Programme (Amendment) Rules, 2020

L.N. 69 of 2020

INCOME TAX ACT

(CAP. 123)

Malta Retirement Programme, Global Residence Programme,

Residence Programme and the United Nations ("UN") Pensions

Programme (Amendment) Rules, 2020

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

of the Income Tax Act, the Minister for Finance and Financial Services

has made the following rules

(1) The title of these rules is the Malta Retirement

Programme, Global Residence Programme, Residence Programme and

the United Nations ("UN") Pensions Programme (Amendment) Rules,

2020. These rules shall come into force on the 1 st January, 2020.

(2)

PART II

Amendments to the Malta Retirement Programme Rules

This Part amends the Malta Retirement Programme Rules,

and it shall be read and construed as one with the Malta Retirement

Programme Rules, hereinafter referred to as "the principal rules".

Rule 2 of the principal rules shall be amended as follows

(a) in the definition "beneficiary", the words "EU, EEA

or Swiss national" shall be substituted by the word "individual";

(b) paragraph (b)(i) of the definition "dependent" shall be

substituted with the following

"(i) is not a beneficiary under the Global Residence

Programme Rules; the High Net Worth Individuals – EU/

EEA/Swiss Nationals Rules; the High Net Worth

Individuals Rules – Non-EU/EEA/Swiss Nationals Rules;

the Highly Qualified Persons Rules; the Qualifying

Employment in Aviation (Personal Tax) Rules; the

Qualifying Employment in Innovation and Creativity

(Personal Tax) Rules; the Qualifying Employment in

Maritime Activities and the Servicing of Offshore Oil and

Gas Industry Activities (Personal Tax) Rules; the

Residence Programme Rules; the Residents Scheme

Regulations or the United Nations ("UN") Pensions

Programme Rules; and";

(c)

the definition "EEA" shall be deleted;

(d) the definition "household staff" shall substituted by

the following

" "household staff" means an individual who is in an

employment relationship, as evidenced by a contract of

service, with the beneficiary and who satisfies such

conditions as the Commissioner may determine by

guidelines;";

(e) immediately after the definition "lease" there shall be

added the following new definition

" "long-term resident" means

(a) a person who has long-term resident

status in terms of the Status of Long-term Residents S.L. 217.05.

(Third Country Nationals) Regulations; or

(b) a person who applies for long-term

resident status under the Status of Long-term S.L. 217.05.

Residents (Third Country Nationals) Regulations;";

(f) immediately after the definition "pension" there shall

be added the following new definition

" "permanent resident of Malta" means

(a) a person who has right of permanent

residence in terms of article 6 and is in possession of

a permanent residence certificate issued in terms of

article 7 of the Free Movement of European Union S.L. 460.17.

Nationals and their Family Members Order; or

(b) a person who applies for right of

permanent residence in terms of article 6 of the Free S.L. 460.17.

Movement of European Union Nationals and their

Family Members Order;"; and

(g)

the definition "third country national" shall be

Immediately after sub-rule (2) of rule 3 of the principal Amends rule 3

of the principal

rules there shall be added a new sub-rule

rules.

"(3) Following the death of a beneficiary, the special tax

status granted in terms of sub-rule (2) shall be granted to a

dependent of that deceased beneficiary who has inherited the

property that was the primary residence of such beneficiary, or

who rents a qualifying rented property immediately after the

death of the said beneficiary and satisfies all the other

requirements set out in rule 4. Such status shall only be

transferred once the said dependent provides proof to the

Commissioner that all the requirements of rule 4 are satisfied in

such manner as the Minister for Finance may determine further

to consultation with the Commissioner.".

Rule 4 of the principal rules shall be amended as follows

(a) paragraph (b) thereof shall be substituted by the

following

"(b) he is not a person who benefits under the Global

Residence Programme Rules; the High Net Worth

Individuals – EU / EEA / Swiss Nationals Rules; the High

Net Worth Individuals Rules – Non-EU / EEA / Swiss

Nationals Rules; the Highly Qualified Persons Rules; the

Qualifying Employment in Aviation (Personal Tax) Rules;

the Qualifying Employment in Innovation and Creativity

(Personal Tax) Rules; the Qualifying Employment in

Maritime Activities and the Servicing of Offshore Oil and

Gas Industry Activities (Personal Tax) Rules; the

Residence Programme Rules; the Residents Scheme

Regulations or the United Nations ("UN") Pensions

Programme Rules;"; and

(b) paragraph (c) thereof shall be substituted by the

following

"(c) he is not a Maltese national;".

Rule 5 of the principal rules shall be amended as follows

(a) in sub-rule (1) thereof, the words "the beneficiary or

dependent," shall be substituted by the words "the beneficiary,

the beneficiary’s spouse and children referred to in paragraph (b)

of the definition "dependant" in rule 2,"; and

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

following

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

an individual who falls under the definition "long-term

resident" or "permanent resident of Malta" 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 dependants fall under the definition "long-

term resident" or "permanent resident of Malta" 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 beneficiary or dependent that falls

under the said definition "long-term resident" or

"permanent resident of Malta" 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).".

Paragraph (f) of rule 6 of the principal rules shall be Amends rule 6

of the principal

substituted with the following

rules.

"(f) if at any time, after the appointed day, such individual

becomes a permanent resident or long-term resident of Malta;".

Rule 7 of the principal rules shall be amended as follows

Amends rule 7

of the principal

rules.

(a)

rule 7 shall be renumbered as rule 7(1); and

(b) immediately after sub-rule (1) as renumbered there

shall be added the following new sub-rules

"(2) Notwithstanding any other provision in any law,

the Commissioner and the competent authority in relation

to the Status of Long-term Residents (Third Country

Nationals) Regulations or in relation to the Free Movement

of European Union Nationals and their Family Members

Order, as the case may be, may exchange information that

is in their possession concerning an individual –

(a) making an application in terms of rule 3;

(b) that is a beneficiary; or

(c) that has long-term residence status in

terms of the Status of Long-term Residents (Third

Country Nationals) Regulations or that has right of

permanent residence in terms of the Free Movement

of European Union Nationals and their Family

Members Order as the case may be.

(3) The information referred to in sub-rule (2) may

be exchanged for the purposes of these rules and for the

purposes of the long-term residence status in terms of the

status of Long-term Residents (Third Country Nationals)

Regulations or for the purposes of the right of permanent

residence in terms of the Free Movement of European

Union Nationals and their Family Members Order, as the

case may be.".

PART II

Amendments to the Global Residence Programme Rules

This Part amends the Global Residence Programme Rules,

and it shall be read and construed as one with the Global Residence

Programme Rules, hereinafter referred to as "the principal rules".

In sub-rule (3) of rule 3, the words "Such status shall only

be transferred once the said dependant provides proof to the

Commission that all the requirements of rule 4 are satisfied in such

manner as the Commissioner may determine." shall be substituted by

the words "Such status shall only be transferred once the said

dependent provides proof to the Commissioner that all the

requirements of rule 4 are satisfied in such manner as the Minister for

Finance may determine further to consultation with the

Commissioner.".

PART III

Amendments to the Residence Programme Rules

This Part amends the Residence Programme Rules, and it Amendments to

shall be read and construed as one with the Residence Programme the

Programme

Rules, hereinafter referred to as "the principal rules".

Rules.

In sub-rule (3) of rule 3, the words "Such status shall only Amends rule 3

be transferred once the said dependant provides proof to the of

rules.

Commission that all the requirements of rule 4 are satisfied in such

manner as the Commissioner may determine." shall be substituted by

the words "Such status shall only be transferred once the said

dependent provides proof to the Commissioner that all the

requirements of rule 4 are satisfied in such manner as the Minister for

Finance may determine further to consultation with the

Commissioner.".

PART IV

Amendments to the United Nations ("UN") Pensions Programme

Rules

This Part amends the United Nations ("UN") Pensions Amendments to

Programme Rules, and it shall be read and construed as one with the the

Nations ("UN)

United Nations ("UN") Pensions Programme Rules, hereinafter Pensions

Programme

referred to as "the principal rules".

Rules.

In sub-rule (3) of rule 3, the words "Such status shall only Amends rules 3

be transferred once the said dependant provides proof to the to

rules.

Commission that all the requirements of rule 4 are satisfied in such

manner as the Commissioner may determine." shall be substituted by

the words "Such status shall only be transferred once the said

dependent provides proof to the Commissioner that all the

requirements of rule 4 are satisfied in such manner as the Minister for

Finance may determine further to consultation with the

Commissioner.".

€0.63