MT
Capital Gains (Amendment) Rules, 2006
Statutory Text (4 Articles)
L.N. 51 of 2006
INCOME TAX ACT
(CAP. 123)
Capital Gains (Amendment) Rules, 2006
IN exercise of the powers conferred by articles 5 and 96 of the
Income Tax Act, the Prime Minister and Minister of Finance has made
the following rules>-
(1) The title of these rules is the Capital Gains (Amendment)
Rules, 2006 and they shall be read and construed as one with the Capital
Gains Rules, 1993, hereinafter in these rules referred to as “the principal
(2) The new paragraph (d) in rule 2(b)(ii) hereof, and the
new sub-rule (15) excluding the proviso thereto in rule 2(e) hereof,
shall be deemed to have come into force on the 25th November, 2003.
Rule 5 of the principal rules shall be amended as follows>
Taqsima 2 - Dettalji dwar il-Kumpannija li l-azzjonijiet tagħha qed jiġu trasferiti
Isem tal-kumpannija
Numru ta' referenza tat-taxxa
Data ta' l-għeluq tal-kontijiet
Data ta' l-inkorporazzjoni
Numru ta' l-ROC
Kapital azzjonarju awtorizzat
Kapital azzjonarju maħruġ
Taqsima 3 - Dettalji tat-trasferiment ta' l-azzjonijiet
Data tat-trasferiment ta' l-azzjonijiet
Ammont ta' azzjonijiet miżmuma fid-data tat-trasferiment
Ammont ta' azzjonijiet trasferiti
Korrispettiv li qed jitħallas għall-azzjonijiet trasferiti
Agħti d-dettalji ta' l-azzjonijiet trasferiti
Tip
Klassi
Voti għal
Valur Nominali
Ammont
Data ta'
kull azzjoni
ta' kull azzjoni
l-akkwist
Jiena b'dan niċċertifika li l-informazzjoni mogħtija f'dan l-avviż hija vera u sħiħa
Firma ta' l-awditur
Firma ta' min qed jittrasferixxi
Isem l-awditur
Isem min qed jittrasferixxi
Skeda E
(Regola 5(14))
Avviż skond ir-Regola 5(10) tar-Regoli ta' l-1993 dwar Qligħ Kapitali
Dikjarazzjoni li għandha ssir minn persuna li tittrasferixxi azzjonijiet meta t-
trasferiment ikun eżenti mit-taxxa fiċ-ċirkostanzi msemmija f'regola 5(14)
Taqsima 1 - Dettalji dwar min qed jittrasferixxi
Isem
Indirizz
Nru ta' l-ROC (għal kumpanniji biss)
Nru ta' referenza tat-taxxa
Niżżel l-ammont ta' azzjonijiet tal-persuna li qed tittrasferixxi minnufih qabel isir it-trasferiment
Tip
Klassi
Voti għal
Valur nominali
Ammont
kull azzjoni
ta' kull azzjoni
Taqsima 2 - Dettalji tat-trasferiment ta' l-azzjonijiet
Data tat-trasferiment ta' l-azzjonijiet
Ammont ta' azzjonijiet miżmuma fid-data tat-trasferiment
Ammont ta' azzjonijiet trasferiti
Korrispettiv li qed jitħallas għall-azzjonijiet trasferiti
Agħti d-dettalji ta' l-azzjonijiet trasferiti
Tip
Klassi
Voti għal
Valur nominali
Ammont
kull azzjoni
ta' kull azzjoni
Taqsima 3 - Dettalji dwar l-eżenzjoni
Niżżel liema minn dawn id-dispożizzjonijiet li ġejjin ta' l-Att dwar it-Taxxa fuq l-Income
teżenta t-trasferiment ta' l-azzjonijiet
Artikolu 5(2)(e)
Artikolu 5(9)
Artikolu 5(6)(e)
Artikolu 12(1)(c)(ii)
Jiena b'dan niċċertifika li l-informazzjoni mogħtija f'dan l-avviż hija vera u sħiħa
Firma ta' l-awditur
Firma ta' min qed jittrasferixxi
Isem l-awditur
Isem min qed jittrasferixxi
(a)
sub-rule (6) thereof shall be amended as follows>
(i) in paragraph (c) thereof, for the words “the transfer
is made.” there shall be substituted the words “preceding the
year in which the transfer is made<”< and
(ii) immediately after paragraph (c) there shall be added
the following new paragraph>
“(d) where the issued share capital of the company
includes shares whose return is limited to a fixed rate of
return, the book value of such shares shall not be
considered in determining the net asset value of the
company.”<
(b) sub-rule (7) thereof shall be amended as follows>
(i) in paragraph (c) thereof, for the words “relevant
business.” there shall be substituted the words “relevant
business<”< and
(ii) immediately after paragraph (c) thereof, there shall
be added the following new paragraphs>
“(d) in determining the value of the goodwill in
accordance with sub-rule (6)(c) hereof, in cases where
the provisions of sub-rule (6)(a) come into operation,
any dividends paid to the company out of profits for the
years being considered, by another company in which
the company is a shareholder, are excluded from the
calculation<
(e) where the value of the goodwill determined
in accordance with the foregoing provisions is negative,
the value that shall be taken into consideration shall be
nil.”<
(c) in sub-rule (8) thereof, for the words “its relevant
portion.” there shall be substituted the words “its relevant portion>”
and immediately thereafter there shall be added the following
proviso>
“Provided that no such deduction for inflation shall be
allowed where the book value of the shares has not been
replaced by their market value in accordance with proviso
(a) to sub-rule (6) hereof.”<
(d) for sub-rule (10) thereof, there shall be substituted the
following>
“(10) The transferor in any transfer of shares shall
submit to the Commissioner a statement prepared by a
certified public auditor stating whether the transfer is a transfer
of a controlling interest or not and indicating the grounds on
which this statement is based. Where the transfer is a transfer
of a controlling interest, the auditor’s statement shall be made
on the form prescribed in Schedule C to these rules including
a computation of the market value of the shares as required
by these rules, and shall be accompanied, where applicable,
by an architect’s valuation of the market value of the
immovable property taken into account in determining the
value of the shares. In any other case, except as provided in
sub-rule (14) hereof, the auditor’s statement shall be made
on the form prescribed in Schedule D including a valuation
of the shares.”<
(e) immediately after sub-rule (13) thereof, there shall be
added the following new sub-rules (14) and (15)>
“(14) Where the transferor is a person to whom the
provisions of articles 5(2)(e), 5(6)(e), 5(9) and 12(1)(c)(ii) of
the Act apply, a valuation of shares or immovable property
need not be made, and the statement referred to in sub-rule
(10) hereof shall be made on the form prescribed in Schedule
(15) For the purposes of this rule, the term “shares” or
“shares in a company” shall mean>
(a) shares in a company which is resident in Malta
in terms of article 2 of the Income Tax Act< or
(b) shares held directly or indirectly in any other
company the assets of which consist wholly or
principally of immovable property, provided that where
such shares are held by a company whose shareholders
are, either directly or indirectly, all not resident in Malta
(excluding the holding by any person resident in Malta
of not more than one share in the company), immovable
property situated outside Malta shall be disregarded for
the purpose of making the determination contemplated
in this paragraph>
Provided that any shares whose return is limited
to a fixed rate of return shall be excluded.”.
Schedule C
(Rule 5(10))
Notice in terms of Rule 5(10) of the Capital Gains Rules, 1993
Statement to be submitted by a transferor of shares where there is a transfer of
controlling interest
Part 1 - Details of Transferor
ROC No (companies only)
Income Tax Registration No
State the number of shares held by transferor immediately prior to the transfer
Type
Class
Votes
Nom Value
Number
Date of
per share
per share
acquisition
Part 2 - Details of Company in which shares are being transferred
Company Name
Income Tax Registration No
Company year end
Date of incorporation
Authorised share capital
Issued share capital
State whether: (Yes or No)
The Company holds shares directly or indirectly in other companies.
(if Yes attach details)
The Company or any companies specified in (a) above own
immovable property at the date of the share transfer.
(if Yes attach details)
An increase or reduction in the share capital of the company took place
within eighteen months prior to the date of the share transfer.
(if Yes attach details)
Any shares have been transferred by the transferor or a related party within
eighteen months prior to the date of the share transfer.
(if Yes attach details)
The company came into existence as a result of a restructuring.
(if Yes attach details specifying the date and whether a merger, division, etc)
Such shares are held by a company whose shareholders, directly or indirectly,
are all not resident in Malta,
The transfer is a transfer to which art 5(3)(a) of the act applies.
Part 3 - Details of share transfer
a
Date of share transfer
b
Number of shares held at date of transfer
c
Number of shares transferred
d
Consideration for shares transferred
Give details of the shares transferred
Type
Class
Votes
Nom Value
Number
Date of
per share
per share
acquisition
Part 4 - Transfer of a controlling interest
State whether the share transfer is a transfer of controlling interest in terms of Rule 5(2) or Rule 5(3)
(attach details of the grounds on which this statement is based)
Part 5 - Computation of the market value of the shares transferred
The market value of the shares being transferred is to be determined as follows
Market value of shares transferred / global transfer
Sec I : Determination of the % of the market value of the company as represented by such shares
Type
Class
Nominal
Voting
Nom Value
Voting rights
Value
rights
of shares
of shares
transferred
transferred
Issued share capital
Total
(A)
(B)
(C)
(D)
Percentage of the Market Value of company
(C/A)
(D/B)
a State whether there has been a change in the issued share capital of the company
during the period of eighteen months preceding the transfer.
b If the answer to "a" is "yes", state whether the percentage of the shareholding or voting
rights of the transferror in the capital or voting rights of the company has been
decreased as a result of such change.
c If the answer to "b" is "yes" , give details of the capital stucture of the company as
existing at the time immediately preceding that change.
Type
Class
Nominal
Voting
Nom Value
Voting rights
Value
rights
of shares
of shares
transferred
transferred
Issued share capital
Total
(E)
(F)
(G)
(H)
Percentage of the Market Value of company
(G/E)
(H/F)
Percentage of the MV of the company to be taken into account
(higher of G/E or H/F)
(Z)
Sec II : Computation of Market value of company;
Total Net Asset Value of the company as resulting from its financial statements
for the financial year preceding that in which the transfer is made
Market Value of shares held in another company representing at least 10% of the
nominal value of the issued share capital of that other company, determined
in accordance with rule 5.
Company
Income Tax no.
Market Value
Deduct book value of shares held in the company
(as stated in the financial statements)
Total market value of immovable property as stated in the
Architect's Valuation (as per Part 6)
less Total book value of immovable property
Adjustment to the value of immovable property
Value of goodwill: (as calculated in Sec IV below)
Total adjusted market value of the company
Sec III : Market value of shares transferred
Adjusted market value of the company
(Sec IIe)
% of market value as represented by shares transferred or global transfer
(higher of C/A, D/B or Z in Sec I)
Market value of shares transferred or global transfer
(a X b)
Total value taken into account for the purpose of determining the chargeable gain
arising from each of the relevant transactions preceding this transfer
Market value of shares transferred
(c - d)
Value of the consideration of shares transferred
(Part 3d)
Value to be taken into account for the purpose of calculating any gain or loss
from the share transfer
(higher of e or f)
Sec IV : Calculation of the amount representing the value of goodwill
Where company was in existence for the five financial years immediately preceding the
year in which the transfer is made
Year ended _______
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Profit before tax
Value of goodwill
Note: Where the transfer is made during the company's first or second financial year the
value of goodwill above shall be zero.
Where the company has acquired its business or part thereof from another person
during the company's first three financial years
State date when business was acquired
State consideration paid for the acquisition of the goodwill of such business
Profits of the company excluding profits attributable to business acquired;
Year ended ________
Year 1
Year 2
Year 3
Total
Profit before tax
Value of goodwill
Profits attributable to business acquired from another person;
Year ended ______
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Profit before tax
Value of goodwill attributable to business acquired
A
Consideration paid for the acquisition of such goodwill
B
Value of the goodwill of the business so acquired
(higher of A and B )
Total amount representing the value of goodwill
Where the assets of the company include shares in another company, and such
shares represent at least ten percent of the nominal value of the issued share
capital of the other company, the computations in Part 5 must be made for each
such shareholding.
Part 6 - Architect's valuation
If the company owns immovable property at the date of the share transfer, attach an architect's valuation
of the market value of the immovable property taken into account in determining the value of the said shares.
I do hereby declare that the information submitted through this form is true and complete
Auditor's signature
Transferor's signature: ________________
Auditor's name
Transferor's name
Schedule D
(Rule 5(10))
Notice in terms of Rule 5(10) of the Capital Gains Rules, 1993
Statement to be submitted by a transferor of shares where there is no transfer of
controlling interest
Part 1 - Details of Transferor
Name
Address
ROC No (companies only)
Income Tax Registration No
State the number of shares held by transferor immediately prior to the transfer
Type
Class
Votes
Nom Value
Number
Date of
per share
per share
acquisition
Part 2 - Details of Company in which shares are being transferred
Company Name
Income Tax Registration No
Company year end
Date of incorporation
ROC No
Authorised share capital
Issued share capital
Part 3 - Details of share transfer
Date of share transfer
Number of shares held at date of transfer
Number of shares transferred
Consideration being paid for shares transferred
Give details of the shares transferred
Type
Class
Votes per
Nom Value
Number
Date of
share
per share
acquisition
I do hereby declare that the information submitted through this form is true and complete
Auditor's signature
Transferor's signature: ________________
Auditor's name
Transferor's name
B
Schedule E
(Rule 5(14))
Notice in terms of Rule 5(10) of the Capital Gains Rules, 1993
Statement to be submitted by a transferor of shares where the transfer
is exempt from tax in the circumstances mentioned in Rule 5(14)
Part 1 - Details of Transferor
Name
Address
ROC No (companies only)
Income Tax Registration No
State the number of shares held by transferor immediately prior to the transfer
Type
Class
Votes
Nom Value
Number
per share
per share
acquisition
Part 2 - Details of share transfer
Date of share transfer
Number of shares held at date of transfer
Number of shares transferred
Consideration being paid for shares transferred
Give details of the shares transferred
Type
Class
Votes per
Nom Value
Number
share
per share
acquisition
Part 3 - Details of exemption
State under which of the following provisions of the Income Tax Act the share transfer is exempt
Article 5(2)(e)
Article 5(9)
Article 5(6)(e)
Article 12(1)(c)(ii)
I do hereby declare that the information submitted through this form is true and complete
Auditor's signature
Transferor's signature: ________________
Auditor's name
Transferor's name
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