Global Residence Programme (Amendment) Rules, 2014

L.N. 267 of 2014

INCOME TAX ACT

(CAP. 123)

Global Residence Programme (Amendment) Rules, 2014

IN exercise of the powers conferred by articles 56(23) and 96 of

the Income Tax Act, the Minister for Finance has made the following

(1) The title of these rules is the Global Residence

Programme (Amendment) Rules, 2014, and these rules shall be read

and construed as one with the Global Residence Programme Rules,

hereinafter referred to as "the principal rules".

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

effect from 1st July, 2013.

Rule 2 of the principal rules shall be amended as follows

(a)

the definition of "long-term resident" shall be

amended as follows

(i) in paragraph (b) thereof, for the words

"Regulations; or" there shall be substituted the words

"Regulations;"; and

(ii)

paragraph (c) thereof shall be deleted; and

(b) the proviso to the definition of "qualifying property

holding" shall be substituted by the following

"Provided that the persons who reside in the

qualifying property are not persons other than (a) the

beneficiary, and (b) persons that qualify as his dependants

or household staff, provided that the Commissioner has

been notified that such dependents or household staff will

be so residing;".

Paragraph (g) of rule 4 of the principal rules shall be

substituted by the following

"(g) he can adequately communicate in one of the official

languages of Malta; and".

Rule 5 of the principal rules shall be amended as follows

Amends rule 5

of the principal

rules.

(a)

in paragraph (b) of sub-rule (3) thereof, for the

words "the proviso to sub-rule (1) shall be payable at the time

that the special tax status is granted", there shall be substituted

the words "the proviso to sub-rule (1) is to be paid before the

special tax status is granted"; and

(b) sub-rule (4) thereof shall be substituted by the

"(4) (a) Notwithstanding any provision in the Act,

an individual who falls under the definition of "long-term

resident" in rule 2 shall be taxable on any income accruing

in or derived from Malta or elsewhere, and whether

received in Malta or not in respect of income mentioned in

article 4 of the Act and subject to tax at the rates mentioned

in article 56 of the Act.

(b) In the case where the individual referred to in

paragraph (a) is a beneficiary or dependent, the relevant

authorised registered mandatary shall -

(i) enquire and obtain information from the

relevant beneficiary as to whether the beneficiary

or any of his dependents falls under the said

definition of "long-term resident" as at the 31st

December of each year from the year of the

appointed date onwards; and

(ii) notify the Commissioner of any

individual that is a beneficiary or dependent that

falls under the said definition of "long-term

resident" by not later than the 30th April following

the 31st December referred to in sub-paragraph (i)

on such form as the Commissioner may determine.

Where the authorised registered mandatary is not

able to obtain such information, he is to notify the

Commissioner by the said 30th April of this state

of affairs and provide proof that at least two

attempts at enquiry were made. Where such

notifications are not made within the time

specified, the authorised registered mandatary shall

be charged an administrative penalty of ten

thousand euro (€10,000).".

In paragraph (b) of sub-rule (5) of rule 6 of the principal

rules, for the words "such individual notifies the Minister", there shall

be substituted the words "such individual notifies the Ministers".

Immediately after sub-rule (7) of rule 10 of the principal

rules, there shall be added the following new sub-rule

"(8) Where an authorised registered mandatary

repeatedly fails to carry out a function required under these

rules, he shall cease to be an authorised registered mandatary.

For the purposes of this paragraph, "repeatedly" means more

than two failures of carrying out functions required under these

rules.".

€0.27