Adjustments to Declared Value of Immovable Property Rules,

L.N. 3 of 2005

DUTY ON DOCUMENTS AND TRANSFERS ACT

(CAP. 364)

Adjustments to Declared Value of Immovable Property Rules,

IN exercise of the powers conferred by article 22 of the Duty on

Documents and Transfers Act, the Prime Minister and Minister of

Finance has made the following rules>-

The title of these rules is the Adjustments to Declared Value Title.

of Immovable Property Rules, 2005.

In these rules, unless the context otherwise requires -

Interpretation.

“the Act” means the Duty on Documents and Transfers Act<

“deed of adjustment” means a deed to which rule 4 refers<

“original declaration” means a declaration made in accordance

with article 33 of the Act, in respect of a transfer causa mortis to

which rule 3 applies<

“original value” means, without prejudice to rule 7, the value

of immovable property or a portion thereof, as the case may be,

transferred to a person causa mortis as declared in an original

declaration.

Any person who acquired immovable property under a transfer Adjustment to

causa mortis on or after the 24 th November, 1992 may, if notice of that value

declaration causa

transfer has been given to the Commissioner in accordance with article mortis.

51 of the Act before the 25 th November, 2003, and subject to the other

provisions of these rules, make an adjustment to the value of the property

declared in the original declaration by declaring a higher value and

paying the duty on that increase.

An adjustment to the original value shall be made by means Deed of

of a public deed and notice of the adjustment shall be given to the adjustment.

Commissioner by the notary who receives the deed of adjustment by

not later than the 30 th June, 2005 together with a certified copy of the

deed by means of which the original declaration had been made.

The deed of adjustment shall contain a declaration by the

transferee causa mortis that he wishes to make an adjustment to the

original value in accordance with these rules and shall indicate the

original value and the amount by which the transferee wishes to increase

that value.

When the original declaration contains a declaration of the

adjustment to each

original value of more than one item of immovable property, the deed

of adjustment shall indicate separately the original value of each item

and the corresponding additional amount, including, where applicable,

a nil amount, by which the person making the declaration wishes to

adjust each such value.

Where the original value is the subject of an assessment made

under the Act and, before the notice referred to in rule 4 has been given

to the Commissioner, that assessment becomes or has become final and

conclusive, or is or has been confirmed or amended by a final decision

of an appellate tribunal or court or is withdrawn following an agreement

in writing with the Commissioner, the value of the property resulting

from the said final and conclusive assessment, or decision or agreement

shall be deemed the original value for the purposes of these rules.

Where the original value is the subject of an assessment made

under the Act which, at the time that the notice referred to in rule 4 has

been given to the Commissioner, has not become final and conclusive,

the original value for the purpose of these rules shall be the value declared

in the original declaration, as defined in rule 2>

Provided that -

(a) the deed of adjustment, the notice thereof and the

payment of the tax in accordance with these rules shall be without

prejudice to that assessment and to the procedures relating to any

objection and appeal against that assessment<

(b) when that assessment becomes final and conclusive, the

duty paid in accordance with these rules in respect of any

immovable property shall be available as a credit against the duty,

excluding additional duty, on the assessed value as resulting from

that assessment in respect of the said property, which credit shall

not exceed the said duty on the assessed value.

The amount by which a person may increase the original value

shall not be higher than the maximum increase shown in the second

column of the following table>

In respect of any item of immovable property

Acquired by the transferee causa mortis after the

24 th November, 1992 and before the 25 th November,

1994 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 1994 and before the 25 th November,

1995 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 1995 and before the 25 th November,

1996 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 1996 and before the 25 th November,

1997 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 1997 and before the 25 th November,

1998 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 1998 and before the 25 th November,

1999 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 1999 and before the 25 th November,

2000 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 2000 and before the 25 th November,

2001 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 2001 and before the 25 th November,

2002 …………………………………………………

Acquired by the transferee causa mortis after the

24 th November, 2002 and declared in a deed of transfer

causa mortis of which notice has been given to the

Commissioner before the 25 th November, 2003 ……

A duty of five percent of the amount of the additional value

shall be payable on every deed of adjustment. The duty shall be paid to

the notary who receives the deed and remitted by the notary to the

Commissioner together with the notice of the said deed.

Save as provided in or as may be necessary for the purposes

procedures relating

of these rules, the provisions of the Act and of rules prescribed under

the Act, in respect of deeds containing a declaration of a transfer causa

mortis, notice of such declarations, and the payment and remittance of

the duty on such transfers shall apply, mutatis mutandis, to deeds of

adjustment.

No deed of adjustment shall be valid unless it complies with

Validity of deed of

these rules and the duty payable thereon is remitted to the Commissioner

together with the notice thereof by not later than the 30 th June, 2005.

The duty on a deed of adjustment shall be due notwithstanding

any exemption from or limitation to the duty on the original declaration.

Without prejudice to proviso (b) of rule 8, duty paid in

accordance with the provisions of these rules shall, under no

circumstances, be refundable.

Saving the other provisions of these rules, duty payable in

rules deemed to be

accordance with these rules shall be deemed to be duty payable on a

declaration causa mortis made in accordance with article 33 of the Act.

These rules shall be without prejudice to paragraph (a) of

sub-article (1) and paragraph (a) of sub-article (4) of article 43 of the

Income Tax Management Act.” .

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press