98 tal-1993

L.N. 98 ." 1993

DUTY ON DOCUMENTS AND TRANSFERS ACT, 19113

(ACT NO. XVII OF 1993)

Duty on Dow ...... ts and Tnmsren RIiHs, 1993

IN e~crcisc of the powe ... oonferred by i1Cctions~. ]2.22. 33,)4,39,

46, SI and 62 of the Duty on Documents and TT~ nlifers Act, 1993,

hereinafter referred 10 as "the Act", the Minister of Finance ills made

tile following ru les:-

( 1) These rules may be cited as the Duly on [)ocumenl5 and

Transfers Rules. 1993.

(2) These rules shall be dumed 10 have come into force on

the 25t h. November. 1992 except for paragraph (4) ofrule 2 which shall

oome into force on tlic ne~t day following the publication of these rules .

1. (I) The duty in re!ipea of any document or Il"lnSfel e.ecuted

in Malt. shall be made at the OffICe or llle CommiMioner within fiftun

working days following that on which the document or transfe r is

completed.

(2) ~ymenl of ,du ty in respect of any document denoled by

means of frankmg mactllncs Miall be effected heron the relative

document is drawn up , signed oroompleled.

(3) Payment of duty in respect of documents execu ted

outside Malta which In: Ii~blc: to duty by J't'a500 of their use in M~lta

shall be erfected lithe Office of the Commissioner before use thereof is

made in Malta.

(4) Payment of d uty in respect of a !lChedule of J't'demplion of

gJound ·rentlo be filed in COU" sball be ooted by the Commissioner and

it shall not be lawful to file any iuch Khedule in Cou" before payment

thereof has been made .

($) The duty chargeable on any transfer referred 10 in

sections 32. 33 and 40 sllall be paid by means ofa Bank Draft and a copy

of the notice mentio ned in sectio n ~ I of the Act and 10 which the First

Schedule of these Rules refers, dul y stamped by the Commissioner.

sllall be annexed 10 the clced relating to the transfer by tbe ootary

publishing such clced

Provided tllat wllere payment is dfttted by means of a Bank

Draft within the time in which such duty is payable in accordance with

these Rules, 00 liability shall attach on the notary or the parties to the

deed iflhe Bank Draft is subsequently OOt hooouJ't'd bylbe bank issuing

the Draft.

(6) "The receipt fo r tilt; du ty paid on any transfer referred to

in sections 36, 37. 39 and 42 of the Act shall be annexed to the document

relating to such transfer.

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l . (I) "The value of any prope"y subject 10 duty under tile Act ,

transferred Utle, viVOl o r transmitted alUSQ mortis. shall be the value of

such property on the date of the 5Iid transfer inlU vivw or on the date of

death of the perron from whom the transfer causa mortis originates, as

the case may be, (hereinafter referred to as "the relevant date") and

such value shall be established in accordance with the following

provisions.

(2) The value of the full ownenhip of any property on the

relevant date shall be the average price whlch such property would fetch

if sold OIl the open market on that date, due regard being had to all

circumstaflCCs affecting such property.

(3) The value of the usufruct of any property on the relevant

date shall be established as fonows

(a) where the duration of the usufruct is for the life of the

usufructuary or for any OIher indefinite period, the value of the

usufruct shall be the percentage of the value of the full ownership

sel OUI in the Serond Schedule to these Rules reckoned according

to the age of the llSufructuary OfIthat dale: so however that where a

llSufruct devolves on several persons jointly or successively, or

jointly and ruccessively, and the provisions of the Act apply, the

value of the usufruct shatl be determined acrording to the ageof the

youngest o!such persons on the relevant date;

(b) subject 10 !be provisions of subparagraph (c) hereof,

where the duration of the usufroct is limited to a definite period,

the value of the usufruct shall be one and a half percent of the value

of the full oWQership of the property multiplated by the number of

yean, or !be remaining number of yean, (in all cases a fraction of a

year being taken as one whole year), of the duration of such

U$ufruet;

(c)

the provisions refem:d 10 in subparagrapb (b) hereof are

(i) where, having regard tn Ihe age of the person, or if

the usufruct devolves jointly or successively, or jointly and

sue<:essively, on more than one person, the age of the youngest

of such persons, upon whom the usufruet devolves on the

relevant date, the value of such usufruct established in

accordance with the provisions of subparagraph (a) hereof is

less than the value established in aa:ordance with the

provisions of subparagraph (b) hereof, the value of the

usufrucl shan be that established in accordance with the

provisions of the said paragraph (a);

(ii) where it is provided that the usufruct is to lerminate

on the death of a Slated person even if such death happens

before the expiralion of the definite period, the value of the

usufruct shall also be that established in accordance with the

provisions of subparagraph (a) or of subparagraph (b) Ilereof,

whichever value is the less, having regard 10 the age of the said

person on the relevant date;

(iii) in no case shall the value ohhe usufruct established

in accordance with tile provisions of subparagraph (b) hereof

exceed the value of the full ownenhip ofthe property.

(4) The value of the nuda proprimu on Ihe relevant date

shall be the difference between the value of the full ownership of the

property OD that date and the value OD !be same dale of the usuflUCl

cocumbering il established in accordance with the provisions of

paragttlph (3) hereof.

(5) The Y3luc of the dcHniniwn lUiIe of any property on the

relevant date man be established as folloW$

(a) where the domiIIiwn utik 11 perpetllolll, « where iu

remaining period is oot less than fifty yean. the value of Ihe

dominium utile shall be the diffcTerlCC between the value of the full

own.ership of the property established in .ecordanee with the

provisions of paravapb (2) of thi$ rule and the value of the

dominiWfl dinc:tum established in aocordana: with the provisions

oflubparagrapb (a) of paragraph (7) hereof;

(b) where the remaining period of the dominium utile is less

than fih y years, the value of Ihe dominium utile sllaU be such

portion of the valllC of the dominium utik of the same property,

esllblished 11$ if il were perpetual in ac::a:mIanoe with the pmvi!ions

of wbparagraph <I) of Ibi, paragraph , as takes fairly and

adequately inlo account Ihe duration of the remaining period.nd

all otber relevant eireumstalM':a.

(6) The value of the dominiwm dincrwm of any property on

the relevant date shall be established u follows

(a) where the dominium unit of the property is perpetual, or

where iu; remaining period is oollcss than fifty )'Can, the value of

the dominiwm unl.e of lbat property shall be

(i ) in rt~ped of • transkr CQI&I morti.1, the value

resulting from the capitalisation of the annual ground rent at

the rate of eight per cent;

(il) in respect of any document whereby I schcduk of

redemption of ground rent is filed in Court, the value resulting

from the capitali$8tion of the annual ground rent u

cstablished in any law governing such redemption ; and

(iii) in any other case, the value or the amount of the

consideration, whichever is the higher , which the annua l

ground rent would fetch if redeemed or transfc lTCd on the

open markel.

(b) where the remaining period of the dominium wliI.e 01 the

property is less lban fifty )'Carl. the value of the dominium dincrum

of Ihat property shall be the diffe rence hetween the value of the full

ownership 'of Ihat property and the value of its domillium wliI.e on

the same date C$tablisbed in acxotdance with the provision5 of

Albp;iragmph (b) of paragmph (5) hereof.

(7) (.) When: the consideration for a transfer or Ihe value

upon which the duty is 10 be a 5Sed ooosi5ts o f I periodical

payment in perpetuity. or fo.-. period Of rweDI)' yean or more. or

for an indefinite period, an all vaIortm duly shall be thargcd on the

wWlmount payable during the period oftwc nty yean.

(b) Where the periodical payment is to wntinuc for I

definite period of less than twenty years, an lid VfIIoron dUly shall

be charged o n the toW amount payable duringsueh period.

When: the periodical payment is 10 contin ue d uring

(c)

any life or lives, an lid ~aJonm duty shall be charged on the 101.1

amount payable during Ihe period of twelve ~an.

(d)

When: a do(umcnl is chargeable with all v/llQnm

duty in respect of an amount expressed in foreiS" currency. the

duty shall be calculated o n such amount converted into Maltese

currency at the ratc of exchange curre nt on the day of the date of

Ihe document.

",,_;.~r

Nema. (1YJ'EWRfITEN OR [1'1 BLOCK Ul'lTERS), TO li E F1 U!1) ON DEEDS OF TItANS~"ER OR DEa.Jl.RA·

n ON, FOR THE PURPOSE OF PROVtS ION"L TAX IN TERMS Of' SECI10N 74'" OF THE INCOME TAX

m , CAP . 123. AND

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PURPOSE OF SECTION

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AND

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TRANSFl!RS Acr. 1993,

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DECLARATION BY NOTARY

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FOR Of'FlCIAL USE

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pjamo 11' kol. JII'OII'ioti rwoIi.

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I T-TIENI SKEDA

Eta la'/-uiu{,urrwa,ju

meta I-utufrultwaljll ma jkUIUI gIIallq 1-&fIoxrio sena

meta I-utufruttwarju jli::un gIIalaq )-gtIoxrin Kna Wla ma

jli::ulU. gllalaq il-Uclin sena ;

mela l-utufruttwllju jkun ghalaq il-Ilelin K na itda ma

jli::uDJ[ ghalaq l-crbghin senB

meta I-utufruttwarju jkun gIIaIaq l-erbghin sena iida ma

jkUIUI gIIalaq il-lIamsin sena;

meta I-u±ufruuwarju jli::un gllalaq iJ-ham$in K na ada ma

jkuDJ[ ghalaq iBill;n Kna

meta l-utufruuWBrjU jklln gIIalaq is-sillin KnB iUla ma

jkulU. glIalaq i5-scbgrain Kna

mell l-utufrultwarjll jkun ghalaq is-scbgrain sena

n IKt • • ptlcnt.rt fIIlM nl_ ot tbc ran ow_ .alp

VahM'fllu.e

A~ of tM USOlfrvt:tulur

where the usufructuary has not completed twenty run

of age

where the uJufructuary has completed twenty yean of agc

but not thirty ~..,

where the usufructuary has completed thirty yean of age

bul not fony yean

where tile usufnlduary has completed fony yean of age

but not fifty ~an

where the ll$Ufrud:uary has completed fifty yean of age

but notllixtyyean

where the WiUfroctu.ary has completed sLlIy yean of age

but DOI l1e\1cnly years

where the usufructuary has completed ~venty yean: of age

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~ by 1It;".,..",...", '" 1.,.....- _ Katl/Jo

• lit; 0. •• ..".,., I'MIMI"-

Milb<o&fl ft· l ~ .... 'Overo _ _

( \ ) The dcdaration of a transfer causa 17WrtU to be made in

terms of section 33 of the Act sllall be made within sill months of the

relative transfer CIIW'Q morti.1.

(2) 1lIc: declaration shall contain

(.) the particulars rdened to in paragraph (c) of subsection

(I) of section 28 of the Nowial Profession and NOlarial Archives

Act in respoct of the transferee C"IZ/.U<I mortis and of the penon from

whom the transfer CQUJII mortis originues;

(b) the precise description of all the imlllOYlble property or

righl$ thercoo lransfen ed 10 the transferee CQI<SII mQrtis including

lhe requirements Lisled in subparagrapb (0) of paragraph (f) of the

said iUbsection (I) of section 28 of the Nourial Professioo and

Notarial All:bives Act ; and

(c) an indication of whether tbe transfer CQW141 momJ

devolved on intestacy or o!berwise , as well as a reference 10 any will

or any decree o r judgeme nt of lily court whereby the succession

was declared open in favour of the transferee 'IIUSlI mortis.

( I) Where Ihe 10lal duty palable at the ra let specirlCd in

section 32 of lhe A ct on Ihe value 0 any propeny a mlained in a

declaration made by a transferee 'IIU.!II mortis in accordance with

section 33 of the said Act is less than one thousand liTi such d uly lball,

for the purposes of section 34 of the Act , be rebated by an amount of

LmIOO and where such rebate exceeds the allK)Unl of duty chargeable

the rebate shall be redllCCd to the amount of duty so chargeable.

(2) Where a transferee 'IIUSlI nwrtis omits to make in a

declaration a full statement of all !be property transfe rred 10 him

OOOIpriscd in lhe transfer alUS/I mortis, any subsequen t declaration

making I statement of such property shall be deemed as one wilh the

first declaration and the said rebate shall apply to all the declarations

made by a tramferee caUSII m arm in respect of anyone transfer CIIU,JII

mortiJ cu mu lative ly.

(3) Such rebate shaU 1101 apply 10 such pan of the duty in

respect of any property tranderred 10 a transferee CIlI.ISIJ mortis and

contained in any dcciaflltion made more than six months after the

happening of the relative tnmsfc r CQ_ mmtiJ.

TIle memorandum of an auction 5llle men tioned in section 19

mine Ad shall contain a dexriptionof theartK;\e$Old, the pria: andlot

number thereof, the dale of the sale, the name and addressof!he bidder

10 wbom the Ale is made . the total .mount payable by each bidder for

the article or anicl ~ purdLased and the duty which may be due in

aa:ordance with the provisions uf tbe Ad .

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( I ) For the ptlrpoIU of KCtion 46 of the Act , a person 10

whom shares in I limited liability company registered in Malta arc

ttaMmitted CIIUSII' manu shall not laler than sill months after the

happening of the trandcr ""1UtI mortis give IIOti<Jc thereof \0 tbe

Regist ..... of Partnershipl.

(2) The notice shall contain

(I) the name Ind last address of the person from whom the

transfer cawa morri.J originates;

the name and add ress of the transferee caw" morri.J;

(b)

(c) the nu mber of the official document produced for

ascenaining the identity of the transferee CtlUSII rnorri.J and of the

person from whom the transfer caUSII mortis originates.

(d) I oomplete list of the shares included in the tl1losfer ,

irrespective of whether the company 10 whic:h the transfer refers is

registered with the Registrar of PannenhipsorOlherwise; and

(e) the manner in which tbe shares devolved on the

transferee caUSII nwnis giving ,11 tbe details as an: referred to in

subparagrapll (c) of pal1lgrapb (2) of ruic:" hereof.

(3) The Regist ..... of Plnnerships shall register and index the

said ootice by reference to the name of the tl1lnsfen:e, the name of the

penon from whom the tnnsfer CQUSII nwnis originates. and the name of

the company to which the shares refer.

(4) The payment of dut, shall be indicated by the

Commissioner on the notice aforesaid, and no such notice s.hall be

accepted by tbe Regisll1Ir of Partnenhips unless the payment of the

relative d uty is 50 indicated thereon.

S. (I) For the purposes of section ~ I of the Act , the notary shall

give notice of the relative deed to the Commissioner.

(2) TIle notice &hall be lypcwrincn or in block kucn and in

the form set out and (:QtIUUn the information required in the First

Schedule 10 tbeIe rule..

(3) The Commissioner $hall IK)t accept payment of the

..,llI'vc duty before the said notice has been filed .

•. (I ) Oaims for the refund of any dUI)' underteetion 62 ofthc

Ad shall be made in writing and mall IlOl be considered by the

Commis.sioner if made . fter four years fTOtn the payment of the duty .

(2)

In the case of an assessment 5el'"\led under section 54 of

the Act -

(a) no claim lor refund or adjustment 1111.11 be made after the

Ispte of four yea" from the date on which the Il$5eSSII'Ient In ",bleb

the clai m refeR becomes finallnd conclusive in accordance witb

the provisions oftlK: Act ; and

(b) in cases when: no duty is chargeable, the claim may be

made within len yearsor llie da te of the inltT vj~os oralUSCl morm

transfer .

(3) Documents, olher than !lOlarial acts, in respect of which

I. refund is ciaim<:d w ll be , ulTclldercd 10 the Commissioner.

,..

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