Exchange of Information (United States of America) (FATCA)

L.N. 30 of 2015

INCOME TAX ACT

(CAP. 123)

Exchange of Information (United States of America) (FATCA)

(Amendment) Order, 2015

IN exercise of the powers conferred by article 76 of the Income

Tax Act, the Minister for Finance has made the following Order:-

The title of this order is the Exchange of Information

(United States of America) (FATCA) (Amendment) Order, 2015, and

this Order shall be read and construed as one with the Exchange of

Information (United States of America) (FATCA) Order, hereinafter

referred to as "the principal order".

It is hereby declared

(a) that pursuant to Article 7 of the Agreement between

the Government of the United States of America and the

Government of the Republic of Malta to Improve International

Tax Compliance and to Implement the Foreign Account Tax

Compliance Act (the "Agreement"), done at Valletta, on

December 16, 2013, and published as a Schedule to the

principal order, the Government of the United States of America

has notified the competent authority of Malta through letters

dated 1 July 2014 and 3 October 2014 that Malta shall be

granted the benefit of more favourable terms on the date of

entry into force of the Agreement;

(b) that the United States considers the language in

italics in the Schedule to this Order to be "more favourable

terms" in Annex I of the Agreement;

(c)

that the competent authority of Malta has accepted

such favourable terms.

The Schedule to the principal order shall be re-numbered

as Schedule I, and Schedule II, contained in the schedule to this

Order, shall be added to the principal order.

In conformity with the contents of the Schedule to this

Order, Schedule I to the principal order, as re-numbered, shall be

amended as follows

(a)

sub-paragraph B(4)(e) of Section VI of Annex I

thereof shall be substituted by the following

"Substantially all of the activities of the NFFE

consist of holding (in whole or in part) the outstanding

stock of, and providing financing and services to, one or

more subsidiaries that engage in trades or businesses other

than the business of a Financial Institution, except that an

Entity shall not qualify for NFFE status if the Entity

functions (or holds itself out) as an investment fund, such

as a private equity fund, venture capital fund, leveraged

buyout fund, or any investment vehicle whose purpose is

to acquire or fund companies and then hold interests in

those companies as capital assets for investment

purposes;";

(b) there shall be added paragraph G in Section VI of

Annex I thereof as follows

"G. Alternative Procedures for New Entity

Accounts Opened on or after July 1, 2014, and before

January 1, 2015. For New Entity Accounts opened on or

after July 1, 2014, and before January 1, 2015, either with

respect to all New Entity Accounts or, separately, with

respect to any clearly identified group of such accounts,

Malta may permit Reporting Malta Financial Institutions to

treat such accounts as Preexisting Entity Accounts and

apply the due diligence procedures related to Preexisting

Entity Accounts specified in section IV of this Annex I in

lieu of the due diligence procedures specified in section V

of this Annex I. In this case, the due diligence procedures

of section IV of this Annex I must be applied without

regard to the account balance or value threshold specified

in paragraph A of section IV of this Annex I.".

It is expedient that such arrangements for more favourable Arrangements to

terms as implemented through the addition of Schedule II to the have effect.

principal order should have effect on the date of entry into force of

the Agreement and in accordance with the relevant provisions of the

said Schedule II.

Schedule

(Article 3)

"Schedule II

Language in italics considered by the United States to be

“more favourable terms” in Annex I of the Agreement as notified

to the Competent Authority of Malta through letters dated 1 July

2014 and 3 October 2014.

1. Subparagraph B(4)(e) of Section VI of Annex I

Substantially all of the activities of the NFFE consist of

holding (in whole or in part) the outstanding stock of, and

providing financing and services to, one or more subsidiaries

that engage in trades or businesses other than the business of a

Financial Institution, except that an Entity shall not qualify for

NFFE status if the Entity functions (or holds itself out) as an

investment fund, such as a private equity fund, venture capital

fund, leveraged buyout fund, or any investment vehicle whose

purpose is to acquire or fund companies and then hold interests

in those companies as capital assets for investment purposes;

2. Paragraph G of section VI of Annex 1

G.

Alternative Procedures for New Entity Accounts

Opened on or after July 1, 2014, and before January 1, 2015.

For New Entity Accounts opened on or after July 1, 2014, and

before January 1, 2015, either with respect to all New Entity

Accounts or, separately, with respect to any clearly identified

group of such accounts, Malta may permit Reporting Malta

Financial Institutions to treat such accounts as Preexisting

Entity Accounts and apply the due diligence procedures related

to Preexisting Entity Accounts specified in section IV of this

Annex I in lieu of the due diligence procedures specified in

section V of this Annex I. In this case, the due diligence

procedures of section IV of this Annex I must be applied without

regard to the account balance or value threshold specified in

paragraph A of section IV of this Annex I.".

€0.27