Tax on Property Transfers Rules, 2006

L.N. 112 of 2006

INCOME TAX ACT

(CAP. 123)

Tax on Property Transfers Rules, 2006

IN exercise of the powers conferred by articles 5, 5A, 14 and 96 of

the Income Tax Act, hereinafter referred to as “the Act”, the Prime

Minister and Minister of Finance has made the following rules>-

The title of these rules is the Tax on Property Transfers Rules,

2006. In these rules, unless the context otherwise requires –

Rule 22(1)

Income Tax Act

Tax on Property Transfers Rules, 2006

Form TPT 1

Declaration to be made by persons who transfer immovable property situated in Malta

When property is transferred by more than one transferor, this form may be completed jointly by them if and to

the extent that the shares of the property transferred by each of them are categorised in the same manner for the purpose

of the calculation of the tax in this Form. Separate forms are to be used where transfers of property by different persons

are categorised in a different manner.

Continuation sheets are to be added as necessary.

Names and addresses of the Transferors

I.D./Income Telephone

Tax No.

No.

Date of the transfer

Name of the notary publishing the deed of the transfer

Address or other description of property being transferred

Calculation of the tax chargeable under article 5A of Act

Read the following notes carefully. Where necessary. obtain assistance and advice.

In this calculation, transfers are to be categorised as follows

Category I

Transfer to which article 5A of the Act does not apply

Category II

Transfers that are exempt from tax under the Income Tax Act

Category III

Transfers of property that had been acquired causa mortis before 25-11-92

Category IV

Transfers of property that had been acquired causa mortis after 24-11-92

or by donation more than 5 years before the transfer

Category V

Other

The item number that must be given is the number of the relative item of property given in the list of items of

properties described above .

When an item of property being transferred was acquired under more than one acquisition, and the transfer of

that property falls under more than one category, the transfer value for each category that is to be shown in the

respective column is that resulting from an apportionment that is to be calculated on Form TPT3. In such cases,

Form TPT3 is to be attached to this Form.

When any item of property that is being transferred is part of the property that had been acquired, and the

transfer falls under Category III, the acquisition value to be shown is that resulting from an apportionment that is

to be calculated on Form TPT4. In such cases, Form TPT4 is to be attached to this Form.

In the case of a transfer that is deemed to take place on a partition where an owelty is due, the transfer value is to

be calculated on Form TPT1. If the transfer falls under Category III, Form TPT1 is to be used also for calculating

the acquisition value. In such cases, Form TPT1 is to be attached to this Form.

In the case of a transfer of property that had been assigned to the transferor on a partition where an owelty was

due, the transfer value is to be calculated on Form TPT2. If the transfer falls under Category III, Form TPT2 is to

be used also for calculating the acquisition value. In such cases, Form TPT2 is to be attached to this Form.

When more than one Form TPT 1 is used in respect of property transferred on the same deed, the transfer values

and, where applicable, the acquisition values and brokerage fees should be apportioned to the separate forms

according to the shares of the transfers covered by each form respectively.

I

II

III

IV

V

Total

Category of transfer

Item No.

Transfer Value

Corresponding amount of

brokerage fees, if any

Net amount

Item No.

Acquisition

value

Total acquisition value

Amount subject to tax

under article 5A

Tax at 7% on Category III transfers

Tax at 12% on transfers of Categories IV and V

Total tax chargeable

Apportionment of the tax to the transferors

Transferor

Tax

Total

Transfers to which article 5A of Act does not apply

This part of the form is to be completed in those cases where any transfer or part of a transfer is shown in the above

calculation as a Category I transfer.

State why article 5A does not apply to the transfer by inserting the number of the item of property to which the transfer

refers in the relative box

Cases where article 5A does not apply in virtue of a mandatory provision of the law

Art.5A(3)(b) proviso (ii)

The property forms part of a project and was acquired not more than 5 years before the transfer, and the

transferor has transferred other property that formed part of that project on or after the 1 March 2006 and has

exercised the option under art. 5A(3)(b) in respect of that transfer

Art. 5A(3)(c) proviso (ii)

The property is situated within a Special Designated Area, and the transferor has transferred other property

situated within that area on or after the 1 March 2006 and has exercised the option under art. 5A(3)(b) in

respect of that transfer

Art. 5A(3)(f)

The transfer is being made in the course of a winding up by the court

Art. 5A(3)(g) proviso (ii)

The property is business property that had been acquired to replace another business property, and the

transferor had qualified for roll-over relief under art. 5(8) ITA in respect of the transfer of that other property

Cases where article 5A does not apply pursuant to an option exercised on the deed

Art. 5A(3)(b)

The property was acquired not more than 5 years from the date of the transfer

If the transferor is a company and had acquired the property under a transfer that qualified for the intra-

group exemption or relief provided for in article 5A(4)(f) or 5(9) ITA, the 5-year period is to be reckoned from

the date on which the property had last been transferred under a transfer that did not qualify for that

exemption or relief

Art. 5A(3)(c)

The property is situated within a Special Designated Area and the transferor was the owner of the property at

the time that it was first designated as such

Art. 5A(3)(d)

An undivided share of the property is being transferred from one co-owner to the other. The property had been

acquired to be used as residence and the parties had made a declaration in this sense for the purposes of art.

32(4)(a) DDTA in the deed of acquisition

Art. 5A(3)(e)

The property is being transferred to the Government. The Government had taken possession of that property,

or a Presidential Order had been issued in respect thereof, prior to 1 November 2005. A letter from the

Commissioner of Land confirming the relevant circumstances is attached.

Art. 5A(3)(g)

The property has been used in the business for at least 3 years and has been or will be replaced within 12

months by property used solely for the same purpose.

Art. 5A(3)(h)

The transferor is not resident in Malta and is attaching a statement signed by the tax authorities of the country

of his residence confirming that he is resident in that country and that he is subject to tax in that country on

profits derived from the transfer of immovable property situated in Malta.

Exempt transfers

This part of the form is to be completed in those cases where any transfer or part of a transfer is shown in the calculation

of the tax above as a Category II transfer.

In the appropriate box insert the item number of the property to which the transfer in question applies

For a full description of the conditions applicable to the exemption, refer to the corresponding provisions of article 5A of

the Income Tax Act

A donation that is exempt under art. 5A(4)(a) or (b)

A transfer of the transferor's own residence that is exempt under art. 5A(4)(c)

An assignment that is exempt under art. 5A(4)(d) or (e)

A transfer from one company to another that qualifies for the intra-group exemption under art. 5A(4)(f)

A transfer if property upon the incorporation of a business or a partnership en nom collectif as a going concern

into a limited liability company that is exempt under art. 5A(4)(g)

A settlement of property on trust or a distribution or reversion of trust property that is exempt under article

5A(3)(h).

In addition to the item number, give also the reference of the relevant provision of article 5 (art. 5(18) to (25)

)

A transfer that is exempt under art. 5A(4)(i) ITA by reference to article 12(1) ITA or an exemption order

under art. 12(2) ITA or any other provision of any law

In addition to the item number, explain briefly the basis of the exemption

Declaration to be signed by all the transferors indicated in the first page

I / We declare that the information given above is true and correct. In particular, I / we confirm that

the transfer values declared above represent the higher of the consideration for the transfer and

what, in my / our opinion, is the market value of the property in question

all values have been properly calculated

all the transfers are shown under the correct category

Name/s of transferor/s

Signature

Date

“acquisition value” and “transfer value” mean the acquisition

value and the transfer value that are required to be determined for

the purposes of article 5A of the Act<

“project” and “property” have the meaning assigned to them

in article 5A of the Act<

“market value”, in relation to any property, means the average

“notice of the transfer” means the notice in respect of a transfer

of property that is required to be delivered to the Commissioner in

accordance with rule 22(9).

Rule 22(2)

INCOME TAX ACT

(CAP. 123)

Tax on Property Transfers Rules, 2006

Transfers that take place on a partition where an owelty is due

FORM TPT 2

Calculation of transfer value and acquisition value in terms of Rule 5(1)

This Form is to be attached to Form TPT 1

List of the partitioners

Date of the partition

Particulars of the original acquisition

Date of acquisition

Type (causa mortis /donation)

Name of notary who published the deed of

transmission causa mortis or the deed of donation

Notes

Property means immovable property situated in Malta

Lines 1, 3, and 13 are to be filled in only if the property was acquired causa mortis after 24th November 1992 or by

means of a donation that took place more than 5 years before the partition

Property

Other

common

assets

Line no.

1 Value of property at time of original acquisition

2 Value of partitioned assets at the time of the partition as

shown in the deed

3 Original value of property as a proportion of value of

property at time of partition (divide line 1 by line 2)

4 Partitioners (give number

corresponding to each partitioner

listed above)

5 Shares due to each partitioner (to be

shown as a fraction)

6 Value of share of total assets due to

each partitioner (multiply TOTAL in

line 2 by fraction shown in line 5)

7 Value of common assets assigned to

each partitioner

8 Owelty due (line 6 less line 7)

9 Value of share of property due to each

partitioner (multiply the value of

property in line 2 by the fraction

shown in line 5)

10 Value of property assigned to each

partitioner

11 Shortfall in value of property (line 9

less line 10)

12 Transfer value (the higher of lines 8

and 11)

13 Acquisition value (multiply line12 by

the proportion shown in line 3)

I / We confirm that the above information is true and correct

Persons to whom an owelty is due

Name and surname

Address

I.D No

Signature

Date

(1) In determining the amount on which tax is payable in

terms of article 5A of the Act, there shall be allowed as a deduction

from the transfer value brokerage fees, if any, paid by the transferor in

connection with the transfer in question.

(2) Brokerage fees shall not be allowable as a deduction

unless –

(a) the transferor produces to the notary a signed receipt

that shows the date of the payment, the name, identity card number

and address of the broker and the amount of brokerage fees paid<

(b) the notary records in the deed of the transfer the fees

paid and the name and particulars of the broker< and

(c) the notary produces a certified copy of the said receipt

to the Commissioner together with the notice of the transfer.

(3) When brokerage fees are paid in respect of more than

one transfer the deduction in respect of each transfer shall be such

proportion of the total deduction as is equal to the proportion which the

value of the respective transfer bears to the total transfer value of those

transfers.

Rule 22(3)

INCOME TAX ACT

(CAP. 123)

Tax on Property Transfers Rules, 2006

Transfer of property that had been assigned to the transferor under a deed of partition where

an owelty was due

FORM TPT 3

Calculation of acquisition value in terms of Rule 5(4)

This Form is to be attached to Form TPT 1

Notes

Property means immovable property situated in Malta

Original acquisition means the acquisition by means of which the partitioners had acquired their undivided shares of the

common property

Original value means the value as at the time of the original acquisition

Date pf the transfer

Date of the original acquisition

Nature of the original acquisition (acquisition causa mortis or donation)

Name of the notary who published the deed of transfer

causa mortis or of the donation

5 Date of the partition

6 Name of the notary who published the deed of the partition

7 Description and original value of the property assigned to the transferor (as

given in the deed of the original acquisition)

Description

Value

i)

ii)

iii)

iv)

v)

vi)

vii)

viii)

8 Total original value of the property assigned to the transferor

9 Original value of property transferred (as reported in line 7: give also the

relative number where it is described in line 7)

10 The original value of the property transferred as a fraction of the total original

value of the property assigned to the transferor (divide line 9 by line 8)

11 Total original value of transferor's s undivided share of the common property

12 Proportionate part of the original value of the transferor's undivided share

(multiply line 11 by the fraction shown in line 10)

13 Acquisition value of the property transferred (the smaller of the values shown

In lines 9 and 12)

I confirm that the above information is true and correct

Name and surname

Address

I.D No

of the transferor

Date

(1) The acquisition value of property acquired causa mortis Acquisition value of

property acquired

before the 25 th November, 2003 shall be the value declared in the relative causa mortis or by

deed of the transfer causa mortis, as adjusted by any deed of adjustment, donation.

if notice of the said deed of transfer causa mortis and, where applicable,

of the said deed of adjustment, have been given to the Commissioner,

for the purpose of and in accordance with the provisions of the Duty on

Documents and Transfers Act, not later than the 30 th June, 2005.

(2) The acquisition value of property acquired causa mortis

on or after the 25 th November, 2003 shall be the value declared for the

purpose of and in accordance with the provisions of the Duty on

Documents and Transfers Act if the deed of the transfer causa mortis

was made within six months from the relative succession or donation

and if notice thereof was given to the Commissioner in accordance with

that Act 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 six

months, whichever is the later.

(3) In cases not covered by the foregoing provisions of this

rule, the acquisition value of property acquired causa mortis or by

donation shall be its market value at the time of the acquisition.

(4) Notwithstanding the foregoing provisions of this rule,

where the value of property acquired causa mortis or by donation was

the subject of an assessment made under the Duty on Documents and

Transfers Act and, before the date of the transfer in question, that

assessment has –

(a)

become final and conclusive, or

(b) has been confirmed or amended by a final decision of

an appellate tribunal or court, or

(c) has been withdrawn following an agreement in writing

with the Commissioner

the acquisition value of that property shall be the value determined in

the said final and conclusive assessment, decision or agreement.

Rule 22(4)

INCOME TAX ACT

(CAP. 123)

Tax on Property Transfers Rules, 2006

Property acquired under more than one acquisition

FORM TPT 4

Apportionment of the Transfer Value

This Form is to be attached to Form TPT 1

Property means immovable property situated in Malta

In Sections B, C and D, the category of each transfer in column (b) is to be indicated as "I, "III", "IV or "V",

according to the categorisation shown below.

Category I refers to transfers to which article 5A does not apply

Category III refers to transfers of property that was acquired causa mortis before 25 November 1992

Category IV refers to transfers of property that was acquired causa mortis after 24 November 1992 or by

donation that took place more than 5 years before the transfer

Category V refers to other transfers

In Section E

- all transfers are to be deemed to be transfers to which article 5A applies and no transfers are to be

categorised under Category I

- all transfers of property that was acquired causa mortis at any time are to be indicated as Category IV

transfers together with transfers of property acquired by donation more than 5 years before the transfer,

while all other transfers are to be categorised under Category V

The acquisition value in column (f) is to be given only in the case of Category IV transfers

In the case of an apportionment covered by Section D, the architect's report should be attached to this Form

Section A

Property being transferred

1 Description of property being

transferred

2 The whole transfer value

3 Date of the transfer

Section B

Apportionment in accordance with rule 9

(by reference to the undivided shares of the property acquired)

a

b

d

e

f

Description of property acquired

Date of

Category

Undivided

Portion of

Acquisition

acquisition

of

share of

transfer value

value

transfer

the

(multiply

property

value in

being

Section A-2

transferred

by column d)

Total

Section C

Apportionment in accordance with rule 10 (by reference to areas defined in the deed of transfer -

applicable only in the case of a transfer of undeveloped land)

Area of the property being transferred

a

b

c

d

e

f

Description of property acquired

Date of

Category

Area as

Fraction of

Portion of

Acquisition

acquisition

of

defined in

the area of

transfer

value

transfer

deed

the

value

property

(multiply

being

value in

transferred

Section A-2

by column d)

Total

Section D

Apportionment in accordance with rule 11

(by reference to area based on architect's report - applicable only in cases not covered by

Sections B and C)

Area of the property being transferred as calculated in the architect's report

a

b

c

d

e

f

Description of property

Date of

Category

As per architect's report

Portion of

Acquisition

acquired

acquisition

of transfer

transfer

value

Area

Fraction of

value

the total

(multiply the

area of the

value in

property

Section A-2

being

by column d)

transferred

Total

Section E

Apportionment in accordance with rule 12

(transfers to which the apportionments in sections B, C and D do not apply)

a

b

f

Description of property

Date of

Category

Acquisition

acquired

acquisition

of transfer

value

Total

I confirm that the above information is true and correct

Name and surname

Address

I.D No

Signature

of the transferor

Date

(1) In a partition of property, an owelty shall be deemed to

be due to a partitioner if and to the extent that the value of that

partitioner’s share of the total assets that are partitioned is less than the

value of the partitioned assets that are assigned to him.

(2) The value of the transfer that is deemed to be made by a

partitioner to whom an owelty is due shall be the lower of the following

two amounts>

(a) the owelty deemed to be due to that partitioner as

provided in sub-rule (1)< and

(b) the excess, if any, as at the time of the partition, of the

value of that partitioner’s share of the property over the value of

the property assigned to him.

(3) The acquisition value of property transferred in the

circumstances referred to in sub-rule (1) shall be a proportion of the

transfer value and shall be determined according to the following

formula>

TV x VP1 # VP2

where>

TV means the transfer value determined in accordance with

sub-rule (2)<

VP1 means the original value of the partitioned property<

VP2 means the value of the partitioned property as at the

date of the partition.

(4) When a person transfers property that was assigned to

him on a partition, the acquisition value of that property shall be an

amount equal to the lower of –

A the original value of that particular property< and

B the original value of that person’s undivided share of the

partitioned property.

(5) For the purpose of sub-rule (4), where the property

transferred by a person is only a part of the property that had been

assigned to him on the partition, the original value of that person’s

undivided share of the partitioned property shall be deemed to be such

proportion of the total original value of his undivided share of the

property that was partitioned as is equal to the proportion which the

original value of the property that is transferred bears to the total original

value of all the property that were assigned to that person.

(6) In this rule, “the original acquisition” means the

acquisition by means of which the partitioners had acquired their

undivided shares of the partitioned property and “the original value”

means the value as on the date of the original acquisition.

Rule 22(5)

INCOME TAX ACT

(CAP. 123)

Tax on Property Transfers Rules, 2006

Property acquired under more than one acquisition

FORM TPT 5

Architect's Report on the Apportionment of the Transfer Value

This report is to be attached to Form TPT 4

Note: When an item of property acquired was a construction of more than one level, the report is to state whether it has

been demolished or not. If it has not been demolished the area to be established is the sum total of the surface areas of

each level, including any sub-ground levels. If it has been demolished the area to be established is that of the underlying

land.

I have been informed by ____________________________ of _____________________________

__________________________ that he / she intends to transfer the property described below and that

he / she had acquired the property by means of more than one acquisition. I have therefore been

requested to make a report for the purposes of Rule 11 of the Tax on Property Transfers Rules, 2006.

The property being transferred is (description of property)

The property being transferred was acquired by means of acquisitions of different items of property

as described below. I have made the necessary inspections and verifications and I am now in a

position to report as follows

Description of property acquired

Date of acquisition

Area of this item of property (see

notes)

Remarks

Description of property acquired

Date of acquisition

Area of this item of property (see

notes)

Remarks

Description of property acquired

Date of acquisition

Area of this item of property (see

notes)

Remarks

Description of property acquired

Date of acquisition

Area of this item of property (see

notes)

Remarks

Total area of the properties described above

Fraction of total area represented by each

Item 1

item

Item 2

Item 3

Item 4

Name of architect

Address

Signature

Date

In any transfer of property to the Government of Malta, the Transfer value of

property transferred

transfer value shall be deemed to be equal to the consideration paid or to the Government.

payable for that transfer.

Rule 22(6)

INCOME TAX ACT

(CAP. 123)

Tax on Property Transfers Rules, 2006

Transfer of Property in Part

FORM TPT 6

Apportionment of the Acquisition Value

This Form is to be attached to Form TPT 1

Note: Property means immovable property situated in Malta

Property being transferred

Description of property being transferred

Transfer value

Date of the transfer

Particulars of the acquisition

Description of property acquired as appearing in the deed

Date of the acquisition

Type of acquisition (causa mortis, donation, purchase, other onerous acquisition)

Name of the notary who published the deed of the acquisition

The full acquisition value

Apportionment according to Rule 13 (by reference to the undivided share)

Undivided share that is being transferred

Proportionate part of acquisition value (multiply the value shown in line 8 by the

fraction shown in line 9)

Apportionment according to Rule 14 (by reference to defined area: applicable only in the case of a transfer of a

divided part of land or of property developed over a divided part of land)

Area of divided part of land that is being transferred

Area of land of land that was acquired

Fraction represented by transferred part (divide line 11 by line 12)

Proportionate part of acquisition value (multiply the value shown in line 8 by the

fraction shown in line 13)

Apportionment according to Rule 15 (by reference to area calculated by the transferor - applicable only to transfers

not mentioned above)

Area of property transferred calculated as provided in rule 21(4)

Area of property acquired calculated as provided in rule 21(4)

Fraction represented by transferred part (divide line 15 by line 16)

Proportionate part of acquisition value (multiply the value shown in line 8 by the

fraction shown in line 17)

I confirm that the above information is true and correct

Further declaration to be made only in the case of a transfer mentioned in lines 15 to 18 (delete if not

applicable)

I further confirm that the areas declared above have been calculated as required by the Property Transfer

Rules, 2006 and correspond to the latest plans of the property transferred and of the property of which it

forms part.

Name and surname

Address

I.D No

Signature

of the transferor

Date

(1) The transfer value of an emphyteutical concession and Emphyteutical

concessions and

of a concession of any other right over property shall be the higher of> concessions of other

rights over property.

(a) the premium or any other capital sum, if any, payable

for the concession< and

(b) the market value of the property reduced by the

capitalised value of the ground rent or any other income payable

for the concession.

(2) In determining the acquisition value for the purpose of

article 5A(5)(b) of the Act, a concession of perpetual emphyteusis or of

emphyteusis for a period of more than fifty years shall be treated as if it

were a transfer of the property over which the emphyteusis is granted.

(3) An emphyteutical concession for a period that does not

exceed fifty years and a concession of any other right over property

shall in all cases be deemed to be a transfer to which paragraph 5A(5)(a)

of the Act applies.

(4) When ground rent is redeemed in full or in part, the

transfer value shall be the consideration payable for the redemption.

(5) When ground rent is redeemed and, at the time of the

redemption, the owner of the directum dominium is not the person who

had made the emphyteutical concession in question, the acquisition value

of the right transferred on the redemption shall be the acquisition value

of the directum dominium determined in accordance with rule 4>

provided that where the ground rent is redeemed in part, the said

acquisition value shall be reduced proportionately.

(6) Except as provided in sub-rule (5), the redemption of

the ground rent or any other right over property shall in all cases be

deemed to be a transfer to which paragraph 5A(5)(a) of the Act applies.

(7) When ground rent is redeemed by means of a schedule

of redemption, the Registrar of Courts shall deduct from the deposit an

amount equivalent to 12% of the sum payable for the redemption, and

shall remit that amount to the Commissioner. The Commissioner shall

keep the amount so remitted in a suspense account until the final payment

of the tax is made in accordance with sub-rule (8) or (9).

(8) Subject to sub-rule (9), when a person withdraws money

deposited in court for the redemption of the ground rent, he may make

a declaration to the Commissioner of the tax due on the redemption in

accordance with article 5A of the Act and these rules on such form and

in such manner as the Commissioner may accept. Upon the receipt of

any such declaration, and after making any ascertainment that he may

consider necessary, the Commissioner shall withdraw from the suspense

account referred to in sub-rule (7) an amount equivalent to the tax due

on the said redemption in settlement of that tax. Any balance in the

suspense account shall be remitted to the person who makes the

declaration upon proof being submitted that he was the person entitled

to make the withdrawal.

(9) If a declaration as is referred to in sub-rule (8) is not

made within 30 days from the date of the withdrawal, the amount

remitted in accordance with sub-rule (7) shall be deemed to represent

the final tax due on the redemption and the Commissioner may withdraw

that amount from the suspense account in settlement of that tax.

(10) The Registrar of Courts shall make the remittance as

required by sub-rule (7) together with a notice on the form prescribed

in Schedule H within fifteen working days from the date when the

schedule of redemption is filed. The Registrar of Courts shall attach a

copy of the schedule of redemption to the notice. The Registrar of Courts

shall, moreover, notify the Commissioner of any withdrawal referred

to in sub-rule (8) by means of the delivery of the form prescribed in

Schedule I within fifteen working days from the date of the withdrawal.

(11) The Commissioner and the Registrar of Courts shall

be indemnified against any person whatsoever for any amount deducted,

remitted, withdrawn or received in accordance with this rule.

(12) The provisions of this rule in respect of an

emphyteutical grant and the redemption of ground rent shall apply

mutatis mutandis to a concession of sub-emphyteusis and the redemption

of sub-ground rent.

(13) This rule shall be without prejudice to the tax

chargeable under article 4 of the Act on any ground rent or other income

arising pursuant to any concession of a right over property.

Rule 24(2)

INCOME TAX ACT

(CAP. 123)

NOTICE (WORD PROCESSED) TO BE FILED ON A PROMISE OF AN ASSIGNMENT OF

RIGHTS ACQUIRED UNDER A PROMISE OF TRANSFER (KONVENJU) OF

IMMOVABLE PROPERTY SITUATED IN MALTA FOR THE PURPOSES OF THE

PROPERTY TRANSFERS RULES, 2006

FORM TPT 7

Assignor's particulars

Name

Address

Telephone number

ID or passport number

Assignee's particulars

Name

Address

Telephone number

ID or passport number

Information about the assignment

Date of promise of assignment

Validity period of the promise

Consideration for the assignment

Date of the relative promise of

transfer of property (konvenju)

Signatures of the parties

Signature of the assignor

Date

Name and address of witness (who

must be an advocate or a notary)

Signature of witness

Signature of assignee

Date

Name and address of witness (who

must be an advocate or a notary)

Signature of witness

For official use

Date received by the Commissioner

(1) When more than one item of property is transferred on Parties to declare

transfer value of

the same deed the parties shall declare a separate transfer value for each item of

each item.

property transferred.

(2) When the acquisition value of an item of property that

is allowable as a deduction in terms of article 5A(5)(b) of the Act and

any other deductions that may be allowable in terms of these rules in

respect of that item, exceed the transfer value of that item, the excess

shall not be set off against the transfer value of any other item of property

or otherwise allowed as a deduction for any purpose of the Income Tax

Acts.

Rule 7(10)

INCOME TAX ACT

(CAP. 123)

TAX ON PROPERTY TRANSFERS RULES, 2006

Notice to be given by the Registrar of Courts of the redemption of ground rent made by means

of a schedule of redemption and remittance of the tax due on the redemption

A copy of the schedule of redemption is to be attached to this notice

Particulars of the person in whose name the redemption is made

Name

Address

Other particulars shown on the

schedule of redemption

Particulars of the person/s against whom the schedule of redemption is filed

Name

Address

Other particulars shown in the

schedule of redemption

Name

Address

Other particulars shown in the

schedule of redemption

Name

Address

Other particulars shown in the

schedule of redemption

Description of the property in question as given in the schedule of redemption

Date when the schedule of

redemption was filed

Lm

Amount deposited

Amount remitted with this Notice Lm

(12% of the amount deposited)

Signature of the Registrar of

Courts

Date

For official use

Date of delivery of notice: _________________________

Amount paid: Lm ______________________

Bank draft / cheque

Bank

No

Date

.

Receiving officer

When a person transfers property which he had acquired by Apportionment of

transfer value in

means of separate acquisitions and any of those acquisitions was an proportion to

acquisition of an undivided share of the property transferred, that undivided shares.

undivided part shall be deemed to be transferred separately, and its

transfer value shall be a proportionate part of the whole transfer value.

Rule 7(10)

INCOME TAX ACT

(CAP. 123)

TAX ON PROPERTY TRANSFERS RULES, 2006

Notice to be given by the Registrar of Courts of the withdrawal of money deposited for the

redemption of ground rent

Particulars of the person who made the withdrawal

Name

Address

I.D. number

Particulars of the withdrawal

Name of the person who had made the deposit

Date of the deposit

Amount deducted from the deposit and remitted

to the Commissioner

Date when the remittance was made

Date of the withdrawal

Signature of the Registrar of

Courts

Date

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

When a person transfers undeveloped land which he had Apportionment

transfer value in

acquired by means of acquisitions of separate parts, and the area of any proportion to area.

of those parts is defined in the deed of transfer, that part shall be deemed

to be transferred separately and its transfer value shall be such proportion

of the whole transfer value as is equivalent to the proportion which the

area of that part bears to the whole area of the property that is transferred.

(1) When a person transfers property which he had acquired Apportionment of

transfer value on the

by means of separate acquisitions and the transfer value that is to be basis of an

allocated to each part cannot be determined in accordance with rules 9 architect’s report.

and 10, he may produce to the notary receiving the deed a report drawn

up by an architect as provided in sub-rule (2).

(2) The architect’s report shall state the area of each part

and the proportions of the transfer value to be allocated to each part as

provided in sub-rule (4).

(3) For the purpose of sub-rule (2), when the part of the

property in question consisted, at the time of the acquisition, of a

construction of more than one level, and it has not been demolished, its

area shall be the sum total of the surface area of each level. In other

cases, the area shall be the surface area of the underlying land.

(4) In the circumstances referred to in this rule, each part of

the property shall be deemed to be transferred separately and the value

of each deemed separate transfer shall be such proportion of the whole

transfer value as is equivalent to the proportion which the area of each

part bears to the total area of all the parts.

When a person transfers property which he had acquired by

means of separate acquisitions and the transfer value of property is not

apportioned in accordance with rules 9, 10 and 11, the following

provisions shall apply>

(a) any acquisitions causa mortis shall be deemed to be

acquisitions causa mortis that took place after the 24 th November

1992> provided that this paragraph shall not apply if all the

acquisitions were acquisitions causa mortis that took place on or

before that date<

(b) any onerous acquisitions inter vivos shall be deemed to

have taken place more than five years before the transfer> provided

that this paragraph shall not apply if all the acquisitions were

onerous acquisitions inter vivos that took place not more than five

years before the transfer.

When a person acquires property and he subsequently

transfers an undivided part of that property, the acquisition value of

that part shall be a proportionate part of the acquisition value of the

whole property.

When a person acquires undeveloped land and he

subsequently transfers>

(a)

a divided part of that land, or

(b) property developed over a divided part of that land,

consisting of the whole development over that part as well as the

underlying land and the airspace,

and the areas of that part and of the whole land are defined in the deed,

the acquisition value shall be such proportion of the acquisition value

of the land that was acquired as is equal to the proportion which the

area of the part that is transferred bears to the whole area of the land

that was acquired.

(1) When a person acquires property and he subsequently Apportionment

the acquisition

transfers part of that property, and the acquisition value of that part value in proportion

cannot be determined in accordance with rules 13 and 14, he may make to calculated areas.

a calculation of the apportionment of the acquisition value in accordance

with this rule.

(2) The calculation referred to in sub-rule (1) shall show

the area of the whole property and the surface area of the part that is

being transferred. The area of the whole property shall be the sum total

of the surface area of each of the levels comprised therein or, in the

case of property that is under construction or that has yet to be

constructed, of each of the levels comprised in the latest plans of the

project. For the purpose of this rule –

(a)

the airspace shall be deemed to constitute a separate

level<

(b) the area of the common parts shall be apportioned to

the respective units<

(c) there shall be excluded from the area of a unit any part

over which the transferor retains rights of ownership.

(3) In the circumstances mentioned in this rule, the

acquisition value shall be such proportion of the acquisition value of

the property that was acquired as is equal to the proportion which the

area of the property transferred bears to the area of the property that

was acquired.

(4) The provisions of this rule shall be applied in a manner

that ensures that the total of the acquisition values of the various parts

of an item of property shall never exceed the acquisition value of that

item.

No value shall be deemed to represent the acquisition value Cases where no

value is deemed to

of part of a property unless it is determined in the manner provided in represent the

rules 13, 14 and 15 or in such other manner as may be approved in acquisition value.

writing by the Commissioner.

(1) Rules 9 to 16 shall be without prejudice to the provisions Saving provision.

relating to the determination of the transfer value and of the acquisition

value in the case of transfers mentioned in rule 5.

(2) The provisions of these rules relating to the

determination of the acquisition value of property shall be applicable to

the extent that they are relevant for the purpose of article 5A(5)(b) of

the Act.

In any appeal relating to an order made under article 5A(10)

of the Act, an architect’s estimate that has been confirmed on oath shall

be admissible as evidence of the market value of property. When

different estimates are produced in proceedings in the Board of Special

Commissioners, the Board shall, unless the parties otherwise agree,

appoint another architect to report on the value after examining the

estimates that have been produced and inspecting the property, and the

Board shall decide the matter after taking into account the said report

and any other consideration that it may consider appropriate.

When an order is made under article 5A(12) of the Act and

the payment of the tax and additional tax as provided in this rule is

made within the time from the date of the order as stated in the first

column hereunder, the additional tax chargeable shall be reduced to the

percentage amount corresponding thereto in the second column

hereunder, and no further tax, additional tax or interest shall be

chargeable with respect to the amount of tax and corresponding

additional tax so paid, and no objection shall be entertained with respect

thereto>

First Column>

Second Column>

within 90 days

within 120 days

within 150 days

within 180 days

within 210 days

within 240 days

within 270 days

within 300 days

within 330 days

after 330 days

(1) Every person who carries on a trade, business, Accounts

records.

profession or vocation and who owns property shall keep such records

and documents relating to the acquisition, development and transfer

thereof as are necessary for ascertaining the tax chargeable on the transfer

of that property or part thereof.

(2) Without prejudice to the generality of the sub-rule (1),

the records shall show an account of the costs and turnover related to

any project and shall include -

(a)

a general account of the project<

(b) an account in respect of each transferable unit within

the project.

(3) The account in respect of a transferable unit within a

project shall include>

(a)

the consideration for the transfer of that unit<

(b) the transfer value of that unit determined in accordance

with these rules<

(c) the acquisition value of that unit determined in

accordance with these rules<

(d) the accounting costs related directly to the development

of that unit<

(e) a portion of the general development costs that cannot

be allocated specifically to that transferable unit. Except when the

Commissioner otherwise directs in writing , this portion shall be

such proportion of the said general development costs as is equal

to the proportion which the area of that unit bears to the total area

of the project.

(4) In calculating the area of a transferable unit and of a

project for the purpose of paragraph (3)(e) the following provisions

shall apply>

(a) the area of each unit shall be the sum total of the surface

area of each level comprised in that unit<

(b) the area of the project shall be the sum total of the areas

of each transferable unit within that project, as well as the common

parts and all parts over which the owner retains or intends to retain

rights of ownership<

(c) the areas referred to in this sub-rule shall correspond to

the areas resulting from the latest plans in respect of the project.

(5) Without prejudice to the generality of sub-rule (1), the

documents required to be kept by this rule shall include>

(a) copies of the deeds of acquisition and deeds of transfer

of the property in question<

(b) the plans in respect of the project, including the plans

and any alterations as approved by the competent authorities and

all plans and drawings on the basis of which any works have been

or are planned to be carried out and by reference to which any part

of the project is or is planned to be transferred<

(c) copies of all applications and permits filed with or

obtained from the competent authorities in connection with the

property<

(d) fiscal receipts or tax invoices of all costs that comply

with all the relevant provisions of the Value Added Tax Act.

(6) The records and documents that are required to be kept

in accordance with this rule shall be kept in addition to the records and

documents required in terms of any other provision under the Income

Tax Acts.

(7) In this rule, “a transferable unit” means any unit that is

included in the plans referred to in sub-rule (5)(b) as a separate

transferable unit> provided that the airspace shall, unless it is specifically

transferable as part of a unit, be deemed to represent a separate unit.

(1) Except as is otherwise provided in the Act or in other

rules under the Act, when the tax chargeable in respect of a transfer of

property is determined by reference to the profits derived from that

transfer, these rules shall apply for the purpose of determining the

respective chargeable income.

(2) When the tax in respect of a transfer of property is

chargeable under article 5A of the Act, the profits that a company is

required to allocate to the property transfer reserve in the Maltese Taxed

Account shall be the consideration for that transfer after deducting –

(a) the acquisition value and brokerage fees, if any,

determined in accordance with these rules< and

(b) the other development costs determined in accordance

with rule 19(3)(d) and (e).

(1) The transferor in any deed of transfer of property shall Information to be

given and forms to

make a full and correct declaration of the particulars of the transfer and be submitted.

of the tax chargeable on the form prescribed in Schedule A and shall

fully and correctly complete any other form that may be relevant to the

particular transfer as provided in sub-rules (2) to (6).

(2) In the case of a transfer that is deemed to take place in a

partition where an owelty is due in accordance with rule 5(1), the

transferor shall prepare a calculation of the transfer value and of the

acquisition value on the form prescribed in Schedule B.

(3) In the case of a transfer of property that had been

assigned to the transferor on a partition as is referred to in rule 5(4), the

transferor shall prepare a calculation of the acquisition value on the

form prescribed in Schedule C.

(4) In the case of a transfer of property that had been

acquired by means of separate acquisitions as is referred to in rules 9,

10, 11 and 12, the transferor shall prepare a calculation of the transfer

value on the form prescribed in Schedule D.

(5) An architect’s report for the purposes of rule 11 shall be

drawn up on the form prescribed in Schedule E.

(6) In the case of a transfer of property in part as is referred

to in rules 13, 14 and 15, the transferor shall prepare a calculation of the

acquisition value on the form prescribed in Schedule F.

(7) Nothing in the foregoing provisions of this rule shall be

construed as imposing an obligation on any person to prepare a

calculation of the acquisition value of property when that value is not

relevant for the purpose of article 5A(5)(b) of the Act.

(8) The transferor shall produce the form or forms that he

is required to complete in accordance with this rule to the notary who

publishes the deed of the transfer. The notary shall deliver the forms to

the Commissioner together with the notice of the transfer.

(9) The notary publishing a deed of transfer of property shall

give notice thereof by means of the delivery to the Commissioner of

the form prescribed in the First Schedule to the Duty on Documents

and Transfers Act by not later than fifteen working days from the date

of the transfer together with the payment due in terms of article 5A of

the Act, as well any other payment of tax that may be payable on the

deed in connection with that transfer under the Income Tax Acts and

the Duty on Documents and Transfers Act. The notary shall deliver the

said form in triplicate to the Commissioner (Capital Duty Branch). The

Commissioner shall stamp one copy and deliver it to the notary in

acknowledgement of the receipt of the form and of the payment

accompanying it. The notary shall annex the stamped copy to the relative

deed of transfer.

(10) The provisions of these rules shall be subject to

anything that may be prescribed in terms of article 58(b) of the Income

Tax Management Act for the use of electronic communications and the

making of payments by electronic means.

When the parties to a deed of transfer of property correct or

otherwise change that deed by means of a subsequent deed, and the tax

payable under article 5A of the Act in respect of that transfer as corrected

or changed is higher than the amount stated to be payable under the

original deed, the correction or change shall be deemed to constitute a

transfer of property and the provisions of article 5A of the Act and of

these rules including, without limitation, the provisions relating to the

payment of the tax and the notice of the transfer, shall apply to that

deed accordingly> provided that the tax payable under article 5A of the

Act on that correction or change shall be the balance remaining from

the full amount payable in respect of the deed of the transfer as corrected

or changed after deducting the amount already paid in connection with

the original deed.

(1) The provisions of the Capital Gains Rules relating to

assignments of rights acquired under a promise of sale (konvenju),

including the provisions laying down the conditions for the validity

thereof, the deductions allowable for the purpose of computing the gains

or profits derived therefrom and the payment of provisional tax, shall

apply to assignments of rights that fall within the scope of article 4(1)(a)

as provided in article 5A(2)(d) of the Act.

(2) An agreement purporting to be a promise of an

assignment of a right acquired under a promise of sale (konvenju) shall

not be valid for the purposes of any law unless it satisfies all the following

conditions –

(a)

it is done in writing and signed by the parties thereto<

(b) the signatures of the parties are witnessed by a notary

or an advocate<

(c)

it states the consideration for the assignment<

(d) a word-processed copy thereof is delivered by the notary

or advocate who witnessed the signatures of the parties to the

Commissioner in the form prescribed in Schedule G within 30

days from the date on which it is concluded.