Residents Scheme (Amendment) Regulations, 2011

L.N. 399 of 2011

INCOME TAX ACT

(CAP. 123)

Residents Scheme (Amendment) Regulations, 2011

IN exercise of the powers conferred by articles 56(10) and 96 of

the Income Tax Act, hereinafter referred to as "the Act", the Minister

of Finance, the Economy and Investment has made the following

rules

(1) The title of these regulations is the Residents

Scheme (Amendment) Regulations, 2011 and these regulations shall

be read and construed as one with the Residents Scheme Regulations,

hereinafter in these regulations referred to as "the principal

regulations".

(2) These regulations shall be deemed to have come into force

as from 1st January, 2011.

In subregulation (1) of regulation 2 of the principal

regulations, for the words "under these regulations." there shall be

substituted the words "under these regulations:", and immediately

thereafter there shall be added the following proviso

"Provided that the Commissioner shall not issue such a

certificate on or after 1st January 2011.".

Regulation 7 of the principal regulations shall be amended

as follows

(a)

in paragraph (c) thereof, for the words "€4,150 per

annum;" there shall be substituted the words "€4,150 per

annum:", and immediately thereafter there shall be added the

following proviso

"Provided that in the event that the holder of a

certificate either

(i)

sells the aforesaid house or flat; or

(ii)

terminates the aforesaid lease,

the holder of the certificate must hold a qualifying property

holding.

For the purposes of this regulation

"qualifying property holding" is a holding which

arises where a beneficiary either

(i)

owns qualifying owned property; or

(ii)

rents qualifying rented property as

lessee;

and, in either case, occupies such property as his primary

residence

Provided that the persons who reside in the

qualifying property are not persons other than the

beneficiary and his family members;

"family members" means beneficiary’s ascendants

in the direct line, descendants in the direct line, brothers,

sisters, spouse/s or persons with whom beneficiary is in a

stable and durable relationship;

"primary residence" means the dwelling house in

which an individual habitually resides in as his principal

place of abode worldwide;

"qualifying property" means either a qualifying

owned property or a qualifying rented property, as the case

may be;

"qualifying owned property" means a property purchased after

14 September 2011 at a consideration of not less than four hundred

thousand euro (€400,000), or a property purchased before 14

September 2011 for a consideration of not less than one hundred and

sixteen thousand euro (€116,000) by a person who filed an

application under the Residents Scheme Regulations which was duly

received and acknowledged by the Commissioner before 14

September 2011

Provided that, for the purposes of this definition,

the Commissioner shall have the discretion, upon good

cause being shown, to treat a property covered by a

promise of sale in respect of which notice thereof under the

Duty on Documents and Transfers Act has been given to

the Commissioner before 14 September 2011, and the

relative deed of transfer in respect of which is published by

31 March 2012, as a property purchased by an applicant as

aforesaid before 14 September 2011;

"qualifying rented property" means a leased

property taken on a lease of not less than €20,000 per

annum;";

(b) in paragraph (d) thereof, for the words "regulation

9(5);" there shall be substituted the words "regulation 9;"; and

(c)

in paragraph (e) thereof, for the words "regulation

6(c)." there shall be substituted the words "regulation 6(c):" and

immediately thereafter there shall be added the following new

paragraphs

"(f) is not in receipt of stable and regular

resources which are sufficient to maintain himself and his

dependents without recourse to the social assistance

system in Malta;

(g) if the property referred to in paragraph (c) is

occupied by persons who are not the permit holders and, or

his family members;

(h) is not in possession of sickness insurance in

respect of all risks normally covered for Maltese nationals

for himself and the members of his family.".

Regulation 9 of the principal regulations shall be

substituted by the following

" Provisional tax.

Notwithstanding the provisions

of the Payment of Provisional Tax (P.T.)

Rules, the P.T. benchmark with respect to

provisional tax payable on account of the

year, immediately following that in which

an applicant has taken up residence in

Malta, shall be equivalent to the minimum

amount of tax that is due in terms of article

56(10)(a)(ii) of the Act and shall be payable

within the times prescribed in rule 5 of the

Payment of Provisional Tax (P.T.) Rules.".

5. Regulation 10 of the principal regulations is hereby

€0.27