasonably withheld by the

Commissioner.

(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.

Save as otherwise provided in this Act any person who fails to

comply with any of the provisions of articles 32, 33, 39, 40, 41, 42,

42B, 42C, 43, 45 or 46 shall be liable to a penalty of not less than

twenty-five euro (€25) but not exceeding one thousand euro (€1,000)

for each omission and interest at a rate as prescribed by the Minister on

any duty assessed by the Commissioner.

(1) Saving the provisions of article 50, the transferor in a

transfer inter vivos and the transferee, and where the transfer is

effected by public deed or in the case of a declaration made in

terms of article 33 the notary publishing the relative deed, shall be

jointly and severally liable to pay the duty chargeable on such

transfer or deed

Provided that

(a) the liability of the notary publishing such deed shall be

limited to the duty chargeable on such transfer

established on the basis of

(i)

the declarations made in terms of sub-article of

article 32(4)(d), of article 33(3) and of article 35

when made for purposes of any relief granted

under that article, where applicable;

(ii) the value declared in the deed;

(iii) the penalties contemplated in articles 50 and 51;

and

(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;

(b) the notary shall have a special privilege in respect of

the duty payable and paid by him on any transfer

effected or declaration made by a public deed, over the

immovable transferred.

The special privilege granted by this article shall

be registered by the notary within two months from the

date of such deed and shall have the same rank as the

privileges contemplated in article 2010(c) of the Civil

Code;

(c) the duty chargeable on a schedule of redemption of

ground-rent shall be paid by the emphyteuta; and

(d) (Deleted by XV. 2016.68);

(e) where duty is chargeable on the transfer of foreign

marketable securities referred to in article 42(1)(a)(i),

the company that directly owns the immovable

property situated in Malta or the real rights thereon

shall be jointly and severally liable with the transferor

and transferee for payment of the duty chargeable on

such transfer of foreign marketable securities.

(2) Duty as provided in article 42B shall be paid to the

Commissioner by the transferee acquiring value within fifteen

working days from the date of the change referred to in the said

article. Such shareholder shall submit together with the payment

referred to above any other documents, forms and details as may be

prescribed.

Any notary who -

(a) fails to pay in whole or in part the duty chargeable

under the provisions of this Act on any deed received

by him; or

(b) fails to mention in such deed the amount of duty so

chargeable; or

(c) fails to comply with any duty imposed on him by any

regulation under this Act; or

(d) fails to pay in whole or in part the penalty chargeable

under article 51,

shall be guilty of an offence and shall be liable on conviction to a

penalty of not less than eleven euro (11) but not exceeding four

hundred and sixty-five euro (465); and the proviso to article 11

shall apply to this article.

(1) Where a notary receives a deed of transfer of any

immovable property or a deed containing a declaration made in

accordance with article 33, whether duty is chargeable thereon in

accordance with this Act or otherwise, he shall, within fifteen (15)

working days and together with the payment of such duty, if any,

give notice of such deed to the Commissioner in such form and

containing such particulars as may be prescribed

Provided that no notice shall be given where the

Government or the Housing Authority is the transferee.

(2) Any notary who fails to give such notice within forty (40)

working days together with any relative payment as provided in

sub-article (1), or gives incorrect or incomplete particulars or

details shall incur interest at a rate as prescribed by the Minister on

any duty due on the transfer to which such duty refers which

interest shall start accruing from the expiration of the fifteen (15)

working days mentioned in sub-article (1), provided that the total

interest shall in no case exceed the amount of the said duty.

(3) Interest imposed under sub-article (2) shall be imposed by

the Commissioner and shall be paid to him, and all actions for the

recovery thereof shall be brought by the Commissioner before the

courts of civil jurisdiction in terms of article 466 of the Code of

Organization and Civil Procedure.

* (1)When the Commissioner is satisfied that the price or

consideration, or the value as declared in a document whereby any

immovable or any real right over an immovable is transferred, or in

a declaration of a transfer causa mortis made in accordance with

article 33, is less than eighty-five per centum (85%) of the real

value or consideration as established by the Commissioner, or is

less than the consideration that results to the Commissioner to have

been actually paid, or when a declaration that ought to be made in

t e r m s o f ar t ic le 3 3 h a s n ot be e n m a de , h e s h a l l p r oce e d t o

determine by order in writing the amount of duty chargeable on the

difference between the value or consideration declared and the

value or consideration of the immovable as established or as results

to the Commissioner to have been actually paid or the duty that

would have been payable, as the case may be, and shall raise an

assessment accordingly

Provided that, when a declaration has not been made as

aforesaid , no th ing i n t hi s sub -arti cle shal l be co nst ru ed a s

*See sub-article (6) of article 69 of the Act as originally enacted, which sub-article has

been omitted under the Statute Law Revision Act, 1980.

exempting the transferee causa mortis from any obligation to make

the relative declaration in accordance with article 33 but any duty

paid following an assessment shall also be taken into account in

any other declaration made subsequent thereto

Provided further that, when a declaration has not been made as

aforesaid the Commissioner may not exercise his powers under this

article after the lapse of thirty (30) years from the happening of the

transfer causa mortis.

(2) If the Commissioner is satisfied that the declaration

referred to in article 32(4)(d) or that any statement made for the

purpose of any relief under article 33, is not complete, correct and

true in all details he shall proceed to determine by order in writing

the amount of the duty chargeable being the difference between the

duty properly chargeable in the absence of such declaration or such

statement, as the case may be, and the duty paid on the transfer.

(3) In a transfer inter vivos, the transferor and the transferee

shall be jointly and severally liable to pay the duty referred to in

this article.

(4)

(a) Where the Commissioner has determined that the value

of an immovable as declared in a document of transfer

or in a declaration of a transfer causa mortis is less

th an eig ht y fi ve per centum o f t he rea l val ue or

consideration as provided in sub-article (1) or where in

the opinion of the Commissioner the document of

transfer or the deed of declaration made in accordance

with article 33 does not reflect the true conditions of

the transfer, the transferor in a transfer inter vivos and

the transferee shall be liable to pay an additional duty

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

of duty assessed by the Commissioner as aforesaid

Provided that, in addition to the above-mentioned

additional duty, 'the transferee shall be liable to pay

interest at a rate as prescribed by the Minister which

interest shall start accruing after the expiration of three

months from either of the following

(i)

the date of notification of the original

assessment where no objection is made, or

where the value is not reduced by the

Commissioner following the filing of an

objection; or

(ii) the date of notification of the revised assessment

issued in terms of article 56, where the value has

been reduced by the Commissioner following an

objection

Provided further that interest shall in no case exceed the

duty assessed by the Commissioner in respect of each

assessment.

(b) The transferee only shall be liable to any duty or

additional duty assessed because the declaration or

statement referred to in sub-article (2) is not complete,

correct and true.

(5) Saving the other provisions of this article, the

Commissioner may raise an assessment as provided in this article,

at any time, within one year from the day of the receipt by the

Commissioner of the notice referred to in article 51

Provided that in the case of a notice in respect of a

declaration of a transfer causa mortis such assessment may be

made within four years of the receipt of such notice.

TITLE III

Other Documents

(Deleted by Act I. 2010.43). *

PART IV

Documents upon which Duty must be paid before use

thereof is made

(1) Duty on every document executed outside Malta being

such as, if executed in Malta would be liable to duty, shall, before

any use thereof is made in Malta, be paid by the person by whom

such use is made at the rate prescribed in this Act for such

document were it executed in Malta.

(2) Any person who fails to comply with the provisions of this

article 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 if it were committed in

respect of a document of an identical or analogous nature executed

in Malta.

PART V

Assessments - Objections - Appeals

The Commissioner shall cause to be served on the person

liable to pay the duty, or on his lawful representative, a notice

s t a ti n g t he a m o un t o f du t y p a y a b l e in a c c o rd a n c e wi t h t he

provisions of this Act, and indicating his rights under article 56

hereof.

An assessment shall for all purposes of this Act be deemed

to have been made by the Commissioner on the date of service of

the notice aforesaid.

(1) If any person served with or affected by a notice of

assessment wishes to contest that assessment, he may apply to the

Commissioner for its revocation or revision by a notice of objection

in writing specifying the grounds of the objection to the assessment

and made within thirty days from the date of the service of the

notice aforesaid

*See article 43(2) of Act I of 2010 for transitory provision.

Provided that the Commissioner shall extend the said

period as may be reasonable in the circumstances if he is satisfied

that that person was prevented from contesting the assessment

owing to sickness, or absence from Malta, or any other reasonable

cause.

(2) Where any person who has objected to an assessment

agrees with the Commissioner as to the amount of duty payable

thereunder, the assessment shall be amended accordingly, and

notice of the duty payable shall be served upon such person.

(3) If no agreement is reached as provided in sub-article (2),

the Commissioner shall determine the duty by order in writing and

serve on the person objecting a notice of his refusal to amend the

assessment as desired by such person within three years from the date

of receipt of the aforementioned notice of objection.

(1) The Administrative Review Tribunal shall be

competent to hear and determine appeals in accordance with the

provisions of article 58.

(2) The provisions of the Administrative Justice Act, in so far

as they apply to the Administrative Review Tribunal, shall apply to

any proceedings before the said Tribunal and the words "public

administration" in the said enactment shall be construed as a

reference to the Commissioner for Tax and Customs.

(3) The provisions of article 25 of the Administrative Justice

Act shall apply to any proceedings pending before the Board of

Special Commissioners for Duty on Documents and Transfers any

such proceedings shall be assigned to the Administrative Review

Tribunal in terms of the aforesaid article 25 with effect from 1st

September, 2009.

(4) Any pending appeal before the Board of Special

Commissioners for Duty on Documents and Transfers constituted

under this Act prior to the abolition of the said Board shall continue

to be heard before the Administrative Review Tribunal and any

appeal which under this Act could be made before the Board of

Special Commissioners for Duty on Documents and Transfers shall

be made before the Tribunal.

(5) Any pending appeal before the Board of Special

Commissioners for Duty on Documents constituted under the Duty

on Documents Act * prior to the abolition of the said Board, shall

continue to be heard before the Tribunal and any appeal which

under the Act could be made before the Board of Special

Commissioners for Duty on Documents shall be made before the

Tribunal.

(6) Any appeal pending on 1st September, 2009 before the

Court of Appeal from a decision of the Board of Special

Commissioners for Duty on Documents and Transfers and any

appeal pending on 1st September 2009 before the Court of Appeal

from a decision of the Board of Special Commissioners for Duty on

Documents shall continue to be heard by that Court, provided that

*Repealed by the Duty on Documents and Transfers Act (Cap. 364)

if the said Court were to annul a decision of any one of the Boards

aforesaid and remit it back to any one of the said Boards, the

remittance shall be made to the Administrative Review Tribunal

which shall hear and decide that case accordingly.

(7) The Commissioner shall publish all decisions given by the

Tribunal on points of law.

(8) The Tribunal shall have power to summon any person to

give evidence or to produce books or other documents before it,

and the Chairperson shall have power to administer the oath to any

person appearing before the Tribunal

Provided that no person shall, by virtue of this sub-article,

be obliged to disclose information in respect of which the said

person is under the duty of professional secrecy.

(9) The Appeals (Board of Special Commissioners for Duty on

Documents) Rules shall, until repealed or substituted in terms of

the Administrative Justice Act, continue to apply to the Tribunal

when hearing appeals previously lodged before the Board of

Special Commissioners for Duty on Documents and Transfers.

(1) Any person who feels aggrieved by an assessment, and

has not agreed with the Commissioner on the amount of duty

payable as provided in article 56(1), may enter an appeal to the

Tribunal within thirty days from the date of the service upon him of

a notice of the refusal of the Commissioner to amend the

assessment as desired.

(2) Every person appealing shall appear before the Tribunal

either in person or by an agent.

(3) The onus of proving that the assessment complained of is

excessive shall be on the appellant.

(4) Subject to the provisions of sub-article (3), the Tribunal

shall confirm, reduce, increase or annul the assessment or make

such order thereon as it may deem appropriate, but any such

r e d u c t i o n o r in c r e a s e m a y r e f er on l y t o th o s e h e a d s of t he

Commissioner’s decision against which an appeal is entered

Provided that in the case of a declaration that is required to

be made in terms of article 33 or of a notice that is required to be

made in terms of article 45, the Tribunal shall summarily reject any

appeal before it and confirm the assessment complained of, unless

prima facie evidence is brought before it that such declaration or

notice, as the case may be, has been made by the date on which the

appeal was entered.

(5) An appeal to the Tribunal shall not be withdrawn or

discontinued except with the consent of the Commissioner.

(6) The Tribunal may order the correction of any arithmetical

error incurred in any of its decisions on an application filed by

either party within ten days from the service upon him of such

decision and served on the other party.

(1) Appeals to the Court of Appeal from decisions of the

Tribunal shall be lodged in terms of Part IV of the Administrative

Justice Act, subject to the following

(a) where the total amount of duty payable in dispute at

the time when the appeal was lodged before the

Tribunal is less than one million and one hundred and

sixty-five thousand euro (€1,165,000) to the Court of

Appeal (Inferior Competence); and

(b) where the total amount of duty payable in dispute at

the time when the appeal was lodged before the

Tribunal is of one million and one hundred and sixty-

five thousand euro (€1,165,000) or more, to the Court

of Appeal (Superior Competence).

(2) The Court of Appeal shall give the parties seven clear days’

notice of the date fixed for the hearing of the appeal.

(3) The Court may confirm, reduce, increase or annul the

assessment as determined by the Tribunal or make such order

thereon as it may deem appropriate but any such reduction or

increase may refer only to those heads of the Tribunal’s decision

against which an appeal is entered.

(4) Notice of the amount of duty payable under the assessment

as determined by the Court of Appeal shall be served by the

Commissioner in the manner provided in article 61.

(5) The Board established under article 29 of the Code of

Organization and Civil Procedure may make rules concerning

appeals to the Court of Appeal from decisions of the Tribunal under

this article.

(6) The powers vested under sub-article (5) shall also apply to

the making of Rules relative to appeals made from the Board of

Special Commissioners for Duty on Documents and the Board of

Special Commissioners for Duty on Documents and Transfers.

Where no valid objection or appeal has been lodged against

an assessment, or where the amount of the duty has been agreed to

under article 56(2), or where an amount of the duty and additional

duty is paid as provided in article 52 of the Act, in respect of such

duty and additional duty so paid, or where an appeal has been

withdrawn or discontinued, or where the amount of duty payable

has been determined on objection or appeal, the assessment as

made or agreed to or determined on objection or appeal, as the case

may be, shall be final and conclusive for all purposes of this Act

Provided that nothing in this Part of this Act shall prevent

the Commissioner from making any refund or adjustment under the

provisions of article 62 or any assessment or additional assessment

which does not involve re-opening any matter which has already

been determined on appeal.

(1) An assessment which is final and conclusive in

accordance with article 60 shall be an executive title within the

meaning and for the purposes of Title VII of Part I of Book Second

of the Code of Organization and Civil Procedure.

(2) If duty and, or additional duty and, or interest is not paid as

prescribed in this Act, the Commissioner shall serve a demand note

upon the person liable for the payment, and if payment is not made

within thirty (30) days from the date of the service of such demand

note, the Commissioner may enforce payment in virtue of the

executive title referred to in sub-article (1), after two days from the

service of an intimation for payment made by means of a judicial

act.

(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.

(1) Save as otherwise expressly provided in this Act, no

action for payment of duty and, or additional duty and, or interest

may be taken after the lapse of five years from the date on which

the relative assessment becomes final and conclusive.

(2) The running period of prescription specified in this article

shall be interrupted by any judicial act filed before the expiration of

such period by the Commissioner whereby any payment of duty is

claimed.

(1) A notice given by the Commissioner for the purposes

of this Act shall be served on the person to whom it is addressed

either personally or by being sent by registered post to his last

known business or private address

Provided that where such notice is not made because the

taxpayer could not be found or for other reasons attributable to him

and the Commissioner publishes a notice in the Gazette and in one or

more daily newspapers stating that a notice has been made and inviting

the taxpayer to call for it at the Department, then such notice shall also

be deemed to have been duly notified.

(2) In the case of service by registered post, unless the contrary

is proved, the notice shall be deemed to have been served

(a) in the case of a person residing in Malta, not later than

the third day succeeding the day of postage; and

(b) in the case of a person not so residing, on the day

succeeding that on which the notice would have been

received in the ordinary course by post.

PART VI

Refund of Duty

(1) The Commissioner may, subject to such conditions as

may be prescribed, refund the duty where -

(a) any document has been inadvertently spoiled,

mutilated, or rendered unfit for use before it is

executed; or

(b) a document is subsequently expressly declared to be

null by any competent court; or

(c) the material condition of a document is such as to

justify its substitution by another document of a

similar nature, provided that the consent of the

Commissioner for such substitution is obtained before

it is made and that the duty applicable for the

document at the time the substitution is made has been

duly paid; or

(d) the amount received by the Commissioner was not

due; or

(e) due to an error in computation, excessive duty has

been paid; or

(f)

a document drawn for purposes of registration or filing

with an authority established by law is rejected owing

to its non-conformity with the requirements of the

authority concerned, where the document, whether or

not it may be construed to have some validity between

the parties, has failed to achieve the purpose for which

it was executed.

(2) Claims for the refund of any duty under this article shall be

made in such manner and within such period as may be prescribed.

(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, notwithstanding the provisions of

paragraph (d) of article 32(4) and the last proviso to article 32C, 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.

(4) Nothing in this article contained shall be deemed or made

use of to supersede or replace the provisions of article 56.

PART VII *

Protection of the Duty

(1) No person bound to make a declaration or lodge a

notice in respect of a transfer causa mortis or liable for the payment

of the duty under any of the provisions of this Act may, after the

lapse of the time prescribed for the making of such a declaration or

*See article 71 of the Act as originally enacted, which has been omitted under the

Statute Law Revision Act, 1980.

notice, institute or prosecute any legal proceedings, or make any

claim in any government department, in respect of any property

which should be included in such a declaration or notice unless it is

shown that the declaration or notice as the case may be has been

made and includes the property to which the proceedings or claim

refers.

(2) The default of proof that the declaration or notice has been

made may be pleaded by the parties at any stage of the legal

proceedings, and shall in all cases be raised by the court ex officio.

The legal proceedings shall thereupon be stayed forthwith and shall

not be prosecuted until the omission is rectified by the person liable

therefor or by any other interested party.

(3) In the cases referred to in this article, the court shall give

the necessary directions in order that the property forming the

subject-matter of the legal proceedings shall not suffer any

prejudice.

(4) The provisions of this article shall not apply after the lapse

of ten years from the relative transfer causa mortis.

(1) No person or authority shall, where a transfer is

subject to duty under this Act, or where a transfer of value is

exempt from duty by virtue of the proviso to article 42B, other than

paragraph (iv) of the said proviso, register any transfer, reduction,

or allotment of company shares whether in the name of a transferee

or any other person claiming through or under him or otherwise,

before ascertaining that such transfer, reduction or allotment has

been notified to the Commissioner in accordance with this Act.

(2) Any person acting in contravention of this article shall be

liable for the payment of the relative duty.

(1) It shall be the duty of every notary executing any deed

of partition, sale, grant, assignment or other transfer of immovable

property or of rights annexed thereto, to state in the deed whether

the property in question came to the partitioners, sellers, grantors,

assignors, or other transferors by onerous title or under a transfer

causa mortis or otherwise, and -

(a) where such property came to the said persons by

onerous title, or was assigned to such persons under a

deed of partition, or was acquired by such persons

under any title, other than by a transfer causa mortis,

or came to the said persons under a transfer causa

mortis happening prior to the 25th November 1992, or

came to the said persons under a chargeable

transmission referred to in article 3 of the Death and

Donation Duty (Repeal) Act, 1993, to record in the

deed all relevant details

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) where such property, not being property assigned to

the said persons under a deed of partition, came to the

said persons under a transfer causa mortis, other than

by a transfer as is referred to in paragraph (a), to

indicate in the deed the date on which a declaration in

respect of the transfer causa mortis was made giving

all details of the deed whereby the declaration was

made;

(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

Provided further that the provisions of this sub-article shall

not apply where the property is transferred by the Government.

(2) No deed referred to in sub-article (1) shall be executed

where the property has come to the partitioners, sellers, grantors,

assignors or other transferors under any transfer causa mortis other

than a transfer referred to in sub-article (1)(a) unless the relative

declaration of the transfer causa mortis has been made.

(3) If a notary contravenes the provisions of sub-article (1), he

shall be guilty of an offence and shall be liable, on conviction, to a

fine (ammenda) of not less than twenty-three euro (23) and not

exceeding two hundred and thirty euro (230) for each

contravention, and the proviso to article 11 shall apply to this

article.

(4) If a notary contravenes the provisions of sub-articles (1) or

(2), he shall be liable for the payment of double the relative duty.

(1) Where any immovable property or rights annexed

thereto are sold by judicial auction, the Registrar of the Court under

the authority of which the sale has taken place shall, after notifying

the person or persons appearing to be interested therein, remit to

the Commissioner from the p roceeds lodged in court, w ith

preference over any other person not having a prior claim to that of

the Government as provided in sub-article (4), the amount of any

duty which may still be due in respect of the property or rights sold.

(2) Any interested party may oppose the remittance aforesaid

by sworn application filed against the Commissioner within six

working days from the receipt of the Registrar’s notification.

(3) No bid animo compensandi made in any judicial sale by

auction of immovable property or rights annexed thereto shall be

approved for the purposes of article 331 of the Code of

Organization and Civil Procedure unless it is shown that the duty to

which the property affected by the sale may be subject has been

paid.

(4)

(a) Government shall have a special privilege in respect of

the duty payable under this Part of this Act over all the

property transferred causa mortis.

(b) With regard to immovable property, the special

privilege granted to Government by this article shall

not affect

(i)

real rights acquired by third parties over the

property in question before the happening of the

transfer causa mortis; or

(ii) third parties in possession of the property

Provided that the said special privilege shall not

affect

(i)

the privilege or hypothec registered by the

creditors of such person before his death or

within three months of his death or any shorter

period established by law;

(ii) the rights of those creditors who have demanded

the separation of the said person’s estate from

that of his heirs

Provided further that this benefit shall not apply to

the legatees who may have obtained such separation of

estates.

(c) The special privilege granted by this sub-article over

immovable property shall be registered by the

Commissioner within two months from the date on

which the relative assessment raised in accordance

with the provisions of this Act becomes final and

conclusive and shall rank immediately after the

privileges contemplated in article 2010 of the Civil

Code.

Every person required or authorized by any of the

provisions of this Act to do anything for the protection of the duty

shall be and is hereby indemnified against any person whomsoever

for anything done by him in pursuance or by virtue of any of those

provisions.

(1)

Notwithstanding any other provision of this Act or of

any other law, upon the conclusion of an agreement made in terms of

this article between the Commissioner and any person obliged to make

any payment under this Act, hereinafter in this article referred to as the

"debtor" or the "taxpayer", providing for the payment of an additional

penalty in addition to any other penalties otherwise provided for in this

Act, all criminal liability of the debtor for any breach against this Act

and for any connected breach in respect of the acts in relation to which

the agreement has been entered, shall be extinguished

Provided that the additional penalty that such person shall be

liable to pay in respect of such breach or breaches shall amount to a

minimum of ten thousand euro (€10,000) and a maximum of one million

euro (€1,000,000), and shall be imposed in terms of a Schedule to be

prescribed by the Minister under this Act, and this in addition to any

other amount provided for in this Act for the debtor’s default and

quantified according to the final agreement

Provided further that the agreement to pay any fine or make

any other payment under an agreement as provided for in this article

shall not extinguish any civil liability to make any payment not covered

by the agreement entered into in terms of this article.

(2)

(a)

The provisions of this article shall apply where the

Commissioner, acting upon the written request of the taxpayer and the

notification of adjustment of previous declarations given by the

taxpayer, accepts that the adjustments have been correctly made and

shall give notice in writing to the taxpayer of a draft agreement in terms

of this article to be signed within six (6) months from the date of the

request of the taxpayer

Provided that the said period of six (6) months may be

extended by the Commissioner if he is satisfied that a longer period is

required to determine the extent of the proceeds of the breach.

(b)

The draft agreement shall include the following

(i)

details of the breach or breaches which may

include admissions made by the debtor;

(ii) an obligation upon the debtor to pay and a

quantification of the additional penalty together with any other

payment due in terms of this Act for any default;

(iii) the period allowed for the payment of the amounts

due under the agreement;

(iv) the consequences of any failure to comply with any

terms of the agreement including those provided in articles 187A,

187B and 187C of the Criminal Code;

(v)

any other terms and conditions imposed by the

Commissioner

Provided that when a draft agreement is notified as aforesaid,

an agreement in terms of this sub-article shall be signed and returned to

the Commissioner within one (1) month, and if the signed agreement is

not received by the Commissioner within the said timeframe, which may

be extended by the Commissioner upon reasonable cause being shown

by the taxpayer, the provisions of this article shall have no effect

Provided further that the amount resulting from this

agreement shall constitute an executive title within the meaning of and

for the purposes of Title VII of Part I of Book Second of the Code of

Organisation and Civil Procedure.

(3)

The period of prescription in respect of the breach and

connected breaches shall be suspended during the times established in,

or under sub-article (2) and no prosecution shall be instituted in respect

of the breach and connected breaches during the time when those

periods are running

Provided that no prosecution shall be annulled on the ground

that it was instituted in violation of this sub-article.

(4)

The provisions of this article shall also apply upon the request

of the debtor in any case where the debtor has been charged before a

court in relation to the breach or breaches and connected breaches, but

before final judgment has been given in the case.

(5)

Where proceedings are pending before the Court of

Magistrates as a court of criminal inquiry and the existence of an

agreement is brought to the Court’s notice, the Court shall, upon being

satisfied that the breach or breaches mentioned in the charge are

breaches to which this article applies or connected breaches, assume the

function of a court of criminal judicature and declare the criminal

action extinguished in respect of such charges. The Court shall

likewise declare the criminal action extinguished if it is a court of

criminal judicature whether at first instance or at appeal stage

notwithstanding any previous judgment delivered in the cause which

has not become final.

(6)

In this article

"agreement" means and includes a document evidencing

an agreement reached between the Commissioner and the debtor

in terms of this article and also includes a document or a

declaration issued by the Commissioner after the coming into

force of this article confirming that the debtor has before the

coming into force of this article regularised his position with the

Commissioner and has after the coming into force of this article

satisfied the requirements thereof by accepting to pay the

additional penalty;

"breach" or "breaches" includes any act or acts which

constitute a criminal offence;

"Commissioner" means the Commissioner for Tax and

Customs;

"connected breach" means any act which constitutes a

criminal offence committed in pursuance of committing a breach

against this Act and shall include

(i)

a breach committed, even if at different

times, in pursuance of a pre-concerted plan to commit a

breach against this Act;

(ii)

a breach committed with the object of

procuring the means for the commission of a breach

against this Act;

(iii) a breach committed with the object of

facilitating the commission or completion of a breach

against this Act, or of ensuring impunity for such a

breach;

(iv) a breach which in a single context violates

more than one provision of law where at least one

provision relates to a breach against this Act;

(v)

a breach committed through the apparently

legitimate use of the proceeds of a breach against this Act

Provided that a connected breach shall not include

any act included in Sub-title IV of Title III of Part II of Book

First of the Criminal Code;

"this Act" includes any subsidiary legislation issued

thereunder.