Individual Savings Account Rules, 2014

L.N. 469 of 2014

INCOME TAX ACT

(CAP. 123)

Individual Savings Account Rules, 2014

IN exercise of the powers conferred by articles 41B and 96 of

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

(1) The title of these rules is the Individual Savings

Account Rules. 2014.

(2) These rules shall come into force with effect from the year

of assessment 2015.

In these rules, unless the context otherwise requires

"Act" means the Income Tax Act;

"ISA" means a special individual savings account in terms of

these rules;

and other terms shall have the meaning assigned to them in articles 33

to 42, both inclusive, of the Act or, when not defined in the said

articles, the meaning assigned to them under the other provisions of

An individual savings account shall qualify as an ISA if

(a)

the account holder is an individual who is at least

eighteen years old, and is ordinarily resident in Malta; and

(b)

the account holder

(i) declares and undertakes in writing to a payor

of investment income that the account holder does not hold

any other ISAs with any person at the time of application,

and that he shall not thereafter open any other ISAs for as

long as the ISA with such payor remains open in his name;

and

(ii) elects by notice in writing to the payor of

investment income pursuant to article 35 of the Act to be

paid any such investment income arising from his holding

of the ISA without deduction of tax; and

(c)

the payor of investment income shall identify the

relevant account as an ISA; and

(d) the income from such an individual savings account

consists exclusively of

(i) interest payable to an individual in his own

name by a person carrying on the business of banking in

accordance with the laws of any European Union or

European Economic Area ("EU/EEA") Member State in

respect of a sum of money deposited into the individual

saving account, and

(ii) interest payable to an individual in his own

name by the Government of an EU/EEA Member State or

by any agency thereof, by a corporation or authority

established by law, or in respect of a public issue by a

company, entity or other legal person howsoever

constituted and whether resident in Malta or otherwise;

(e)

deposits by the individual into the individual savings

account and the value of interest-bearing securities credited for

the benefit of the individual into such account do not exceed one

thousand euro (€1,000) in any year

Provided that any deposits in, or securities credited to, a

new ISA in accordance with rule 4 shall not be taken into account for

the purpose of determining whether the aforesaid amount of one

thousand euro (€1,000) has been exceeded in any one year.

An individual who holds an ISA may close and transfer all Transfers

balances in such an ISA to a new ISA as long as he is able to satisfy between ISAs.

all the conditions referred to in rule 3 by reference to the new ISA

upon closure of the previous ISA held in his name.

(1) Every payor of investment income arising from an Rendering of

ISA shall not be required to render an account to the Commissioner in account

Commissioner.

terms of article 34(2) of the Act, but shall file an annual return with

the Commissioner by the 31 January following the year for which the

return has been made.

(2) The annual return shall include the following details for

the year in respect of which the return is drawn up

(a)

account numbers of all ISAs opened, maintained, or

closed by such payor during that year;

(b) name, address, and income tax registration number

of each person who held an ISA account with such payor at any

time during that year;

(c)

the gross amount of investment income paid to each

such ISA account holder;

(d)

date of opening of each ISA; and

(e)

date of closure of any ISA during that year.

€0.36