Registration Tax Rules, 2009

L.N. 196 of 2009

MOTOR VEHICLES REGISTRATION

AND LICENSING ACT

(CAP. 368)

Exemption from Motor Vehicles

Registration Tax Rules, 2009

IN exercise of the powers conferred by articles 18, 19 and 20

of the Motor Vehicles Registration and Licensing Act, the Minister

for Infrastructure, Transport and Communications has made the

following rules

(1) The title of these rules is the Exemption from Motor

Vehicles Registration Tax Rules, 2009.

(2) These rules shall be deemed to have come into

force on the 1st January, 2009.

In these rules, unless the context otherwise requires

“the Act” means the Motor Vehicles Registration and

Licensing Act;

“authorised inspecting officer” means a Police officer,

a local warden or an officer, employee or contractor of the

Authority;

“the Authority” means the Malta Transport Authority as

established by the Malta Transport Authority Act;

“brought into Malta” means the entry into Malta of a

motor vehicle coming from a Member State and which was

put into free circulation in such Member State prior to entry

into Malta;

“cycle” means, for the purpose of these rules, a cycle

fitted with an engine having a cylinder capacity of more than

50 cm 3 if of the internal combustion type and, or a maximum

design speed of more than 45 km/h, and includes motor

cycles, motor tricycles and quadricycles;

“circulation licence fee” means the circulation licence

fee paid in terms of the Act;

“driver” means any person who drives a motor vehicle

even for a short period;

“European Union” has the same meaning as is given to

it in the European Union Act and includes Norway, Iceland

and Liechtenstein;

“exemption” means exemption from the payment of

motor vehicle registration tax and, where applicable, from the

payment of the circulation licence fee;

“habitual residence” means the place where the person

concerned has established, and intends to maintain, the

permanent or habitual centre of his or her interests. The

renting of an apartment for a period of less then one year is

not sufficient evidence of the actual transfer of the habitual

residence;

“imported into Malta” means the entry into Malta of a

motor vehicle from a third country;

“Member State” means a Member State of the European

Union;

“motor cycle” means any two-wheeled vehicle, with or

without a sidecar;

“motor tricycle” means a vehicle with three

symmetrically arranged wheels fitted with an engine having

a cylinder capacity of more than 50 cm 3 if of the internal

combustion type or a maximum design speed of more than 45

km/h;

“motor vehicle” means any mechanically self-propelled

vehicle intended for use on the road, other than a vehicle

running on rails, having a maximum design speed of more

than 45 km/h, and it includes a cycle;

“normal residence” has the same meaning as is assigned

to it in article 18 of the Act;

“owner” means the person, whether as an individual or

in representation of a company, partnership or cooperative

society, in whose name a motor vehicle is registered and

licensed;

“person established outside Malta” means an individual

having his normal residence outside Malta or a person, other

than an individual, having his only or principal place of

business outside Malta;

“person residing in Malta” means

(a) an individual having his normal residence in

Malta, and is legally obliged to have an identity card

issued under the Identity Card Act,

(b) a person, other than an individual, having his

only or principal place of business in Malta;

“private motor vehicle” means any motor vehicle,

including its trailer, if any, other than vehicles suitable and

intended for transporting more than nine persons, including

the driver, or goods. It shall also include a caravan;

“public highway” means any national arterial,

distributor, access and local access road;

“quadricycle” means a vehicle with four wheels whose

unladen mass is not more than 400 kg (550 kg for vehicles

intended for carrying goods), not including the mass of

batteries in the case of electric vehicles, and whose maximum

net engine power does not exceed 15 kW;

“registration certificate” means the document which

certifies that the vehicle is registered;

“registration plate” means a plate or other device

displaying the registration mark of a motor vehicle;

“relief” means relief from motor vehicle registration tax;

“third country” means a country other than a Member

State;

“transfer of residence” means the actual transfer of

a person’s habitual residence to the new place indicated as

being that of resettlement. The fact that a person comes to

work in Malta on a specific task for a definite duration shall

not imply that such a person has transferred his residence to

Malta.

(1) Where a motor which is imported or brought into

Malta by a licensed motor vehicle trader as a representative sample

of a particular vehicle, to be displayed or used for demonstration

with a view to obtaining orders for similar vehicles, shall be

exempted from the provisions of articles 2A and 3 of the Act

Provided the vehicle –

(a) is owned by or registered in the name of a person

established outside Malta,

(b) while in Malta is not put to normal use, except for

the purpose of demonstration,

(c) is not used for hire or reward,

(d) whilst in Malta remains the property of a person

established outside Malta,

(e) is intended to be taken out of Malta on fulfillment

of such purpose.

(2) The exemption under sub-rule (1) hereof shall

be granted by the Authority, upon application, for a period not

exceeding six months from the date of the vehicle’s arrival in

Malta or for such longer period as the Authority in its discretion

may allow.

(3) A vehicle exempted under this rule may only be

used on the public highway if that vehicle carries a “Trial Run”

plate in accordance with the Registration and Licensing of Motor

Vehicles Regulations, 2009.

(1) The exemption under sub-article (3) (i) of article 19

of the Act shall be granted to a motor vehicle which is the personal

property of a private individual and is being brought or imported

permanently into Malta by the individual when he is transferring

his residence from a place outside Malta to a place in Malta

Provided that –

(a) that person has been residing outside Malta for a

continuous period of more than twenty-four months before

his transfer of residence to Malta;

(b) the motor vehicle has been in his possession and

used by him outside Malta for at least twenty-four months

before the date on which he ceased to have his residence

outside Malta;

(c) the vehicle is registered in his name or in the name

of his or her spouse where applicable;

(d) that person holds a valid driving licence;

(e) the vehicle shall be imported or brought into

Malta within twelve months of the individual’s transfer of

residence;

(f) the motor vehicle shall not be sold, given away,

disposed of, hired out or lent following its importation or its

bringing into Malta unless the vehicle registration tax to which

the exemption aforesaid relates is paid thereon in accordance

with the provisions of the First or Second Schedule to the Act.

(2) The said exemption shall apply to no more than

one motor vehicle owned by the person transferring his residence.

(3) No such exemption shall be given where a person

had gone to live outside Malta primarily for the purpose of

pursuing a course of studies of a duration of less than five years;

(4) An application for an exemption shall be made by

the individual transferring his residence on such form as specified

by the Authority at least within seven days from the vehicle’s

arrival in Malta.

(5)

The applicant shall produce sufficient evidence

showing –

(a) that he has been residing outside Malta for at least

twenty-four months before the date of his transfer of residence

to Malta and that he will be taking up residence in Malta.

Such evidence may include documents relating to transactions

carried out in the course of day-to-day living, utility bills, tax

returns, social insurance records, employment abroad, the

acquisition and disposal of property abroad and acquisition of

property in Malta;

(b) evidence that he has had possession of and actually

used the vehicle abroad for at least twenty-four months prior

to transfer to Malta. Such evidence may include the vehicle

registration certificate, vehicle insurance certificates, the sales

invoice and the receipt of purchase; and

(c)

evidence of the date of the vehicle’s arrival in

Malta.

(6) Where an application for an exemption under this

rule is rejected, the applicant may appeal to the Administrative

Review Tribunal established by the Administrative Justice

Act within twenty-one days from the date that decision is

communicated to the person concerned.

(7) Where an application for an exemption under this

rule is upheld, the person transferring his residence shall have the

motor vehicle undergo a roadworthiness test in accordance with

the Motor Vehicle Roadworthiness Test Regulations and have it

registered and licensed in accordance with the Registration and

Licensing of Motor Vehicles Regulations.

(8) Where an application for an exemption is upheld,

the applicant shall pay an exemption application processing fee

of €300 to the Authority, which fee shall be on account of the

Government.

(9) A vehicle shall not qualify for an exemption under

this regulation where its owner had already availed himself of such

exemption within the previous five years.

(1) This rule and rules 6 and 7 shall apply only to a

motor vehicle which has been acquired under the general conditions

of taxation in force on the domestic market of the country of

normal residence of the user of the motor vehicle and which is

not subject by reason of its exportation to any exemption from or

refund of turnover tax, excise duty or any other consumption tax.

(2) Where a motor vehicle is exempted under

paragraphs (a) and (b) of sub-article (1) of article 18 of the Act, the

person importing or bringing into Malta the said vehicle shall be

obliged to ensure that the vehicle –

(a) is not sold, given away or hired out in Malta or lent

to a person residing in Malta;

(b) is not used for the transport of goods for industrial

or commercial purposes, whether for reward or not;

(c)

is not used for the carriage of persons for hire or

reward;

(d) is not driven by a person who has his normal

residence in Malta;

(e) is covered by an insurance policy; and

(f) displays a valid registration mark of the country

of registration and any mark which may be issued by the

Authority

Provided that where in a country the issue of standard

registration plates is not conditional upon compliance with

the general conditions of taxation in force on the domestic

market, the user of the vehicle shall produce appropriate

evidence as proof of payment of consumption taxes.

(3) Notwithstanding proviso (a) to sub-rule (2) hereof

a private vehicle belonging to a car-hire firm established in another

country other than Malta may –

(a) be re-hired to a person whose normal residence is

outside Malta with a view to being re-exported, if the vehicle

is in Malta as a result of a hire contract which ended in Malta;

(b) be returned by an employee of the car-hire firm

to the country where it was originally hired, even if the

employee resides in Malta.

(4) The documents relating to the registration,

insurance and bringing into Malta of a vehicle temporarily brought

in under this rule shall be kept with the vehicle when it is in use

and shall be produced at the request of an authorised inspecting

(5) Nothing in this rule shall be construed as

exempting a person temporarily importing or bringing a motor

vehicle into Malta from compliance with any legal requirement,

obligation, restriction or prohibition.

(1) An exemption under sub-article (1) (a) of article

18 of the Act, for a period not exceeding twelve months shall be

given to a motor vehicle brought in or imported by a person whose

normal residence is outside Malta and who comes to Malta under a

work contract.

(2) The said exemption shall be granted on application

made to the Authority on the prescribed form which shall be

presented within fifteen days from the vehicle’s arrival in Malta

together with –

(a) a copy of the contract of employment,

(b) evidence of the vehicle’s arrival in Malta,

(c) a copy of the vehicle’s registration certificate,

(d) a valid vehicle insurance certificate, and

(e) an administrative fee of €35.

(3) Where an exemption is granted under this rule,

the Authority shall provisionally license that motor vehicle for

use on the road for a period which expires upon the expiration of

the exemption and a circulation licence fee shall be payable to the

Authority in respect of twelve months where the vehicle is not

covered by a valid road licence issued in the country of registration

and, where it is covered by such licence in respect of the remaining

months or part thereof immediately following the expiry of that

licence, at the rates applicable in the Fourth Schedule to the Act to

motor vehicles registered before the 1st January, 2009.

(4) Upon the payment of the licence fee by the owner

of the vehicle, the Authority shall issue to that person a licence

disc to be fixed on the windscreen of the vehicle in terms of the

Registration and Licensing of Motor Vehicles Regulations, 2009.

(5) The documents relating to the registration and

insurance of the vehicle and to the exemption granted shall be

kept with the vehicle when it is in use and shall be produced at the

request of an authorised inspecting officer.

(6) An exemption granted under this rule shall cease

to have effect upon the expiration of the period fixed by this rule or

before the expiration of that period if the vehicle is found to being

used in breach of the conditions under which the exemption was

granted.

(7) The motor vehicle shall not be sold, given away,

disposed of, hired out or lent unless the vehicle registration tax

is paid thereon in accordance with the provisions of the First or

Second Schedule to the Act.

(1) An exemption under sub-article (1) (a) of article 18

of the Act shall also be granted to a private motor vehicle which

is temporarily imported or brought into Malta by a student for his

own use where such student, although having his normal residence

outside Malta, is residing in Malta for the sole purpose of pursuing

his studies in an educational institution authorized as such by the

education authorities

Provided the vehicle satisfies the conditions in sub-rule

(2) of rule 5.

(2) The request for the exemption under sub-rule (1)

shall only be made if the vehicle is to remain in Malta for more

than seven months from the date of its arrival. It shall be made

to the Authority on the prescribed form which shall be presented

together with evidence of the vehicle’s arrival in Malta, a copy of

the vehicle’s registration certificate, a copy of a valid insurance

certificate, a confirmation from the institution concerned and an

administrative fee of €15 before the expiry of the seven-month

period from the date of its arrival in Malta.

(3) The exemption shall be issued for a period of

twelve months, and shall be renewed on application by the student

every year thereafter, provided that a copy of a valid insurance

policy and confirmation from the educational institution concerned

is submitted to the Authority, together with the relevant circulation

licence fee for that year.

(4) Where an exemption is granted, the Authority shall

provisionally license that motor vehicle for use on the road and a

circulation licence fee shall be payable to the Authority at the rates

applicable in the Fourth Schedule to the Act to motor vehicles

registered before the 1st January, 2009.

(1) An exemption under sub-paragraphs (iv), (v), (vi)

and (vii) of paragraph (d) of sub-article (2) of article 19 of the Act

shall be granted upon application to the Ministry responsible for

foreign affairs.

(2) When an exemption is given under this rule, a

vehicle, unless imported or brought in by an official or member

of the staff of a diplomatic mission or of an institution of the

European Communities or of an international organization whose

normal residence was outside Malta prior to taking up his post

in Malta, shall be registered and licensed by the Authority in

accordance with the Registration and Licensing of Motor Vehicles

Regulations, 2009, provided that the original approval issued by

the Ministry responsible for foreign affairs is submitted to the

Authority.

(1) An application for relief under the Exemptions/ Reliefs applicable

Subsidies Related to Motor Vehicles for Persons with Disability under the persons with

Scheme, established by an Order of the Minister of Finance, the

Economy and Investment on the 2nd January, 2009, shall be

made to the National Commission Persons with Disability on the

prescribed form.

(2) The said application shall be accompanied by

a certificate of disability issued by a doctor or therapist of the

National Commission Persons with Disability.

(3) Where an exemption or a relief is granted under

this rule, the vehicle shall be registered and licensed with the

Authority in accordance with the Registration and Licensing of

Motor Vehicles Regulations, 2009.

Exemptions or reliefs granted under rules 4 and 9 shall

be considered by a Board appointed by the Minister responsible for

finance.

A vehicle which has been exempted from the payment of Payment of

registration tax or which has been granted a relief under these rules registration tax.

may only be sold in Malta if the motor vehicle registration tax to

which the exemption or relief relates is paid thereon in accordance

with the provisions of the First or Second Schedules to the Act.

The Temporary Admission of Motor Vehicles

Regulations of 1938 are hereby revoked.