COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS (sl_123.127) | MT

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Preamble — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

SUBSIDIARY LEGISLATION 123.127

COOPERATION WITH OTHER JURISDICTION ON

TAX MATTERS REGULATIONS

22nd July, 2011

LEGAL NOTICE 295 of 2011, as amended by Legal Notices 472 of 2012,

408, 481 of 2014, 384 of 2015, 400 of 2016, 344 of 2017, 342 of 2019 and

315 of 2020, 213 of 2021, 50 of 2022, 8 of 2023, 18 of 2025 and 162 of

2026.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 1 Citation. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The title of these regulations is the Cooperation with Other

Jurisdictions on Tax Matters Regulations.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 2 Definitions. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

In these regulations, unless the context otherwise requires -

"arrangement" includes -

(a) any agreement, convention, protocol or EU Directive

pursuant to which Malta may cooperate on tax matters

with another jurisdiction through the exchange of

information; and

(b) any administrative agreement or memorandum of

understanding reached between the competent

authority of Malta and the competent authority of

another jurisdiction with which an arrangement

referred to in paragraph (a) of this definition is in

place, provided that such administrative agreement or

memorandum of understanding is not contrary to the

said arrangement;

"authorised representative" means any official who is authorised

to directly exchange information pursuant to an arrangement;

"beneficial owner" means any natural person or persons who

ultimately own or control the customer and, or the natural person or

p e r s o n s o n w h o s e b e h a l f a t r an s a c t i o n o r a c t i v i t y i s b e i n g

conducted and, or

(a) in the case of an entity, the beneficial owner shall

consist of any natural person or persons who

ultimately own or control that entity through direct or

indirect ownership of twenty-five per centum (25%)

plus one (1) or more of the shares or more than twenty-

five per centum (25%) of the voting rights or an

ownership interest of more than twenty-five per

centum (25%) in that, including through bearer share

holdings, or through control via other means, other

than a company that is listed on a regulated market

which is subject to disclosure requirements consistent

with European Union law or equivalent international

standards which ensure adequate transparency of

ownership information

Provided that a shareholding of twenty-five per centum

(25%) plus one (1) share or more, or the holding of an ownership

interest or voting rights of more than twenty-five per centum (25%)

in the customer shall be an indication of direct ownership when

held directly by a natural person, and of indirect ownership when

held by one or more body corporates or body of persons or through

a trust or a similar legal arrangement, or a combination thereof

Provided further that if, after having exhausted all possible

m ea n s a n d p r o v i d e d t h e r e a r e n o g r o u n d s o f s u s p i ci o n , n o

beneficial owner in terms of this paragraph has been identified, the

beneficial owner shall be the natural person or persons who hold

the position of senior managing official or officials, and record of

the actions taken and any difficulties encountered to determine who

the beneficial owner is in terms of this paragraph shall be kept.

(b) in the case of express trusts the beneficial owner shall

consist of

(i)

the settlor or settlors;

(ii)

the trustee or trustees;

(iii)

the protector or protectors, where applicable;

(iv)

the beneficiaries, or the class of beneficiaries as

may be applicable; and

(v)

any other natural person exercising ultimate

control over the trust by means of direct or

indirect ownership or by other means;

(c) in the case of legal entities such as foundations, and

legal arrangements similar to trusts, the beneficial

owner shall consist of the natural person or persons

holding equivalent or similar positions to those

referred to in paragraph (b);

"competent authority" means the authority which has been

designated as such by a jurisdiction with regard to an arrangement;

"data breach" means a breach of security leading to destruction, loss,

alteration or any incident of inappropriate or unauthorised access,

disclosure or use of information, including but not limited to personal

data transmitted, stored or otherwise processed, as the result of

deliberate unlawful acts, negligence or accidents. A data breach may

concern the confidentiality, availability and integrity of data;

"entities" includes any body of persons that -

(a) is resident in Malta;

(b) is created under Maltese law,

(c) has a permanent establishment in Malta;

(d) is a property company or a property partnership; or

(e) is required to be registered, to be licensed or otherwise

authorised in order to conduct business in Malta;

"EU Administrative Cooperation Directive" means Council

Directive 2011/16/EU of 15 February 2011 on administrative

cooperation in the field of taxation and repealing Directive 77/799/

EEC as amended by Council Directive 2014/107/EU, and Council

Directives (EU) 2015/2376, 2016/881, 2018/822, 2020/876, 2021/514,

2023/2226 and 2025/872;

"express trust" means a trust created voluntarily and

intentionally, either orally or in writing -

(a) inter-vivos by the settlor executing an act or

instrument of settlement made between the settlor and

the trustees under which the settlor transfers assets to

the trustees to hold subject to the terms of the trusts set

out therein;

(b) inter-vivos by the settlor transferring assets to the

trustees and the trustees executing a declaration of

trust (to which the settlor is not a party) whereby the

trustees acknowledge that they hold the assets subject

to the terms of the trusts set out in the instrument; or

(c) on death by the will of the testator taking effect,

whereby the testator’s executors are directed to

transfer all or part of the testator’s estate to trustees

(who may be the executors) to hold subject to the

trusts set out in the will;

" FAT C A A g r e e m e n t " m e a n s t h e A g r e e m e n t b e t w e e n t h e

Government of the Republic of Malta and the Government of the

United States of America to Improve International Tax Compliance

and to Implement the Foreign Account Tax Compliance Act, in

accordance with the Schedule to the Exchange of Information

(United States of America) (FATCA) Order;

"FATCA Regulations" means regulations 23 to 34, inclusive of

both regulations;

"group request" means a request for information on a group of

taxpayers, without naming such persons individually: provided that

such request does not constitute a fishing expedition, that is to say

the request is not in the form of a speculative request that has no

apparent nexus to an open inquiry or investigation;

"joint audit" means an administrative enquiry jointly conducted by

the competent authority in Malta and the competent authority of

another one (1) or more Member States, and which is linked to one (1)

or more persons of common or complementary interest to the

competent authorities of those Member States;

"partnership" means any kind of partnership that is not a

company;

"public collective investment scheme" means any collective

investment scheme provided the units, shares or other interests in

the scheme can be readily purchased, sold or redeemed by the

public. Units, shares or other interests in the scheme can be readily

purchased, sold or redeemed "by the public" if the purchase, sale or

redemption is not implicitly or explicitly restricted to a limited

group of investors;

"publicly traded company" means any company whose principal

class of shares is listed on a stock exchange in Malta provided its

listed shares can be readily purchased or sold by the public. Shares

can be purchased or sold "by the public" if the purchase or sale of

shares is not implicitly or explicitly restricted to a limited group of

investors. For the purpose of this definition "principal class of

shares" means the class or classes of shares representing a majority

of the voting power and value of the company;

"requesting authority" means the competent authority of a

jurisdiction with which Malta has an arrangement that is in place;

"share warrants" means a warrant to bearer referred to in article

121 of the Companies Act;

"tax" shall have the meaning found in the relevant arrangement

that is in place with another jurisdiction.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 3 Aim of these regulations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

These regulations shall apply in order to ensure the

effective cooperation with other jurisdictions on tax matters where

arrangements that enable such cooperation are in place and shall be

interpreted accordingly. Such cooperation shall include the

exchange of information relating to a group request.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 4 Availability of ownership information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Entities shall keep updated information that identifies

their owners and the level and type of their respective ownership

stakes in such entities, including information on legal and beneficial

owners. Such information is to be updated and documented not later

than fourteen days from the date that the entity was notified or from

the date the entity becomes aware of there being a new owner or of

any change relating to existing owners. For the purposes of these

regulations, "owners" include -

(a) in the case of a company, partnership and other any

other body of persons (other than a foundation), the

legal owners and the beneficial owners; and

(b) in the case of a foundation, the founders, the

administrators, the members of the supervisory

council, and the beneficiaries (where applicable), as

well as any other person with the authority to represent

the foundation;

(c) for the purposes of paragraph (a) and (b) above, the term

‘beneficiaries’ shall mean both beneficiaries as identified

in terms of article 2(1) of the Trusts and Trustees Act and

beneficial owners as defined in regulation 2.

(2)

The provisions of sub-regulation (1) do not apply to -

(a) a publicly-traded company: provided that in the case

of a publicly-traded company that is either resident in

Malta or created under Maltese law, the required

ownership information in relation to such companies is

to be kept either by the company itself or by a central

securities depository resident in Malta. For the purposes

of this paragraph, "central securities depository" has the

meaning found in article 2 of the Financial Markets Act;

and

(b) public collective investment schemes.

(3)

For the purposes of these regulations -

(a) where in any instance within an ownership chain, the

legal owner acts on behalf of any other person as a

trustee, fiduciary (including nominee) or under a

similar arrangement, such a legal owner shall have the

obligation to keep the information that identifies such

other person;

(b) a company that has issued share warrants in

accordance with article 121 of the Companies Act

shall inform the competent authority in Malta of such

issue not later than one month from the date of

publication of these regulations in the case of share

warrants issued before the said date, or fourteen days

after the date of any issue made after the said date.

Such companies shall also keep a register with the

information that identifies the owners of such share

warrants. Notwithstanding any other provision in any

Act, a person in possession of a share warrant shall not

be entitled to any rights in relation to such share

warrant unless the relevant company has been

provided with the information that identifies such

person. Furthermore, notwithstanding any other

provision in any Act, a transfer of such share warrant

shall not be valid at law if the relevant company has

not been informed within fourteen days of the said

transfer of the information that identifies the new

owner

Provided that the provisions of the preceding paragraph

shall have effect up to 27 December 2017.

(4) (a) Trustees that are established under the laws of Malta or

that are resident in Malta shall take all reasonable

measures to ensure that updated information is kept that

identifies the settlor, other trustees, the protector (if any)

and beneficiaries of express trusts (whether the proper

law of such trusts is that of Malta or elsewhere).

(b) Persons that are established under the laws of Malta or

that are resident in Malta and that are entrusted with

the administration of express trusts (whether the

proper law of such trusts is that of Malta or elsewhere)

shall have the same obligations as those found under

paragraph (a).

(5)

Information that identifies a person includes -

(a) in the case of an individual

(i) the full name and surname;

(ii) the passport number, ID number or tax

identification number;

(iii) date and place of birth if no number referred to

in sub-paragraph (ii) is available; and

(iv) address of residence;

(b) in the case of persons that are not individuals

(i) name;

(ii) date of inception or incorporation; and

(iii) registered address.

(6) Information that identifies a person is to be kept in Malta.

However, such records may be kept in a jurisdiction with which

Malta has an arrangement, that would permit exchange of

ownership information.

(7) Individuals (engaged in a trade, business, profession or

vocation), entities and trustees are to ensure that reliable books of

account are kept that -

(a) correctly explain all transactions of such individual,

entity or trust;

(b) enable the financial position of such individual, entity

or trust to be determined with reasonable accuracy at

any time; and

(c) allow financial statements to be prepared.

(8) Apart from the books of account referred to in sub-

regulation (7) records to be kept shall further include underlying

documentation, such as invoices, contracts, etc. and should reflect

details of -

(a) all sums of money received and expended and the

matters in respect of which the receipt and expenditure

takes place;

(b) all sales and purchases and other transactions; and

(c) the assets and liabilities of the relevant individual,

entity or trust.

(9) In the case of a company that is considered to be an entity

for the purposes of these regulations, the financial statements are to

be prepared and audited as required under the Companies Act or the

Co-operatives Act, as the case may be.

(10) Accounting records are to be kept in Malta. However, such

records may be kept in a jurisdiction with which Malta has an

arrangement that would permit exchange of information of such

records.

(11) Banks that are considered to be entities for the purposes of

these regulations are to ensure that banking information is kept on

all account-holders in relation to their banking activity in Malta.

For the purposes of these regulations, "banking information"

includes

(a) information that identifies the legal owners of the

accounts;

(b) information that identifies the beneficial owners of the

accounts; and

(c) all records pertaining to the accounts and to related

financial transactional information.

(12) The information that is required to be kept in accordance

with this regulation shall be kept in such a way that it may be

submitted without difficulty to the Commissioner following a

request made pursuant to the provisions of article 10A of the

Income Tax Management Act. Where, following representations

made by the requested person, the Commissioner is satisfied that

for reasons that are beyond the control of such requested person,

information cannot be submitted within the time limit specified in

the original request made by the Commissioner to such requested

person, the Commissioner shall consider allowing such other time

limit as may be reasonable for the particular case. In such cases, the

provisions of regulation 6(1) and (2) shall apply taking into

consideration such other time limit that is determined by the

Commissioner.

(13) Subject to the provisions of article 19 of the Income Tax

Management Act, entities, trustees and other persons that are

required to keep information, records or documents under any of

the provisions of this regulation shall keep such information,

records and documents for a minimum period of five years from the

end of the year in which the relevant transactions, acts or

operations took place (including where the relevant entity or trust is

liquidated or is no longer in existence). This requirement shall also

apply to any person referred to in regulation 5(1) acting in a

professional capacity in relation to any such information or records

that he holds in the carrying on of his business.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 4A Compliance monitoring. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The Commissioner may give notice in writing to any

person to furnish him, within a reasonable time stated in such

notice, not being less than twenty days, such information as may

be necessary in order to verify that such person is complying with

the obligations set out in these regulations. Such requests shall be

sent to that person either by electronic means to a verified email

address of that person or sent by post to the person’s registered

address. Where any of the information requested is not submitted

to the Commissioner within the time limit specified in the notice,

the person shall be liable to a penalty of not less than five hundred

euro (€500) and not exceeding nineteen thousand, two hundred and

fifty euro (€19,250)

Provided that where the Commissioner is satisfied that the

default in respect of which the penalties have been imposed were

justifiable, the Commissioner may remit such penalties in whole or in

part as he may think fit. In every case the Commissioner shall inform

the said person in writing.

(2) The provisions of article 20 of the Income Tax Management

Act shall apply mutatis mutandis to the powers of the Commissioner to

verify that such person is complying with the obligations set out in

these regulations.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 5 Access to information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The provisions of article 10A of the Income Tax

Management Act shall be interpreted to give the widest possible

powers in order to obtain and provide information to competent

authorities of jurisdictions with which Malta has an arrangement.

Thus, irrespective of any legal obligation that may be imposed on a

person to maintain secrecy of information, the said provisions shall

be construed to mean, inter alia, that the Commissioner has the

power to obtain and provide information referred to in regulation 4

that is held by or is in the possession or control of person in Malta,

including any -

(a) bank and other financial institution;

(b) insurance company;

(c) person acting in an agency or fiduciary capacity

including nominees and trustees;

(d) lawyer, notary and other independent legal

professional, real estate agent, accountant, auditor, tax

advisor, company service provider, person licensed to

carry on investment business, stockbroker;

(e) company, collective investment scheme, partnership,

foundation and any other body of persons;

(f)

stock exchange in Malta; and

(g) regulatory authority or body in Malta

Provided that no person may be requested to provide

information which is the subject of attorney client privilege. For the

purposes of this sub-regulation, "information which is the subject of

attorney client privilege" means confidential communications between

a client and a lawyer or other legal representative produced for the

purposes of seeking or providing legal advice or for the purposes of

use in existing or contemplated legal proceedings.

(2) Apart from the powers granted under article 10A of the

Income Tax Management Act, the Commissioner may use any

information-gathering power under the Income Tax Acts, including

those under the provisions of article 20 o f the Income Tax

Management Act, to obtain the information requested by the

competent authority of the other jurisdiction, notwithstanding that

the said information may not be required for the purposes of the

Income Tax Acts.

(3) The competent authority in Malta shall arrange for the carrying

out of any administrative enquiries necessary to obtain the information

requested by the requesting authority. The request may contain a

reasoned request for an administrative enquiry. If the competent

authority in Malta takes the view that no administrative enquiry is

necessary, it shall immediately inform the requesting authority of the

reasons thereof.

(4) In order to obtain the requested information or to conduct

the administrative enquiry requested, the competent authority in

Malta shall ensure that the same procedures as those that would

have been used when acting on its own initiative (or at the request

of another authority in Malta - where this is applicable) are

followed.

(5) For the purposes of these regulations "administrative

enquiry" means those controls, checks and other actions used by

the Commissioner in the performance of his duties when ensuring

that the Income Tax Acts have been properly applied.

(6) In order for the Commissioner to access information, notice

shall be served on a person either personally or by being sent by

registered post to the last known business or private address, or

through electronic communication as prescribed through guidelines

published on the website of the Commissioner for Revenue under the

provisions of article 96(2) of the Income Tax Act.

(7) For the purposes of the implementation and enforcement of

the laws giving effect to the EU Administrative Cooperation

Directive and to ensure the functioning of the administrative

cooperation it establishes, the Commissioner shall have access to the

mechanisms, procedures, documents and information referred to in

regulations 7 and 13 of the Prevention of Money Laundering and

Funding of Terrorism Regulations, the Centralised Bank Account

Register Regulations, the Companies Act (Register of Beneficial

Owners) Regulations and the Trusts and Trustees Act (Register of

Beneficial Owners) Regulations.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 6 Penalties. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where there is failure to comply with a request for

information made by the Commissioner in relation to a request

m a d e by a r e q u e s t in g a u t h o ri t y u n d e r t h e p r o v i s i o n s o f a n

arrangement, the requested person shall be liable to a penalty of

(a) one thousand euro (€1,000) where the information has

not been submitted within the time-limit specified within

the Commissioner’s request; and

(b) fifty euro (€50) for every day during which the default

existed

Provided that the penalty under this paragraph shall

not exceed in total nineteen thousand, two hundred and

fifty euro (€19,250).

(2) Where the person fails to show that the information was kept

or was properly updated, as required under these regulations, the

person who had the duty to keep or update such information shall be

liable to a penalty of nineteen thousand, two hundred and fifty euro

(€19,250).

(3) Notwithstanding any action that may be taken in accordance

with the provisions of sub-regulations (1) or (2) where -

(a) failure to comply with a request made by the

Commissioner persists for more than six months from

the date of the original request; or

(b) the requested party refuses to be served with the notice

either personally or through registered mail as

contemplated in regulation 5(6) and the requested

party is the proper addressee of the request; or

(c) the information submitted by the requested party is

found to be incorrect in such a way that it is

misleading, deceitful or false,

the requested party shall be guilty of an offence and shall on

conviction be liable to a fine (multa) of not less than five thousand

euro (€5,000) and not more than thirty thousand euro (€30,000), or to

imprisonment for a period of not exceeding two years, or to both such

fine (multa) and imprisonment.

(4) Where any person from whom the Commissioner has requested

information in accordance with these regulations or article 10A of the

Income Tax Management Act, discloses to the person concerned or to

a third party the fact that information has been requested by the

Commissioner or that information has been or may be transmitted to

the Commissioner, such person shall be guilty of an offence and shall

be liable on conviction to a fine (multa) not exceeding one hundred

and fifteen thousand euro (€115,000) or to imprisonment for a term not

exceeding two (2) years or to both such fine and imprisonment.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 7 Rights and safeguards. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) On receipt of a valid request from a requesting

authority, the competent authority in Malta shall notify the person

(or his authorised representative) concerning whom the request is

made, that a request for information concerning him has been

received. The competent authority in Malta shall not effect such

notification where -

(a) the requesting authority specifically requests that no

such notification is made;

(b) the competent authority in Malta determines that the

request is of a highly urgent nature and that

notification could delay the forwarding of information

requested; or

(c) the competent authority in Malta determines that such

notification is reasonably expected to jeopardise the

relevant investigation or audit being carried out in the

relevant jurisdiction.

Any determination made by the competent authority in Malta

under this sub-regulation shall not be questioned in any appeal.

(2) Notwithstanding any other provision in any law to the

contrary, any person that complies with a request under these

regulations shall not be treated as being in breach of any restriction

upon the disclosure of information imposed by any law, contract or

rules of professional conduct. Except as provided in regulation 6,

no civil or criminal action shall be taken against any person that

provides information in accordance with the provision of these

regulations.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 8 Competent authority in Malta. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The competent authority in Malta shall be the Minister

responsible for finance or his authorised representative. An

authorised representative shall be the competent official that is

identified as such and whose name and designation are published

on the website of the Commissioner for Revenue.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 9 Time limits. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The competent authority in Malta shall confirm receipt

of a request for information not later than seven working days from

the receipt of such a request.

(2) The competent authority in Malta shall, within one week of

receipt of a request for information, notify the requesting authority

of any deficiencies in the request and of the need for any additional

background information. In such a case, the time limits provided

for in sub-regulation (3) shall start from the day after the competent

authority in Malta receives such additional information.

(3) Unless otherwise agreed to between the two (2) relevant

competent authorities, the competent authority in Malta shall provide

the requesting authority with the requested information as soon as

practicable, and not later than three (3) months from the date of receipt

of the request

Provided that where the competent authority in Malta is unable

to respond to the request by the relevant time limit, it shall inform the

requesting authority immediately and in any event within three (3)

months of the receipt of the request, of the reasons for its failure to do

so, and the date by which it considers it may be able to respond. The

time limit shall not be longer than six (6) months from the date of

receipt of the request

Provided further that where the competent authority in Malta is

already in possession of the requested information, the s a i d

information shall be transmitted within two (2) months of the date of

receipt of the request

Provided further that where the competent authority in Malta

is unable to provide the requested information, an update of the

situation shall be given every three ( 3 ) months until the matter is

settled.

(4)

Deleted by Legal Notice 18 of 2025.

(5) Where the competent authority in Malta is not in possession

of the requested information and cannot respond to the request, it

shall inform the requesting authority of the reasons thereof

immediately and in any event within one month of receipt of the

request.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 10 Certain limitations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The competent authority in Malta shall provide the

requesting authority with the requested information provided that

the requesting authority has exhausted the usual sources of

information (including all the legally available avenues available to

it) which it could have used in the circumstances for obtaining the

information requested without running the risk of jeopardising the

achievement of its objectives.

(2) The competent authority in Malta may decline to provide

information where

(a) the requesting authority is unable, for legal reasons, to

provide similar information;

(b) it is not satisfied that the jurisdiction of the requesting

authority has sufficiently adequate safeguards in place

to ensure that the information obtained is treated as

confidential and that such information may only be

disclosed to persons or authorities as provided for in

the relevant arrangement;

(c) the provision of information would likely lead to the

disclosure of a commercial, industrial or professional

secret or of a commercial process, or of information

whose disclosure would be contrary to public policy.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 11 Implementation of Council Directive 2011/16/EU. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) (a) By means of regulations 11 to 22, the provisions of

the EU Administrative Cooperation Directive shall have effect in

relation to the Income Tax Acts.

(b) For the purposes of the EU Administrative

Cooperation Directive, the competent authority in Malta shall

waive all claims for the reimbursement of expenses incurred in

applying EU Council Directive 2014/107/EU except, where

appropriate, in respect of fees paid to experts.

(2) For the purposes of the EU Administrative Cooperation

Directive -

"person" shall mean -

(a) a natural person;

(b) a legal person;

(c) where Maltese legislation in force so provides,

an association of persons recognised as having

the capacity to perform legal acts but lacking the

status of a legal person; or

(d) any other legal arrangement of whatever nature

and form, regardless of whether it has legal

personality, owning or managing assets, which,

including income derived therefrom, are subject

to any of the taxes covered by the EU

Administrative Cooperation Directive;

"tax" shall mean all taxes of any kind levied in Malta

except for

(a) value added tax, customs duties and excise

duties covered by other Union legislation on

administrative cooperation between Member

States;

(b) compulsory social security contributions

payable in Malta;

(c) fees, such as for certificates and other

documents issued by public authorities; and

(d) dues of a contractual nature, such as

consideration for public utilities.

(3) For the purposes of the EU Administrative Cooperation

Directive, information shall, as far as possible, be provided by

electronic means using the CCN network. The Commissioner is

responsible for the development of systems that are necessary to

enable such information to be exchanged using the CCN network

and for ensuring the security of such systems. In this context -

(a) "electronic means" means using electronic equipment

for the processing, including digital compression, and

storage of data, and employing wires, radio

transmission,

optical

technologies

or

other

electromagnetic means; and

(b) "CCN network" means the common platform based on

the common communication network developed by the

European Union for all transmissions by electronic

means between competent authorities in the area of

customs and taxation.

(4) When the competent authority in an EU Member State

forwards information to the competent authority in Malta and also

requests feedback on such information, the competent authority in

Malta shall, without prejudice to the rules on tax secrecy and data

protection applicable in Malta, send feedback to the competent

authority which provided the information as soon as possible and

no later than three months after the outcome of the use of the

requested information is known. Such feedback shall be given in

line with the practical arrangements made by the EU Commission

in accordance with the procedure referred to in Article 26(2) of the

EU Administrative Cooperation Directive.

(5) The competent authority in Malta shall send feedback on

the automatic exchange of information made pursuant to regulation

13 to the other EU Member States concerned once a year in

accordance with practical arrangements agreed upon bilaterally

with such EU Member States. Such practical arrangements may

take any form that is provided for in the definition of the term

"arrangement" in regulation 2.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 12 Exchange of information on request. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) At the request of the competent authority of an EU

Member State, the competent authority in Malta shall communicate

to the requesting authority any information that is foreseeably

relevant to the administration and enforcement of the domestic

laws of that Member State concerning the taxes referred to in

regulation 11(2) that the competent authority in Malta has in its

possession or that it obtains as a result of administrative enquiries.

(2) The provisions of regulations 1 to 10 shall apply for the

purposes of exchanging information referred to in sub-regulation

(1).

(3) When specifically requested by a requesting authority of an

E U M e m b e r St a t e , t h e c o m p e t e n t a u t h o r i t y i n M a l t a s h a l l

communicate original documents provided that this is not contrary

to the provisions in force in Malta.

(4) (a) For the purposes of a request referred to in sub-regulation

(1), the requested information is foreseeably relevant where, at the

time that the request is made, the requesting authority considers that, in

accordance with its national law, there is a reasonable possibility that

the requested information shall be relevant to the tax affairs of one

(1) or several taxpayers, whether identified by name or otherwise, and

be justified for the purposes of the investigation.

(b)

With the aim to demonstrate the foreseeable

relevance of the requested information, the requesting authority

shall provide at least the following information to the competent

authority in Malta

(i)

the tax purpose for which the information

is sought; and

(ii)

a specification of the information required

for the administration or enforcement of its national law.

(c)

Where a request referred to in sub-regulation (1)

relates to a group of taxpayers who cannot be identified

individually, the requesting authority shall provide at least the

following information to the competent authority in Malta

(i)

a detailed description of the group;

(ii)

an explanation of the applicable law and of

the facts based on which there is reason to believe that

the taxpayers in the group have not complied with the

applicable law;

(iii) an explanation on how the requested

information would assist in determining compliance by

the taxpayers in the group; and

(iv) where relevant, the facts and circumstances

related to the involvement of a third party that actively

contributed to the potential non-compliance of the

taxpayers in the group with the applicable law.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 13 Automatic exchange of information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The competent authority in Malta shall, by automatic

exchange, communicate to the competent authority of any other EU

Member State all information that is available concerning residents of

such other EU Member State, on the following specific categories of

income and capital

(a) income from employment;

(b) director’s fees;

(c) life insurance products not covered by other Union legal

instruments on exchange of information and other similar

measures;

(d) pensions;

(e) ownership of and income from immovable property;

(f) royalties;

(g) non-custodial dividend income other than income from

dividends exempt from corporate income tax in

accordance with Articles 4, 5 or 6 of Council Directive

2011/96/EU of 30 November 2011 on the common

system of taxation applicable in the case of parent

companies and subsidiaries of different Member

States, as transposed through the European Union

Directives Regulations.

(2) Reporting Malta Financial Institutions shall perform the

reporting and due diligence rules included in Annexes I and II. In

accordance with such applicable reporting and due diligence rules,

the competent authority in Malta shall, by automatic exchange,

communicate to the competent authority of any other Member

State, the following information regarding taxable periods as from

1 January 2016 concerning a Reportable Account of residents in

such other Member State

(a) the name, address, TINs and date and place of birth, in

the case of an individual, of each Reportable Person

that is an Account Holder of the account and, in the

case of any Entity that is an Account Holder and that,

after application of due diligence rules consistent with

the Annexes I and II, is identified as having one (1) or

more Controlling Persons that are Reportable Persons,

the name, address, and TINs of the Entity and the

name, address, TINs and date and place of birth of

each Reportable Person;

(b) the account number, or functional equivalent in the

absence of an account number;

(c) the name and identifying number, if any, of the

Reporting Financial Institution;

(d) the account balance or value including, in the case of a

Cash Value Insurance Contract or Annuity Contract,

the Cash Value or surrender value, as of the end of the

relevant calendar year or other appropriate reporting

period or, if the account was closed during such year

or period, the closure of the account;

(e) in the case of any Custodial Account

(i)

the total gross amount of interest, the total gross

amount of dividends, and the total gross amount

of other income generated with respect to the

assets held in the account, in each case paid or

credited to the account, or with respect to the

account, during the calendar year or other

appropriate reporting period; and

(ii) the total gross proceeds from the sale or

redemption of Financial Assets paid or credited

to the account during the calendar year or other

appropriate reporting period with respect to

which the Reporting Financial Institution acted

as a custodian, broker, nominee, or otherwise as

an agent for the Account Holder;

(f)

in the case of any Depository Account, the total gross

amount of interest paid or credited to the account

during the calendar year or other appropriate reporting

period;

(g) in the case of any account not described in paragraphs

(e) or (f), the total gross amount paid or credited to the

Account Holder with respect to the account during the

calendar year or other appropriate reporting period

COOPERATION WITH OTHER JURISDICTIONS

ON TAX MATTERS

with respect to which the Reporting Financial

Institution is the obligor or debtor, including the

aggregate amount of any redemption payments made

to the Account Holder during the calendar year or

other appropriate reporting period;

(h) whether a valid self-certification has been provided for

each Account Holder;

(i)

the roles by virtue of which each Reportable Person

that is a Controlling Person of an Entity Account

Holder is a Controlling Person of the Entity and

whether a valid self-certification has been provided for

each such Reportable Person;

(j)

the type of account, whether the account is a Pre-

existing Account or a New Account and whether the

account is a joint account, including the number of

joint Account Holders; and

(k) in the case of any Equity Interest held in an Investment

Entity that is a legal arrangement, the roles by virtue

of which the Reportable Person is an Equity Interest

holder

Provided that for the purposes of exchange of

information under this sub-regulation, unless

otherwise foreseen in this sub-regulation or in the

Annexes, the amount and characterisation of payments

made with respect to Reportable Accounts shall be

determined in accordance with Maltese legislation

Provided further, the first paragraph of this sub-

regulation shall prevail over paragraph (c) of sub-

regulation (1) or any other Union legal instrument, to the

extent that the exchange of information at issue would

fall within the scope of paragraph (c) of sub-regulation

(1) above or of any other Union legal instrument.

(3)

(a) The competent authority in Malta, where an advance

cross-border ruling or an advance pricing arrangement

was issued, amended or renewed after 31 December

2016 shall, by automatic exchange, communicate

information thereon to the competent authorities of all

other EU Member States as well as to the European

Commission, with the limitation of cases set out in the

proviso to paragraph (e).

(b) The competent authority in Malta shall also

communicate information to the competent authorities

of all other EU Member States as well as to the

European Commission, with the limitation of cases set

out in the proviso to paragraph (e), on advance cross-

border rulings and advance pricing arrangements

issued, amended or renewed within a period beginning

five years before 1 January 2017

Provided that if advance cross-border rulings and

advance pricing arrangements are issued, amended or

renewed between 1 January 2012 and 31 December

2013, such communication shall take place under the

condition that they were still valid on 1 January 2014

Provided further that if advance cross-border rulings

and advance pricing arrangements are issued, amended

or renewed between 1 January 2014 and 31 December

2016, such communication shall take place

irrespective of whether they are still valid

Provided also that information on advance cross-

border rulings and advance pricing arrangements

issued, amended or renewed before 1 April 2016 to a

particular person or a group of persons, excluding

those conducting mainly financial or investment

activities, with a group-wide annual net turnover, as

defined in point (5) of Article 2 of Directive 2013/34/

EU of the European Parliament and of the Council of

less than forty million euro (€40,000,000), or the

equivalent amount in any other currency, in the fiscal

year preceding the date of issuance, amendment or

renewal of those cross-border rulings and advance

pricing arrangements shall be excluded from the

communication referred to in this sub-regulation.

(c) Bilateral or multilateral advance pricing arrangements

with third countries shall be excluded from the scope

of automatic exchange of information under this sub-

regulation where the arrangements under which the

advance pricing arrangement was negotiated does not

permit its disclosure to third parties. Such bilateral or

multilateral advance pricing arrangements will be

exchanged under regulation 14, where the

arrangements under which the advance pricing

arrangement was negotiated permits its disclosure, and

the competent authority of the third country gives

permission for the information to be disclosed

Provided that where the bilateral or multilateral

advance pricing arrangements would be excluded from

the automatic exchange of information under the first

sentence of this paragraph, the information identified

in paragraph (e) referred to in the request that lead to

issuance of such a bilateral or multilateral advance

pricing arrangement shall instead be exchanged under

paragraphs (a) and (b).

(d) (i) paragraphs (a) and (b) shall not apply in the case

where an advance cross-border ruling exclusively

concerns and involves the tax matters of one (1) or

more natural persons

Provided that where such an advance cross-border

ruling was issued, amended or renewed after 1 January

2026 and where

(A)

the amount of the transaction or series of

transactions of the advance cross-border ruling

exceeds one million and five hundred thousand

euro (€1,500,000) or the equivalent amount in

any other currency if such amount is referred to

in the advance cross-border ruling; or

(B)

the advance cross-border ruling determines

whether a person is resident for tax purposes in

Malta or otherwise;

(ii)

for the purposes of paragraph (A) of the proviso

to sub-paragraph (i) and without prejudice to the

amount referred to in the advance cross-border

ruling, in a series of transactions regarding

different goods, services or assets the amount of

the advance cross-border ruling shall comprise

the total underlying value. The amounts shall not

be aggregated if the same goods, services or

assets are transacted several times;

(iii)

notwithstanding the provisions of paragraph (B) of

the proviso to sub-paragraph (i), the exchange of

information on advance cross-border rulings

concerning natural persons shall not include such

rulings on taxation at source with regard to non-

residents’ income from employment, director’s

fees or pensions.

(e) The information to be communicated by the competent

authority in Malta pursuant to paragraphs (a) and (b)

shall include the following

(i)

the identification of the person, other than a natural

person, except where the advance-cross border

ruling concerns a natural person and shall be

communicated pursuant to paragraphs (a) and (d),

and where appropriate the group of persons to

which it belongs;

(ii) a summary of the advance cross-border ruling or

advance pricing arrangement, including a

description of the relevant business activities or

transactions or series of transactions and any other

information that could assist the competent

authority in assessing a potential tax risk, without

leading to the disclosure of a commercial,

industrial or professional secret or of a commercial

process, or of information whose disclosure would

be contrary to public policy;

(iii) the dates of issuance, amendment or renewal of

the advance cross-border ruling or advance

pricing arrangement;

(iv) the start date of the period of validity of the

advance cross-border ruling or advance pricing

arrangement, if specified;

(v) the end date of the period of validity of the

advance cross-border ruling or advance pricing

arrangement, if specified;

(vi) the type of the advance cross-border ruling or

advance pricing arrangement;

(vii)

the amount of the transaction or series of

transactions of the advance cross-border ruling

or advance pricing arrangement if such amount

is referred to in the advance cross-border ruling

or advance pricing arrangement;

(viii) the description of the set of criteria used for the

determination of the transfer pricing or the

transfer price itself in the case of an advance

pricing arrangement;

(ix) the identification of the method used for

determination of the transfer pricing or the

transfer price itself in the case of an advance

pricing arrangement;

(x) the identification of the other EU Member

States, if any, likely to be concerned by the

advance cross-border ruling or advance pricing

arrangement;

(xi) the identification of any person, other than a

natural person, except where the advance-cross

border ruling concerns a natural person and shall

be communicated in accordance with paragraphs

(a) and (d), in the other EU Member States, if any,

likely to be affected by the advance cross-border

ruling or advance pricing arrangement;

(xii) the indication whether the information

communicated is based upon the advance cross-

border ruling or advance pricing arrangement

itself or upon the request referred to in

paragraph (c)

Provided that information as defined under sub-

paragraphs (i), (ii), (viii) and (xi) shall not be

communicated to the European Commission.

(f)

The competent authority in Malta shall confirm

immediately, if possible by electronic means, receipt

of the information to the competent authority of the

other EU Member State which provided the

information without delay and in any event no later

than seven working days.

(g) The competent authority in Malta shall in accordance

with regulation 12, provide additional information,

including the full text of an advance cross-border

ruling or an advance pricing arrangement.

(4)

(a) The Ultimate Parent Entity of an MNE Group that is

re s id e n t fo r t a x p ur p os e s i n Ma lt a , o r a ny o th e r

Reporting Entity in accordance with Section II of

A n n e x I I I , sh a l l f i l e w it h t h e C o m m i s s i o n e r fo r

Revenue a country-by-country report with respect to its

Reporting Fiscal Year in accordance with Section II of

Annex III.

(b) The competent authority in Malta shall, by means of

automatic exchange, communicate the report received

pursuant to paragraph (a) to any other EU Member

State in which, on the basis of the information in the

country-by-country report, one or more Constituent

Entities of the MNE Group of the Reporting Entity are

either resident for tax purposes, or are subject to tax

with respect to the business carried out through a

permanent establishment within the time limit laid

down in sub-regulation (8)(d). Such information shall

be exchanged by electronic means using the CCN

network.

(c) The country-by-country report shall contain the

following information with respect to the MNE Group

(i)

aggregate information relating to the amount of

revenue, profit (loss) before income tax, income

tax paid, income tax accrued, stated capital,

accumulated earnings, number of employees,

and tangible assets other than cash or cash

equivalents with regard to each jurisdiction in

which the MNE Group operates;

(ii) an identification of each Constituent Entity of

the MNE Group setting out the jurisdiction of

tax residence of such Constituent Entity, and

where different from such jurisdiction of tax

residence, the jurisdiction under the laws of

which such Constituent Entity is organised, and

the nature of the main business activity or

activities of such Constituent Entity.

(5) For the purposes of this regulation, any capitalised term shall

have the same meaning as assigned to it in the Annexes.

(6) For the purposes of regulation 13(4), a Maltese Constituent

Entity shall annually report the country-by-country report as specified

in Tables 1, 2 and 3 of Section III of Annex III in such manner as set

out in Annex III and within twelve months of the last day of the fiscal

year of the MNE group.

(7) (a) Intermediaries shall file information that is within their

knowledge, possession or control on reportable cross-border

arrangements with the Commissioner within thirty (30) days

beginning

(i)

on the day after the reportable cross-border

arrangement is made available for implementation; or

(ii)

on the day after the reportable cross-border

arrangement is ready for implementation; or

(iii)

when the first step in the implementation of the

reportable cross-border arrangement has been made,

whichever occurs first

Provided that intermediaries referred to in paragraph (b) of

the definition "intermediary" shall also be required to file

information within thirty (30) days beginning on the day after

they provided, directly or by means of other persons, aid,

assistance or advice.

(b) In the case of marketable arrangements, a periodic

report shall be made by the intermediary every three

(3) months, providing an update which contains new

reportable information as referred to in sub-paragraphs

(i), (iv), (vii) and (viii) of paragraph (o) that has

become available since the last report was filed.

(c) An intermediary is liable to file information on

reportable cross-border arrangements with the

Commissioner for Revenue in the following instances,

taken in the following order

(i)

the intermediary is resident in Malta for tax

purposes;

(ii) the intermediary is not resident for tax purposes

in any EU Member State (including Malta) but

has a permanent establishment in Malta through

which the services with respect to the

arrangement are provided;

(iii) the intermediary is incorporated in Malta or is

governed by the laws of Malta and the

provisions of sub-paragraphs (i) and (ii) do not

apply;

(iv) the intermediary is registered with a professional

association related to legal, taxation or

consultancy services that is established in Malta

and sub-paragraphs (i), (ii) and (iii) do not

apply.

(d) Where information is to be filed with the

Commissioner and the same information is to be filed

with any other competent authority of an EU Member

State, the intermediary shall be exempt from filing the

information in Malta if it has proof that the same

information has been filed in another EU Member

State

Provided that the proof may be in such form as the

Commissioner may determine.

(e) An intermediary whose profession is referred to in

article 3 of the Professional Secrecy Act has the right

to a waiver from filing information on a reportable

cross-border arrangement where the reporting of such

information would constitute an offence under article

257 of the Criminal Code. In such circumstances, the

intermediary must notify, without delay and in any

event no later than seven working days from the

relevant date established by paragraph (a), any other

intermediary or, if there is no such intermediary, the

relevant taxpayer of their reporting obligations under

sub-regulation (6)

Provided that intermediaries may only be entitled to a

waiver under this paragraph to the extent that they

operate within the limits of the relevant national laws

that define their professions

Provided further that where an intermediary has

waived such reporting obligation, the intermediary

shall provide an annual update to the Commissioner,

consisting of a list of the reportable cross-border

arrangements where the reporting obligation has been

waived on to another intermediary or the relevant

taxpayer. Such information shall be in such form as the

Commissioner may determine

Provided further that an intermediary whose

profession in accordance with the Professional Secrecy

Act is that of an advocate, notary and legal procurator

and such intermediary has waived such reporting

obligation, the intermediary shall notify, without delay

and in any event not later than seven (7) working days

from the relevant date established by paragraph (a), his

client, if such client is an intermediary or, where there

is no such intermediary, such client is the relevant

taxpayer, of that client’s reporting obligations under

sub-regulation (6). For the purposes of this paragraph,

the term "client" means any intermediary or relevant

taxpayer, who receives services, including assistance,

advice, counsel or guidance, from a legal professional

as defined in accordance with Directive 98/5/EC of the

European Parliament and of the Council of 16

February 1998 to facilitate practice of the profession

of lawyer on a permanent basis in a Member State

other than that in which the qualification was obtained,

in relation to a reportable cross-border arrangement

Provided further that with effect from 1st January

2027, an intermediary shall only have the right to a

waiver from filing information on a reportable cross-

border arrangement in terms of this sub-regulation if

such intermediary is a legal professional as defined in

terms of Directive 98/5/EC of the European Parliament

and of the Council.

(f)

Where there is no intermediary or the intermediary

notifies the relevant taxpayer or another intermediary

of the application of a waiver under paragraph (e), the

obligation to file information on a reportable cross-

border arrangement shall lie with the other notified

intermediary, or, if there is no such intermediary, with

the relevant taxpayer.

(g) The relevant taxpayer with whom the reporting

obligation lies shall file the information with the

Commissioner within thirty (30) days, beginning on

(i)

the day after the reportable cross-border

arrangement

is

made

available

for

implementation to that relevant taxpayer, or

(ii) when it is ready for implementation by the

relevant taxpayer, or

(iii) when the first step in its implementation has

been made in relation to the relevant taxpayer,

whichever occurs first

(h) A relevant taxpayer has an obligation to file

information

on

the

reportable

cross-border

arrangement with the Commissioner for Revenue, in

the following instances, taken in the following order

(i)

the relevant taxpayer is resident in Malta for tax

purposes;

(ii) the relevant taxpayer is not resident for tax

purposes in any EU Member State (including

Malta) but has a permanent establishment in

Malta benefiting from the arrangement;

(iii) the relevant taxpayer receives income or

generates profits in Malta, although the relevant

taxpayer is not resident for tax purposes and has

no permanent establishment in any EU Member

State and the provisions of sub-paragraphs (i)

and (ii) do not apply;

(iv) the relevant taxpayer carries on an activity in

Malta, although the relevant taxpayer is not

resident for tax purposes and has no permanent

establishment in any other EU Member State and

sub-paragraphs (i), (ii) and (iii) do not apply.

(i)

Where, pursuant to paragraph (g), there is a multiple

reporting obligation, the relevant taxpayer shall be

exempt from filing the information if it has proof that

the same information has been filed in another EU

Member State

Provided that the proof may be in such form as the

Commissioner may determine.

(j)

Where there is more than one intermediary, the

obligation to file information on the reportable cross-

border arrangement shall lie with all intermediaries

involved in the same reportable cross-border

arrangement. An intermediary shall be exempt from

filing the information only to the extent that it has

proof that the same information referred to in

paragraph (o) has already been filed by another

intermediary

Provided that the proof may be in such form as the

Commissioner may determine.

(k) (i)Where the reporting obligation lies with the relevant

taxpayer and where there is more than one relevant

COOPERATION WITH OTHER JURISDICTIONS

ON TAX MATTERS

taxpayer, the relevant taxpayer that is to file

information in accordance with paragraph (f) shall be

the one that features first in the list below

(A) the relevant taxpayer that agreed the

reportable cross-border arrangement with the

intermediary;

(B) the relevant taxpayer that manages the

implementation of the arrangement.

(ii)

Any relevant taxpayer shall only be exempt from

filing the information to the extent that it has

proof that the same information referred to in

paragraph (o) has already been filed by another

relevant taxpayer

Provided that the proof may be in such form as

the Commissioner may determine.

(l)

A relevant taxpayer shall file information as the

Commissioner may determine, about the use of the

arrangement to the tax administration in each of the

years for which they use it.

(m) Intermediaries and relevant taxpayers shall file

information on reportable cross-border arrangements the

first step of which was implemented between 25 th June

2018 and 30 th June 2020. Intermediaries and relevant

taxpayers, as appropriate, shall file information on those

reportable cross-border arrangements by 28 th February

2021. (n) The competent authority in Malta shall, by means of

an automatic exchange, communicate the information

specified in paragraph (o) to the competent authorities

of all other EU Member States.

(o) The information to be communicated by the competent

authority in Malta pursuant to paragraph (n) shall

contain the following, as applicable

(i)

the identification of intermediaries, other than

intermediaries exempt from the reporting

obligation in accordance with paragraph (e), and

relevant taxpayers, including their name, date and

place of birth, in the case of an individual,

residence for tax purposes, TIN and, where

appropriate, the persons that are associated

enterprises to the relevant taxpayer;

(ii) details of the hallmarks set out in Annex IV that

make the cross-border arrangement reportable;

(iii) a summary of the content of the reportable cross-

border arrangement, including a reference to the

name by which it is commonly known, if any, and

a description of the relevant arrangements and any

other information which may assist the receiving

competent authority in assessing a potential tax

risk, without leading to the disclosure of a

commercial, industrial or professional secret or of

a commercial process, or of information the

disclosure of which would be contrary to public

policy;

(iv) the date on which the first step in implementing

the reportable cross-border arrangement has

been made or will be made;

(v) details of the national provisions that form the

basis

of

the

reportable

cross-border

arrangement;

(vi) the value of the reportable cross-border

arrangement;

(vii) the identification of the EU Member State of the

relevant taxpayer(s) and any other EU Member

States which are likely to be concerned by the

reportable cross-border arrangement;

(viii) the identification of any other person in an EU

Member State likely to be affected by the

reportable cross-border arrangement, indicating

to which EU Member States such person is

linked

Provided that information as defined under sub-

paragraphs (i), (iii) and (viii) shall not be

communicated to the European Commission.

(p) The fact that the Commissioner does not trigger an

enquiry in relation to a reportable cross-border

arrangement shall not in any way affect any of the

powers of the Commissioner under the provisions of

the Income Tax Management Act

(8) The communication of information shall take place as

follows

(a) for the categories laid down in sub-regulation (1), at

least once a year, within six months following the end

of the year immediately preceding the year of

assessment during which the information became

available;

(b) for the information stipulated in sub-regulation (2),

annually, within nine (9) months following the end of

the year of assessment during which the information

became available

Provided that the competent authority in Malta shall

communicate the information referred to in paragraphs

(h) to (k) regarding taxable periods as from 1st January

2026;

(c) for the information laid down in sub-regulation (3)

(i)

within three months following the end of the half

of the calendar year during which the advance

cross-border rulings or advance pricing

COOPERATION WITH OTHER JURISDICTIONS

ON TAX MATTERS

arrangements have been issued, amended or

renewed, in respect of the information

exchanged pursuant to sub-regulation (3)(a)

Provided that with effect from 1st January 2023,

the communication of information shall take place

without delay after the advance cross-border

rulings or advance pricing arrangements have been

issued, amended or renewed and at the latest three

(3) months following the end of the half of the

calendar year during which the advance cross-

border rulings or advance pricing arrangements

were issued, amended or renewed;

(ii) before 1 January 2018 in respect of the

information exchanged pursuant to sub-

regulation (3)(b).

(d) for the information laid down in sub-regulation (4),

annually, within fifteen months of the last day of the

fiscal year of the MNE Group to which the country-by-

country report relates. The first country-by-country

report shall be communicated for the fiscal year of the

MNE Group commencing on or after 1 January 2016,

which shall take place within eighteen months after the

last day of that fiscal year.

(e) for the information laid down in sub-regulation (7),

within one (1) month of the end of the quarter in which

the information was filed. The first information shall be

communicated by 30th April 2021;

(f)

for the information laid down in sub-regulation (12),

within two ( 2 ) months following the end of the

Reportable Period to which the reporting requirements

applicable to the Reporting Malta Platform Operator

relate. The first information shall be communicated for

Reportable Periods as from 1st January 2023;

(g) for the information stipulated in sub-regulation (13),

within nine (9) months following the end of the calendar

year to which the reporting requirements applicable to

Reporting Malta Crypto-Asset Service Providers relate.

The first information shall be communicated for the

relevant calendar year or other appropriate reporting

period as from 1 January 2026.

(9)

For the purposes of this regulation

"automatic exchange of information" means

(a) for the purposes of sub-regulations (1), (3), (4), (7), (12)

and (13), the systematic communication of pre-defined

information to another Member State, without a prior

request, at pre-established regular intervals. For the

purposes of sub-regulation (1), the reference to available

information relates to information in the tax files of

Malta, which is retrievable in accordance with the

procedures for gathering and processing information in

Malta;

(b) for the purposes of sub-regulation (2), the systematic

communication of pre-defined information on

residents in other EU Member States to the relevant

EU Member State of residence, without prior request,

at pre-established regular intervals;

(c) for the purposes of the provisions of these regulations that

implement the EU Administrative Cooperation Directive,

other than sub-regulations (1), (2), (3), (4), (7), (12) and

(13), the systematic communication of pre-defined

information provided in paragraphs (a) and (b);

"advance cross-border ruling" means any agreement,

communication, or any other instrument or action with similar

effects, including one issued, amended or renewed in the context of

an enquiry in terms of article 13 of the Income Tax Management

A c t , i n c l u d i n g a t a x a u d i t , a n d w h i c h m ee t s t h e f o l l o w i n g

conditions

(a) is issued, amended or renewed by the Commissioner,

or on behalf of, the Government of Malta, irrespective

of whether it is effectively used;

(b) is issued, amended or renewed, to a particular person

or a group of persons, and upon which that person or a

group of persons is entitled to rely;

(c) concerns the interpretation or application of a legal or

administrative provision concerning the administration

or enforcement of Maltese law relating to taxes;

(d) relates to a cross-border transaction or to the question

of whether or not activities carried on by a person in

another jurisdiction create a permanent establishment

or to the question of whether or not a natural person is

resident for tax purposes in the Member State issuing the

ruling; and

(e) is made in advance of the transactions or of the

activities in another jurisdiction potentially creating a

permanent establishment or in advance of the filing of

a tax return covering the period in which the

transaction or series of transactions or activities took

place.

For the purpose of this definition

(i)

a cross-border transaction may involve, but is

not restricted to, the making of investments, the

provision of goods, services, finance or the use

of tangible or intangible assets and does not

have to directly involve the person receiving the

advance cross-border ruling;

(ii) "cross-border transaction" means a transaction

or series of transactions where

(A) not all of the parties to the transaction or

series of transactions are resident for tax

purposes in Malta;

(B)

any of the parties to the transaction or

series of transactions is simultaneously

resident for tax purposes in more than one

jurisdiction;

(C)

one of the parties to the transaction or

series of transactions carries on business

in another jurisdiction through a

permanent

establishment

and

the

transaction or series of transactions forms

part or the whole of the business of the

permanent establishment. A cross-border

transaction or series of cross-border

transactions

shall

also

include

arrangements made by a person in respect

of business activities in another

jurisdiction which that person carries on

through a permanent establishment; or

(D)

such transactions or series of transactions

have a cross border impact.

"advance pricing arrangement" means any agreement,

communication or any other instrument or action with similar

effects, including one issued, amended or renewed in the context of

an enquiry in terms of article 13 of the Income Tax Management

A c t , i n cl u d i n g a t a x a u d i t , an d w h i ch m e e t s t h e f o l l o w i n g

conditions

(a) is issued, amended or renewed by the Commissioner,

or on behalf of, the Government of Malta or more EU

Member States irrespective of whether it is effectively

used;

(b) is issued, amended or renewed, to a particular person

or a group of persons and upon which that person or a

group of persons is entitled to rely; and

(c) determines in advance of cross-border transactions

between associated enterprises, an appropriate set of

criteria for the determination of the transfer pricing for

those transactions or determines the attribution of

profits to a permanent establishment.

For the purpose of this definition

(i)

enterprises are associated enterprises where one

enterprise participates directly or indirectly in

the management, control or capital of another

enterprise or the same persons participate

directly or indirectly in the management, control

or capital of the enterprises;

(ii) transfer prices are the prices at which an

enterprise transfers physical goods and

intangible property or provides services to

associated enterprises, and "transfer pricing" is

to be construed accordingly;

(iii) "cross-border transaction" means a transaction

or series of transactions involving associated

enterprises which are not all resident for tax

purposes in the territory of a single jurisdiction

or a transaction or series of transactions which

have a cross border impact, and "enterprise"

means any form of conducting business.

"arrangement" shall also include a series of arrangements. An

arrangement may comprise more than one step or part;

"cross-border arrangement" means an arrangement concerning

either more than one EU Member State or an EU Member State and

a third country where at least one of the following conditions is

(a) not all of the participants in the arrangement are

resident for tax purposes in the same jurisdiction;

(b) one or more of the participants in the arrangement is

simultaneously resident for tax purposes in more than

one jurisdiction;

(c) one or more of the participants in the arrangement

carries on a business in another jurisdiction through a

permanent establishment situated in that jurisdiction

and the arrangement forms part or the whole of the

business of that permanent establishment;

(d) one or more of the participants in the arrangement

carries on an activity in another jurisdiction without

being resident for tax purposes or creating a permanent

establishment situated in that jurisdiction;

(e) such arrangement has a possible impact on the

automatic exchange of information or the

identification of beneficial ownership;

"reportable cross-border arrangement" means any cross-border

arrangement that contains at least one of the hallmarks set out in

Annex IV;

"hallmark" means a characteristic or feature of a cross-border

arrangement that presents an indication of a potential risk of tax

avoidance, as listed in Annex IV;

"intermediary" means any person

(a) that designs, markets, organises or makes available for

implementation or manages the implementation of a

reportable cross-border arrangement;

(b) that, having regard to the relevant facts and

circumstances and based on available information and

the relevant expertise and understanding required to

provide such services, knows or could be reasonably

expected to know that they have undertaken to

provide, directly or by means of other persons, aid,

assistance or advice with respect to designing,

marketing, organising, making available for

implementation or managing the implementation of a

reportable cross-border arrangement

COOPERATION WITH OTHER JURISDICTIONS

ON TAX MATTERS

Provided that any person shall have the right to

provide evidence that such person did not know and

could not reasonably be expected to know that that

person was involved in a reportable cross-border

arrangement. For this purpose, that person may refer to

all relevant facts and circumstances as well as

available information and their relevant expertise and

understanding.

In addition to the above, in order to be an intermediary, a

person shall meet at least one of the following

additional conditions

(a) be resident for tax purposes in an EU Member State;

(b) have a permanent establishment in an EU Member

State through which the services with respect to the

arrangement are provided;

(c) be incorporated in, or governed by the laws of an EU

Member State;

(d) be registered with a professional association related to

legal, taxation or consultancy services in an EU

Member State.

"relevant taxpayer" means any person to whom a reportable

cross-border arrangement is made available for implementation, or

who is ready to implement a reportable cross-border arrangement

or has implemented the first step of such an arrangement.

For the purposes of sub-regulation (7), "associated enterprise"

means a person who is related to another person in at least one of

the following ways

(a) a person participates in the management of another

person by being in a position to exercise a significant

influence over the other person;

(b) a person participates in the control of another person

through a holding that exceeds 25% of the voting

rights;

(c) a person participates in the capital of another person

through a right of ownership that, directly or

indirectly, exceeds 25% of the capital;

(d) a person is entitled to 25% or more of the profits of

another person

Provided that

(i)

if more than one person participates, as referred

to in paragraphs (a) to (d), in the management,

control, capital or profits of the same person, all

persons concerned shall be regarded as

associated enterprises;

(ii) if the same persons participate, as referred to in

paragraphs (a) to (d), in the management,

control, capital or profits of more than one

person, all persons concerned shall be regarded

as associated enterprises;

(iii) for the purposes of this definition, a person who

acts together with another person in respect of

the voting rights or capital ownership of an

entity shall be treated as holding a participation

in all of the voting rights or capital ownership of

that entity that are held by the other person;

(iv) in indirect participations, the fulfilment of

requirements under paragraph (c) shall be

determined by multiplying the rates of holding

through the successive tiers. A person holding

more than 50% of the voting rights shall be

deemed to hold 100%;

(v) an individual, his or her spouse and his or her

lineal ascendants or descendants shall be treated

as a single person;

"marketable arrangement" means a cross-border arrangement

that is designed, marketed, ready for implementation or made

available for implementation without a need to be substantially

customised;

"bespoke arrangement" means any cross-border arrangement that

is not a marketable arrangement;

"non-custodial dividend income" means dividends or other

income treated as dividends in the payer’s Member State which are

paid or credited to an account other than a Custodial Account as

defined in sub-paragraph (3) of paragraph C of Section VIII, of

Annex I;

"life insurance products not covered by other Union legal

instruments on exchange of information and other similar

measures" means Insurance Contracts, other than Cash Value

Insurance Contracts subject to reporting under Section I of Annex

I, where benefits under the contracts are payable on the death of a

policy holder;

"distributed ledger address" means distributed ledger address

referred to in Regulation (EU) 2023/1114 of the European Parliament

and of the Council of 31 May 2023 on markets in crypto-assets, and

amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010

and Directives 2013/36/EU and (EU) 2019/1937;

(10) The coming into effect of the above provisions shall be as

follows

(a) the provisions of sub-regulation (1) and (7)(a) shall be

on 1 January 2015

Provided that the provisions of sub-regulation (1)(f) shall

be deemed to have come into force on 1 January 2024;

(b) the provisions of sub-regulation (2) and (7)(b) shall be

on 1 January 2016;

(c) the provisions of sub-regulation (3) and (7)(c) shall be

on 1 January 2017;

(d

the provisions of sub-regulation (4) and (7)(d) shall be

on 5 June 2017;

(e) the provisions of sub-regulations (7) and (8)(e) shall be

on 1 July 2020;

(f)

the provisions of sub-regulations (8)(f) and (12) shall be

deemed to have come into force on 1st January 2023;

(g) the provisions of sub-regulations (2)(h) to (k) and (13)

shall be deemed to have come into force on 1 January

2026. (11) The competent authority in Malta shall provide the

Commission, on an annual basis, with statistics on the volume of

automatic exchanges in accordance with this regulation and, to the

extent possible, with information on the administrative and other

relevant costs and benefits relating to exchanges that have taken place

and any potential changes, for both tax administrations and third

parties.

(12) (a)

A Reporting Malta Platform Operator shall apply

the due diligence procedures and fulfil reporting requirements laid

down in Sections II and III of Annex V.

(b)

The competent authority in Malta shall, by means

of automatic exchange, communicate the report received in

accordance with paragraph (a) within the time limit laid down

in sub-regulation (8)(f), to the competent authority of the

Member State in which the Reportable Seller is resident as

determined pursuant to paragraph D of Section II of Annex V

and, where the Reportable Seller provides immovable property

rental services, in any case to the competent authority of the

Member State in which the immovable property is located.

(c)

The information regarding each Reportable

Seller to be communicated by the competent authority in Malta

pursuant to paragraph (b) shall be the following

(i)

the name, the registered office address, the

TIN and, where relevant, the identification number of the

Reporting Malta Platform Operator, as well as the

business name of the Platform in respect of which the

Reporting Platform Operator is reporting;

(ii)

the n a m e a n d s u r n a m e of the

Reportable Seller who is an individual, and the legal

name of the Reportable Seller that is an Entity;

(iii)

the Primary Address;

(iv) any TIN of the Reportable Seller, including

each Member State of issuance or, in the absence of a

TIN, the place of birth of the Reportable Seller who is an

individual;

(v)

the business registration number of the

Reportable Seller that is an Entity;

(vi) the VAT identification number of the

Reportable Seller, where available;

(vii) the date of birth of the Reportable Seller

who is an individual;

(viii) the Financial Account Identifier to which

the Consideration is paid or credited, insofar as it is

available to the Reporting Malta Platform Operator, and

unless the competent authority of the Member State

where the Reportable Seller is resident within the

meaning of paragraph D of Section II of Annex V has not

notified the competent authorities of all other Member

States that it does not intend to use the Financial Account

Identifier for this purpose;

(ix) where different from the name of the

Reportable Seller, in addition to the Financial Account

Identifier, the name of the holder of the financial account

to which the Consideration is paid or credited, to the

extent available to the Reporting Malta Platform

Operator, as well as any other financial identification

information available to the Reporting Malta Platform

Operator with respect to such account holder;

(x)

each Member State in which the Reportable

Seller is resident determined pursuant to paragraph D of

Section II of Annex V;

(xi) the total Consideration paid or credited

during each quarter of the Reportable Period and the

number of Relevant Activities in respect of which it was

paid or credited; and

(xii) any fees, commissions or taxes withheld or

charged by the Reporting Malta Platform Operator during

each quarter of the Reportable Period;

(xiii) the Identification Service identifier and the

Member State of issuance, where the Reporting Platform

Operator relies on direct confirmation of the identity and

residence of the Seller through an Identification Service

made available by a Member State or the Union to

ascertain the identity and tax residence of the Seller; in

such cases it is not necessary to communicate to the

Member State of issuance of the Identification Service

identifier the information referred to in sub-paragraphs

(iii) to (vii)

Provided that where the Reportable Seller provides

immovable property rental services, the following additional

information shall be communicated

(i)

the address of each Property Listing,

determined on the basis of the procedures set out in

paragraph E of Section II of Annex V and the respective

land registration number or its equivalent under the

national law of the Member State where it is located,

where available;

(ii)

the total Consideration paid or credited

during each quarter of the Reportable Period and the

number of Relevant Activities provided with respect to

each Property Listing; and

(iii) where available, the number of days each

Property Listing was rented during the Reportable Period

and the type of each Property Listing.

(d)

Where the information that is required to be

reported in accordance with paragraph B of Section III of

Annex V is incomplete or inaccurate, the Commissioner may

request the reporting of complete and accurate information as is

required in accordance with these regulations.

(e)

A Reporting Malta Platform Operator within the

meaning of sub-paragraph A(7) of Section 1 of Annex V shall

register with the Commissioner in such manner and within such

period of time that the Commissioner may require, by means of

guidelines published on the website of the Commissioner for

Revenue in accordance with the provisions of article 96(2) of

the Income Tax Act

Provided that a Reporting Malta Platform Operator

within the meaning of sub-paragraph A(7)(e) of Section 1 of Annex V

shall register once it commences its activity as a Platform Operator

Provided further that a Reporting Malta Platform

Operator within the meaning of part A(7)(e) of Section 1 of Annex

V shall use service providers to fulfil its registration and reporting

obligations specified in these regulations, which obligations shall

remain the responsibility of the Reporting Malta Platform Operator

Provided further that a Reporting Platform Operator

within the meaning of sub-paragraph A(4)(b) of Section I of Annex V

shall not be required to register with the Commissioner for the purpose

of these regulations, if such Platform Operator is resident for tax

purposes in a non-Union jurisdiction which has an Effective

Qualifying Competent Authority Agreement, which already provides

for the automatic exchange of equivalent information with Malta on

Reportable Sellers resident in Malta.

(f)

The Reporting Platform Operator, having

successfully registered with the Commissioner in Malta as its

Member State of its single registration, shall notify the

competent authority in Malta of any change in the information

provided in accordance with sub-paragraph B(2) of Section III

of Annex V.

(g)

(i)

Notwithstanding the

administrative

penalties stipulated in regulation 52, where a Reporting

Platform Operator, after having registered with the

Commissioner in Malta as its Member State of its single

registration, fails to report the information required to be

reported in accordance with sub-paragraph A(3) of Section III

of Annex V following two (2) reminders by the Commissioner,

it shall have its registration revoked. The registration shall be

revoked not later than after the expiration of ninety (90) days

but not prior to the expiration of thirty (30) days after the

second reminder.

(ii)

A Reporting Platform Operator whose

registration has been revoked may be permitted to re-

register with the Commissioner on the condition that it

provides appropriate assurances as regards to its

commitment to comply with the reporting requirements

within the Union, including any outstanding unfulfilled

reporting requirements.

(iii) The competent authority in Malta, as the

competent authority of the Member State of single

registration, shall remove a Reporting Platform Operator

from the central register in the following cases

(A) the Platform Operator notifies the

Commissioner in Malta that it no longer carries

out any activity as a Platform Operator;

(B) in the absence of a notification

pursuant to point (A), there are grounds to assume

that the activity of a Platform Operator has

ceased;

(C) the Platform Operator no longer

meets the conditions laid down in A(7)(e) of

Section 1 of Annex V;

(D) the Commissioner in Malta revoked

the registration pursuant to this paragraph.

(h)

Where a Platform Operator is deemed to be an

COOPERATION WITH OTHER JURISDICTIONS

ON TAX MATTERS

Excluded Platform Operator, the competent authority in Malta

shall notify the competent authorities of all other Member States

accordingly, including any subsequent changes.

(i) Subject to the provisions of article 19 of the Income Tax

Management Act, a Reporting Malta Platform Operator shall maintain

and retain all the documentation and information it collects in the

course of meeting its reporting and due diligence obligations specified

in this sub-regulation and Sections II and III of Annex V for a

minimum period of five (5) years which start to run from the end of

the year to which the information relates. In so doing, a Reporting

Malta Platform Operator shall keep records of the steps undertaken in

relation to any evidence relied upon for the performance of its

obligations and adequate measures to obtain the said records.

(13) (a) A Reporting Malta Crypto-Asset Service Provider shall

apply the due diligence procedures and fulfil reporting requirements

established in Sections II and III of Annex VI.

(b) The competent authority in Malta shall, by means of

automatic exchange, communicate the information

specified in paragraph (c) to the competent authorities of

the EU Member States concerned within the time limit

established in sub-regulation (8)(g).

(c) The competent authority in Malta shall communicate the

following information regarding each Reportable Person

(i) the name, address, Member States of residence,

TINs and, in the case of an individual, date and place of birth

of each Reportable User and, in the case of any Entity that,

after application of the due diligence procedures established in

Section III of Annex VI is identified as having one (1) or more

Controlling Persons that is a Reportable Person, the name,

address, Member States of residence and TINs of the Entity

and the name, address, Member States of residence, TINs and

date and place of birth of each Controlling Person of the Entity

that is a Reportable Person, as well as the roles by virtue of

which each such Reportable Person is a Controlling Person of

the Entity

Provided that where the Reporting Crypto-Asset

Service Provider relies on direct confirmation of the identity

and residence of the Reportable Person through an

Identification Service made available by a Member State or the

Union to ascertain the identity and tax residence of the

Reportable Person, the information which shall be

communicated to the Member State of issuance of the

Identification Service identifier regarding the Reportable

Person shall include the name, the Identification Service

identifier and the Member State of issuance, as well as the

roles by virtue of which each Reportable Person is a

Controlling Person of the Entity;

(ii)

the name, address, TIN and, if available, the

individual identification number referred to in paragraph (g)

and the global legal entity identifier of the Reporting Crypto-

Asset Service Provider;

(iii)

for each type of Reportable Crypto-Asset with

respect to which the Reporting Crypto-Asset Service Provider

has effectuated Reportable Transactions during the relevant

calendar year or other appropriate reporting period, where

relevant

(A)

the full name of the type of Reportable Crypto-

Asset;

(B) the aggregate gross amount paid, the aggregate

number of units and the number of Reportable Transactions

in respect of acquisitions against Fiat Currency;

(C) the aggregate gross amount received, the

aggregate number of units and the number of Reportable

Transactions in respect of disposals against Fiat Currency;

(D) the aggregate fair market value, the aggregate

number of units and the number of Reportable Transactions

in respect of acquisitions against other Reportable Crypto-

Assets;

(E) the aggregate fair market value, the aggregate

number of units and the number of Reportable Transactions

in respect of disposals against other Reportable Crypto-

Assets;

(F) the aggregate fair market value, the aggregate

number of units and the number of Reportable Retail

Payment Transactions;

(G) the aggregate fair market value, the aggregate

number of units and the number of Reportable Transactions

and subdivided by transfer type where known by the

Reporting Crypto-Asset Service Provider, in respect of

Transfers to the Reportable User not covered by points (B)

and (D);

(H) the aggregate fair market value, the aggregate

number of units and the number of Reportable

Transactions, and subdivided by transfer type where it is

known by the Reporting Crypto-Asset Service Provider, in

respect of transfers by the Reportable User not covered by

points (C), (E) and (F); and

(I)

the aggregate fair market value, as well as the

aggregate number of units of Transfers effectuated by the

Reporting Crypto-Asset Service Provider to distributed

ledger addresses referred to in Regulation (EU) 2023/1114

of the European Parliament and of the Council of 31 May

2023 on markets in crypto-assets, and amending

Regulations No (EU) 1093/2010 and No (EU) 1095/2010

and Directives 2013/36/EU and (EU) 2019/1937 not known

to be associated with a virtual asset service provider or

Financial Institution

Provided that for the purposes of points (B) and (C), the

amount paid or received shall be communicated in the Fiat Currency

in which it was paid or received. In case the amounts were paid or

received in multiple Fiat Currencies, the amounts shall be

communicated in a single Fiat Currency, converted at the time of

each Reportable Transaction in a manner that is consistently applied

by the Reporting Crypto-Asset Service Provider

Provided further that for the purposes of points (D) and

(I), the fair market value shall be determined and communicated in a

single Fiat Currency, valued at the time of each Reportable

Transaction in a manner that is consistently applied by the Reporting

Crypto-Asset Service Provider

Provided further that the information communicated

shall specify the Fiat Currency in which each amount is reported.

(d) The European Commission shall not have access to the

information referred to in sub-paragraphs (c)(i) and

(ii).

(e) For the purpose of complying with the reporting

requirements referred to in paragraph (a), a Crypto-

Asset Operator within the meaning of sub-paragraph

B(2) of Section IV of Annex VI shall register with the

Commissioner in such manner and within such period

of time that the Commissioner may require, by means

of guidelines published on the website of the

Commissioner for Tax and Customs in accordance

with the provisions of article 96(2) of the Income Tax

Act.

(f)

A Crypto-Asset Operator whose registration has been

revoked in accordance with sub-paragraph F(7) of

Section V of Annex VI shall only be permitted to

register again if it provides to the Commissioner

appropriate assurance as regards its commitment to

comply with the reporting requirements within the

Union, including any outstanding unfulfilled reporting

requirements.

(g) Paragraphs (e) and (f) shall not apply to Crypto-Asset

Service Providers within the meaning of sub-paragraph

B(1) of Section IV, of Annex VI.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 14 Spontaneous exchange of information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The competent authority in Malta shall communicate

the information referred to in regulation 12(1) to the competent

authority of any other EU Member State concerned, where

(a) the competent authority in Malta has grounds for

supposing that there may be a loss of tax in another EU

Member State; or

(b) a person liable to tax obtains a reduction in, or an

exemption from, tax in Malta which would give rise to

an increase in tax or to liability to tax in the other EU

Member State; or

(c) business dealings between a person liable to tax in

Malta and a person liable to tax in another EU Member

State are conducted through one or more countries in

such a way that a saving in tax may result in Malta or

the other EU Member State or in both; or

(d) the competent authority in Malta has grounds for

supposing that a saving of tax may result from

artificial transfers of profits within groups of

enterprises; or

(e) information forwarded to Malta by the competent

authority of another EU Member State has enabled

information to be obtained which may be relevant in

assessing liability to tax in the latter EU Member

State.

(2) The competent authority in Malta may also communicate,

by spontaneous exchange, to the competent authorities of another

EU Member State any information of which it is aware and which it

considers to be useful to the competent authorities of that other

Member State.

(3) The competent authority in Malta shall forward any of the

information referred to in this regulation that becomes available to

it to the competent authority of any other EU Member State

concerned as quickly as possible, and no later than one month after

such information becomes available.

(4) Where the competent authority in Malta receives

information in accordance with the provisions of Article 9 of the

EU Administrative Cooperation Directive, it shall confirm receipt

of such information to the competent authority which provided the

information immediately and in any event no later than seven

working days from the date of such receipt. The said confirmation

shall be made, where possible, through electronic means.

(5) For the purposes of this regulation, "spontaneous exchange"

means the non-systematic communication, at any moment and

without prior request, of information to another EU Member State.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 15 Presence in administrative offices and participation in administrative enquiries. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) With a view of exchanging the information referred to in

regulation 12(1), the competent authority in Malta may request the

competent authority of another Member State that officials authorised

by the competent authority in Malta and in accordance with the

procedural arrangements laid down by the competent authority of the

requested Member State

(a)

be present in the offices where the administrative

authorities of the requested Member State carry out their duties;

(b)

be present during administrative enquiries carried

out in the territory of the requested Member State;

(c)

participate in the administrative enquiries carried

out by the requested Member State through the use of electronic

means of communication, where appropriate

Provided that where the requested authority is the competent

authority in Malta, it shall respond to the request within sixty (60)

days of the receipt of the request, to confirm its agreement or

communicate its reasoned refusal to the requesting authority

Provided further that where the requested information is

contained in documentation to which the officials of the competent

authority in Malta have access, the officials of the requesting

authority shall be given copies thereof.

(2) Where officials of the requesting authority are present during

administrative enquiries, or participate in the administrative enquiries

through the use of electronic means of communication, they may

interview individuals and examine records subject to the procedural

arrangements laid down by the requested Member State. Where such

a n i n t e r v i e w i s a g r e e d t o , a n y r e f us a l b y t h e p e r s o n u n d e r

investigation to respect the inspection measures of the authorized

officials of the requesting authority shall be treated as if that

refusal were committed against officials of the competent authority

in Malta.

(3) Officials authorised by the requesting EU Member State to

be present in Malta in accordance with the provisions of this

regulation shall at all times be able to produce written authority

stating their identity and their official capacity.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 16 Simultaneous controls. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The competent authority in Malta may agree with the

competent authorities of other EU Member States to conduct a

simultaneous control (whether bilaterally or multilaterally) of one

or more persons of common or complementary interest with a view

to exchanging the information thus obtained. Where the competent

authority in Malta is in agreement with the competent authorities of

other EU Member States to enter into a simultaneous control, it

s h a l l , af te r c on s u l ta ti o n w it h t h e Co m m i s s i on e r, a pp o in t a

representative with responsibility for supervising and coordinating

the control operation. Such representative may be appointed from

any department that is considered suitable in relation to the

particular simultaneous control.

(2) The competent authority in Malta shall identify

independently the person or persons for whom it intends to propose

a simultaneous control and where such person or persons have been

identified it shall notify the competent authority of the other EU

M e m b e r St a t e s c o n c e r n ed t h a t i t w i s h e s t o p r o p o s e s u c h a

simultaneous control, giving reasons for its choice. The competent

authority in Malta shall also specify the period of time during

which those controls are to be conducted.

(3) The competent authority in Malta shall, upon receipt of a

notification for a simultaneous control from the competent authority of

another European Member State, decide whether it intends to take part

in simultaneous controls and it shall confirm its agreement or

communicate its reasoned refusal to the authority that proposed a

simultaneous control within sixty (60) days of receiving the proposal.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 16A Joint audit. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The competent authority of one (1) or more Member

States may request the competent authority of another Member State or

other Member States to conduct a joint audit. Where the competent

authority in Malta is a requested competent authority, it shall respond

to the request within sixty (60) days of the receipt of the request. The

competent authority in Malta may reject a request for a joint audit by

the competent authority of a Member State on justified grounds.

(2)

Joint audits shall be conducted in a pre-agreed and

coordinated manner, which include linguistic arrangements, by the

competent authorities of the requesting and the requested Member

States, and in accordance with the laws and procedural requirements of

the Member State where the activities of a joint audit take place.

Where the activities of a joint audit take place in Malta, the competent

authority in Malta shall appoint a representative with the responsibility

for supervising and coordinating the joint audit in Malta

Provided that the rights and obligations of the officials of

Member States who participate in a joint audit, when they are present

in activities performed in a different Member State, shall be

determined in accordance with the laws of the Member State where the

activities of the joint audit take place

Provided further that while complying with the laws of

the Member State where the activities of the joint audit take place, the

officials of another Member State shall not exercise any powers that

would exceed the scope of the powers granted to them under the laws

of their Member State.

(3)

Without prejudice to the provisions of sub-regulation (2),

when the activities of a joint audit take place in Malta, the Maltese tax

administration shall take the necessary measures to

(a)

permit that officials of other Member States who

participate in the activities of the joint audit interview

individuals and examine records together with the officials of

the Maltese tax administration, subject to the procedural

arrangements laid down in Malta;

(b)

ensure that evidence collected during the activities

of the joint audit can be assessed, including on its admissibility,

under the same legal conditions as in the case of an audit carried

out in Malta where only the officials of Maltese tax

administration take part, including in the course of any process

of complaint, review or appeal; and

(c)

ensure that the person subject to a joint audit or

affected by it enjoys the same rights and has the same

obligations as in the case of an audit where only the officers of

the Maltese tax administration take part, including in the course

of any process of complaint, review or appeal.

(4)

Where the competent authority in Malta conducts a joint

audit with the competent authority of another one (1) or more Member

States, the competent authorities shall endeavour to agree on the facts

and circumstances relevant to the joint audit and endeavour to reach an

agreement on the tax position of the audited person based on the results

of the joint audit

Provided that the findings of the joint audit shall be

incorporated in a final report. Issues on which the competent

authorities agree shall be reflected in the final report and be taken

into account in the relevant instruments issued by the competent

authorities of the participating Member States following such joint

audit

Provided further that the actions by the competent

authority in Malta or any of its officers following a joint audit and any

further processes, such as a decision of tax authorities, process of

appeal or settlement relating thereto, shall take place in conformity

with Maltese law.

(5) The audited persons shall be informed of the outcome of the

joint audit, including a copy of the final report within sixty (60) days of

the issuance of the final report.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 17 Administrative notifications. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) At the request of the competent authority of another

EU Member State, the competent authority in Malta shall, in

accordance with the rules governing the notification of similar

instruments in Malta, notify the addressee of any instruments and

decisions which emanate from the administrative authorities of the

requesting EU Member State and concern the application in its

territory of legislation on taxes covered by the EU Administrative

Cooperation Directive.

(2) For a request for notification to be valid, such request shall

indicate the subject of the instrument or decision to be notified and

shall specify the name and address of the addressee, together with

any other information which may facilitate identification of the

said addressee.

(3) The competent authority in Malta shall inform the

requesting authority immediately of its response and, in particular,

of the date of notification of the instrument or decision to the

addressee.

(4) A request for notification pursuant to Article 13 of the EU

Administrative Cooperation Directive shall only be considered to

be valid when the competent authority in Malta receives assurances

that the requesting authority is unable to notify in accordance with

the rules governing the notification of the instruments concerned in

the requesting Member State, or where such notification would give

rise to disproportionate difficulties. Within this context, it is

permissible for the competent authority of another EU Member

State to notify any document by registered mail or electronically

directly to a person within Malta.

(5) The competent authority in Malta may request the

competent authority of other EU Member States for assistance in

the notification to the addressee of any instruments and decisions

which emanate from the administrative authorities of Malta and

which concern the application in Malta of legislation on taxes

covered by the EU Administrative Cooperation Directive. Any such

request shall indicate the subject of the instrument or decision to be

notified and shall specify the name and address of the addressee,

together with any other information which may facilitate

identification of the said addressee. Furthermore, such requests

m a y o nl y b e m a d e w h e r e i t i s n o t po s s i b l e t o m a k e s u c h a

notification in accordance with the rules governing the notification

of the instruments concerned in Malta or where such notification

would give rise to disproportionate difficulties. Within this context,

it is permissible for the competent authority in Malta to notify any

relevant document by registered mail or electronically directly to a

person within the territory of any other EU Member State.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 18 Disclosure of information and documents. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) (a) Information communicated between Member States in

any form pursuant to the EU Administrative Cooperation Directive

(including information, reports and documents communicated by the

EU Commission pursuant to Article 23a thereof) shall be covered by

the obligation of official secrecy and enjoy the protection granted to

similar information under the under the Income Tax Acts. The said

information may be used for the assessment, administration and

enforcement of Maltese law concerning the taxes referred to in Article

2 of the EU Administrative Cooperation Directive as well as VAT,

other indirect taxes, customs duties and anti-money laundering and

countering the financing of terrorism

Provided that reports and documents produced by the EU

Commission referred to in Article 23a of the EU Administrative

Cooperation Directive may be used by EU Member States only for

analytical purposes and shall not be published or made available to

any other person or body without the express agreement of the EU

Commission.

(b) Such information may also be used for the assessment

and enforcement of other taxes and duties covered by

Article 2 of Council Directive 2010/24/EU of 16

March 2010 concerning mutual assistance for the

recovery of claims relating to taxes, duties and other

measures, or for the assessment and enforcement of

compulsory social security contributions.

(c) In addition, such information may be used in

connection

with

judicial

and

administrative

proceedings that may involve penalties, initiated as a

result of infringements of tax legislation, without

prejudice to the general rules and provisions governing

the rights of defendants and witnesses in such

proceedings.

(d) The competent authority in Malta shall ensure that

each individual Reportable Person is notified of a

breach of security with regard to his data when that

breach is likely to adversely affect the protection of his

personal data or privacy.

(2) (a) With the permission of the competent authority of the

Member State communicating information pursuant to the EU

Administrative Cooperation Directive, and only insofar as this is

allowed under Maltese law, information and documents received

pursuant to the said Directive may be used for other purposes than

those referred to in sub-regulation (1). Such permission shall be

granted if the information can be used for similar purposes in the

Member State of the competent authority communicating the

information.

(b) The competent authority in Malta may communicate to

the competent authorities of all other Member States a list

of purposes for which, in compliance with Maltese law,

information and documents other than those referred to in

sub-regulation (1)(a) may be used. The competent

authority that receives the information and documents

may use the received information and documents without

the permission referred to in paragraph (a) for any of the

purposes listed by the competent authority in Malta.

(c) The competent authority in Malta that receives

information and documents may also use the received

information and documents without the permission

referred to in paragraph (a) for any purpose that is

covered by an act based on Article 215 of the Treaty on

the Functioning of the European Union and share them

for such purpose with the competent authority in charge

of restrictive measures in Malta in accordance with the

decision taken under the said Article 215.

(3) Where the competent authority of another EU Member

State requests permission for such other use as referred to in the

third paragraph of Article 16(1) of the EU Administrative

Cooperation Directive, the competent authority in Malta shall only

grant such permission if the information can be used for similar

purposes in Malta.

(4)

(a) When the competent authority in Malta considers that

information which it has received from the competent

authority of another EU Member State is likely to be

useful for the purposes referred to in sub-regulation (1)(a)

to the competent authority of a third Member State, it

may transmit that information to the latter competent

authority, provided that the transmission is in accordance

with the rules and procedures established in these

regulations. The competent authority in Malta shall

inform the competent authority of the Member State from

which the information originates about its intention to

share that information with a third Member State. The

Member State of origin of the information may oppose

such a sharing of information within fifteen (15) calendar

days of receipt of the communication from the competent

authority in Malta that wants to share the information.

(b) Where a competent authority of another EU Member

State requests permission from the competent

authority in Malta to transmit information which it has

received from the competent authority in Malta to a

third EU Member State because it considers that such

information is likely to be useful for the administration

and enforcement of legislation of such third EU

Member State concerning the taxes referred to in

Article 2 the EU Administrative Cooperation

Directive, the competent authority in Malta shall give

its permission or otherwise, depending on the case, not

later than ten working days of receipt of such request.

(5) Information obtained by the competent authority in Malta

pursuant to the provisions of Article 16(2) of EU Administrative

Cooperation Directive, and which has been transmitted pursuant to

the provisions of Article 16(3) of that same Directive, may only be

used in Malta if permission has been granted by the competent

authority of the EU Member State from which the information

originated.

(6) Notwithstanding sub-regulation (1) to (4), information

received from other EU Member States pursuant to Article 8aa of

the EU Administrative Cooperation Directive shall be used for the

purposes of assessing high-level transfer pricing risks and other

base erosion and profit shifting related risks, including assessing

the risk of non-compliance by members of the MNE group with

applicable transfer pricing rules, and where appropriate for

economic and statistical analysis. Transfer pricing adjustments

made by the Commissioner shall not be based on the information

exchanged pursuant to Article 8aa of the EU Administrative

Cooperation Directive. Notwithstanding the provisions of this sub-

regulation, there is no prohibition on using the information

communicated between EU Member States pursuant to Art. 8aa of

the EU Administrative Cooperation Directive as a basis for making

f u r t h e r e n q u i r i e s i n t o t h e M N E G r o u p ’s t r a n s f e r p r i c i n g

arrangements or into other tax matters in the course of an enquiry

in te rms o f article 13 of the Income Tax M anagement Ac t,

including a tax audit and, as a result, appropriate adjustments to the

taxable income of a Constituent Entity may be made.

(7) Information, reports, statements and any other documents,

or certified true copies or extracts thereof, obtained by the

competent authorities of another EU Member State and

communicated to the competent authority in Malta in accordance

w i t h t h e p r o v i s i o ns o f t h e E U A d m i ni s tr a t iv e C o o p e r a ti o n

Directive may be invoked as evidence by the competent bodies in

Malta on the same basis as similar information, reports, statements

and any other documents provided by an authority of Malta.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 19 Third countries. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

Malta shall enter into an arrangement with other EU

Member States that provides mutual and wider cooperation than

that provided under the EU Administrative Cooperation Directive

provided that -

(a) Malta has entered into an arrangement that provides

for such mutual and wider cooperation than that

provided for under the EU Administrative Cooperation

Directive with a jurisdiction that is not an EU Member

State; and

(b) the said EU Member State requests to enter into such

an arrangement.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 20 Exchange of information with third countries. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where the competent authority in Malta receives from

a third country information that is foreseeably relevant to the

administration and enforcement of the domestic legislation of

Malta concerning the taxes referred to in Article 2 of the EU

Administrative Cooperation Directive, it may, in so far as this is

allowed pursuant to an arrangement with that third country, provide

that information to the competent authorities of the EU Member

States for which that information might be useful and to any

requesting authorities.

(2) The competent authority in Malta may communicate, in

accordance with the provisions on the communication of personal

data to third countries found in Maltese legislation, information

obtained in accordance with the provisions of the EU

Administrative Cooperation Directive to a third country, provided

that all of the following conditions are met

(a) the competent authority of the EU Member State from

which the information originates has consented to that

communication;

(b) the third country concerned has given an undertaking

to provide the cooperation required to gather evidence

of the irregular or illegal nature of transactions which

appear to contravene or constitute an abuse of tax

legislation.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 21 Data protection. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) (a) Every exchange of information in accordance with

these regulations shall be made in conformity with Regulation (EU)

2016/679 of the European Parliament and of the Council of 27

April 2016 on the protection of natural persons with regard to the

processing of personal data and on the free movement of such data,

and repealing Directive 95/46/EC (General Data Protection

Regulation) and the Data Protection Act, including the regulations

made thereunder.

(b) The Commissioner may restrict the rights and

obligations established in Article 13, Article 14(1) and

Article 15 of Regulation (EU) 2016/679, where such

restriction respects the essence of the fundamental

rights and freedoms and is a necessary and

proportionate measure in a democratic society to

safeguard the objective established in Article 23(1)(e)

of Regulation (EU) 2016/679. Before applying a

restriction, the Commissioner shall conduct a necessity

and proportionality assessment and be able to

demonstrate that the application of the restriction is

necessary and proportionate.

(c) The Commissioner shall keep a record of any such

restriction and the reasons for such restriction.

(d) Where a restriction applies, the Commissioner shall

inform the data subject, in writing, of the rights and

obligations being restricted, the reason for such

restriction, and his right to file a data protection

complaint with the Information and Data Protection

Commissioner

Provided that this requirement shall not apply where

such information may be prejudicial to the purpose of the restriction.

(e) The Commissioner shall periodically review the

decision applying a restriction and assess the necessity

and proportionality thereof to ensure that the

justification for the restriction is still valid

Provided that where the reason for the restriction no

longer applies, the Commissioner shall lift the restriction without

undue delay.

(f)

The data protection officer shall be consulted, properly

and in a timely manner, with respect to such restriction as

referred to in paragraph (a), both prior to and throughout

the duration of such restriction.

(2)

Regulation (EU) 2018/1725 of the European Parliament

and of the Council of the European Parliament and of the Council of 23

October 2018 on the protection of natural persons with regard to the

processing of personal data by the Union institutions, bodies, offices

and agencies and on the free movement of such data, and repealing

Regulation (EC) No 45/2001 and Decision No 1247/2002/EC shall

apply to any processing of personal data under the EU Administrative

Cooperation Directive by the Union institutions, bodies, offices and

agencies. However, for the purposes of the correct application of the

EU Administrative Cooperation Directive, the scope of the obligations

and rights provided for in Article 15, Article 16(1), and Articles 17 to

21 of Regulation (EU) 2018/1725 shall be restricted to the extent

required in order to safeguard the interests referred to in point (c) of

Article 25(1) of the said Regulation.

(3)

The Reporting Malta Financial Institutions, the

intermediaries, the Reporting Malta Platform Operators, Reporting

Crypto-Asset Providers and the competent authority in Malta shall be

considered to be data controllers when, acting alone or jointly, they

determine the purposes and means of the processing of personal data

within the meaning of the regulation (EU) 2016/679 of the European

Parliament and of the Council of 27 April 2016 on the protection of

natural persons with regard to the processing of personal data and on

the free movement of such data, and repealing Directive 95/46/EC

(General Data Protection Regulation) and the Data Protection Act.

(4)

Notwithstanding the provisions of sub-regulation (1), the

Commissioner shall ensure that each Reporting Malta Financial

Institution, intermediary, or Reporting Malta Platform Operator, or

Reporting Crypto-Asset Provider, as the case may be, which falls

under the jurisdiction of Malta

(a) informs each individual concerned that information

relating to such individual shall be collected and

transferred in accordance with these regulations; and

(b) provides to each individual concerned with all the

information that the individual is entitled to from the

data controller in sufficient time for such individual to

exercise his data protection rights and, in any case,

before the information is reported

Provided that notwithstanding the provisions of this sub-

regulation, each Reporting Malta Platform Operator shall inform

Reportable Sellers of the reported consideration.

(5)

Information processed in accordance with these

regulations shall be retained for not longer than is necessary to achieve

the purposes of these regulations

Provided that information received through the automatic

exchange of information in accordance with sub-regulations (1) to (13)

of regulation 13 shall be retained for not longer than is necessary but in

any event, not less than five (5) years from its date of receipt to

achieve the purposes of these regulations.

(6)

In the case that a data breach occurs in Malta

(a)

the competent authority in Malta shall report the

data breach and any subsequent remedial action to the

Commission without delay; and

(b)

the competent authority in Malta shall investigate,

contain and remedy the data breach and shall, by giving notice

in writing to the Commission, request the suspension of the

CCN access for the purposes of these regulations, if the data

breach cannot be contained immediately and appropriately.

(7)

In the case that a data breach occurs in another Member

State, the competent authority in Malta may suspend the exchange of

information to the Member State where the data breach occurred by

giving notice in writing to the Commission and the Member State

concerned. Such suspension shall have immediate effect.

(8)

The competent authority in Malta together with the other

Member States, assisted by the Commission, shall agree on the

practical arrangements necessary for the implementation of the said

Regulation, including data breach management processes which are

aligned with internationally recognised good practices and, where

appropriate, a joint data controller agreement, an agreement between

the data processor and the data controller, or models thereof.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 22 Requests for information and for administrative enquiries. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Requests for information and for administrative

enquiries pursuant to regulation 12 and their replies,

acknowledgements, requests for additional background

information, inability or refusal pursuant to regulation 10(2) shall,

as far as possible, be sent using the standard form adopted by the

Commission in accordance with the procedure referred to in Article

26(2) of the EU Administrative Cooperation Directive. The

standard forms may be accompanied by reports, statements and any

other documents, or certified true copies or extracts thereof. The

standard form shall include at least the following information

which shall be provided by the competent authority in Malta

(a) the identity of the person under examination or

investigation and, in the case of group requests, a

detailed description of the group; and

(b) the tax purpose for which the information is sought

Provided that the competent authority in Malta may, to the

extent known and in line with international developments, provide the

name and address of any person believed to be in possession of the

requested information as well as any element that may facilitate the

collection of information by the requested authority.

(2) Spontaneous information and its acknowledgement pursuant

to regulation 14, requests for administrative notifications pursuant to

regulation 17, feedback information pursuant to regulation 11(4) and

(5), and communications pursuant to regulation 18(2) and (4) and

regulation 20(1) shall be sent using the standard forms adopted by the

Commission in accordance with the procedure referred to in Article

26(2) of the EU Administrative Cooperation Directive.

(3) The automatic exchange of information pursuant to the

provisions of regulation 13(1) and (13) shall be carried out using a

standard computerised format aimed at facilitating such automatic

exchange, adopted by the Commission in accordance with the

procedure referred to in Article 26(2) of the EU Administrative

Cooperation Directive.

(4) A standard form, including the linguistic arrangements,

shall be adopted by the EU Commission in accordance with the

procedure referred to in Article 26(2) of the EU Administrative

Cooperation Directive before 1 January 2017. The automatic

exchange of information on advance cross-border rulings and

advance pricing arrangements pursuant to regulation 13(3) shall be

carried out using this standard form. This standard form shall not

exceed the components for exchange of the information listed in

regulation 13(3)(e) and other relating fields linked to these

components necessary to achieve the objectives of regulation 13(3).

(5) The automatic exchange of information on country-by-

country report pursuant to regulation 13(4) shall be carried out

using the standard form provided in Tables 1, 2 and 3 of Section III

of Annex III to these regulations and in accordance with linguistic

arrangements adopted by the EU Commission in accordance with

Article 26(2) of the EU Administrative Cooperation Directive.

(6) A standard form, including the linguistic arrangements, shall

be adopted by the EU Commission in accordance with the procedure

referred to in Article 26(2) of the EU Administrative Cooperation

Directive before 30 June 2019. The automatic exchange of information

on reportable cross-border arrangements pursuant to regulation 13(7)

shall be carried out using this standard form. This standard form shall

not exceed the components for exchange of the information listed in

regulation 13(7)(o) and other relating fields linked to these

components which are necessary to achieve the objectives of

regulation 13(7).

(7) A standard form, including the linguistic arrangements, shall

be adopted by the EU Commission in accordance with the procedure

referred to in Article 26(2) of the EU Administrative Cooperation

Directive before 30 June 2025. The automatic exchange of information

on reportable Crypto-Assets in accordance with regulation 13(13)

shall be carried out using this standard form. This standard form shall

not exceed the components for exchange of the information listed in

regulation 13(13)(c) and other relating fields linked to these

components which are necessary to achieve the objectives of

regulation 13(13).

(8) A reporting entity is allowed to obtain confirmation by

electronic means of the validity of the information on the TIN of any

taxpayer subject to the exchange of information under regulation 13(1)

to (13). The confirmation of the information on the TIN may be

requested only for the purposes of validation of the correctness of data

referred to in regulation 13(1), (2), (3)(e), (4)(c), (7)(o), (12)(c) and

(13)(c). A reporting entity may confirm validity of TIN information

through a tool which shall be provided by the EU Commission,

allowing an electronic and automated verification of the correctness of

the TIN provided by a reporting entity or a taxpayer for the purposes

of the automatic exchange of information.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 23 Implementation and interpretation of FATCA Agreement and FATCA Regulations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The FATCA Agreement and the FATCA Regulations

shall be implemented and interpreted (unless the context otherwise

requires) in accordance with the guidelines published on the

website of the Commissioner for Revenue under the provisions of

article 96(2) of the Income Tax Act.

(2) For the purposes of the FATCA Regulations, words and

expressions shall, unless the subject in context otherwise requires,

have the same meaning and the same interpretation as the meanings

and interpretations contained in the FATCA Agreement and in the

published guidelines referred to in sub-regulation (1).

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 24 Registration requirements in relation to FATCA. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Malta Financial Institution shall register with the

Commissioner for the purposes of the FATCA Regulations in such

manner and within such period of time that the Commissioner may

by means of guidelines published on the website of the

Commissioner for Revenue under the provisions of article 96(2) of

the Income Tax Act require.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 25 Obligations of Reporting Malta Financial Institutions. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Reporting Malta Financial Institution shall

(a) have the obligations found in Article 4(1)(a) to (e) of

the FATCA Agreement as implemented by the FATCA

Regulations;

(b) obtain, where this is required under the FATCA

Agreement

(i)

satisfactory self-certification documentation;

and

(ii) the U.S. TIN of each Specified U.S. Person,

including the U.S. TIN for pre-existing

individual accounts from 1st January, 2017

onwards.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 26 Use of third party service provider. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Reporting Malta Financial Institution may use third

party service providers to fulfil its obligations contemplated in the

FATCA Regulations: provided that these obligations shall remain

the sole responsibility of the Reporting Malta Financial Institution.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 27 Information to be maintained. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Reporting Malta Financial Institution shall maintain the

information specified in Article 2(2)(a) and Article 3(2) of the

FATCA Agreement with respect to all U.S. Reportable Accounts

taking into account the timing specified in Article 3 of the FATCA

Agreement.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 28 Due diligence obligations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) For the purposes of the FATCA Regulations, a

Reporting Malta Financial Institution shall apply the due diligence

procedures specified in Annex 1 of the FATCA Agreement to

identify U.S. Reportable Accounts and accounts held by Non-

participating Financial Institutions. For this purpose -

(a) the due diligence procedures in respect of Pre-existing

Individual Accounts shall be regulated in accordance

with the provisions of section II of Annex I of the

FATCA Agreement;

(b) the due diligence procedures in respect of New

Individual Accounts shall be regulated in accordance

with the provisions of section III of Annex I of the

FATCA Agreement;

(c) the due diligence procedures in respect of Pre-existing

Entity Accounts shall be regulated in accordance with

the provisions of section IV of Annex I of the FATCA

Agreement;

(d) the due diligence procedures in respect of New Entity

Accounts shall be regulated in accordance with the

provisions of section V of Annex I of the FATCA

Agreement.

(2) Notwithstanding the provisions of sub-regulation (1), and

in accordance with the provisions of Section I paragraph C of

Annex 1 of the FATCA Agreement, a Reporting Malta Financial

Institution may opt to rely on procedures, described in the relevant

U.S. Treasury Regulations to establish whether an account is a U.S.

Reportable Account or an account held by a Non-participating

Financial Institution

Provided that the Reporting Malta Financial Institution

shall make such an option separately for each section of the said

Annex I with respect to all relevant Financial Accounts and it shall

inform the Commissioner of this option on such form and in such

manner as the Commissioner shall determine.

(3) A Reporting Malta Financial Institution may elect to review,

identify and report accounts referred to in section II.A, III.A, IV.A and

V.A of Annex I of the FATCA Agreement as applicable. Such an

election shall be made in such manner as the Commissioner may

determine.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 29 Retention obligations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

Subject to the provisions of article 19 of the Income Tax

Management Act, a Reporting Malta Financial Institution shall

(a) retain the information specified in Article 2(2)(a) and

Article 3(2) of the FATCA Agreement for a minimum

period of five years starting from the end of the year to

which such information relates;

(b) retain the information that is required to be used as

evidence in determining the status of the account

holder under regulation 28 of the FATCA Regulations

for a minimum period of five years starting from the

end of the year to which such information relates.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 30 Reporting obligations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) A Reporting Malta Financial Institution shall annually

report the information specified in Article 2(2)(a) and Article 3(2)

of the FATCA Agreement on U.S. Reportable Accounts together

with an annual report on the measures and procedures it maintains and

applies to fulfil its obligations with the FATCA Agreement in the

manner and within such time period as set out in guidelines

Provided that such reporting shall take into account the

tim ing and exclusions specified in Articl e 3 of the FATCA

Agreement.

(2) The information shall be reported to the Commissioner in

the manner and within such time period as set out in guidelines

published on the website of the Commissioner for Revenue under

the provisions of article 96(2) of the Income Tax Act.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 31 Access to information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The Commissioner may use any information-gathering

power under the Income Tax Acts, including those under the

provisions of article 10A and article 20 of the Incom e Tax

Management Act, to obtain any information specified in Article

2(2)(a) and Article 3(2) of the FATCA Agreement, notwithstanding

that the said information may not be required for the purposes of

the Income Tax Acts. The provisions of this regulation shall be

interpreted widely in the same manner as the interpretation found in

regulation 5.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 32 Anti-avoidance. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

If a Reporting Malta Financial Institution enters into any

transactions or schemes, the main purpose or one of the main

purposes of which is to avoid any obligation under the FATCA

Agreement or the FATCA Regulations, these regulations are to

have effect as if such transactions or schemes had not been entered

into.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 33 Imposition of penalties. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where a Financial Institution fails to comply with any of

the obligations established in the FATCA Agreement or the FATCA

Regulations, the Financial Institution shall be liable

(a) where a Reporting Malta Financial Institution fails to

maintain the information required to be maintained in

terms of Article 2(2)(a) and Article 3(2) of the FATCA

Agreement, to a penalty of two thousand five hundred

euro (€2,500);

(b) where a Reporting Malta Financial Institution fails to

apply the due diligence procedures specified in Annex

I of the FATCA Agreement to identify U.S. Reportable

Accounts and accounts held by Non-participating

Financial Institutions, to a penalty of five thousand

euro (€5,000);

(c) where a Reporting Malta Financial Institution fails to

report the information required to be reported in terms

of regulation 30 within the time stipulated in said

regulation, to a penalty of

(i) two thousand five hundred euro (€2,500); and

(ii) one hundred euro (€100) for every day during

which the default existed: provided that this

penalty shall not exceed in total twenty thousand

euro (€20,000);

(d) where a Reporting Malta Financial Institution fails to

report the information required to be maintained in

terms of Article 2(2)(a) and Article 3(2) of the FATCA

Agreement in a complete and accurate manner, to a

penalty of

(i)

in the case of minor errors -

(aa) two hundred euro (€200); and

(bb) fifty euro (€50) for every day during

which the default existed: provided that

this penalty shall not exceed in total five

thousand euro (€5,000);

(ii) in the case of significant non-compliance, fifty

thousand euro (€50,000). Furthermore, where

the United States commences to treat a

Reporting Malta Financial Institution as a Non-

participating Financial Institution and its details

are published by the IRS, the Commissioner

shall publish details identifying such an

institution on the website of the Commissioner

for Revenue and inform any relevant regulator in

Malta of such;

(e) where a Financial Institution fails to comply with a

request for information by the Commissioner made

consequent to regulation 31, to a penalty of

(i) one thousand euro (€1000); and

(ii) one hundred euro (€100) for every day during

which the default existed: provided that this

penalty shall not exceed in total thirty thousand

euro (€30,000).

(f)

where a Reporting Malta Financial Institution relies on

an invalid self-certification, and such Reporting Malta

Financial Institution knows or has reason to know that

this is invalid, to a penalty of five thousand euro

(€5,000). An account holder who provides a false self-

certification, including signing or otherwise positively

affirming a false self-certification, shall also be liable

to a penalty of five thousand euro (€5,000).

(2) In addition and without prejudice to any penalties incurred

in terms of sub-article (1), where a Reporting Malta Financial

Institution is found to have submitted information that is

misleading, deceitful or false, every senior managing official of such

Reporting Malta Financial Institution shall be guilty of an offence

and shall on conviction be liable to a fine (multa) of not less than

ten thousand euro (€10,000) and not more than thirty thousand euro

(€30,000), or to imprisonment for a period of not exceeding two

years, or both such fine (multa) and imprisonment

Provided that a director, manager or other principal officer of

such Reporting Malta Financial Institution shall not be guilty of such

an offence in virtue of this sub-regulation if he proves that he was

unaware and could not with reasonable diligence be aware of such act

or omission and that he did everything within his power to prevent that

act or omission.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 34 Annex II of the FATCA Agreement. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The Entities referred to in Annex II to the FATCA

Agreement are to be treated as exempt beneficial owners or deemed

compliant Foreign Financial Institutions, as the case may be.

(2) The accounts referred to in Annex II to the FATCA

Agreement are to be excluded from the definition of Financial

Accounts.

(3) Annex II of the FATCA Agreement may be modified by an

arrangement entered into between the competent authorities of

Malta and the United States

(a) to include additional Entities and accounts that present

a low risk of being used by U.S. Persons to evade U.S.

tax and that have similar characteristics to the Entities

and accounts described in the said Annex II as of the

date of signature of the Agreement; or

(b) to remove Entities and accounts that, due to changes in

circumstances, no longer present a low risk of being

used by U.S. Persons to evade U.S. tax. Any such

addition or removal shall be effective on the date of

signature of the said arrangement, unless otherwise

provided therein. Procedures for reaching such an

arrangement may be included in the arrangement

described in paragraph 6 of Article 3 of the FATCA

Agreement.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 35 Contestation procedure in relation to penalties. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where a person comes within the scope of the penalties

as set out in these regulations, the Commissioner shall advise such

person by means of a notice in writing which penalty the

Commissioner intends to impose, the reason for its imposition and

the time within which such penalty is to be paid

Provided that in such cases, reference to the specific legal

provision would constitute sufficient notice.

(2) The notice referred to in sub-regulation (1) may be served on

the relevant person in the same manner as described in article 29(1) of

the Income Tax Management Act.

(3) Where the penalty is not paid within the time specified in

the notice referred to in sub-regulation (1), the Commissioner shall

inform the person referred to in sub-regulation (1) and serve him

with a demand notice advising that person that, unless the latter

notice is contested in a court of law within thirty days from its date

of service, it shall constitute an executive title in terms of article

40(1)(d) of the Income Tax Management Act. For this purpose only,

the relevant penalty shall be considered to be a tax which should

have been paid.

(4) Where the Commissioner is satisfied that the default in

respect of which the penalties have been imposed under sub-

regulation (1) was not due to any fault or neglect on the part of the

relevant person, he shall remit the whole of the said penalties and,

in any other case, may remit such part or all of the said penalties as

he may think fit. In every case the Commissioner shall inform the

said person accordingly.

(5)

The payment by any person of any penalties

imposed under these regulations shall in no way exonerate that

person from its obligations under these regulations.

(6) Where such penalty remains unpaid within the time specified

in the notice referred to in sub-regulation (1), the provisions of article

47 of the Income Tax Management Act relating to the collection and

recovery of tax shall apply to the collection and recovery of such

penalty.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 36 Implementation and interpretation. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The EU Administrative Cooperation Directive shall be

i mplem ented and interpreted (unl ess the co ntext o therwi se

requires) in accordance with the guidelines published on the

website of the Commissioner for Revenue under the provisions of

article 96(2) of the Income Tax Act.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 37 Registration requirements. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Malta Financial Institution shall register with the

Commissioner for the purposes of the EU Administrative

Cooperation Directive in such manner and within such period of

time that the Commissioner may determine by means of guidelines

published on the website of the Commissioner for Revenue under

the provisions of article 96(2) of the Income Tax Act require.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 38 Use of third party service provider. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Reporting Malta Financial Institution may use service

providers to fulfil its reporting and due diligence obligations

specified in these regulations: provided that these obligations shall

rem ain the responsibilit y of the Reporting Malta F inancial

Institution.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 39 Due diligence obligations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

For the purposes of the EU Administrative Cooperation

Directive, a Reporting Malta Financial Institution shall apply the

due diligence procedures specified in Section II to Section VII of

Annex I, and Annex II to these regulations so as to be able to

identify Reportable Accounts. In particular

(a) the due diligence procedures in respect of Pre-Existing

Individual Accounts shall be regulated in accordance

with the provisions of Section III of Annex I to these

regulations;

(b) the due diligence procedures in respect of New

Individual Accounts shall be regulated in accordance

with the provisions of Section IV of Annex I to these

regulations;

(c) the due diligence procedures in respect of Pre-Existing

Entity Accounts shall be regulated in accordance with

the provisions of Section V of Annex I to these

regulations;

(d) the due diligence procedures in respect of New Entity

Accounts shall be regulated in accordance with the

provisions of Section VI of Annex I to these

regulations

Provided that in carrying out this obligation, a Reporting

Malta Financial Institution shall obtain satisfactory self-

certification documentation or documentary evidence to establish

the residence for tax purposes of the Account Holder. The term

"documentary evidence" shall have the same meaning as that

contained under E.6. of Section VIII of Annex I to these

regulations

Provided further that the self-certification may be in such

form as the Commissioner may determine.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 40 Maintenance and retention obligations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

Subject to the provisions of article 19 of the Income Tax

Management Act, a Reporting Malta Financial Institution shall

maintain and retain all the documentation and information it

collects in the course of meeting its reporting and due diligence

obligations specified in these regulations for a minimum period of

five years starting from the end of the year in which the

information relates. In so doing, a Reporting Malta Financial

Institution shall keep records of the steps undertaken in relation to

any evidence relied upon for the performance of its obligations and

adequate measures to obtain those records.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 41 Reporting obligations. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

A Reporting Malta Financial Institution shall annually

report the information specified in Section I of Annex I to these

regulations in the manner and within such time period as set out in

guidelines published on the website of the Commissioner for

Revenue under the provisions of article 96(2) of the Income Tax

Act.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 42 Access to information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The Commissioner may use any information-gathering

power under the Income Tax Acts, including those under the

provisions of articles 10A and 20 of the Income Tax Management

Act, to obtain any information specified in Section I of Annex I to

these regulations,together with an annual report on the measures and

procedures it maintains and applies to fulfil its obligations with Annex

I notwithstanding that the said information may not be required for

the purposes of the Income Tax Acts. The provisions of this

regulation shall be interpreted widely in the same manner as the

interpretation found in regulation 5.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 43 Anti-avoidance. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

If a Reporting Malta Financial Institution or any other person

enters into any transactions or schemes, the main purpose or one of the

main purposes of which is to avoid any obligation under the EU

Administrative Cooperation Directive, these regulations are to have

effect as if such transactions or schemes had not been entered into.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 44 Imposition of penalties. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where a Financial Institution fails to comply with any of

the obligations established in the EU Administrative Cooperation

Directive, the Financial Institution shall be liable

(a) where a Reporting Malta Financial Institution relies on

an invalid self-certification, and such Reporting Malta

Financial Institution knows or has reason to know that

this is invalid, to a penalty of five thousand euro

(€5,000). An account holder who provides a false self-

certification, including signing or otherwise positively

affirming a false self-certification, shall also be liable to a

penalty of five thousand euro (€5,000);

(b) where a Reporting Malta Financial Institution fails to

retain the documentation and information it collected

in the course of meeting its reporting and due diligence

obligations for a minimum period of five years starting

from the end of the year in which the information

relates, to a penalty of two thousand five hundred euro

(€2,500);

(c) where a Reporting Malta Financial Institution fails to

apply the due diligence procedures specified in Section II

through to Section VII of Annex I, including obtaining a

self-certification for New Accounts, to a penalty of five

thousand euro (€5,000);

(d) where a Reporting Malta Financial Institution fails to

report the information required to be reported in terms

of regulation 41 within the time stipulated in the

guidelines published on the website of the

Commissioner for Revenue under the provisions of

article 96(2) of the Income Tax Act, to a penalty of

(i) two thousand five hundred euro (€2,500); and

(ii) one hundred euro (€100) for every day during

which the default existed: provided that this

penalty shall not exceed in total twenty thousand

euro (€20,000);

(e) where a Reporting Malta Financial Institution fails to

report the information required to be reported in terms

of regulation 41 in a complete and accurate manner, to

a penalty of

(i)

in the case of minor errors -

(aa) two hundred euro (€200); and

(bb) fifty euro (€50) for every day during

which the default existed: provided that

this penalty shall not exceed in total five

thousand euro (€5,000);

(ii) in the case of significant non-compliance, a

penalty of fifty thousand euro (€50,000);

(f)

where a Financial Institution fails to comply with a

request for information by the Commissioner made

consequent to regulation 42, to a penalty of

(i) one thousand euro (€1,000); and

(ii) one hundred euro (€100) for every day during

which the default existed: provided that this

penalty shall not exceed in total thirty thousand

euro (€30,000).

(2) In addition, and without prejudice to any penalties incurred

in terms of sub-regulation (1), where a Reporting Malta Financial

Institution is found to have submitted information that is

misleading, deceitful or false, every senior managing official of such

Reporting Malta Financial Institution shall be guilty of an offence

and shall on conviction be liable to a fine (multa) of not less than

ten thousand euro (€10,000) and not more than thirty thousand euro

(€30,000), or to imprisonment for a period of not exceeding two

years, or both such fine (multa) and imprisonment

Provided that a director, manager or other principal officer

of such Reporting Malta Financial Institution shall not be guilty of

such an offence in virtue of this sub-regulation if he proves that he

was unaware and could not with reasonable diligence be aware of

such act or omission and that he did everything within his power to

prevent that act or omission.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 45 Extension of application to jurisdictions that are not EU Member States. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The provisions of regulation 13(2), (7)(b), (8)(b) and (9)(b)

and regulations 36 to 44 shall apply mutatis mutandis in relation to

jurisdictions that are not EU Member States, hereinafter in these

regulations referred to as "Non-EU Reportable Jurisdictions"

Provided that for the purposes of this regulation

(a) the term "Non-EU Reportable Jurisdiction" means a

jurisdiction

(i)

with which an arrangement is in place pursuant

to which there is an obligation in place to

provide the information specified in Section 1 of

Annex I to these regulations; and

(ii) which is identified in the list published by the

Commissioner on the website of the

Commissioner for Revenue under the provisions

of article 96(2) of the Income Tax Act;

(b) references in regulation 13(2), (3)(b), (4) and (5)(b),

and in regulations 36 to 44 and in Annexes I and II of

these regulations to "Member State", "Member State

Person" and "EU Administrative Cooperation

Directive" shall be construed to mean "Non-EU

Reportable Jurisdiction", "a person resident in a Non-

EU Reportable Jurisdiction" and "Common Reporting

Standard" respectively. For the purposes of this

regulation, the term "Common Reporting Standard"

means the Standard for Automatic Exchange of

Financial Account Information in Tax Matters as

developed by the Organisation for Economic Co-

operation and Development.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 46 Extension of regulation 39 to other jurisdictions. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The provisions of regulation 39 shall apply mutatis

mutandis to all financial accounts maintained by a Reporting Malta

Financial Institution, irrespective of whether such accounts are held

by a Reportable person or not

Provided that this information is to be collected and

maintained in accordance with regulation 21. For the purposes of

regulation 21(4), the information is to be kept for not longer than

nine years from the end of the year in which the information is

collected.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 47 Access to information. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The Commissioner may use any information-gathering

power under the Income Tax Acts, including those under the

provisions of article 10A and article 20 of the Incom e Tax

Management Act, to obtain any information specified in Section III

of Annex III to these regulations, notwithstanding that the said

information may not be required for the purposes of the Income Tax

Acts. The provisions of this regulation shall be interpreted widely

in the same manner as the interpretation found in regulation 5.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 48 Imposition of penalties. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where a Maltese Constituent Entity fails to comply

with any of the obligations set out in the EU Administrative

Cooperation Directive, the Maltese Constituent Entity shall be

liable to the following penalties

(a) where a Maltese Constituent Entity fails to retain the

documentation and information it collected in the

course of meeting its reporting obligations as provided

in these regulations for a minimum period of five years

starting from the end of the year in which the

information relates, to a penalty of two thousand five

hundred euro (€2,500);

(b) where a Maltese Constituent Entity fails to report the

information required to be reported in terms of sub-

regulation 13(4) within the time stipulated in sub-

regulation 13(5), to a penalty of

(i) two hundred euro (€200); and

(ii) one hundred euro (€100) for every day during

which the default existed: provided that this

penalty shall not exceed in total twenty thousand

euro (€20,000).

(2) Where a Maltese Constituent Entity fails to report the

information required to be reported in terms of sub-regulation 13(4)

in a complete and accurate manner, to a penalty of

(i)

in the case of minor errors -

(aa)

two hundred euro (€200); and

(bb)

fifty euro (€50) for every day during which the

default existed: provided that this penalty shall

not exceed in total five thousand euro

(€5,000);

(ii) in the case of significant non-compliance, a penalty of

fifty thousand euro (€50,000).

(3) Where a Maltese Constituent Entity fails to comply with a

request for information by the Commissioner made consequent to

regulation 42, to a penalty of

(i)

one thousand euro (€1,000); and

(ii)

one hundred euro (€100) for every day during which

the default existed: provided that this penalty shall not

exceed in total thirty thousand euro (€30,000).

(4)

Where a Maltese Constituent Entity that is neither the

Ultimate Parent Entity nor the Surrogate Parent Entity nor the

Constituent Entity referred to in point 1 of Section II of Annex III,

fails to notify the Commissioner of the identity and tax residence of

the Reporting Entity obliged to file a country-by-country report

with respect to a Reporting Fiscal year by not later than the last day

for filing of a tax return of that Constituent Entity for the preceding

fiscal year, it shall be liable to a penalty of

(a) two hundred euro (€200); and

(b) fifty euro (€50) for every day during which the default

existed

Provided that this penalty shall not exceed in total five

thousand euro (€5,000).

(5) Where a Constituent Entity of a MNE Group that is resident

for tax purposes in Malta, fails to notify the Commissioner of

whether it is the Ultimate Parent Entity or the Surrogate Parent

Entity or the Constituent entity referred to in point 1 of Section II

of Annex III, by not later than the last day for filing of a tax return

of that Constituent Entity for the preceding fiscal year, the

Constituent Entity shall be liable to a penalty of

(a) two hundred euro (€200); and

(b) fifty euro (€50) for every day during which the default

existed: provided that this penalty shall not exceed in

total five thousand euro (€5,000).

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 49 Extension of application to jurisdictions that are not EU Member States. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The provisions of regulation 13(4), (5), (6), (7)(d),

(8)(a) and (9)(d), and regulations 36 and 47 to 48 shall apply

mutatis mutandis in relation to jurisdictions that are not EU

Member States and

(a) with which an arrangement is in place pursuant to

which there is an obligation in place to provide the

information specified in Section III of Annex III; and

(b) which are identified in the list published by the

Commissioner on the website of the Commissioner for

Revenue under the provisions of article 96(2) of the

Income Tax Act;

(2) In applying this regulation, the 2015 final consolidated

report, entitled "Transfer Pricing Documentation and Country-by-

Country Reporting, on Action 13 of the OECD/ G20 Action Plan on

Base Erosion and Profit Shifting", as developed by the

Organisation for Economic Cooperation and Development shall be

used as a source of illustration or interpretation.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 50 Imposition of penalties. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where an intermediary or relevant taxpayer that has an

obligation to file information with the Commissioner fails to

comply with any of the obligations set out in the EU Administrative

Cooperation Directive, it shall be liable to the following penalties

(a) where such intermediary or relevant taxpayer fails to

retain the documentation and information it collected

in the course of meeting its reporting obligations as

provided in these regulations for a minimum period of

five years starting from the end of the year to which

the information relates, to a penalty of two thousand

five hundred euro (€2,500);

(b) where such intermediary or relevant taxpayer fails to

report any of the information required to be reported in

terms of regulation 13(7) within the time stipulated

therein, to a penalty of

(i)

two hundred euro (€200); and

(ii) one hundred euro (€100) for every day

during which the default existed: provided that this

penalty shall not exceed in total twenty thousand euro

(€20,000).

(2) Where an intermediary or relevant taxpayer that has an

obligation to file information with the Commissioner fails to report

the information required to be reported in terms of regulation 13(7)

in a complete and accurate manner, it shall be liable to a penalty of

(a) two hundred euro (€200); and

(b) one hundred euro (€100) for every day during which

the default existed: provided that this penalty shall not

exceed in total twenty thousand euro (€20,000).

(3) Where an intermediary or relevant taxpayer that has an

obligation to file information with the Commissioner fails to

comply with a request for information made by the Commissioner,

it shall be liable to a penalty of

(a) one thousand euro (€1,000); and

(b) one hundred euro (€100) for every day during which

the default existed: provided that this penalty shall not

exceed in total thirty thousand euro (€30,000).

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 51 Service of notices. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

For the purposes of regulations 4A, 5, 6 and 35, where the

notice is not made because the taxpayer could not be found or for

other reasons attributable to him and the Commissioner publishes a

notice in the Gazette and in one or more daily newspapers stating

that a notice has been made and inviting the taxpayer to call for it at

the Department, then such notice shall also be deemed to have been

duly notified.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 52 Administrative penalties for failure to comply. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where a Reporting Malta Platform Operator fails to

comply with any of the obligations set out in the EU Administrative

Cooperation Directive, the Reporting Malta Platform Operator shall be

liable to the following administrative penalties

(a)

where a Reporting Malta Platform Operator fails

to register with the Commissioner in accordance with

regulation 13(12)(e) and in such manner and within the period

of time that the Commissioner requires, to an administrative

penalty of five hundred euro (€500);

(b)

where a Reporting Malta Platform Operator fails

to retain the documentation and information it collected in the

course of meeting its due diligence and reporting obligations

for a minimum period of five (5) years starting from the end of

the year in which the information relates, to an administrative

penalty of two thousand five hundred euro (€2,500);

(c)

where a Reporting Malta Platform Operator fails

to apply the due diligence procedures specified in Section II of

Annex V, to an administrative penalty of five thousand euro

(€5,000);

(d)

where a Reporting Malta Platform Operator fails

to report the information required to be reported in accordance

with Section III of Annex V within the time stipulated in the

said Section III, to an administrative penalty of

(i)

two thousand five hundred euro (€2,500);

and

(ii)

one hundred euro (€100) for every day

during which the default existed, which administrative

penalty shall not exceed in total twenty thousand euro

(€20,000);

(e)

where a Reporting Malta Platform Operator fails

to report the information required to be reported in accordance

with Section III of Annex V in a complete and accurate

manner, to a penalty of

(i)

in the case of minor errors

(A) two hundred euro (€200); and

(B) fifty euro (€50) for every day during

which the default existed, which administrative

penalty shall not exceed in total five thousand

euro (€5,000);

(ii)

in the case of significant non-compliance,

an administrative penalty of up to fifty thousand euro

(€50,000).

(2)

In addition, and without prejudice to any administrative

penalties incurred in accordance with sub-regulation (1), where a

Reporting Malta Platform Operator is found to have submitted

information that is misleading or false, every senior managing official

of such Reporting Malta Platform Operator shall be liable to an

administrative penalty of not less than ten thousand euro (€10,000) and

not more than thirty thousand euro (€30,000)

Provided that a senior managing official of the said Reporting

Malta Platform Operator shall not be guilty of such an offence if he

proves that he was unaware and could not with reasonable diligence be

aware of such act or omission and that he did everything within his

power to prevent that act or omission.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 53 Effectiveness of administrative cooperation. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

The effectiveness of administrative cooperation in

accordance with these regulations and in accordance with the EU

Administrative Cooperation Directive, including in combating tax

evasion and tax avoidance, shall be monitored and assessed by the

competent authority of Malta in relation to itself and it shall

communicate the results of its assessment to the EU Commission

once a year.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 54 Administrative penalties for failure to comply. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) Where a Reporting Malta Crypto-Asset Service

Provider fails to comply with any of the obligations established in

the EU Administrative Cooperation Directive, the Reporting Malta

Crypto-Asset Service Provider shall be liable

(a)

where a Reporting Malta Crypto-Asset Service

Provider fails to register with the Commissioner in

accordance with regulation 13(13)(e) and in such

manner and within the period of time that the

Commissioner requires, to an administrative penalty of

five hundred euro (€500);

(b) where a Reporting Malta Crypto-Asset Service

Provider fails to retain the documentation and

information it collected in the course of meeting its

due diligence and reporting obligations for a minimum

period of five (5) years starting from the end of the

year in which the information relates, to an

administrative penalty of two thousand five hundred

euro (€2,500);

(c) where a Reporting Malta Crypto-Asset Service

Provider fails to report the information required to be

reported in accordance with Section II of Annex VI

within the time stipulated in Section III, to an

administrative penalty of

(i)

two

thousand

five

hundred

euro

(€2,500); and

(ii) one hundred euro (€100) for every day

during which the default subsists, which administrative

penalty and daily penalty shall not exceed in total twenty

thousand euro (€20,000);

(d) where a Reporting Malta Crypto-Asset Service

Provider fails to report the information required to be

reported in accordance with Section II of Annex VI in

a complete and accurate manner, to an administrative

penalty of

(i)

in the case of minor errors

-

two hundred euro (€200); and

-

fifty euro (€50) for every day

during which the default subsists, which

administrative penalty and daily penalty shall

not exceed in total five thousand euro (€5,000);

(ii) in the case of significant non-

compliance, an administrative penalty of up to a

maximum of fifty thousand euro (€50,000);

(e) where a Reporting Malta Crypto-Asset Service

Provider fails to apply the due diligence procedures

specified in Section III of Annex VI, to an

administrative penalty of five thousand euro (€5,000).

(2) Without prejudice to any administrative penalties incurred

in accordance with sub-regulation (1), when a Reporting Malta

C r y p t o - A s s e t S e r v i c e P r o v i d er i s f o u n d t o h a v e s u b m i t t e d

information that is misleading or false, every senior managing

official of such Reporting Malta Crypto-Asset Service Provider

shall be liable to an administrative penalty of not less than ten

thousand euro (€10,000) and not more than thirty thousand euro

(€30,000)

Provided that a senior managing official of the said

Reporting Malta Crypto-Asset Service Provider shall not be guilty of

such a breach if he proves that he was unaware and could not with

reasonable diligence be aware of such act or omission and that he did

everything within his power to prevent that act or omission.

Laws of Malta — Subsidiary Legislation 123.127 — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Reg. 55 Reporting and communication of the TIN. — COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS Open official source

(1) The TIN of reported individuals or entities issued by

the Member State of residence shall be reported by the reporting

entity or reporting individual when explicitly required by, and in

accordance with the regulations and Annexes.

(2) For taxable periods starting on or after 1 January 2030, the

TIN of residents issued by the Member State of residence shall be

reported, where possible, with respect to the information referred to

in regulation 13(1)(a), (b) and (d).

(3) For taxable periods starting on or after 1 January 2028, the

TIN of individuals and entities issued by the Member State of

residence shall be reported, where possible, with respect to the

information referred to in regulation 13(3)(e)(i) and (xi), as well as of

reported individuals and entities with respect to the information

referred to in regulation 13(4)(c)(ii) and 13(7)(o). The competent

authority in Malta shall include such information in its communication

of the information referred to in regulation 13(4)(c)(ii) and 13(7)(o).

ANNEX I

Added by

L.N. 384 of 2015.

REPORTING AND DUE DILIGENCE RULES FOR Amended by

FINANCIAL ACCOUNT INFORMATION

L.N. 344 of 2017;

L.N. 162 of 2026.

This Annex lays down the reporting and due diligence rules that have to be applied

by Reporting Malta Financial Institutions in order to enable Malta to communicate,

by automatic exchange, the information referred to in Article 8(3a) of the EU

Administrative Cooperation Directive. This Annex also describes the rules and

administrative procedures that Malta has in place to ensure effective implementation

of, and compliance with, the reporting and due diligence procedures set out below.

SECTION I

GENERAL REPORTING REQUIREMENTS

A. Subject to paragraphs C to F, each Reporting Malta Financial Institution

shall report to the competent authority of Malta with respect to each Reportable

Account of such Reporting Malta Financial Institution

1. the following information

(a) the name, address, Member States of residence, TINs and date and place

of birth, in the case of an individual, of each Reportable Person that is

an Account Holder of the account and whether the Account Holder has

provided a valid self-certification;

(b) in the case of any Entity that is an Account Holder and that, after

application of the due diligence procedures consistent with Sections V,

VI and VII, is identified as having one or more Controlling Persons that

is a Reportable Person, the name, address, Member States and, if any,

other jurisdictions of residence and TINs of the Entity and the name,

address, Member States of residence, TINs and date and place of birth

of each Reportable Person, as well as the roles by virtue of which each

Reportable Person is a Controlling Person of the Entity and whether a

valid self-certification has been provided for each Reportable Person;

(c) whether the account is a joint account, including the number of joint

Account Holders;

2. the account number, or functional equivalent in the absence of an account

number, the type of account and whether the account is a Pre-existing Account or a

New Account;

3. the name and identifying number, if any, of the Reporting Malta Financial

Institution;

4. the account balance or value, including, in the case of a Cash Value

Insurance Contract or Annuity Contract, the Cash Value or surrender value, as of the

end of the relevant calendar year or other appropriate reporting period or, if the

account was closed during such year or period, the closure of the account;

5. in the case of any Custodial Account

(a) the total gross amount of interest, the total gross amount of dividends

and the total gross amount of other income generated with respect to the

assets held in the account, in each case paid or credited to the account or

with respect to the account during the calendar year or other appropriate

reporting period; and

(b) the total gross proceeds from the sale or redemption of Financial Assets

paid or credited to the account during the calendar year or other

appropriate reporting period with respect to which the Reporting Malta

Financial Institution acted as a custodian, broker, nominee, or otherwise

as an agent for the Account Holder;

6. in the case of any Depository Account, the total gross amount of interest paid

or credited to the account during the calendar year or other appropriate reporting

period;

7. in the case of any Equity Interest held in an Investment Entity that is a legal

arrangement, the roles by virtue of which the Reportable Person is an Equity Interest

holder; and

8. in the case of any account not described in sub-paragraph A(5) (6) or (7), the

total gross amount paid or credited to the Account Holder with respect to the account

during the calendar year or other appropriate reporting period with respect to which the

Reporting Malta Financial Institution is the obligor or debtor, including the aggregate

amount of any redemption payments made to the Account Holder during the calendar

year or other appropriate reporting period.

B.

The information reported must identify the currency in which each amount

is denominated.

C.

Notwithstanding sub-paragraph A(1), with respect to each Reportable Account

that is a Pre-existing Account, the TINs or date of birth is not required to be reported if

such TINs or date of birth is not in the records of the Reporting Malta Financial

Institution and is not otherwise required to be collected by such Reporting Malta

Financial Institution under domestic law or any Union legal instrument. However, a

Reporting Malta Financial Institution is required to use reasonable efforts to obtain the

TINs and date of birth with respect to Pre-existing Accounts by the end of the second

calendar year following the year in which Pre-existing Accounts were identified as

Reportable Accounts and whenever it is required to update the information relating to the

Pre-existing Account in accordance with domestic AML/KYC Procedures.

D.

Notwithstanding sub-paragraph A(1), the TIN is not required to be reported

if a TIN is not issued by the relevant Member State or other jurisdiction of residence.

E.

Notwithstanding subparagraph A(1), the place of birth is not required to be

reported unless

(1) the Reporting Malta Financial Institution is otherwise required to obtain

and report it under domestic law or the Reporting Malta Financial

Institution is or has been otherwise required to obtain and report it

under any Union legal instrument in effect or that was in effect on 5

January 2015; and

(2) it is available in the electronically searchable data maintained by the

Reporting Malta Financial Institution.

F.

Notwithstanding point (b) of sub-paragraph A(5) and unless the Reporting

Malta Financial Institution elects otherwise with respect to any clearly identified

group of accounts, the gross proceeds from the sale or redemption of Financial

Assets are not required to be reported in so far as such gross proceeds from the sale

or redemption of such Financial Assets are reported by the Reporting Malta

Financial Institution in accordance with regulation 13(13).

SECTION II

GENERAL DUE DILIGENCE REQUIREMENTS

A.

An account is treated as a Reportable Account beginning as of the date it is

identified as such pursuant to the due diligence procedures in Sections II through VII

and, unless otherwise provided, information with respect to a Reportable Account

must be reported annually in the calendar year following the year to which the

information relates.

B.

The balance or value of an account is determined as of the last day of the

calendar year or other appropriate reporting period.

C.

Where a balance or value threshold is to be determined as of the last day of a

calendar year, the relevant balance or value must be determined as of the last day of

the reporting period that ends with or within that calendar year.

D.

Reporting Malta Financial Institutions may use service providers to fulfil

their reporting and due diligence obligations imposed on such Reporting Malta

Financial Institutions, as contemplated in these Regulations, but these obligations

shall remain the responsibility of the Reporting Malta Financial Institutions.

E.

Reporting Malta Financial Institutions may apply the due diligence

procedures for New Accounts to Pre-existing Accounts, and the due diligence

procedures for High Value Accounts to Lower Value Accounts. Where a Reporting

Malta Financial Institution opts to apply the due diligence procedures to New

Accounts to be used for Pre-existing Accounts, the rules otherwise applicable to Pre-

existing Accounts continue to apply.

SECTION III

DUE DILIGENCE FOR PRE-EXISTING INDIVIDUAL ACCOUNTS

A.

Introduction. The following procedures apply for purposes of identifying

Reportable Accounts among Pre-existing Individual Accounts.

B.

Lower Value Accounts. The following procedures apply with respect to

Lower Value Accounts.

1. Residence Address. If the Reporting Malta Financial Institution has in its

records a current residence address for the individual Account Holder based on

Documentary Evidence, the Reporting Malta Financial Institution may treat the

individual Account Holder as being a resident for tax purposes of the Member State

or other jurisdiction in which the address is located for purposes of determining

whether such individual Account Holder is a Reportable Person.

2. Electronic Record Search. If the Reporting Malta Financial Institution does

not rely on a current residence address for the individual Account Holder based on

Documentary Evidence as set forth in subparagraph B(1), the Reporting Malta

Financial Institution must review electronically searchable data maintained by the

Reporting Malta Financial Institution for any of the following indicia and apply sub-

paragraphs B(3) to (6)

(a) identification of the Account Holder as a resident of a Member State;

(b) current mailing or residence address (including a post office box) in a

Member State;

(c) one or more telephone numbers in a Member State and no telephone

number in the Member State of the Reporting Malta Financial

Institution;

(d) standing instructions (other than with respect to a Depository Account)

to transfer funds to an account maintained in a Member State;

(e) currently effective power of attorney or signatory authority granted to a

person with an address in a Member State; or

(f)

a "hold mail" instruction or "in-care-of" address in a Member State if

the Reporting Malta Financial Institution does not have any other

address on file for the Account Holder.

3. If none of the indicia listed in subparagraph B(2) are discovered in the

electronic search, then no further action is required until there is a change in

circumstances that results in one or more indicia being associated with the account,

or the account becomes a High Value Account.

4. If any of the indicia listed in sub-paragraph B(2)(a) through (e) are

discovered in the electronic search, or if there is a change in circumstances that

results in one or more indicia being associated with the account, then the Reporting

Malta Financial Institution must treat the Account Holder as a resident for tax

purposes of each Member State for which an indicium is identified, unless it elects to

apply sub-paragraph B(6) and one of the exceptions in that sub-paragraph applies

with respect to that account.

5. If a "hold mail" instruction or "in-care-of" address is discovered in the

electronic search and no other address and none of the other indicia listed in sub-

paragraph B(2)(a) through (e) are identified for the Account Holder, the Reporting

Malta Financial Institution must, in the order most appropriate to the circumstances,

apply the paper record search described in sub-paragraph C(2), or seek to obtain

from the Account Holder a self-certification or Documentary Evidence to establish

the residence(s) for tax purposes of such Account Holder. If the paper search fails to

establish an indicium and the attempt to obtain the self-certification or Documentary

Evidence is not successful, the Reporting Malta Financial Institution must report the

account to the competent authority of Malta as an undocumented account.

6. Notwithstanding a finding of indicia under sub-paragraph B(2), a Reporting

Malta Financial Institution is not required to treat an Account Holder as a resident of

a Member State if

(a) the Account Holder information contains a current mailing or residence

address in that Member State, one or more telephone numbers in that

Member State (and no telephone number in the Member State of the

Reporting Malta Financial Institution) or standing instructions (with

respect to Financial Accounts other than Depository Accounts) to

transfer funds to an account maintained in a Member State, and the

Reporting Malta Financial Institution obtains, or has previously

reviewed and maintains, a record of

(i)

a self-certification from the Account Holder of the Member

State(s) or other jurisdiction(s) of residence of such Account

Holder that does not include that Member State; and

(ii) Documentary Evidence establishing the Account Holder's non-

reportable status;

(b) the Account Holder information contains a currently effective power of

attorney or signatory authority granted to a person with an address in

that Member State, and the Reporting Malta Financial Institution

obtains, or has previously reviewed and maintains, a record of

(i)

a self-certification from the Account Holder of the Member

State(s) or other jurisdiction(s) of residence of such Account

Holder that does not include that Member State; or

(ii) Documentary Evidence establishing the Account Holder's non-

reportable status.

C.

Enhanced Review Procedures for High Value Accounts. The following

enhanced review procedures apply with respect to High Value Accounts.

1. Electronic Record search. With respect to High Value Accounts, the

Reporting Malta Financial Institution must review electronically searchable data

maintained by the Reporting Malta Financial Institution for any of the indicia

described in sub-paragraph B(2).

2. Paper Record Search. If the Reporting Malta Financial Institution's

electronically searchable databases include fields for, and capture all of the

information described in, sub-paragraph C(3), then a further paper record search is

not required. If the electronic databases do not capture all of this information, then

with respect to a High Value Account, the Reporting Malta Financial Institution must

also review the current customer master file and, to the extent not contained in the

current customer master file, the following documents associated with the account

and obtained by the Reporting Malta Financial Institution within the last five years

for any of the indicia described in sub-paragraph B(2)

(a) the most recent Documentary Evidence collected with respect to the

account;

(b) the most recent account opening contract or documentation;

(c) the most recent documentation obtained by the Reporting Malta

Financial Institution pursuant to AML/KYC Procedures or for other

regulatory purposes;

(d) any power of attorney or signature authority forms currently in effect;

and

(e) any standing instructions (other than with respect to a Depository

Account) to transfer funds currently in effect.

3. Exception To The Extent Databases Contain Sufficient Information. A

Reporting Malta Financial Institution is not required to perform the paper record

search described in sub-paragraph C(2) to the extent the Reporting Malta Financial

Institution’s electronically searchable information includes the following

(a) the Account Holder's residence status;

(b) the Account Holder's residence address and mailing address currently

on file with the Reporting Malta Financial Institution;

(c) the Account Holder’s telephone number(s) currently on file, if any, with

the Reporting Malta Financial Institution;

(d) in the case of Financial Accounts other than Depository Accounts,

whether there are standing instructions to transfer funds in the account

to another account (including an account at another branch of the

Reporting Malta Financial Institution or another Malta Financial

Institution);

(e) whether there is a current "in-care-of" address or "hold mail" instruction

for the Account Holder; and

(f)

whether there is any power of attorney or signatory authority for the

account.

4. Relationship Manager Inquiry for Actual Knowledge. In addition to the

electronic and paper record searches described in sub-paragraphs C(1) and (2), the

Reporting Malta Financial Institution must treat as a Reportable Account any High

Value Account assigned to a relationship manager (including any Financial Accounts

aggregated with that High Value Account) if the relationship manager has actual

knowledge that the Account Holder is a Reportable Person.

5. Effect of Finding Indicia.

(a) If none of the indicia listed in sub-paragraph B(2) are discovered in the

enhanced review of High Value Accounts described in paragraph C, and

the account is not identified as held by a Reportable Person in sub-

paragraph C(4), then further action is not required until there is a

change in circumstances that results in one or more indicia being

associated with the account.

(b) If any of the indicia listed in sub-paragraphs B(2)(a) through (e) are

discovered in the enhanced review of High Value Accounts described in

paragraph C, or if there is a subsequent change in circumstances that

results in one or more indicia being associated with the account, then

the Reporting Malta Financial Institution must treat the account as a

Reportable Account with respect to each Member State for which an

indicium is identified unless it elects to apply sub-paragraph B(6) and

one of the exceptions in that sub-paragraph applies with respect to that

account.

(c) If a "hold mail" instruction or "in-care-of" address is discovered in the

enhanced review of High Value Accounts described in paragraph C, and

no other address and none of the other indicia listed in subparagraphs

B(2)(a) through (e) are identified for the Account Holder, the Reporting

Malta Financial Institution must obtain from such Account Holder a

self-certification or Documentary Evidence to establish the residence(s)

for tax purposes of the Account Holder. If the Reporting Malta

Financial Institution cannot obtain such self-certification or

Documentary Evidence, it must report the account to the competent

authority of Malta as an undocumented account.

6. If a Pre-existing Individual Account is not a High Value Account as of 31

December 2015, but becomes a High Value Account as of the last day of a

subsequent calendar year, the Reporting Malta Financial Institution must complete

the enhanced review procedures described in paragraph C with respect to such

account within the calendar year following the year in which the account becomes a

High Value Account. If based on this review such account is identified as a

Reportable Account, the Reporting Malta Financial Institution must report the

required information about such account with respect to the year in which it is

identified as a Reportable Account and subsequent years on an annual basis, unless

the Account Holder ceases to be a Reportable Person.

7. Once a Reporting Malta Financial Institution applies the enhanced review

procedures described in paragraph C to a High Value Account, the Reporting Malta

Financial Institution is not required to reapply such procedures, other than the

relationship manager inquiry described in sub-paragraph C(4), to the same High

Value Account in any subsequent year unless the account is undocumented where the

Reporting Malta Financial Institution should reapply them annually until such

account ceases to be undocumented.

8. If there is a change of circumstances with respect to a High Value Account

that results in one or more indicia described in sub-paragraph B(2) being associated

with the account, then the Reporting Malta Financial Institution must treat the

account as a Reportable Account with respect to each Member State for which an

indicium is identified unless it elects to apply subparagraph B(6) and one of the

exceptions in that sub-paragraph applies with respect to that account.

9. A Reporting Malta Financial Institution must implement procedures to

ensure that a relationship manager identifies any change in circumstances of an

account. For example, if a relationship manager is notified that the Account Holder

has a new mailing address in a Member State, the Reporting Malta Financial

Institution is required to treat the new address as a change in circumstances and, if it

elects to apply sub-paragraph B(6), is required to obtain the appropriate

documentation from the Account Holder.

D.

Review of Pre-existing High Value Individual Accounts must be completed

by 31 December 2016. Review of Pre-existing Lower Value Individual Accounts

must be completed by 31 December 2017.

E.

Any Pre-existing Individual Account that has been identified as a

Reportable Account under this Section must be treated as a Reportable Account in

all subsequent years, unless the Account Holder ceases to be a Reportable Person.

SECTION IV

DUE DILIGENCE FOR NEW INDIVIDUAL ACCOUNTS

The following procedures apply for purposes of identifying Reportable Accounts

among New Individual Accounts.

A.

With respect to New Individual Accounts, upon account opening, the

Reporting Malta Financial Institution must obtain a self-certification, which may be

part of the account opening documentation, that allows the Reporting Malta

Financial Institution to determine the Account Holder’s residence(s) for tax purposes

and confirm the reasonableness of such self-certification based on the information

obtained by the Reporting Malta Financial Institution in connection with the opening

of the account, including any documentation collected pursuant to AML/KYC

Procedures.

B.

If the self-certification establishes that the Account Holder is resident for

tax purposes in a Member State, the Reporting Malta Financial Institution must treat

the account as a Reportable Account and the self-certification must also include the

Account Holder’s TIN with respect to such Member State (subject to paragraph D of

Section I) and date of birth.

C.

If there is a change of circumstances with respect to a New Individual

Account that causes the Reporting Malta Financial Institution to know, or have

reason to know, that the original self-certification is incorrect or unreliable, the

Reporting Malta Financial Institution cannot rely on the original self-certification

and must obtain a valid self-certification that establishes the residence(s) for tax

purposes of the Account Holder.

SECTION V

DUE DILIGENCE FOR PRE-EXISTING ENTITY ACCOUNTS

The following procedures apply for purposes of identifying Reportable Accounts

among Pre-existing Entity Accounts.

A.

Entity Accounts Not Required to Be Reviewed, Identified or Reported.

Unless the Reporting Malta Financial Institution elects otherwise, either with respect

to all Pre-existing Entity Accounts or, separately, with respect to any clearly

identified group of such accounts, a Pre-existing Entity Account with an aggregate

account balance or value that does not exceed, as of 31 December 2015, an amount

denominated in Euro that corresponds to USD 250 000, is not required to be

reviewed, identified, or reported as a Reportable Account until the aggregate account

balance or value exceeds that amount as of the last day of any subsequent calendar

Entity Accounts Subject to Review. A Pre-existing Entity Account that has

an aggregate account balance or value that exceeds, as of 31 December 2015, an

amount denominated in Euro that corresponds to USD 250 000, and a Pre-existing

Entity Account that does not exceed, as of 31 December 2015, that amount but the

aggregate account balance or value of which exceeds such amount as of the last day

of any subsequent calendar year, must be reviewed in accordance with the

procedures set forth in paragraph D.

Entity Accounts With Respect to Which Reporting Is Required. With respect

to Pre-existing Entity Accounts described in paragraph B, only accounts that are held

by one or more Entities that are Reportable Persons, or by Passive NFEs with one or

more Controlling Persons who are Reportable Persons, shall be treated as Reportable

Review Procedures for Identifying Entity Accounts With Respect to Which

Reporting Is Required. For Pre-existing Entity Accounts described in paragraph B, a

Reporting Malta Financial Institution must apply the following review procedures to

determine whether the account is held by one or more Reportable Persons, or by

Passive NFEs with one or more Controlling Persons who are Reportable Persons

1. Determine Whether the Entity Is a Reportable Person.

(a) Review information maintained for regulatory or customer

relationship purposes (including information collected pursuant

to AML/KYC Procedures) to determine whether the information

indicates that the Account Holder is resident in a Member State.

For this purpose, information indicating that the Account Holder

is resident in a Member State includes a place of incorporation or

organisation, or an address in a Member State.

(b) If the information indicates that the Account Holder is resident in

a Member State, the Reporting Malta Financial Institution must

treat the account as a Reportable Account unless it obtains a self-

certification from the Account Holder, or reasonably determines

based on information in its possession or that is publicly

available, that the Account Holder is not a Reportable Person.

2. Determine Whether the Entity is a Passive NFE with One or More

Controlling Persons who are Reportable Persons. With respect to an

Account Holder of a Pre-existing Entity Account (including an Entity

that is a Reportable Person), the Reporting Malta Financial Institution

must determine whether the Account Holder is a Passive NFE with one

or more Controlling Persons who are Reportable Persons. If any of the

Controlling Persons of a Passive NFE is a Reportable Person, then the

account must be treated as a Reportable Account. In making these

determinations the Reporting Malta Financial Institution must follow

the guidance in sub-paragraphs D(2)(a) through (c) in the order most

appropriate under the circumstances.

(a) Determining whether the Account Holder is a Passive NFE. For

purposes of determining whether the Account Holder is a Passive

NFE, the Reporting Malta Financial Institution must obtain a self-

certification from the Account Holder to establish its status,

unless it has information in its possession or that is publicly

available, based on which it can reasonably determine that the

Account Holder is an Active NFE or a Financial Institution other

than an Investment Entity described in sub-paragraph A(6)(b) of

Section VIII that is not a Participating Jurisdiction Financial

Institution.

(b) Determining the Controlling Persons of an Account Holder. For

the purposes of determining the Controlling Persons of an

Account Holder, a Reporting Malta Financial Institution may rely

on information collected and maintained pursuant to AML/KYC

Procedures.

(c) Determining whether a Controlling Person of a Passive NFE is a

Reportable Person. For the purposes of determining whether a

Controlling Person of a Passive NFE is a Reportable Person, a

Reporting Malta Financial Institution may rely on

(i)

information collected and maintained pursuant to AML/

KYC Procedures in the case of a Pre-existing Entity

Account held by one or more NFEs with an aggregate

account balance or value that does not exceed an amount

denominated in Euro that corresponds to USD 1 000 000; or

(ii) a self-certification from the Account Holder or such

Controlling Person of the Member State(s) or other

jurisdiction(s) in which the controlling person is resident

for tax purposes.

Timing of Review and Additional Procedures Applicable to Pre-existing

Entity Accounts

1. Review of Pre-existing Entity Accounts with an aggregate account

balance or value that exceeds, as of 31 December 2015, an amount

denominated in Euro that corresponds to USD 250 000, must be

completed by 31 December 2017.

2. Review of Pre-existing Entity Accounts with an aggregate account

balance or value that does not exceed, as of 31 December 2015, an

amount denominated in Euro that corresponds to USD 250 000 but

exceeds that amount as of 31 December of a subsequent year, must be

completed within the calendar year following the year in which the

aggregate account balance or value exceeds such amount.

3. If there is a change of circumstances with respect to a Pre-existing

Entity Account that causes the Reporting Malta Financial Institution to

know, or have reason to know, that the self-certification or other

documentation associated with an account is incorrect or unreliable, the

Reporting Malta Financial Institution must re-determine the status of

the account in accordance with the procedures set forth in paragraph D.

SECTION VI

DUE DILIGENCE FOR NEW ENTITY ACCOUNTS

The following procedures apply for purposes of identifying Reportable Accounts

among New Entity Accounts.

Review Procedures for Identifying Entity Accounts With Respect to Which

Reporting Is Required. For New Entity Accounts, a Reporting Malta Financial

Institution must apply the following review procedures to determine whether the

account is held by one or more Reportable Persons, or by Passive NFEs with one or

more Controlling Persons who are Reportable Persons

1. Determine Whether the Entity Is a Reportable Person.

(a) Obtain a self-certification, which may be part of the account opening

documentation, that allows the Reporting Malta Financial Institution to

determine the Account Holder’s residence(s) for tax purposes and

confirm the reasonableness of such self-certification based on the

information obtained by the Reporting Malta Financial Institution in

connection with the opening of the account, including any

documentation collected pursuant to AML/KYC Procedures. If the

Entity certifies that it has no residence for tax purposes, the Reporting

Malta Financial Institution may rely on the address of the principal

office of the Entity to determine the residence of the Account Holder.

(b) If the self-certification indicates that the Account Holder is resident in a

Member State, the Reporting Malta Financial Institution must treat the

account as a Reportable Account, unless it reasonably determines based

on information in its possession or that is publicly available that the

Account Holder is not a Reportable Person with respect to such Member

State.

2. Determine Whether the Entity is a Passive NFE with One or More

Controlling Persons Who Are Reportable Persons. With respect to an Account

Holder of a New Entity Account (including an Entity that is a Reportable Person),

the Reporting Malta Financial Institution must determine whether the Account

Holder is a Passive NFE with one or more Controlling Persons who are Reportable

Persons. If any of the Controlling Persons of a Passive NFE is a Reportable Person,

then the account must be treated as a Reportable Account. In making these

determinations the Reporting Malta Financial Institution must follow the guidance in

sub-paragraphs A(2)(a) through (c) in the order most appropriate under the

circumstances.

(a) Determining whether the Account Holder is a Passive NFE. For

purposes of determining whether the Account Holder is a Passive NFE,

the Reporting Malta Financial Institution must rely on a self-

certification from the Account Holder to establish its status, unless it

has information in its possession or that is publicly available, based on

which it can reasonably determine that the Account Holder is an Active

NFE or a Financial Institution other than an Investment Entity described

in sub-paragraph A(6)(b) of Section VIII that is not a Participating

Jurisdiction Financial Institution.

(b)

Determining the Controlling Persons of an Account Holder.

For the purposes of determining the Controlling Persons of an Account

Holder, a Reporting Malta Financial Institution may rely on information

collected and maintained pursuant to AML/KYC Procedures, provided

that such procedures are consistent with the procedures established in

the Prevention of Money Laundering and Funding of Terrorism

Regulations and any binding procedures and guidance issued by virtue

of regulation 17 of the said regulations. If the Reporting Malta Financial

Institution is not legally required to apply AML/KYC Procedures that

are consistent with those outlined in the Prevention of Money

Laundering and Funding of Terrorism Regulations, it shall apply

substantially similar procedures for the purpose of determining the

Controlling Persons.

(c) Determining whether a Controlling Person of a Passive NFE is a

Reportable Person. For purposes of determining whether a controlling

person of a Passive NFE is a Reportable Person, a Reporting Malta

Financial Institution may rely on a self-certification from the Account

Holder or such Controlling Person.

SECTION VII

SPECIAL DUE DILIGENCE RULES

The following additional rules apply in implem enting the due diligence

procedures described above

A.

Reliance on Self-Certifications and Documentary Evidence. A Reporting

Malta Financial Institution may not rely on a self- certification or Documentary

Evidence if the Reporting Malta Financial Institution knows or has reason to know

that the self-certification or Documentary Evidence is incorrect or unreliable.

B.

Alternative Procedures for Financial Accounts held by Individual

Beneficiaries of a Cash Value Insurance Contract or an Annuity Contract and for a

Group Cash Value Insurance Contract or Group Annuity Contract. A Reporting

Malta Financial Institution may presume that an individual beneficiary (other than

the owner) of a Cash Value Insurance Contract or an Annuity Contract receiving a

death benefit is not a Reportable Person and may treat such Financial Account as

other than a Reportable Account unless the Reporting Malta Financial Institution has

actual knowledge, or reason to know, that the beneficiary is a Reportable Person. A

Reporting Malta Financial Institution has reason to know that a beneficiary of a Cash

Value Insurance Contract or an Annuity Contract is a Reportable Person if the

information collected by the Reporting Malta Financial Institution and associated

with the beneficiary contains indicia as described in paragraph B of Section III. If a

Reporting Malta Financial Institution has actual knowledge, or reason to know, that

the beneficiary is a Reportable Person, the Reporting Malta Financial Institution

must follow the procedures in paragraph B of Section III.

A Reporting Malta Financial Institution may treat a Financial Account that is a

member’s interest in a Group Cash Value Insurance Contract or Group Annuity

Contract as a Financial Account that is not a Reportable Account until the date on

which an amount is payable to the employee/certificate holder or beneficiary, if the

Financial Account that is a member's interest in a Group Cash Value Insurance

Contract or Group Annuity Contract meets the following requirements

(i)

the Group Cash Value Insurance Contract or Group Annuity Contract is

issued to an employer and covers 25 or more employees/certificate

holders;

(ii) the employee/certificate holders are entitled to receive any contract

value related to their interests and to name beneficiaries for the benefit

payable upon the employee's death; and

(iii) the aggregate amount payable to any employee/certificate holder or

beneficiary does not exceed an amount denominated in Euro that

corresponds to USD 1 000 000.

The term "Group Cash Value Insurance Contract" means a Cash Value Insurance

Contract that (i) provides coverage on individuals who are affiliated through an

employer, trade association, labour union, or other association or group; and (ii)

charges a premium for each member of the group (or member of a class within the

group) that is determined without regard to the individual health characteristics other

than age, gender, and smoking habits of the member (or class of members) of the

group.

The term "Group Annuity Contract" means an Annuity Contract under which the

obligees are individuals who are affiliated through an employer, trade association,

labour union, or other association or group.

C.

Account Balance Aggregation and Currency Rules

1. Aggregation of Individual Accounts. For purposes of determining the

aggregate balance or value of Financial Accounts held by an individual, a Reporting

Malta Financial Institution is required to aggregate all Financial Accounts

maintained by the Reporting Malta Financial Institution, or by a Related Entity, but

only to the extent that the Reporting Malta Financial Institution's computerised

systems link the Financial Accounts by reference to a data element such as client

number or TIN, and allow account balances or values to be aggregated. Each holder

of a jointly held Financial Account shall be attributed the entire balance or value of

the jointly held Financial Account for purposes of applying the aggregation

requirements described in this sub-paragraph.

2. Aggregation of Entity Accounts. For purposes of determining the aggregate

balance or value of Financial Accounts held by an Entity, a Reporting Malta

Financial Institution is required to take into account all Financial Accounts that are

maintained by the Reporting Malta Financial Institution, or by a Related Entity, but

only to the extent that the Reporting Malta Financial Institution’s computerised

systems link the Financial Accounts by reference to a data element such as client

number or TIN, and allow account balances or values to be aggregated. Each holder

of a jointly held Financial Account shall be attributed the entire balance or value of

the jointly held Financial Account for purposes of applying the aggregation

requirements described in this sub-paragraph.

3. Special Aggregation Rule Applicable to Relationship Managers. For

purposes of determining the aggregate balance or value of Financial Accounts held

by a person to determine whether a financial account is a High Value Account, a

Reporting Malta Financial Institution is also required, in the case of any Financial

Accounts that a relationship manager knows, or has reason to know, are directly or

indirectly owned, controlled, or established (other than in a fiduciary capacity) by

the same person, to aggregate all such accounts.

4. Amounts Read to Include Equivalent in Other Currencies. All amounts

denominated in the domestic currency of each Member State shall be read to include

equivalent amounts in other currencies, as determined by domestic law.

D.

Temporary lack of self-certification.

In exceptional circumstances where a self-certification cannot be obtained by a

Reporting Malta Financial Institution in respect of a New Account in time to meet its due

diligence and reporting obligations with respect to the reporting period during which the

account was opened, the Reporting Malta Financial Institution shall apply the due

diligence procedures for Pre-existing Accounts, until such self-certification is obtained

and validated.

SECTION VIII

DEFINED TERMS

The following terms have the meanings set forth below

A.

Reporting Malta Financial Institution

1. The term "Reporting Malta Financial Institution" means any Malta Financial

Institution that is not a Non-Reporting Malta Financial Institution.

2. The term "Malta Financial Institution" means

(i)

any Financial Institution that is resident in Malta, but excludes any

branch of that Financial Institution that is located outside Malta; and

(ii) any branch of a Financial Institution that is not resident in Malta, if such

branch is located in Malta.

3. The term "Participating Jurisdiction Financial Institution" means

(i)

any Financial Institution that is resident in a Participating Jurisdiction,

but excludes any branch of that Financial Institution that is located

outside such Participating Jurisdiction; and

(ii) any branch of a Financial Institution that is not resident in a

Participating Jurisdiction, if such branch is located in such Participating

Jurisdiction.

4. The term "Financial Institution" means a Custodial Institution, a Depository

Institution, an Investment Entity, or a Specified Insurance Company.

5. The term "Custodial Institution" means any Entity that holds, as a substantial

portion of its business, Financial Assets for the account of others. An Entity holds

Financial Assets for the account of others as a substantial portion of its business if

the Entity’s gross income attributable to the holding of Financial Assets and related

financial services equals or exceeds twenty percent (20%) of the Entity’s gross

income during the shorter of

(i)

the three (3) year period that ends on 31 December, or the final day of a

non-calendar year accounting period, prior to the year in which the

determination is being made; or

(ii) the period during which the Entity has been in existence.

6. The term "Depository Institution" means any Entity which

(a) accepts deposits in the ordinary course of a banking or similar business;

or

(b) holds Electronic Money or Central Bank Digital Currencies for the

benefit of customers.

7. The term "Investment Entity" means any Entity

(a) which primarily conducts as a business one (1) or more of the following

activities or operations for, or on behalf of a customer

(i)

trading in money market instruments, including cheques, bills,

certificates of deposit, derivatives; foreign exchange; exchange,

interest rate and index instruments; transferable securities; or

commodity futures trading;

(ii) individual and collective portfolio management; or

(iii) otherwise investing, administering, or managing Financial Assets,

money, or Reportable Crypto-Assets on behalf of other persons;

or

(b) the gross income of which is primarily attributable to investing,

reinvesting, or trading in Financial Assets or Reportable Crypto-Assets,

if the Entity is managed by another Entity that is a Depository

Institution, a Custodial Institution, a Specified Insurance Company, or

an Investment Entity as described in sub-paragraph A(6)(a).

An Entity is treated as primarily conducting as a business one (1) or

more of the activities described in sub-paragraph A(6)(a), or an Entity’s

gross income is primarily attributable to investing, reinvesting, or

trading in Financial Assets or Reportable Crypto-Assets for the

purposes of sub-paragraph A(6)(b), if the Entity’s gross income

attributable to the relevant activities equals or exceeds fifty percent

(50%) of the Entity’s gross income during the shorter of

(i)

the three (3) year period ending on 31 December of the year

preceding the year in which the determination is made; or

(ii) the period during which the Entity has been in existence. For the

purposes of sub-paragraph A(6)(a)(iii), the term "otherwise

investing, administering, or managing Financial Assets, money,

or Reportable Crypto-Assets on behalf of other persons" does not

include the provision of services effectuating Exchange

Transactions for or on behalf of customers. The term "Investment

Entity" does not include an Entity that is an Active NFE because

that Entity meets any of the criteria referred to in sub-paragraph

D(8)(d) to (g).

This sub-paragraph shall be interpreted in a manner consistent with

similar language established in the definition of "financial

institution" in Directive (EU) 2015/849 of the European

Parliament and of the Council of 20 May 2015 on the prevention

of the use of the financial system for the purposes of money

laundering or terrorist financing, amending Regulation (EU) No

648/2012 of the European Parliament and of the Council, and

repealing Directive 2005/60/EC of the European Parliament and

of the Council and Commission Directive 2006/70/EC.

8. The term "Financial Asset" includes a security, including a share of stock in

a corporation; partnership or beneficial ownership interest in a widely held or

publicly traded partnership or trust; note, bond, debenture, or other evidence of

indebtedness, partnership interest, commodity, swap, including interest rate swaps,

currency swaps, basis swaps, interest rate caps, interest rate floors, commodity

swaps, equity swaps, equity index swaps, and similar agreements, Insurance

Contract or Annuity Contract, or any interest, including a futures or forward contract

or option in a security, Reportable Crypto-Asset, partnership interest, commodity,

swap, Insurance Contract, or Annuity Contract. The term "Financial Asset" does not

include a non-debt, direct interest in immovable property.

9. The term "Specified Insurance Company" means any Entity that is an

insurance company, or the holding company of an insurance company, which issues,

or is obligated to make payments with respect to, a Cash Value Insurance Contract or

an Annuity Contract.

10. For the purposes of this Annex, the term "Electronic Money" means any

(a) a digital representation of a single Fiat Currency;

(b) issued on the receipt of funds for the purpose of making payment

transactions;

(c) represented by a claim on the issuer denominated in the same Fiat

Currency;

(d) accepted in payment by a natural or legal person other than the issuer;

and

(e) by virtue of regulatory requirements to which the issuer is subject,

redeemable at any time and at par value for the same Fiat Currency upon

request of the holder of the product.

The term "Electronic Money" does not include a product created for the

sole purpose of facilitating the transfer of funds from a customer to

another person pursuant to instructions of the customer. A product is not

created for the sole purpose of facilitating the transfer of funds if, in the

ordinary course of business of the transferring Entity, either the funds

connected with such product are held longer than sixty (60) days after

receipt of instructions to facilitate the transfer or, if no instructions are

received, the funds connected with such product are held longer than

sixty (60) days after receipt of the funds.

11. The term "Fiat Currency" means the official currency of a jurisdiction, issued

by a jurisdiction or by a jurisdiction’s designated Central Bank or monetary

authority, as represented by physical banknotes or coins or by money in different

digital forms, including bank reserves and Central Bank Digital Currencies. The

term also includes commercial bank money and electronic money products

(Electronic Money).

12. The term "Central Bank Digital Currency" means any digital Fiat Currency

issued by a Central Bank or other monetary authority.

13. The term "Crypto-Asset" shall have the same meaning as assigned to it in

Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament

and of the Council of 31 May 2023 on markets in crypto-assets, and amending

Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU

and (EU) 2019/1937.

14. The term "Reportable Crypto-Asset" means any Crypto-Asset other than a

Central Bank Digital Currency, Electronic Money, or any Crypto-Asset for which the

Reporting Crypto-Asset Service Provider has adequately determined that it cannot

be used for payment or investment purposes.

15. The term "Exchange Transaction" means any

(a) exchange between Reportable Crypto-Assets and Fiat Currencies; and

(b) exchange between one (1) or more forms of Reportable Crypto-Assets.

Non-Reporting Malta Financial Institution

1. The term "Non-Reporting Malta Financial Institution" means any Financial

Institution which is

(a) a Governmental Entity, International Organisation or Central Bank, other

than

(i)

with respect to a payment that is derived from an obligation held

in connection with a commercial financial activity of a type

engaged by a Specified Insurance Company, Custodial Institution,

or Depository Institution; or

(ii) with respect to the activity of maintaining Central Bank Digital

Currencies for Account Holders which are not Financial

Institutions, Governmental Entities, International Organisations

or Central Banks;

(b) a Broad Participation Retirement Fund; a Narrow Participation

Retirement Fund; a Pension Fund of a Governmental Entity,

International Organisation or Central Bank; or a Qualified Credit Card

Issuer;

(c) any other Entity that presents a low risk of being used to evade tax, has

substantially similar characteristics to any of the Entities described in

sub-paragraphs B(1)(a) and (b), and is included in the list of Non-

Reporting Malta Financial Institutions referred to in Article 8(7a) of the

EU Administrative Cooperation Directive, provided that the status of

such Entity as a Non-Reporting Malta Financial Institution does not

frustrate the purposes of the EU Administrative Cooperation Directive;

(d) an Exempt Collective Investment Vehicle; or

(e) a trust to the extent that the trustee of the trust is a Reporting Malta

Financial Institution and reports all information required to be reported

pursuant to Section I with respect to all Reportable Accounts of the

trust.

2. The term "Governmental Entity" means the government of a Member State

or other jurisdiction, any political subdivision of a Member State or other

jurisdiction (which, for the avoidance of doubt, includes a state, province, county, or

municipality), or any wholly owned agency or instrumentality of a Member State or

other jurisdiction or of any one or more of the foregoing (each, a "Governmental

Entity"). This category is comprised of the integral parts, controlled entities, and

political subdivisions of a Member State or other jurisdiction.

(a) An "integral part" of a Member State or other jurisdiction means any

person, organisation, agency, bureau, fund, instrumentality, or other

body, however designated, that constitutes a governing authority of a

Member State or other jurisdiction. The net earnings of the governing

authority must be credited to its own account or to other accounts of the

Member State or other jurisdiction, with no portion inuring to the

benefit of any private person. An integral part does not include any

individual who is a sovereign, official, or administrator acting in a

private or personal capacity.

(b) A "controlled entity" means an Entity which is separate in form from

the Member State or other jurisdiction or which otherwise constitutes a

separate juridical entity, provided that

(i)

the Entity is wholly owned and controlled by one or more

Governmental Entities directly or through one or more controlled

entities;

(ii) the Entity’s net earnings are credited to its own account or to the

accounts of one or more Governmental Entities, with no portion

of its income inuring to the benefit of any private person; and

(iii) the Entity’s assets vest in one or more Governmental Entities

upon dissolution.

(c) Income does not inure to the benefit of private persons if such persons

are the intended beneficiaries of a governmental programme, and the

programme activities are performed for the general public with respect

to the common welfare or relate to the administration of some phase of

government. Notwithstanding the foregoing, however, income is

considered to inure to the benefit of private persons if the income is

derived from the use of a Governmental Entity to conduct a commercial

business, such as a commercial banking business, that provides

financial services to private persons.

3. The term "International Organisation" means any international organisation

or wholly owned agency or instrumentality thereof. This category includes any

intergovernmental organisation (including a supranational organisation) (i) that is

comprised primarily of governments; (ii) that has in effect a headquarters or

substantially similar agreement with the Member State; and (iii) the income of which

does not inure to the benefit of private persons.

4. The term "Central Bank" means an institution that is by law or government

sanction the principal authority, other than the government of the Member State

itself, issuing instruments intended to circulate as currency. Such an institution may

include an instrumentality that is separate from the government of the Member State,

whether or not owned in whole or in part by the Member State.

5. The term "Broad Participation Retirement Fund" means a fund established to

provide retirement, disability, or death benefits, or any combination thereof, to

beneficiaries who are current or former employees (or persons designated by such

employees) of one or more employers in consideration for services rendered,

provided that the fund

(a) does not have a single beneficiary with a right to more than 5% of the

fund’s assets;

(b) is subject to government regulation and provides information reporting

to the tax authorities; and

(c) satisfies at least one of the following requirements

(i)

the fund is generally exempt from tax on investment income, or

taxation of such income is deferred or taxed at a reduced rate, due

to its status as a retirement or pension plan;

(ii) the fund receives at least 50% of its total contributions (other than

transfers of assets from other plans described in sub-paragraphs

B(5) through (7) or from retirement and pension accounts

described in sub-paragraph C(17)(a)) from the sponsoring

employers;

(iii) distributions or withdrawals from the fund are allowed only upon

the occurrence of specified events related to retirement, disability,

or death (except roll-over distributions to other retirement funds

described in sub-paragraphs B(5) through (7) or retirement and

pension accounts described in sub-paragraph C(17)(a)), or

penalties apply to distributions or withdrawals made before such

specified events; or

(iv) contributions

(other

than

certain

permitted

make-up

contributions) by employees to the fund are limited by reference

to earned income of the employee or may not exceed, annually, an

amount denominated in Euro that corresponds to USD 50 000,

applying the rules set forth in paragraph C of Section VII for

account aggregation and currency translation.

6. The term "Narrow Participation Retirement Fund" means a fund established

to provide retirement, disability, or death benefits to beneficiaries who are current or

former employees (or persons designated by such employees) of one or more

employers in consideration for services rendered, provided that

(a) the fund has fewer than 50 participants;

(b) the fund is sponsored by one or more employers that are not Investment

Entities or Passive NFEs;

(c) the employee and employer contributions to the fund (other than

transfers of assets from retirement and pension accounts described in

sub-paragraph C(17)(a)) are limited by reference to earned income and

compensation of the employee, respectively;

(d) participants that are not residents of the Member State in which the fund

is established are not entitled to more than 20% of the fund's assets; and

(e) the fund is subject to government regulation and provides information

reporting to the tax authorities.

7. The term "Pension Fund of a Governmental Entity, International

Organisation or Central Bank" means a fund established by a Governmental Entity,

International Organisation or Central Bank to provide retirement, disability, or death

benefits to beneficiaries or participants who are current or former employees (or

persons designated by such employees), or who are not current or former employees,

if the benefits provided to such beneficiaries or participants are in consideration of

personal services performed for the Governmental Entity, International Organisation

or Central Bank.

8. The term "Qualified Credit Card Issuer" means a Financial Institution

satisfying the following requirements

(a) the Financial Institution is a Financial Institution solely because it is an

issuer of credit cards that accepts deposits only when a customer makes

a payment in excess of a balance due with respect to the card and the

overpayment is not immediately returned to the customer; and

(b) beginning on or before 1 January 2016, the Financial Institution

implements policies and procedures either to prevent a customer from

making an overpayment in excess of an amount denominated in Euro

that corresponds to USD 50 000, or to ensure that any customer

overpayment in excess of that amount is refunded to the customer

within 60 days, in each case applying the rules set forth in paragraph C

of Section VII for account aggregation and currency translation. For this

purpose, a customer overpayment does not refer to credit balances to the

extent of disputed charges but does include credit balances resulting

from merchandise returns.

9. The term "Exempt Collective Investment Vehicle" means an Investment

Entity that is regulated as a collective investment vehicle, provided that all of the

interests in the collective investment vehicle are held by or through individuals or

Entities that are not Reportable Persons, except a Passive NFE with Controlling

Persons who are Reportable Persons.

An Investment Entity that is regulated as a collective investment vehicle does not

fail to qualify under sub-paragraph B(9) as an Exempt Collective Investment

Vehicle, solely because the collective investment vehicle has issued physical shares

in bearer form, provided that

(a) the collective investment vehicle has not issued, and does not issue, any

physical shares in bearer form after 31 December 2015;

(b) the collective investment vehicle retires all such shares upon surrender;

(c) the collective investment vehicle performs the due diligence procedures

set forth in Sections II through VII and reports any information required

to be reported with respect to any such shares when such shares are

presented for redemption or other payment; and

(d) the collective investment vehicle has in place policies and procedures to

ensure that such shares are redeemed or immobilised as soon as

possible, and in any event prior to 1 January 2018.

Financial Account

1. The term "Financial Account" means an account maintained by a Financial

Institution, and includes a Depository Account, a Custodial Account and

(a) in the case of an Investment Entity, any equity or debt interest in the

Financial Institution. Notwithstanding the foregoing, the term

"Financial Account" does not include any equity or debt interest in an

Entity that is an Investment Entity solely because it (i) renders

investment advice to, and acts on behalf of; or (ii) manages portfolios

for, and acts on behalf of, a customer for the purpose of investing,

managing, or administering Financial Assets deposited in the name of

the customer with a Financial Institution other than such Entity;

(b) in the case of a Financial Institution not described in sub-paragraph

C(1)(a), any equity or debt interest in the Financial Institution, if the

class of interests was established with the purpose of avoiding reporting

in accordance with Section I; and

(c) any Cash Value Insurance Contract and any Annuity Contract issued or

maintained by a Financial Institution, other than a non-investment-

linked, non-transferable immediate life annuity that is issued to an

individual and monetises a pension or disability benefit provided under

an account that is an Excluded Account.

The term "Financial Account" does not include any account that is an Excluded

2. The term "Depository Account" includes any commercial, checking, savings,

time, or thrift account, or an account that is evidenced by a certificate of deposit, thrift

certificate, investment certificate, certificate of indebtedness, or other similar instrument

maintained by a Depository Institution. A Depository Account also includes

(a) an amount held by an insurance company pursuant to a guaranteed

investment contract or similar agreement to pay or credit interest

therein;

(b) an account or notional account that represents all Electronic Money held

for the benefit of a customer; and

(c) an account that holds one (1) or more Central Bank Digital Currencies for

the benefit of a customer.

3. The term "Custodial Account" means an account (other than an Insurance

Contract or Annuity Contract) which holds one or more Financial Assets for the

benefit of another person.

4. The term "Equity Interest" means, in the case of a partnership that is a

Financial Institution, either a capital or profits interest in the partnership. In the case

of a trust that is a Financial Institution, an Equity Interest is considered to be held by

any person treated as a settlor or beneficiary of all or a portion of the trust, or any

other natural person exercising ultimate effective control over the trust. A

Reportable Person will be treated as being a beneficiary of a trust if such Reportable

Person has the right to receive directly or indirectly (for example, through a

nominee) a mandatory distribution or may receive, directly or indirectly, a

discretionary distribution from the trust.

5. The term "Insurance Contract" means a contract (other than an Annuity

Contract) under which the issuer agrees to pay an amount upon the occurrence of a

specified contingency involving mortality, morbidity, accident, liability, or property

risk.

6. The term "Annuity Contract" means a contract under which the issuer agrees

to make payments for a period of time determined in whole or in part by reference to

the life expectancy of one or more individuals. The term also includes a contract that

is considered to be an Annuity Contract in accordance with the law, regulation, or

practice of the Member State or other jurisdiction in which the contract was issued,

and under which the issuer agrees to make payments for a term of years.

7. The term "Cash Value Insurance Contract" means an Insurance Contract

(other than an indemnity reinsurance contract between two insurance companies)

that has a Cash Value.

8. The term "Cash Value" means the greater of (i) the amount that the

policyholder is entitled to receive upon surrender or termination of the contract

(determined without reduction for any surrender charge or policy loan); and (ii) the

am ount the policyhol der can borrow under or wi th regard to the contract.

Notwithstanding the foregoing, the term "Cash Value" does not include an amount

payable under an Insurance Contract

(a) solely by reason of the death of an individual insured under a life

insurance contract;

(b) as a personal injury or sickness benefit or other benefit providing

indemnification of an economic loss incurred upon the occurrence of the

event insured against;

(c) as a refund of a previously paid premium (less cost of insurance charges

whether or not actually imposed) under an Insurance Contract (other

than an investment-linked life insurance or annuity contract) due to

cancellation or termination of the contract, decrease in risk exposure

during the effective period of the contract, or arising from the correction

of a posting or similar error with regard to the premium for the contract;

(d) as a policyholder dividend (other than a termination dividend) provided

that the dividend relates to an Insurance Contract under which the only

benefits payable are described in sub-paragraph C(8)(b); or

(e) as a return of an advance premium or premium deposit for an Insurance

Contract for which the premium is payable at least annually if the

amount of the advance premium or premium deposit does not exceed the

next annual premium that will be payable under the contract.

9. The term "Pre-existing Account" means

(a) a Financial Account maintained by a Reporting Financial Institution as

of 31 December 2015 or, if the account is treated as a Financial Account

solely by virtue of the amendments to Directive (EU) 2023/2226 of 17

October 2023 amending Directive 2011/16/EU made by Council Directive

(EU) 2023/2226 as of 31 December 2025;

(b) any Financial Account of an Account Holder, regardless of the date such

Financial Account was opened, if

(i)

the Account Holder also holds a Financial Account that is a Pre-

existing Account under sub-paragraph C(9)(a) with the Reporting

Malta Financial Institution, or with a Related Entity within Malta;

(ii) the Reporting Malta Financial Institution and, as applicable, the

Related Entity within Malta, treats both of the aforementioned

Financial Accounts, and any other Financial Accounts of the

Account Holder that are treated as a Pre-existing Account in

accordance with sub-paragraph C(9)(b), as a single Financial

Account for the purpose of satisfying the standards of knowledge

requirements stipulated in Section VII, paragraph A, and for the

purpose of determining the balance or value of any of the

Financial Accounts when applying any of the account thresholds;

(iii) with respect to a Financial Account that is subject to AML/KYC

Procedures, the Reporting Malta Financial Institution is permitted

to satisfy such AML/KYC Procedures for the Financial Account

by relying upon the AML/KYC Procedures performed for the Pre-

existing Account described in sub-paragraph C(9)(a); and

(iv) the opening of the Financial Account does not require the provision

of new, additional or amended customer information by the Account

Holder other than for the purposes of these regulations.

10. The term "New Account" means a Financial Account maintained by a

Reporting Malta Financial Institution opened on, or after 1 January 2016 or, if the

account is treated as a Financial Account solely by virtue of the amendments to

Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on

administrative cooperation in the field of taxation, on, or after 1 January 2026.

11. The term "Pre-existing Individual Account"" means a Pre-existing Account

held by one or more individuals.

12. The term "New Individual Account" means a New Account held by one or

more individuals.

13. The term "Pre-existing Entity Account" means a Pre-existing Account held

by one or more Entities.

14. The term "Lower Value Account"" means a Pre-existing Individual Account

with an aggregate balance or value as of 31 December 2015 that does not exceed an

amount denominated in Euro that corresponds to USD 1 000 000.

15. The term "High Value Account" means a Pre-existing Individual Account

with an aggregate balance or value that exceeds, as of 31 December 2015, or 31

December of any subsequent year, an amount denominated in Euro that corresponds

to USD 1 000 000.

16. The term "New Entity Account" means a New Account held by one or more

17. The term "Excluded Account" means any of the following accounts

(a) a retirement

or

pension

account

that

satisfies

the

following

requirements

(i)

the account is subject to regulation as a personal retirement

account or is part of a registered or regulated retirement or

pension plan for the provision of retirement or pension benefits,

including disability or death benefits;

(ii) the account is tax-favoured, that is, contributions to the account

that would otherwise be subject to tax are deductible or excluded

from the gross income of the Account Holder or taxed at a

reduced rate, or taxation of investment income from the account

is deferred or taxed at a reduced rate;

(iii) information reporting is required to the tax authorities with

respect to the account;

(iv) withdrawals are subject to reaching a specified retirement age,

disability, or death, or penalties apply to withdrawals made before

such specified events; and

(v) either

annual contributions are limited to an amount denominated in

euro that corresponds to USD $50,000 or less; or

there is a maximum lifetime contribution limit to the account of

an amount denominated in euro that corresponds to USD

$1,000,000 or less, in each case applying the rules established in

paragraph C of Section VII for account aggregation currency

translation.

A Financial Account that otherwise satisfies the requirement of sub-

paragraph C(17)(a)(v) shall not fail to satisfy such requirement

solely because such Financial Account may receive assets or

funds transferred from one (1) or more Financial Accounts that

satisfy the requirements of sub-paragraph C(17)(a) or (b) or from

one (1) or more retirement or pension funds that meet the

requirements of any of sub-paragraphs B(5) to (7);

(b) an account that satisfies the following requirements

(i)

the account is subject to regulation as an investment vehicle for

purposes other than for retirement and is regularly traded on an

established securities market, or the account is subject to

regulation as a savings vehicle for purposes other than for

retirement;

(ii) the account is tax-favoured, that is contributions to the account

that would otherwise be subject to tax are deductible or excluded

from the gross income of the Account Holder or taxed at a

reduced rate, or taxation of investment income from the account

is deferred or taxed at a reduced rate;

(iii) withdrawals are subject to satisfying specific criteria related to

the purpose of the investment or savings account, including, the

provision of educational or medical benefits, or penalties apply to

withdrawals made before such criteria are satisfied; and

(iv) annual contributions are limited to an amount denominated in

euro that corresponds to USD $50,000 or less, applying the rules

established in paragraph C of Section VII for account aggregation

and currency translation.

A Financial Account that otherwise satisfies the requirement of sub-

paragraph C(17)(b)(iv) shall not fail to satisfy such requirement

solely because such Financial Account may receive assets or

funds transferred from one (1) or more Financial Accounts that

meet the requirements of sub-paragraph C(17)(a) or (b) or from

one (1) or more retirement or pension funds that satisfy the

requirements of any of sub-paragraphs B(5) to (7);

(c) a life insurance contract with a coverage period that ends before the

insured individual attains age ninety (90), provided that the contract

satisfies the following requirements

(i)

periodic premiums, which do not decrease over time, are payable

at least annually during the period the contract is in force or until

the insured attains age ninety (90), whichever period is shorter;

(ii) the contract has no contract value that any person may access, by

withdrawal, loan, or otherwise, without terminating the contract;

(iii) the amount, other than a death benefit, payable upon cancellation

or termination of the contract cannot exceed the aggregate

premiums paid for the contract, less the sum of mortality,

morbidity, and expense charges, whether or not actually imposed,

for the periods of the contract’s existence and any amounts paid

prior to the cancellation or termination of the contract; and

(iv) the contract is not held by a transferee for value;

(d) an account that is held solely by an estate if the documentation for such

account includes a copy of the deceased’s will or death certificate;

(e) an account established in connection with any of the following

(i) a court order or judgment;

(ii) sale, exchange, or lease of immovable or personal property,

provided that the account satisfies the following requirements

the account is funded solely with a down payment, earnest money,

deposit in an amount appropriate to secure an obligation directly

related to the transaction, or a similar payment, or is funded with

a Financial Asset that is deposited in the account in connection

with the sale, exchange, or lease of the property;

the account is established and used solely to secure the obligation

of the purchaser to pay the purchase price for the property, the

seller to pay any contingent liability, or the lessor or lessee to pay

for any damages relating to the leased property as agreed in

accordance with the lease contract;

the assets of the account, including the income earned thereon,

shall be paid or otherwise distributed for the benefit of the

purchaser, seller, lessor, or lessee, including to satisfy such

person’s obligation, when the property is sold, exchanged, or

surrendered, or the lease terminates;

- the account is not a margin or similar account established in

connection with a sale or exchange of a Financial Asset; and

- the account is not associated with an account described in sub-

paragraph C(17)(f);

(iii) an obligation of a Financial Institution servicing a loan secured by

immovable property to set aside a portion of a payment solely to

facilitate the payment of taxes or insurance related to the

immovable property at a later time;

(iv) an obligation of a Financial Institution solely to facilitate the

payment of taxes at a later time;

(v) a foundation or capital increase of a company provided that the

account satisfies the following requirements

- the account is used exclusively to deposit capital that is to be used

for the purposes of the foundation or capital increase of a

company, as prescribed by law;

any amounts held in the account shall be blocked until the

Reporting Financial Institution obtains an independent

confirmation regarding the foundation or capital increase;

the account is closed or transformed into an account in the name

of the company after the foundation or capital increase;

any repayments resulting from a failed foundation or capital

increase, net of service provider and similar fees, are made solely

to the persons who contributed the amounts; and

the account has not been established more than twelve (12)

months ago;

(e) a Depository Account that represents all Electronic Money held for the

benefit of a customer, if the rolling average ninety (90) days end-of-day

aggregate account balance or value during any period of ninety (90)

consecutive days did not exceed USD $10,000 at any day during the

calendar year or other appropriate reporting period;

(f)

a Depository Account that satisfies the following requirements

(i)

the account exists solely because a customer makes a payment in

excess of a balance due with respect to a credit card or other

revolving credit facility and the overpayment is not immediately

returned to the customer; and

(ii) beginning on, or before 1 January 2016, the Financial Institution

implemented policies and procedures either to prevent a customer

from making an overpayment in excess of an amount

denominated in euro that corresponds to USD $50,000, or to

ensure that any customer overpayment in excess of that amount is

refunded to the customer within sixty (60) days, in each case

applying the rules established in paragraph C of Section VII for

currency translation. For this purpose, a customer overpayment

does not refer to credit balances to the extent of disputed charges

but does include credit balances resulting from merchandise

returns;

(g) a Depository Account that represents all Electronic Money held for the

benefit of a customer, if the rolling average ninety (90) days end-of-day

aggregate account balance or value during any period of ninety (90)

consecutive days did not exceed USD $10,000 at any day during the

calendar year or other appropriate reporting period;

(h) any other account that presents a low risk of being used to evade tax, has

substantially similar characteristics to any of the accounts described in sub-

paragraphs C(17)(a) to (f), and is included in the list of Excluded Accounts

referred to in Article 8(7a) of the EU Administrative Cooperation

Directive, provided that the status of such account as an Excluded Account

does not frustrate the purposes of the said Directive.

Reportable Account

1. The term "Reportable Account" means a Financial Account that is

maintained by a Reporting Malta Financial Institution and is held by one or more

Reportable Persons or by a Passive NFE with one or more Controlling Persons that is

a Reportable Person, provided it has been identified as such pursuant to the due

diligence procedures described in Sections II through VII.

2. The term "Reportable Person" means a Member State Person other than

(a)

an Entity the stock of which is regularly traded on one (1) or more

established securities markets;

(b)

any Entity that is a Related Entity of an Entity described in point (a);

(c)

a Governmental Entity;

(d)

an International Organisation;

(e)

a Central Bank; or

(f)

a Financial Institution.

3. The term "Member State Person" with regard to Malta means an individual

or Entity that is resident in any other Member State under the tax laws of that other

Member State, or an estate of a decedent that was a resident of any other Member

State. For this purpose, an Entity such as a partnership, limited liability partnership

or similar legal arrangement, which has no residence for tax purposes shall be

treated as resident in the jurisdiction in which its place of effective management is

situated.

4. The term "Participating Jurisdiction" with regard to Malta means

(a) any other Member State;

(b) any other jurisdiction (i) with which Malta has an arrangement in place

pursuant to which that jurisdiction will provide the information

specified in Section I; and (ii) which is identified in a list published by

Malta and notified to the European Commission;

(c) any other jurisdiction (i) with which the Union has an agreement in

place pursuant to which that jurisdiction will provide the information

specified in Section I; and (ii) which is identified in a list published by

the European Commission.

5. The term "Controlling Persons" means the natural persons who exercise

control over an entity. In the case of a trust, that term means the settlor(s), the

trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries,

and any other natural person(s) exercising ultimate effective control over the trust,

and in the case of a legal arrangement other than a trust, such term means persons in

equivalent or similar positions.

The term "Controlling Persons" must be interpreted in a manner consistent with the

definition of "Beneficial Owner" contained in regulation 2 of the Regulations as well as

that contained in regulation 2 of the Prevention of Money Laundering and Funding of

Terrorism Regulations (S.L. 373.01), and the level of control must also be determined in

line with such definitions.

6. The term "NFE" means any Entity that is not a Financial Institution.

7. The term "Passive NFE" means any: (i) NFE that is not an Active NFE; or

( i i ) a n I n v e s t m en t E n t i t y d e s c r i b e d i n s u b p a r a g r a p h A ( 6 ) (b ) t h a t i s n o t a

Participating Jurisdiction Financial Institution.

8. The term "Active NFE" means any NFE that meets any of the following

criteria

(a) less than 50% of the NFE’s gross income for the preceding calendar

year or other appropriate reporting period is passive income and less

than 50% of the assets held by the NFE during the preceding calendar

year or other appropriate reporting period are assets that produce or are

held for the production of passive income;

(b) the stock of the NFE is regularly traded on an established securities

market or the NFE is a Related Entity of an Entity the stock of which is

regularly traded on an established securities market;

(c) the NFE is a Governmental Entity, an International Organisation, a

Central Bank, or an Entity wholly owned by one or more of the

foregoing;

(d) substantially all of the activities of the NFE consist of holding (in whole

or in part) the outstanding stock of, or 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 does

not qualify for this 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;

(e) the NFE is not yet operating a business and has no prior operating

history, but is investing capital into assets with the intent to operate a

business other than that of a Financial Institution, provided that the NFE

does not qualify for this exception after the date that is 24 months after

the date of the initial organisation of the NFE;

(f)

the NFE was not a Financial Institution in the past five years, and is in

the process of liquidating its assets or is reorganising with the intent to

continue or recommence operations in a business other than that of a

Financial Institution;

(g) the NFE primarily engages in financing and hedging transactions with,

or for, Related Entities that are not Financial Institutions, and does not

provide financing or hedging services to any Entity that is not a Related

Entity, provided that the group of any such Related Entities is primarily

engaged in a business other than that of a Financial Institution; or

(h) the NFE meets all of the following requirements

(i)

it is established and operated in its Member State or other

jurisdiction of residence exclusively for religious, charitable,

scientific, artistic, cultural, athletic, or educational purposes; or it

is established and operated in its Member State or other

jurisdiction of residence and it is a professional organisation,

business league, chamber of commerce, labour organisation,

agricultural or horticultural organisation, civic league or an

organisation operated exclusively for the promotion of social

welfare;

(ii) it is exempt from income tax in its Member State or other

jurisdiction of residence;

(iii) it has no shareholders or members who have a proprietary or

beneficial interest in its income or assets;

(iv) the applicable laws of the NFE’s Member State or other

jurisdiction of residence or the NFE’s formation documents do not

permit any income or assets of the NFE to be distributed to, or

applied for the benefit of, a private person or non-charitable

Entity other than pursuant to the conduct of the NFE's charitable

activities, or as payment of reasonable compensation for services

rendered, or as payment representing the fair market value of

property which the NFE has purchased; and

(v) the applicable laws of the NFE’s Member State or other

jurisdiction of residence or the NFE’s formation documents

require that, upon the NFE’s liquidation or dissolution, all of its

assets be distributed to a Governmental Entity or other non-profit

organisation, or escheat to the government of the NFE’s Member

State or other jurisdiction of residence or any political subdivision

thereof.

E.

Miscellaneous

1. The term "Account Holder" means the person listed or identified as the

holder of a Financial Account by the Financial Institution that maintains the account.

A person, other than a Financial Institution, holding a Financial Account for the

benefit or account of another person as agent, custodian, nominee, signatory,

investment advisor, or intermediary, is not treated as holding the account for

purposes of the EU Administrative Cooperation Directive, and such other person is

treated as holding the account. In the case of a Cash Value Insurance Contract or an

Annuity Contract, the Account Holder is any person entitled to access the Cash

Value or change the beneficiary of the contract. If no person can access the Cash

Value or change the beneficiary, the Account Holder is any person named as the

owner in the contract and any person with a vested entitlement to payment under the

terms of the contract. Upon the maturity of a Cash Value Insurance Contract or an

Annuity Contract, each person entitled to receive a payment under the contract is

treated as an Account Holder.

2. The term "AML/KYC Procedures" means the customer due diligence

procedures of a Reporting Financial Institution pursuant to the anti-money

laundering or similar requirements to which such Reporting Malta Financial

Institution is subject.

3. The term "Entity" means a legal person or a legal arrangement, such as a

corporation, partnership, trust, or foundation.

4. An Entity is a "Related Entity" of another Entity if (i) either Entity controls

the other Entity; (ii) the two Entities are under common control; or (iii) the two

Entities are Investment Entities described in sub-paragraph A(6)(b), are under

common management, and such management fulfils the due diligence obligations of

such Investment Entities. For this purpose control includes direct or indirect

ownership of more than 50% of the vote and value in an Entity.

5. The term "TIN" means Taxpayer Identification Number (or functional

equivalent in the absence of a Taxpayer Identification Number).

6. The term "Documentary Evidence" includes any of the following

(a) a certificate of residence issued by an authorised government body (for

example, a government or agency thereof, or a municipality) of the

Member State or other jurisdiction in which the payee claims to be a

resident;

(b) with respect to an individual, any valid identification issued by an

authorised government body (for example, a government or agency

thereof, or a municipality), that includes the individual's name and is

typically used for identification purposes;

(c) with respect to an Entity, any official documentation issued by an

authorised government body (for example, a government or agency

thereof, or a municipality) that includes the name of the Entity and

either the address of its principal office in the Member State or other

jurisdiction in which it claims to be a resident or the Member State or

other jurisdiction in which the Entity was incorporated or organised;

(d) any audited financial statement, third-party credit report, bankruptcy

filing, or securities regulator’s report.

7. The term "Identification Service" means an electronic process made

available free of charge by a Member State or the Union to a Reporting Malta

Financial Institution for the purpose of ascertaining the identity and tax residence of

an Account Holder or Controlling Person.

With respect to a Pre-existing Entity Account, Reporting Malta Financial

Institutions may use as Documentary Evidence any classification in the Reporting

Malta Financial Institution’s records with respect to the Account Holder that was

determined based on a standardised industry coding system, that was recorded by the

Reporting Malta Financial Institution consistent with its normal business practices

for purposes of AML/KYC Procedures or another regulatory purposes (other than for

tax purposes) and that was implemented by the Reporting Malta Financial Institution

prior to the date used to classify the Financial Account as a Pre-existing Account,

provided that the Reporting Malta Financial Institution does not know or does not

have reason to know that such classification is incorrect or unreliable. The term

"standardised industry coding system" means a coding system used to classify

establishments by business type for purposes other than tax purposes.

SECTION IX

EFFECTIVE IMPLEMENTATION

Pursuant to Article 8(3a) of the EU Administrative Cooperation Directive,

Member States must have rules and administrative procedures in place to ensure

effective implementation of, and compliance with, the reporting and due diligence

procedures set out above including

(1) rules to prevent any Financial Institutions, persons or intermediaries

from adopting practices intended to circumvent the reporting and due

diligence procedures;

(2) rules requiring Reporting Malta Financial Institutions to keep records of the

steps undertaken and any evidence relied upon for the performance of the

above indicated procedures and adequate measures to obtain those records,

provided that such records shall be retained for not longer than is necessary

to achieve the purposes of these regulations but in any event not less than

five (5) years.

(3) administrative procedures to verify Reporting Financial Institutions’

compliance with the reporting and due diligence procedures;

administrative procedures to follow up with a Reporting Financial

Institution when undocumented accounts are reported;

(4) administrative procedures to ensure that the Entities and accounts

defined in domestic law as Non-Reporting Malta Financial Institutions

and Excluded Accounts continue to have a low risk of being used to

evade tax; and

(5) effective enforcement provisions to address non-compliance.

SECTION X

Added by

TRANSITIONAL MEASURES

L.N. 162 of 2026.

Notwithstanding sub-paragraphs A(1)(b) and (6a) of Section I, with respect to

each Reportable Account that is maintained by a Reporting Malta Financial

Institution as of 31 December 2025 and for reporting periods ending by the second

calendar year following such date, information with respect to the roles by virtue of

which each Reportable Person is a Controlling Person or Equity Interest holder of

the Entity is only required to be reported if such information is available in the

electronically searchable data maintained by the Reporting Malta Financial

Institution.

ANNEX II

Added by

L.N. 384 of 2015.

COMPLEMENTARY REPORTING AND DUE

DILIGENCE RULES FOR FINANCIAL ACCOUNT

INFORMATION

1. Change in circumstances

A "change in circumstances" includes any change that results in the addition of

information relevant to a person's status or otherwise conflicts with such person's

status. In addition, a change in circumstances includes any change or addition of

information to the Account Holder’s account (including the addition, substitution, or

other change of an Account Holder) or any change or addition of information to any

account associated with such account (applying the account aggregation rules

described in sub-paragraphs C(1) through (3) of Section VII of Annex I) if such

change or addition of information affects the status of the Account Holder.

If a Reporting Malta Financial Institution has relied on the residence address test

described in sub-paragraph B(1) of Section III of Annex I and there is a change in

circumstances that causes the Reporting Malta Financial Institution to know or have

reason to know that the original Documentary Evidence (or other equivalent

documentation) is incorrect or unreliable, the Reporting Malta Financial Institution

must, by the later of the last day of the relevant calendar year or other appropriate

reporting period, or 90 calendar days following the notice or discovery of such

change in circumstances, obtain a self-certification and new Documentary Evidence

to establish the residence(s) for tax purposes of the Account Holder. If the Reporting

Malta Financial Institution cannot obtain the self-certification and new Documentary

Evidence by such date, the Reporting Malta Financial Institution must apply the

electronic record search procedure described in sub-paragraphs B(2) through (6) of

Section III of Annex I.

2. Self-certification for New Entity Accounts

With respect to New Entity Accounts, for the purposes of determining whether a

Controlling Person of a Passive NFE is a Reportable Person, a Reporting Malta

Financial Institution may only rely on a self-certification from either the Account

Holder or the Controlling Person.

3. Residence of a Financial Institution

A Financial Institution is "resident" in a Member State if it is subject to the

jurisdiction of such Member State (i.e., the Member State is able to enforce reporting

by the Financial Institution). In general, where a Financial Institution is resident for

tax purposes in a Member State, it is subject to the jurisdiction of such Member State

and it is, thus, a Member State Financial Institution. In the case of a trust that is a

Financial Institution (irrespective of whether it is resident for tax purposes in a

Member State), the trust is considered to be subject to the jurisdiction of a Member

State if one or more of its trustees are resident in such Member State except if the

trust reports all the information required to be reported pursuant to the EU

Administrative Cooperation Directive with respect to Reportable Accounts

maintained by the trust to another Member State because it is resident for tax

purposes in such other Member State. However, where a Financial Institution (other

than a trust) does not have a residence for tax purposes (e.g., because it is treated as

fiscally transparent, or it is located in a jurisdiction that does not have an income

tax), it is considered to be subject to the jurisdiction of a Member State and it is,

thus, a Member State Financial Institution if

(a) it is incorporated under the laws of the Member State;

(b) it has its place of management (including effective management) in the

Member State; or

(c) it is subject to financial supervision in the Member State.

Where a Financial Institution (other than a trust) is resident in two or more

Member States, such Financial Institution will be subject to the reporting and due

diligence obligations of the Member State in which it maintains the Financial

Account(s).

4. Account maintained.

In general, an account would be considered to be maintained by a Financial

Institution as follows

(a) in the case of a Custodial Account, by the Financial Institution that

holds custody over the assets in the account (including a Financial

Institution that holds assets in street name for an Account Holder in

such institution);

(b) in the case of a Depository Account, by the Financial Institution that is

obligated to make payments with respect to the account (excluding an

agent of a Financial Institution regardless of whether such agent is a

Financial Institution);

(c) in the case of any equity or debt interest in a Financial Institution that

constitutes a Financial Account, by such Financial Institution;

(d) in the case of a Cash Value Insurance Contract or an Annuity Contract,

by the Financial Institution that is obligated to make payments with

respect to the contract.

5. Trusts that are Passive NFEs

An Entity such as a partnership, limited liability partnership or similar legal

arrangement that has no residence for tax purposes, according to subparagraph D(3)

of Section VIII of Annex I, shall be treated as resident in the jurisdiction in which its

place of effective management is situated. For these purposes, a legal person or a

legal arrangement is considered "similar" to a partnership and a limited liability

partnership where it is not treated as a taxable unit in a Member State under the tax

laws of such Member State. However, in order to avoid duplicate reporting (given

the wide scope of the term "Controlling Persons" in the case of trusts), a trust that is

a Passive NFE may not be considered a similar legal arrangement.

6. Address of Entity’s principal office

One of the requirements described in sub-paragraph E(6)(c) of Section VIII of

Annex I is that, with respect to an Entity, the official documentation includes either

the address of the Entity’s principal office in the Member State or other jurisdiction

in which it claims to be a resident or the Member State or other jurisdiction in which

the Entity was incorporated or organised. The address of the Entity's principal office

is generally the place in which its place of effective management is situated. The

address of a Financial Institution with which the Entity maintains an account, a post

office box, or an address used solely for mailing purposes is not the address of the

Entity’s principal office unless such address is the only address used by the Entity

and appears as the Entity’s registered address in the Entity’s organisational

documents. Further, an address that is provided subject to instructions to hold all

mail to that address is not the address of the Entity’s principal office.

ANNEX III

Added by

L.N. 400 of 2016.

FILING RULES FOR GROUPS OF

Amended by

MULTINATIONAL ENTERPRISES

L.N. 18 of 2025.

SECTION I

DEFINED TERMS

1. The term "Group" means a collection of enterprises related through

ownership or control such that it is either required to prepare Consolidated Financial

Statements for financial reporting purposes under applicable accounting principles

or would be so required if equity interests in any of the enterprises were traded on a

public securities exchange.

2. The term "Enterprise" means any form of conducting business by any person

referred to in points (b), (c) and (d) of Article 3 point 11 of the EU Administrative

Cooperation Directive.

3. The term "MNE Group" means any Group that includes two or more

enterprises the tax residence for which is in different jurisdictions, or includes an

enterprise that is resident for tax purposes in one jurisdiction and is subject to tax

with respect to the business carried out through a permanent establishment in

another jurisdiction, and is not an Excluded MNE Group.

4. The term "Excluded MNE Group" means, with respect to any Fiscal Year of

the Group, a Group having total consolidated group revenue of less than EUR

750,000,000 or an amount in local currency approximately equivalent to EUR

750,000,000 as of January 2015 during the Fiscal Year immediately preceding the

Reporting Fiscal Year as reflected in its Consolidated Financial Statements for such

preceding Fiscal Year.

5. The term "Constituent Entity" means any of the following

(a) any separate business unit of an MNE Group that is included in the

Consolidated Financial Statements of the MNE Group for financial

reporting purposes, or would be so included if equity interests in such

business unit of an MNE Group were traded on a public securities

exchange;

(b) any such business unit that is excluded from the MNE Group's

Consolidated Financial Statements solely on size or materiality

grounds;

(c) any permanent establishment of any separate business unit of the MNE

Group included in (a) or (b) provided the business unit prepares a

separate financial statement for such permanent establishment for

financial reporting, regulatory, tax reporting, or internal management

control purposes.

6. The term "Reporting Entity" means the Constituent Entity that is required to

file a country-by-country report conforming to the requirements in regulation

13(4)(c) in its jurisdiction of tax residence on behalf of the MNE Group. The

Reporting Entity may be the Ultimate Parent Entity, the Surrogate Parent Entity, or

any entity described in point 1 of Section II.

7. The term "Ultimate Parent Entity" means a Constituent Entity of an MNE

Group that meets the following criteria

(a) it owns directly or indirectly a sufficient interest in one or more other

Constituent Entities of such MNE Group such that it is required to

prepare Consolidated Financial Statements under accounting principles

generally applied in its jurisdiction of tax residence, or would be so

required if its equity interests were traded on a public securities

exchange in its jurisdiction of tax residence;

(b) there is no other Constituent Entity of such MNE Group that owns

directly or indirectly an interest described in point (a) in the first

mentioned Constituent Entity.

8. The term "Surrogate Parent Entity" means one Constituent Entity of the

MNE Group that has been appointed by such MNE Group, as a sole substitute for the

Ultimate Parent Entity, to file the country-by-country report in that Constituent

Entity's jurisdiction of tax residence, on behalf of such MNE Group, when one or

more of the conditions set out in point (b) of point 1 of Section II apply.

9. The term "Fiscal Year" means an annual accounting period with respect to

which the Ultimate Parent Entity of the MNE Group prepares its financial

statements.

10. The term "Reporting Fiscal Year" means that Fiscal Year the financial and

operational results of which are reflected in the country-by-country report referred to

in regulation 13(4)(c).

11. The term "Qualifying Competent Authority Agreement" means an

agreement that is between authorised representatives of Malta and non-Union

jurisdictions that are parties to an International Agreement and that requires the

automatic exchange of country-by- country reports between the party jurisdictions.

12. The term "International Agreement" means the Multilateral Convention for

Mutual Administrative Assistance in Tax Matters, any bilateral or multilateral Tax

Convention, or any Tax Information Exchange Agreement to which Malta is a party,

and that by its terms provides legal authority for the exchange of tax information

between jurisdictions, including automatic exchange of such information.

13. The term "Consolidated Financial Statements" means the financial

statements of an MNE Group in which the assets, liabilities, income, expenses and

cash flows of the Ultimate Parent Entity and the Constituent Entities are presented as

those of a single economic entity.

14. The term "Systemic Failure" with respect to a jurisdiction means either that

a jurisdiction has a Qualifying Competent Authority Agreement in effect with Malta

but has suspended automatic exchange (for reasons other than those that are in

accordance with the terms of that Agreement), or that a jurisdiction otherwise

persistently failed to automatically provide to Malta country-by-country reports in

its possession of MNE Groups that have Constituent Entities in Malta.

SECTION II

GENERAL REPORTING REQUIREMENTS

1. A Constituent Entity resident in Malta which is not the Ultimate Parent

Entity of an MNE Group shall file a country-by-country report with respect to the

Reporting Fiscal Year of an MNE Group of which it is a Constituent Entity, if the

following criteria are satisfied

(a) the entity is resident for tax purposes in Malta;

(b) one of the following conditions applies

(i)

the Ultimate Parent Entity of the MNE Group is not obligated to

file a country-by-country report in its jurisdiction of tax

residence;

(ii) the jurisdiction in which the Ultimate Parent Entity is resident for

tax purposes has a current International Agreement to which

Malta is a party but does not have a Qualifying Competent

Authority Agreement in effect to which Malta is a party by the

time specified in regulation 13(4)(a) for filing the country-by-

country report for the Reporting Fiscal Year;

(iii) there has been a Systemic Failure of the jurisdiction of tax

residence of the Ultimate Parent Entity that has been notified by

Malta to the Constituent Entity resident for tax purposes in Malta.

Without prejudice to the obligation of the Ultimate Parent Entity referred to in

regulation 13(4)(a) or its Surrogate Parent Entity to file the first country-by-country

report for the fiscal year of the MNE Group commencing on or after 1 January 2016,

the obligation for Constituent Entities set out in point 1 of this Section shall apply

for coun try-by-coun try report s with respect to the Reportin g Fiscal Years

commencing on or after 1 January 2017 onwards.

A Constituent Entity resident in Malta as defined in paragraph 1 shall request its

Ultimate Parent Entity to provide it with all information required to enable it to meet

its obligations to file a country-by-country report, in accordance with regulation

13(4)(c). If despite that, that Constituent Entity has not obtained or acquired all the

required information to report for the MNE Group, this Constituent Entity shall file a

country-by-country report containing all information in its possession, obtained or

acquired, and notify the Commissioner that the Ultimate Parent Entity has refused to

make the necessary information available. This shall be without prejudice to the

right of the Commissioner to apply penalties provided for in national legislation and

the competent authority of Malta shall inform all EU Member States of this refusal.

Where there are more than one Constituent Entities of the same MNE Group that

are resident for tax purposes in the Union and one or more of the conditions set out

in point (b) apply, the MNE Group may designate one of such Constituent Entities to

file the country-by-country report conforming to the requirements of regulation

13(4)(c) with respect to any Reporting Fiscal Year within the deadline specified in

regulation 13(6) and to notify the Commissioner that the filing is intended to satisfy

the filing requirement of all the Constituent Entities of such MNE Group that are

resident for tax purposes in the Union. The competent authority of Malta shall,

pursuant to regulation 13(4)(b), communicate the country-by-country report received

to any other EU Member State in which, on the basis of the information in the

country-by-country report, one or more Constituent Entities of the MNE Group of

the Reporting Entity are either resident for tax purposes, or are subject to tax with

respect to the business carried out through a permanent establishment.

Where a Constituent Entity cannot obtain or acquire all the information required

to file a country-by-country report, in line with regulation 13(4)(c), then such

Constituent Entity shall not be eligible to be designated to be the reporting entity for

the MNE Group in accordance with the fourth paragraph of this point. This rule shall

be without prejudice to the obligation of the Constituent Entity to notify the

Commissioner that the Ultimate Parent Entity has refused to make the necessary

information available.

2. By derogation from point 1, when one or more of the conditions set out in

point (b) of the first paragraph of point 1 apply, an entity described in point 1 shall

not be required to file a country-by-country report with respect to any Reporting

Fiscal Year if the MNE Group of which it is a Constituent Entity has made available

a country-by-country report in accordance with regulation 13(4)(c) with respect to

such Fiscal Year through a Surrogate Parent Entity that files that country-by-country

report with the tax authority of its jurisdiction of tax residence on or before the date

specified in regulation 13(6) and that, in case the Surrogate Parent Entity is tax

resident in a jurisdiction outside the Union, satisfies the following conditions

(a) the jurisdiction of tax residence of the Surrogate Parent Entity requires

filing of country by-country reports conforming to the requirements of

regulation 13(4)(c);

(b) the jurisdiction of tax residence of the Surrogate Parent Entity has a

Qualifying Competent Authority Agreement in effect to which Malta is

a party by the time specified in regulation 13(6) for filing the country-

by-country report for the Reporting Fiscal Year;

(c) the jurisdiction of tax residence of the Surrogate Parent Entity has not

notified the competent authority of Malta of a Systemic Failure;

(d) the jurisdiction of tax residence of the Surrogate Parent Entity has been

notified no later than the last day of the Reporting Fiscal Year of such

MNE Group by the Constituent Entity resident for tax purposes in its

jurisdiction that it is the Surrogate Parent Entity;

(e) a notification has been provided to the Commissioner in accordance

with point 4.

3. Any Constituent Entity of an MNE Group that is resident for tax purposes in

Malta shall notify the Commissioner whether it is the Ultimate Parent Entity or the

Surrogate Parent Entity or the Constituent Entity referred to in item 1, not later than the

l a s t tax return date applicable to such Constituent Entity as determined under

regulation 2 of the Income Tax (Statutory Dates) Rules.

4. Where a Constituent Entity of an MNE Group, that is resident for tax purposes

in Malta, is not the Ultimate Parent Entity nor the Surrogate Parent Entity nor the

Constituent Entity referred to in item 1, it shall notify the Commissioner of the identity

and tax residence of the Reporting Entity, not later than the last tax return date applicable

to that Constituent Entity as determined under regulation 2 of the Income Tax (Statutory

Dates) Rules.

5. The country-by-country report shall specify the currency of the amounts

referred to in that report.

SECTION III

Country-by-country Report

A. Template for the country-by-country report

Table 1: Overview of allocation of income, taxes and business

activities by tax jurisdiction

Name of the MNE group

Fiscal year concerned

Currency used

Tangible

Profit

Income

Revenues

Income

Assets

Tax

(Loss)

Tax

Tax Paid

Accrued - Stated Accumulated Number of other than

Jurisdic-

before

(on Cash

Capital

Earnings

Employees

Unrelated

tion

Income

Current

Total

Basis)

Party

Equivalent

Tax

Year

Table 2: List of all the Constituent Entities of the MNE group included in each

aggregation per tax jurisdiction

Name of the MNE group

Fiscal year concerned

Tax Constituent

Tax

Main Business Activity(ies)

Jurisdic- Entities Jurisdiction

tion

Resident in of Organi-

Provision of Services to Unrelated

sation or

the Tax

Administrative, Management

Manufacturing or Production

Regulated Financial Services

Research and Development

Purchasing or Procurement

Jurisdiction Incorpora-

Holding Shares or Other

Internal Group Finance

tion if

Holding or Managing

Intellectual Property

or Support Services

Equity instruments

Different

Sales, Marketing

or Distribution

from Tax

Insurance

Dormant

Jurisdic-

Parties

Other 1

tion of

Residence

1.

2.

3.

1.

2.

3.

1. Please specify the nature of the activity of the Constituent Entity in the "Additional Information"

Table 3: Additional Information

Name of the MNE group

Fiscal year concerned

Please include any further brief information or explanation you consider necessary or that would

facilitate the understanding of the compulsory information provided in the country-by-country report

B.

General instructions for filling in the country-by-country report

1. Purpose

The template shall be used for reporting a multinational enterprise's (MNE) group

allocation of income, taxes and business activities on a tax jurisdiction-by-tax

jurisdiction basis.

2. Treatment of Branches and Permanent Establishments

The permanent establishment data shall be reported by reference to the tax

jurisdiction in which it is situated and not by reference to the tax jurisdiction of

residence of the business unit of which the permanent establishment is a part.

Residence tax jurisdiction reporting for the business unit of which the permanent

establishment is a part shall exclude financial data related to the permanent

establishment.

3. Period covered by the annual template

The template shall cover the fiscal year of the Reporting MNE. For Constituent

Entities, at the discretion of the Reporting MNE, the template shall reflect on a

consistent basis either of the following information

(a) information for the fiscal year of the relevant Constituent Entities

ending on the same date as the fiscal year of the Reporting MNE, or

ending within the 12 month period preceding such date;

(b) information for all the relevant Constituent Entities reported for the

fiscal year of the Reporting MNE.

4. Source of data

The Reporting MNE shall consistently use the same sources of data from year to

year in completing the template. The Reporting MNE may choose to use data from

its consolidation reporting packages, from separate entity statutory financial

statements, regulatory financial statements, or internal management accounts. It is

not necessary to reconcile the revenue, profit and tax reporting in the template to the

consolidated financial statements. If statutory financial statements are used as the

basis for reporting, all amounts shall be translated to the stated functional currency

of the Reporting MNE at the average exchange rate for the year stated in the

Additional Information section of the template. Adjustments need not be made,

however, for differences in accounting principles applied from tax jurisdiction to tax

jurisdiction.

The Reporting MNE shall provide a brief description of the sources of data used in

preparing the template in the Additional Information section of the template. If a

change is made in the source of data used from year to year, the Reporting MNE

shall explain the reasons for the change and its consequences in the Additional

Information section of the template.

C.

Specific instructions for filling in the Country-by-Country Report

1. Overview of allocation of income, taxes and business activities by tax

jurisdiction (Table 1)

1.1. Tax Jurisdiction

In the first column of the template, the Reporting MNE shall list all of the tax

jurisdictions in which Constituent Entities of the MNE group are resident for tax

purposes. A tax jurisdiction is defined as a State as well as a non-State jurisdiction

which has fiscal autonomy. A separate line shall be included for all Constituent

Entities in the MNE group deemed by the Reporting MNE not to be resident in any

tax jurisdiction for tax purposes. Where a Constituent Entity is resident in more than

one tax jurisdiction, the applicable tax treaty tie breaker shall be applied to

determine the tax jurisdiction of residence. Where no applicable tax treaty exists, the

Constituent Entity shall be reported in the tax jurisdiction of the Constituent Entity's

place of effective management. The place of effective management shall be

determined with internationally agreed standards.

1.2. Revenues

In the three columns of the template under the heading 'Revenues', the Reporting

MNE shall report the following information

(a) the sum of revenues of all the Constituent Entities of the MNE group in

the relevant tax jurisdiction generated from transactions with associated

enterprises;

(b) the sum of revenues of all the Constituent Entities of the MNE group in

the relevant tax jurisdiction generated from transactions with

independent parties;

(c) the total of the sums referred to in points (a) and (b).

Revenues shall include revenues from sales of inventory and properties, services,

royalties, interest, premiums and any other amounts. Revenues shall exclude

payments received from other Constituent Entities that are treated as dividends in the

payer's tax jurisdiction.

1.3. Profit (Loss) before Income Tax

In the fifth column of the template, the Reporting MNE shall report the sum of the

profit (loss) before income tax for all the Constituent Entities resident for tax

purposes in the relevant tax jurisdiction. The profit (loss) before income tax shall

include all extraordinary income and expense items.

1.4. Income Tax Paid (on Cash Basis)

In the sixth column of the template, the Reporting MNE shall report the total

amount of income tax actually paid during the relevant fiscal year by all the

Constituent Entities resident for tax purposes in the relevant tax jurisdiction. Taxes

paid shall include cash taxes paid by the Constituent Entity to the residence tax

jurisdiction and to all other tax jurisdictions. Taxes paid shall include withholding

taxes paid by other entities (associated enterprises and independent enterprises) with

respect to payments to the Constituent Entity. Thus, if company A resident in tax

jurisdiction A earns interest in tax jurisdiction B, the tax withheld in tax jurisdiction

B shall be reported by company A.

1.5. Income Tax Accrued (Current Year)

In the seventh column of the template, the Reporting MNE shall report the sum of

the accrued current tax expense recorded on taxable profits or losses of the year of

reporting of all the Constituent Entities resident for tax purposes in the relevant tax

jurisdiction. The current tax expense shall reflect only operations in the current year

and shall not include deferred taxes or provisions for uncertain tax liabilities.

1.6. Stated Capital

In the eighth column of the template, the Reporting MNE shall report the sum of

the stated capital of all the Constituent Entities resident for tax purposes in the

relevant tax jurisdiction. With regard to permanent establishments, the stated capital

shall be reported by the legal entity of which it is a permanent establishment unless

there is a defined capital requirement in the permanent establishment tax jurisdiction

for regulatory purposes.

1.7. Accumulated Earnings

In the ninth column of the template, the Reporting MNE shall report the sum of

the total accumulated earnings of all the Constituent Entities resident for tax

purposes in the relevant tax jurisdiction as of the end of the year. With regard to

permanent establishments, accumulated earnings shall be reported by the legal entity

of which it is a permanent establishment.

1.8. Number of Employees

In the tenth column of the template, the Reporting MNE shall report the total

number of employees on a full-time equivalent (FTE) basis of all the Constituent

Entities resident for tax purposes in the relevant tax jurisdiction. The number of

employees may be reported as of the year-end, on the basis of average employment

levels for the year, or on any other basis consistently applied across tax jurisdictions

and from year to year. For this purpose, independent contractors participating in the

ordinary operating activities of the Constituent Entity may be reported as employees.

Reasonable rounding or approximation of the number of employees is permissible,

providing that such rounding or approximation does not materially distort the

relative distribution of employees across the various tax jurisdictions. Consistent

approaches shall be applied from year to year and across entities.

1.9. Tangible Assets other than Cash and Cash Equivalents

In the eleventh column of the template, the Reporting MNE shall report the sum of

the net book values of tangible assets of all the Constituent Entities resident for tax

purposes in the relevant tax jurisdiction. With regard to permanent establishments,

assets shall be reported by reference to the tax jurisdiction in which the permanent

establishment is situated. Tangible assets for this purpose do not include cash or cash

equivalents, intangibles, or financial assets.

2. List of all the Constituent Entities of the MNE group included in each

aggregation per tax jurisdiction (Table 2)

2.1. Constituent Entities Resident in the Tax Jurisdiction

The Reporting MNE shall list, on a tax jurisdiction-by-tax jurisdiction basis and

by legal entity name, all the Constituent Entities of the MNE group which are

resident for tax purposes in the relevant tax jurisdiction. As stated in point 2 of the

General instructions with regard to permanent establishments, however, the

permanent establishment shall be listed by reference to the tax jurisdiction in which

it is situated. The legal entity of which it is a permanent establishment shall be

noted.

2.2. Tax Jurisdiction of Organisation or Incorporation if Different from Tax

Jurisdiction of Residence

The Reporting MNE shall report the name of the tax jurisdiction under whose laws

the Constituent Entity of the MNE is organised or incorporated if it is different from

the tax jurisdiction of residence.

2.3. Main Business Activity(ies)

The Reporting MNE shall determine the nature of the main business activity(ies)

carried out by the Constituent Entity in the relevant tax jurisdiction, by ticking one

or more of the appropriate boxes.

ANNEX IV

Added by

L.N. 342 of 2019.

HALLMARKS

In the context of Annex IV, any capitalised term shall have the meaning that it has

under the corresponding definitions set out in Annex I of these Regulations.

Part I. Main benefit test

Generic hallmarks under category A and specific hallmarks under category B and

under sub-paragraphs (b)(i), (c) and (d) of paragraph 1 of category C may only be

taken into account where they fulfil the "main benefit test".

That test will be satisfied if it can be established that the main benefit or one of the

main benefits which, having regard to all relevant facts and circumstances, a person

may reasonably expect to derive from an arrangement, is the obtaining of a tax

advantage.

In the context of hallmark under paragraph 1 of category C, the presence of

conditions set out in sub-paragraphs (b)(i), (c) or (d) of paragraph 1 of category C

cannot alone be a reason for concluding that an arrangement satisfies the main

benefit test.

Part II. Categories of hallmarks

A.

Generic hallmarks linked to the main benefit test

1. An arrangement where the relevant taxpayer or a participant in the

arrangement undertakes to comply with a condition of confidentiality which may

require them not to disclose how the arrangement could secure a tax advantage vis-à-

vis other intermediaries or the tax authorities.

2. An arrangement where the intermediary is entitled to receive a fee (or

interest, remuneration for finance costs and other charges) for the arrangement and

that fee is fixed by reference to

(a) the amount of the tax advantage derived from the arrangement; or

(b) whether or not a tax advantage is actually derived from the

arrangement. This would include an obligation on the intermediary to

partially or fully refund the fees where the intended tax advantage

derived from the arrangement was not partially or fully achieved.

3. An arrangement that has substantially standardised documentation and, or

structure and is available to more than one relevant taxpayer without a need to be

substantially customised for implementation.

Specific hallmarks linked to the main benefit test

1. An arrangement whereby a participant in the arrangement takes contrived

steps which consist in acquiring a loss-making company, discontinuing the main

activity of such company and using its losses in order to reduce its tax liability,

including through a transfer of those losses to another jurisdiction or by the

acceleration of the use of those losses.

2. An arrangement that has the effect of converting income into capital, gifts or

other categories of revenue which are taxed at a lower level or exempt from tax.

3. An arrangement which includes circular transactions resulting in the round-

tripping of funds, namely through involving interposed entities without other

primary commercial function or transactions that offset or cancel each other or that

have other similar features.

Specific hallmarks related to cross-border transactions

1. An arrangement that involves deductible cross-border payments made

between two or more associated enterprises where at least one of the following

conditions occurs

(a) the recipient is not resident for tax purposes in any tax jurisdiction;

(b) although the recipient is resident for tax purposes in a jurisdiction, that

jurisdiction either

(i)

does not impose any corporate tax or imposes corporate tax at the

rate of zero or almost zero; or

(ii) is included in a list of third-country jurisdictions which have been

assessed by EU Member States collectively or within the

framework of the OECD as being non-cooperative;

(c) the payment benefits from a full exemption from tax in the jurisdiction

where the recipient is resident for tax purposes;

(d) the payment benefits from a preferential tax regime in the jurisdiction

where the recipient is resident for tax purposes.

2. Deductions for the same depreciation on the asset are claimed in more than

one jurisdiction.

3. Relief from double taxation in respect of the same item of income or capital

is claimed in more than one jurisdiction.

4. There is an arrangement that includes transfers of assets and where there is a

material difference in the amount being treated as payable in consideration for the

assets in those jurisdictions involved.

D. Specific hallmarks concerning automatic exchange of information and

beneficial ownership

1. An arrangement which may have the effect of undermining the reporting

obligation under the laws implementing Union legislation or any equivalent

agreements on the automatic exchange of Financial Account information, including

agreements with third countries, or which takes advantage of the absence of such

legislation or agreements. Such arrangements include at least the following

(a) the use of an account, product or investment that is not, or purports not

to be, a Financial Account, but has features that are substantially similar

to those of a Financial Account;

(b) the transfer of Financial Accounts or assets to, or the use of

jurisdictions that are not bound by the automatic exchange of Financial

Account information with the State of residence of the relevant

taxpayer;

(c) the re-classification of income and capital into products or payments

that are not subject to the automatic exchange of Financial Account

information;

(d) the transfer or conversion of a Financial Institution or a Financial

Account or the assets therein into a Financial Institution or a Financial

Account or assets not subject to reporting under the automatic exchange

of Financial Account information;

(e) the use of legal entities, arrangements or structures that eliminate or

purport to eliminate reporting of one or more Account Holders or

Controlling Persons under the automatic exchange of Financial Account

information;

(f)

arrangements that undermine, or exploit weaknesses in, the due

diligence procedures used by Financial Institutions to comply with their

obligations to report Financial Account information, including the use

of jurisdictions with inadequate or weak regimes of enforcement of anti-

money-laundering legislation or with weak transparency requirements

for legal persons or legal arrangements.

2. An arrangement involving a non-transparent legal or beneficial ownership

chain with the use of persons, legal arrangements or structures

(a) that do not carry on a substantive economic activity supported by

adequate staff, equipment, assets and premises; and

(b) that are incorporated, managed, resident, controlled or established in

any jurisdiction other than the jurisdiction of residence of one or more

of the beneficial owners of the assets held by such persons, legal

arrangements or structures; and

(c) where the beneficial owners of such persons, legal arrangements or

structures, as defined in Directive (EU) 2015/849, are made

unidentifiable.

Specific hallmarks concerning transfer pricing

1. An arrangement which involves the use of unilateral safe harbour rules.

2. An arrangement involving the transfer of hard-to-value intangibles. The term

"hard-to-value intangibles" covers intangibles or rights in intangibles for which, at

the time of their transfer between associated enterprises

(a) no reliable comparables exist; and

(b) at the time the transaction was entered into, the projections of future

cash flows or income expected to be derived from the transferred

intangible, or the assumptions used in valuing the intangible are highly

uncertain, making it difficult to predict the level of ultimate success of

the intangible at the time of the transfer.

3. An arrangement involving an intra-group cross-border transfer of functions

and, or risks and, or assets, if the projected annual earnings before interest and taxes

(EBIT), during the three-year period after the transfer, of the transferor or

transferors, are less than 50% of the projected annual EBIT of such transferor or

transferors if the transfer had not been made.

ANNEX V

Added by

L.N. 18 of 2025.

In the context of Annex V, any capitalised term shall have the

Amended by

meaning that it has under the corresponding definitions set out in this

L.N. 162 of 2026.

Annex.

DUE DILIGENCE PROCEDURES, REPORTING REQUIREMENTS AND OTHER

RULES FOR PLATFORM OPERATORS.

This Annex lays down the due diligence procedures, reporting requirements and

other rules that shall be applied by Reporting Malta Platform Operators in order to enable

Malta to communicate, by automatic exchange, the information referred to in regulation

13(12). This Annex also describes the rules and administrative procedures that Malta

has in place to ensure effective implementation of, and compliance with, the diligence

procedures and reporting requirements set out below.

SECTION I

DEFINED TERMS

The following terms shall have the meanings set forth below

A.

Reporting Platform Operators

1. "Platform" means any software, including a website or a part thereof and

applications, including mobile applications, accessible by users and allowing Sellers

to be connected to other users for the purpose of carrying out a Relevant Activity,

directly or indirectly, to such users. It also includes any arrangement for the collection

and payment of a Consideration in respect of Relevant Activity.

The term "Platform" does not include software that without any further

intervention in carrying out a Relevant Activity exclusively allows any of the following

(a)

processing of payments in relation to Relevant Activity;

(b)

users to list or advertise a Relevant Activity;

(c)

redirecting or transferring of users to a Platform.

2. "Platform Operator" means an Entity that contracts with Sellers to make

available all or part of a Platform to such Sellers.

3. "Excluded Platform Operator" means a Platform Operator which has

demonstrated upfront and on an annual basis to the satisfaction of the competent

authority in Malta that its entire business model is such that it does not have Reportable

Sellers.

4. "Reporting Platform Operator" means any Platform Operator, other than an

Excluded Platform Operator, which is in any of the following situations

(a)

is resident for tax purposes in a Member State or, where such

Platform Operator does not have a residence for tax purposes in a Member State, it

fulfils any of the following conditions

(i)

it is incorporated under the laws of a Member State;

(ii)

it has its place of management, including effective

management, in a Member State;

(iii) it has a permanent establishment in a Member State and is

not a Qualified Non-Union Platform Operator;

(b)

it is neither resident for tax purposes, nor incorporated or managed

in a Member State, nor has a permanent establishment in a Member State, but

facilitates the carrying out of a Relevant Activity by Reportable Sellers or a

Relevant Activity involving the rental of immovable property located in a

Member State and is not a Qualified Non-Union Platform Operator.

5. "Qualified Non-Union Platform Operator" means a Platform Operator for

which all Relevant Activities that it facilitates are also Qualified Relevant Activities

and that is resident for tax purposes in a Qualified Non-Union Jurisdiction or, where

such Platform Operator does not have a residence for tax purposes in a Qualified Non-

Union Jurisdiction, it fulfils any of the following conditions

(a)

it is incorporated under the laws of a Qualified Non-Union

Jurisdiction; or

(b)

it has its place of management, including effective management, in a

Qualified Non-Union Jurisdiction.

6. "Qualified Non-Union Jurisdiction" means a non-Union jurisdiction that

has in effect an Effective Qualifying Competent Authority Agreement with the

competent authorities of all Member States which are identified as reportable

jurisdictions in a list published by the non-Union jurisdiction.

7. "Reporting Malta Platform Operator" means any Platform Operator, other

than an Excluded Malta Platform Operator, which is

(a)

resident for tax purposes in Malta and not resident for tax

purposes in any other Member State;

(b)

resident for tax purposes in Malta and any other Member State and

has elected in accordance with part A(2) of Section III to fulfil its reporting

obligations in Malta;

(c)

has a permanent establishment in Malta and is not tax resident in

Malta or in any other Member State and does not fulfil any of the conditions set

out in point 4(a) in any other Member State and is not a Qualified Non-Union

Platform Operator;

(d)

has a permanent establishment in Malta and is not tax resident in

Malta or in any other Member State and fulfils any of the conditions set out in

item 4(a) in any other Member State and is not a Qualified Non-Union Platform

Operator, and has elected in accordance with part A(2) of Section III to fulfil its

reporting obligations in Malta; or

(e)

it is not a resident for tax purposes, is not incorporated or managed

in a Member State, does not have a permanent establishment in a Member State,

but facilitates the carrying out of a Relevant Activity by Reportable Sellers or a

Relevant Activity involving the rental of immovable property located in a

Member State and is not a Qualified Non-Union Platform Operator and has

elected in accordance with the published guidelines referred to in regulation

13(12)(e) to fulfil its reporting obligations in Malta.

8. Effective Qualifying Competent Authority Agreement" means an

agreement between the competent authority in Malta and a non-Union jurisdiction that

requires the automatic exchange of information equivalent to that specified in paragraph

B of Section III as confirmed by an implementing act of the EU Administrative

Cooperation Directive and in relation to which such non-Union jurisdiction is identified

in the list published by the Commissioner on the website of the Commissioner for Tax

and Customs under the provisions of article 96(2) of the Income Tax Act.

9. "Relevant Activity" means an activity carried out for Consideration and

being any of the following

(a)

the rental of immovable property, including both residential and

commercial property, as well as any other immovable property and parking

spaces;

(b)

a Personal Service;

(c)

the sale of Goods;

(d)

the rental of any mode of transport

Provided that the term "Relevant Activity" does not include an activity

carried out by a Seller acting as an employee of the Platform Operator or a related Entity

of the Platform Operator.

10. "Qualified Relevant Activities" means any Relevant Activity covered by

the automatic exchange pursuant to an Effective Qualifying Competent Authority

Agreement.

11. "Consideration" means compensation in any form, net of any fees,

commissions or taxes withheld or charged by the Reporting Platform Operator, that is

paid or credited to a Seller in connection with the Relevant Activity, the amount of

which is known or reasonably knowable by the Platform Operator.

12. "Personal Service" means a service involving time-based or task-based

work performed by one (1) or more individuals, acting either independently or on behalf

of an Entity, and which is carried out at the request of a user, either online or physically

offline after having been facilitated by means of a Platform.

B.

Reportable Sellers

1. "Seller" means a Platform user, either an individual or an Entity, that is

registered at any moment during the Reportable Period on the Platform and carries out a

Relevant Activity.

2. "Active Seller" means any Seller that either provides a Relevant Activity

during the Reportable Period or is paid or credited Consideration in connection with a

Relevant Activity during the Reportable Period.

3. "Reportable Seller" means any Active Seller, other than an Excluded Seller,

that is resident in a Member State or that rented out immovable property located in a

Member State.

4. "Excluded Seller" means any Seller

(a)

that is a Governmental Entity;

(b)

that is an Entity the stock of which is regularly traded on an

established securities market or a related Entity of an Entity the stock of which is

regularly traded on an established securities market;

(c)

that is an Entity for which the Platform Operator facilitated more

than two thousand (2, 000) Relevant Activities by means of the rental of

immovable property in respect of a Property Listing during the Reporting Period;

or

(d)

for which the Platform Operator facilitated less than thirty (30)

Relevant Activities by means of the sale of Goods and for which the total

amount of Consideration paid or credited did not exceed two thousand euro (€

2,000) during the Reporting Period.

C.

Other definitions

1. "Entity" means a legal person or a legal arrangement, such as a corporation,

partnership, trust or foundation. An Entity is a related Entity of another Entity if either

Entity controls the other Entity, or the two (2) Entities are under common control. For

this purpose, control includes direct or indirect ownership of more than fifty per cent

(50%) of the vote and value in an Entity. In indirect participation, the fulfilment of the

requirement for the holding of more than fifty per cent (50%) of the right of ownership in

the capital of the other Entity shall be determined by multiplying the rates of holding

through the successive tiers. A person holding more than fifty per cent (50%) of the

voting rights shall be deemed to hold one hundred per cent (100%).

2. "Governmental Entity" means the Government of Malta or other

jurisdiction, any political subdivision of Malta or other jurisdiction which includes a

state, province, county, or municipality, or any wholly owned agency or instrumentality

of Malta or other jurisdiction or of any one or more of the foregoing each, a

"Governmental Entity".

3. "TIN" means a Taxpayer Identification Number, issued by a Member State,

or functional equivalent in the absence of a Taxpayer Identification Number.

4. "VAT identification number" means the unique number that identifies a

taxable person or a non-taxable legal entity that is registered for value added tax

purposes.

5. "Primary Address" means the address that is the primary residence of a

Seller who is an individual, as well as the address that is the registered office of a Seller

that is an Entity.

6. "Reportable Period" means the calendar year in respect of which reporting

is being completed pursuant to Section III.

7. "Property Listing" means all immovable property units located at the same

street address, owned by the same owner and offered for rent on a Platform by the same

Seller.

8. "Financial Account Identifier" means the unique identifying number or

reference available to the Platform Operator of the bank account or other similar

payment services account to which the Consideration is paid or credited.

9. "Goods" means any tangible property.

10. "Identification Service" means an electronic process made available free of

charge by a Member State or the Union to a Reporting Malta Platform Operator for the

purpose of ascertaining the identity and tax residence of a Seller.

SECTION II

DUE DILIGENCE PROCEDURES

The following procedures shall apply for the purpose of identifying Reportable

Sellers.

A.

Sellers not subject to review

For the purpose of determining whether a Seller that is an Entity qualifies as an

Excluded Seller described in part B(4)(a) and (b) of Section I, a Reporting Malta

Platform Operator may rely on publicly available information or a confirmation from the

Seller that is an Entity.

For the purpose of determining whether a Seller qualifies as an Excluded Seller

described in part B(4)(c) and (d) of Section I, a Reporting Malta Platform Operator

may rely on its available records.

B.

Collection of Seller Information

1. The Reporting Malta Platform Operator shall collect all of the following

information for each Seller who is an individual and not an Excluded Seller

(a)

the name and surname;

(b)

the Primary Address;

(c)

any TIN issued to such Seller, including each Member State of

issuance, and in the absence of a TIN, the place of birth of such Seller;

(d)

the VAT identification number of that Seller, where available;

(e)

the date of birth.

2. The Reporting Malta Platform Operator shall collect all of the following

information for each Seller that is an Entity and not an Excluded Seller

(a)

the legal name;

(b)

the Primary Address;

(c)

any TIN issued to such Seller, including each Member State of

issuance;

(d)

the VAT identification number of such Seller, where available;

(e)

the business registration number;

(f)

the existence of any permanent establishment through which

Relevant Activities are carried out in the Union, where available, indicating each

respective Member State, where such a permanent establishment is located.

3. Deleted by Legal Notice 162 of 2026.

4. Notwithstanding the provisions of part B(1)(c) and part B(2)(c) and (e),

the Reporting Malta Platform Operator shall not be required to collect the TIN or the

business registration number, as the case may be, in any of the following situations

(a)

the Member State of residence of the Seller does not issue a TIN or

business registration number to the Seller;

(b)

the Member State of residence of the Seller does not require the

collection of the TIN issued to the Seller.

C.

Verification of Seller Information

1. The Reporting Malta Platform Operator shall determine whether the

information collected pursuant to part A, part B(1), part B(2)(a) to (e) and part E is

reliable, using all information and documents available to the Reporting Malta

Platform Operator in its records, as well as any electronic interface made available to the

public by a Member State or the Union free of charge to ascertain the validity of the TIN

and, or VAT identification number.

2. Notwithstanding the provisions of part C(1), for the completion of the due

diligence procedures pursuant to part F(2), the Reporting Malta Platform Operator may

determine whether the information collected pursuant to part A, part B(1), part B(2)(a)

to (e) and part E is reliable, using information and documents available to the

Reporting Malta Platform Operator in its electronically searchable records.

3. In the application of part F(3)(b) and notwithstanding parts C(1) and C(2),

in instances where the Reporting Malta Platform Operator has reason to believe that any

of the information items described in parts B or E may be inaccurate by virtue of

information provided by the competent authority of a Member State in a request

concerning a specific Seller, the Reporting Malta Platform Operator is obliged to request

the Seller to correct information items that were found to be incorrect and to provide

supporting documents, data or information, which are reliable and of independent source,

such as

(a)

valid government-issued identification document;

(b)

recent tax residency certificate.

D.

Determination of a Member State of residence of Seller for the purposes

of regulation 13(12)

1. A Reporting Malta Platform Operator shall consider a Seller resident in the

Member State of the Seller’s Primary Address. Where different from the Member State

of the Seller’s Primary Address, a Reporting Malta Platform Operator shall consider the

Seller as resident also in the Member State of issuance of TIN. Where the Seller has

provided information with respect to the existence of a permanent establishment pursuant

to part B(2)(f), a Reporting Malta Platform Operator shall consider the Seller resident

also in the respective Member State as specified by the Seller.

2. Notwithstanding the provisions of part D(1), a Reporting Malta Platform

Operator shall consider a Seller resident in each Member State confirmed by an

electronic identification service made available by a Member State or the Union pursuant

to part B(3).

E.

Collection of information on rented immovable property

Where a Seller is engaged in Relevant Activity involving the rental of immovable

property, the Reporting Malta Platform Operator shall collect the address of each

Property Listing and, where issued, the respective land registration number or its

equivalent under the national law of the Member State where it is located. Where a

Reporting Malta Platform Operator facilitated more than two thousand (2,000) Relevant

Activities by means of the rental of a Property Listing for the same Seller that is an

Entity, the Reporting Malta Platform Operator shall collect supporting documents, data

or information that the Property Listing is owned by the same owner.

F.

Timing and validity of due diligence procedures

1. A Reporting Malta Platform Operator shall complete the due diligence

procedures set out in parts A to E by 31st December of the Reportable Period.

2. Notwithstanding the provisions of part F(1), for Sellers that were already

registered on the Platform as of 1st January 2023 or as of the date on which an Entity

becomes a Reporting Malta Platform Operator, the due diligence procedures set out in

parts A to E are required to be completed by 31st December of the second Reportable

Period for the Reporting Malta Platform Operator.

3. Notwithstanding the provisions of part F(1), a Reporting Malta Platform

Operator may rely on the due diligence procedures conducted in respect of previous

Reportable Periods, provided that

(a)

the Seller information required in parts B(1) and B(2) has been

either collected and verified or confirmed within the last thirty-six (36) months;

and

(b)

the Reporting Malta Platform Operator does not have reason to

know that information collected pursuant to parts A, B and E is, or has become

unreliable or incorrect.

G.

Application of the due diligence procedures to Active Sellers only

A Reporting Malta Platform Operator may elect to complete the due diligence

procedures pursuant to parts A to F in respect of Active Sellers only.

H.

Completion of the due diligence procedures by third parties

1. A Reporting Malta Platform Operator may rely on a third-party service

provider to fulfil the due diligence obligations laid down in this Section, but such

obligations shall remain the responsibility of the Reporting Malta Platform Operator.

2. Where a Platform Operator fulfils the due diligence obligations for a

Reporting Malta Platform Operator with respect to the same Platform pursuant to part

H(1), such Platform Operator shall carry out the due diligence procedures pursuant to the

rules laid down in this Section. The due diligence obligations shall remain the

responsibility of the Reporting Malta Platform Operator.

I.

Procedure to ensure the collection of Seller information

Where a Seller does not provide the information required in parts A to E, after

two (2) reminders following the initial request by the Reporting Malta Platform

Operator, but not prior to the expiration of sixty (60) days, the Reporting Malta Platform

Operator shall close the account of the Seller and prevent the Seller from re-registering

on the Platform. Payment of the Consideration to the Seller shall be withheld by the

Reporting Malta Platform Operator until the Seller provides the information requested.

SECTION III

REPORTING REQUIREMENTS

A.

Time and manner of reporting

1. A Reporting Malta Platform Operator shall report to the Commissioner the

information set out in part B with respect to the Reportable Period not later than 31

January of the year following the calendar year in which the Seller is identified as a

Reportable Seller. Where there is more than one (1) Reporting Platform Operator, a

Reporting Malta Platform Operator shall be exempt from reporting the information if it

has proof, in conformity with Maltese law, that the same information has been reported

by another Reporting Platform Operator

Provided that the proof may be in such form as the Commissioner may

determine.

2. If a Reporting Platform Operator within the meaning of part A(4)(a) of

Section I fulfils any of the conditions listed therein in more than one (1) Member State, it

shall elect one (1) of those Member States in which it shall fulfil the reporting

requirements set out in this Section. This election shall be made in such form and manner

as the Commissioner may require by means of guidelines published on the website of the

Commissioner under the provisions of article 96(2) of the Income Tax Act. The

Reporting Platform Operator shall notify all the competent authorities of those Member

States of its election. The said Reporting Platform Operator shall report the information

listed in part B with respect to the Reportable Period to the competent authority of the

Member State of election, as this is determined in accordance with regulation 13(12)(e),

not later than 31st January of the year following the calendar year in which the Seller is

identified as a Reportable Seller. Where there is more than one (1) Reporting Platform

Operator, any of those Reporting Platform Operators shall be exempt from reporting the

information if it has proof, in conformity with the national law of the Member State of

registration, that the same information has been reported by another Reporting Platform

Operator in another Member State.

3. A Reporting Malta Platform Operator within the meaning of part A(7)(e) of

Section I shall report the information set out in part B with respect to the Reportable

Period to the Commissioner not later than 31st January of the year following the calendar

year in which the Seller is identified as a Reportable Seller.

4. Notwithstanding the provisions of paragraph A(3), a Reporting Malta

Platform Operator shall not be required to provide the information established in

paragraph B with respect to Qualified Relevant Activities, covered by an Effective

Qualifying Competent Authority Agreement, which already provides for the automatic

exchange of equivalent information with Malta on Reportable Sellers resident in Malta.

5. A Reporting Malta Platform Operator shall also provide the information

set out in parts B(2) and B(3) to the Reportable Seller to which it relates not later than

31st January of the year following the calendar year in which the Seller is identified as a

Reportable Seller.

6. The information with respect to the Consideration paid or credited in a fiat

currency shall be reported in the currency in which it was paid or credited. In case the

Consideration was paid or credited in a form other than fiat currency, it shall be reported

in the local currency, converted or valued in a manner that is consistently determined by

the Reporting Malta Platform Operator.

7. The information about the Consideration and other amounts shall be

reported in respect of the quarter of the Reportable Period in which the Consideration

was paid or credited.

B.

Information to be Reported

Each Reporting Malta Platform Operator shall report the following information

1. The name, the registered office address, the TIN and, where relevant, the

individual identification number of the Reporting Malta Platform Operator allocated

pursuant to regulation 13(12)(e), as well as the business name of the Platform in

respect of which the Reporting Malta Platform Operator is reporting.

2. With respect to a Reporting Platform Operator having registered with the

Commissioner in Malta as its Member State of its single registration, shall communicate

to the Commissioner in Malta the following information

(a)

name;

(b)

postal address;

(c)

electronic addresses, including websites;

(d)

any TIN issued to the Reporting Platform Operator;

(e)

a statement with the information about identification of such

Reporting Platform Operator for VAT purposes within the Union, pursuant to

Title XII, Chapter 6, Sections 2 and 3 of Council Directive 2006/112/EC of

28 November 2006 on the common system of value added tax;

(f)

Member States in which Reportable Sellers are residents within the

meaning of part D of Section II.

3. With respect to each Reportable Seller that carried out Relevant Activity,

other than immovable property rental

(a)

the information items required to be collected pursuant to part B of

Section II;

(b)

the Financial Account Identifier, insofar as it is available to the

Reporting Malta Platform Operator and the competent authority of the Member

State where the Reportable Seller is resident in the meaning of part D of Section II

has not published that it does not intend to use the Financial Account Identifier

for this purpose;

(c)

where different from the name of the Reportable Seller, in addition

to the Financial Account Identifier, the name of the holder of the financial

account to which the Consideration is paid or credited, to the extent available to

the Reporting Malta Platform Operator, as well as any other financial

identification information available to the Reporting Malta Platform Operator

with respect to that account holder;

(d)

each Member State in which the Reportable Seller is resident for the

purposes of regulation 13(12);

(e)

the total Consideration paid or credited during each quarter of the

Reportable Period and the number of Relevant Activities in respect of which it

was paid or credited;

(f)

any fees, commissions or taxes withheld or charged by the

Reporting Malta Platform Operator during each quarter of the Reportable

Period.

4. With respect to each Reportable Seller that carried out Relevant Activity

involving immovable property rental

(a)

the information items required to be collected pursuant to part B of

Section II;

(b)

the Financial Account Identifier, insofar as it is available to the

Reporting Malta Platform Operator and the competent authority of the Member

State where the Reportable Seller is resident in the meaning of part D of Section II

has not published that it does not intend to use the Financial Account Identifier

for this purpose;

(c)

where different from the name of the Reportable Seller, in addition

to the Financial Account Identifier, the name of the holder of the financial

account to which the Consideration is paid or credited, to the extent available to

the Reporting Malta Platform Operator, as well as any other financial

identification information available to the Reporting Malta Platform Operator

with respect to the account holder;

(d)

each Member State in which the Reportable Seller is resident for the

purposes of regulation 13(12) as determined pursuant to part D of Section II;

(e)

the address of each Property Listing, determined on the basis of the

procedures set out in part E of Section II and the respective land registration

number or its equivalent under the national law of the Member State where the

Property Listing is located, where available;

(f)

the total Consideration paid or credited during each quarter of the

Reportable Period and the number of Relevant Activities provided with respect to

each Property Listing;

(g)

any fees, commissions or taxes withheld or charged by the

Reporting Malta Platform Operator during each quarter of the Reportable

Period;

(h)

where available, the number of days each Property Listing was

rented during the Reportable Period and the type of each Property Listing.

5. Notwithstanding the provisions of sub-paragraph B(2)(a), and sub-paragraph

B(3)(a), the Reporting Malta Platform Operator shall not be required to report the

information items required to be collected in accordance with paragraph B of Section

II, when it reports to a competent authority that uses an Identification Service and

relies on direct confirmation of the identity and residence of the Seller through an

Identification Service made available by a Member State or the Union to ascertain

the identity and all tax residencies of the Seller. In case the Reporting Malta

Platform Operator relied on an Identification Service to ascertain the identity and all

tax residencies of a Reportable Seller, the name, Identification Service identifiers

and the Member States of issuance shall be reported.

ANNEX VI

Added by

L.N. 162 of 2026.

REPORTING REQUIREMENTS, DUE DILIGENCE PROCEDURES AND OTHER

RULES APPLICABLE TO REPORTING CRYPTO-ASSET SERVICE PROVIDERS

This Annex establishes the reporting requirements, due diligence procedures and

other rules which shall be applied by the Reporting Malta Crypto-Asset Service

Providers in order to enable Malta to communicate, by automatic exchange, the

information referred to in Article 8ad of the EU Administrative Cooperation

Directive. This Annex also establishes the rules and administrative procedures that

Malta has in place in order to ensure the effective implementation of, and

compliance with the reporting requirements and the due diligence procedures set out

therein.

SECTION I

OBLIGATIONS OF REPORTING CRYPTO-ASSET

SERVICE PROVIDERS

A. A Reporting Malta Crypto-Asset Service Provider as defined in sub-

paragraph B(3) of Section IV, is subject to the reporting and due diligence

requirements established in Sections II and III, respectively, in Malta, if

1. it is an Entity authorised by the Malta Financial Services Authority

as the competent authority in accordance with Article 63 of Regulation (EU)

2023/1114 or allowed to provide Crypto-Asset Services following a notification

to a Member State in accordance with Article 60 of the said Regulation; or

2. not an Entity authorised by the Malta Financial Services Authority

as the competent authority in accordance with Article 63 of Regulation (EU)

2023/1114 or allowed to provide Crypto-Asset Services following a notification

to the Malta Financial Services Authority as competent authority in accordance

with Article 60 of the said Regulation and it is

(a) an Entity or individual resident for tax purposes in Malta;

(b) an Entity that

(i) is incorporated or organised under the laws of Malta; and

(ii) has legal personality in Malta or has an obligation to file tax

returns or tax information returns in Malta with respect to the

income of the Entity;

(c) an Entity managed from Malta; or

(d) an Entity or individual that has a regular place of business in a Malta.

B.

A Reporting Malta Crypto-Asset Service Provider shall be subject to the

reporting and due diligence requirements established in Sections II and III, respectively,

in Malta with respect to Reportable Transactions effectuated through a Branch based in

Malta.

C.

A Reporting Malta Crypto-Asset Service Provider that is an Entity is not

required to complete the reporting and due diligence requirements established in

Sections II and III, respectively, in Malta if it falls within scope of sub-paragraph

A(2)(b), (c) or (d), if those requirements are completed by such Reporting Malta

Crypto-Asset Service Provider in any other Member State or in a Qualified Non-Union

Jurisdiction by virtue of it being resident for tax purposes in such Member State or

Qualified Non-Union Jurisdiction.

D.

A Reporting Malta Crypto-Asset Service Provider that is an Entity is not

required to complete the reporting and due diligence requirements established in

Sections II and III, respectively, in Malta if it falls within the scope of sub-paragraph

A(2)(c) or (d), if those requirements are completed by such Reporting Malta Crypto-

Asset Service Provider in any other Member State or in a Qualified Non-Union

Jurisdiction by virtue of it being an Entity that

(a) is incorporated or organised under the laws of such Member State or

Qualified Non-Union Jurisdiction; and

(b) has legal personality in the other Member State or Qualified Non-Union

Jurisdiction or has an obligation to file tax returns or tax information

returns to the tax authorities in the other Member State or Qualified

Non-Union Jurisdiction with respect to the income of the Entity.

E.

A Reporting Malta Crypto-Asset Service Provider that is an Entity is not

required to complete the reporting and due diligence requirements established in

Sections II and III, respectively, in Malta if it falls within scope of sub-paragraph

A(2)(d), if those requirements are completed by such Reporting Crypto-Asset Service

Provider in any other Member State or in a Qualified Non-Union Jurisdiction by virtue

of it being managed from such Member State or Qualified Non-Union Jurisdiction.

F.

A Reporting Crypto-Asset Service Provider that is an individual is not

required to complete the reporting and due diligence requirements established in

Sections II and III, respectively, in Malta if it falls within scope of sub-paragraph

A(2)(d), if those requirements are completed by such Reporting Crypto-Asset Service

Provider in any other Member State or in a Qualified Non-Union Jurisdiction by virtue

of it being resident for tax purposes in such Member State or Qualified Non-Union

Jurisdiction.

G.

A Reporting Crypto-Asset Service Provider is not required to complete the

reporting and due diligence requirements established in Sections II and III, respectively,

in Malta if it falls within the scope of sub-paragraph A(2)(a), (b), (c) or (d), if it has

filed a notification with the Commissioner for Tax and Customs in such form as the

Commissioner may determine, confirming that those requirements are completed by

such Reporting Crypto-Asset Service Provider under the rules of any other Member

State or Qualified Non-Union Jurisdiction pursuant to criteria that are substantially

similar to sub-paragraph A(2)(a), (b), (c) or (d), respectively.

H.

A Reporting Crypto-Asset Service Provider is not required to complete the

reporting and due diligence requirements established in Sections II and III, respectively,

in Malta with respect to Reportable Transactions it effectuates through a Branch in any

other Member State or Qualified Non-Union Jurisdiction, if those requirements are

completed by such Branch in such other Member State or Qualified Non-Union

Jurisdiction.

SECTION II

REPORTING REQUIREMENTS

A.

A Reporting Malta Crypto-Asset Service Provider within the meaning of

Section I, paragraphs A and B, shall report the information mentioned in paragraph B of

this Section to the competent authority of Malta, where it is subject to reporting

requirements in accordance with Section I.

B.

For each relevant calendar year or other appropriate reporting period, and

subject to the obligations of Reporting Malta Crypto-Asset Service Providers

established in Section I and the due diligence procedures established in Section III, a

Reporting Crypto-Asset Service Provider shall report the following information with

respect to its Crypto-Asset Users that are Reportable Users or that have Controlling

Persons that are Reportable Persons

1. the name, address, Member States of residence, TINs and, in the case of an

individual, date and place of birth of each Reportable User and, in the case of any

Entity that, after application of the due diligence procedures established in Section

III, is identified as having one (1) or more Controlling Persons that is a Reportable

Person, the name, address, Member States of residence and TINs of the Entity and

the name, address, Member States of residence, TINs and date and place of birth of

each Controlling Person of the Entity that is a Reportable Person, as well as the roles

by virtue of which each such Reportable Person is a Controlling Person of the Entity;

Notwithstanding sub-paragraph B(1), first sub-paragraph, where the Reporting

Malta Crypto-Asset Service Provider reports to a competent authority that uses an

Identification Service and relies on direct confirmation of the identity and residence

of the Reportable Person through an Identification Service made available by a

Member State or the Union to ascertain the identity and all tax residencies of the

Reportable Person, the information to be reported regarding the Reportable Person is

the name, the Identification Service identifiers and the Member States of issuance, as

well as the roles by virtue of which each Reportable Person is a Controlling Person

of the Entity;

2. the name, address, TIN and, if available, the individual identification number

referred to in regulation 13(13)(e) and the global legal entity identifier of the

Reporting Crypto-Asset Service Provider;

3. for each type of Reportable Crypto-Asset with respect to which the

Reporting Malta Crypto-Asset Service Provider has effectuated Reportable

Transactions during the relevant calendar year or other appropriate reporting period,

where relevant

(a) the full name of the type of Reportable Crypto-Asset;

(b) the aggregate gross amount paid, the aggregate number of units and the

number of Reportable Transactions in respect of acquisitions against

Fiat Currency;

(c) the aggregate gross amount received, the aggregate number of units and

the number of Reportable Transactions in respect of disposals against

Fiat Currency;

(d) the aggregate fair market value, the aggregate number of units and the

number of Reportable Transactions in respect of acquisitions against

other Reportable Crypto-Assets;

(e) the aggregate fair market value, the aggregate number of units and the

number of Reportable Transactions in respect of disposals against other

Reportable Crypto-Assets;

(f)

the aggregate fair market value, the aggregate number of units and the

number of Reportable Retail Payment Transactions;

(g) the aggregate fair market value, the aggregate number of units and the

number of Reportable Transactions, and subdivided by transfer type

where known by the Reporting Malta Crypto-Asset Service Provider, in

respect of Transfers to the Reportable User not covered by points (b)

and (d);

(h) the aggregate fair market value, the aggregate number of units and the

number of Reportable Transactions, and subdivided by transfer type

where known by the Reporting Malta Crypto-Asset Service Provider, in

respect of Transfers by the Reportable User not covered by points (c),

(e) and (f); and

(i)

the aggregate fair market value, as well as the aggregate number of units

of Transfers effectuated by the Reporting Malta Crypto-Asset Service

Provider to distributed ledger addresses referred to in Regulation (EU)

2023/1114 not known to be associated with a virtual asset service

provider or financial institution.

For the purposes of sub-paragraph B(3), points (b) and (c), the amount paid or

received shall be reported in the Fiat Currency in which it was paid or received. In

case the amounts were paid or received in multiple Fiat Currencies, the amounts

shall be reported in a single currency, converted at the time of each Reportable

Transaction in a manner that is consistently applied by the Reporting Malta Crypto-

Asset Service Provider.

For the purposes of sub-paragraph B(3), points (d) to (i), the fair market value

shall be determined and reported in a single currency, valued at the time of each

Reportable Transaction in a manner that is consistently applied by the Reporting

Malta Crypto-Asset Service Provider.

The information reported shall identify the Fiat Currency in which each amount is

C.

Notwithstanding sub-paragraph B(1), the place of birth is not

required to be reported unless the Reporting Malta Crypto-Asset Service

Provider is otherwise required to obtain and report it under domestic law.

D.

The information listed in paragraph B shall be reported annually in

the calendar year following the year to which the information relates. The first

information shall be reported for the relevant calendar year or other appropriate

reporting period as from 1 January 2026.

E.

Notwithstanding paragraphs A and D of this Section, a Reporting

Malta Crypto-Asset Service Provider within the meaning of Section I, sub-

paragraph A(2), point (a), (b), (c) or (d), shall not be required to provide the

information listed in paragraph B of this Section with respect to a Reportable

User or Controlling Person for which the Reporting Malta Crypto-Asset Service

Provider completes the reporting of such information in a non-Union jurisdiction

that is covered by an Effective Qualifying Competent Authority Agreement with

the Member State of residence of such Reportable User or such Controlling

Person.

SECTION III

DUE DILIGENCE PROCEDURES

A Crypto-Asset User is treated as a Reportable User beginning as of the date

when it is identified as such in accordance with the due diligence procedures described

in this Section.

A.

Due diligence procedures for Individual Crypto-Asset Users

The following procedures apply for the purpose of determining whether the

Individual Crypto-Asset User is a Reportable User.

1. When establishing the relationship with the Individual Crypto-Asset User,

or with respect to Pre-existing Individual Crypto-Asset Users by 1 January 2027, the

Reporting Malta Crypto-Asset Service Provider shall obtain a self-certification that

allows the Reporting Malta Crypto-Asset Service Provider to determine the Individual

Crypto-Asset User’s residences for tax purposes and confirm the reasonableness of

such self-certification based on the information obtained by the Reporting Malta

Crypto-Asset Service Provider, including any documentation collected in accordance

with Customer Due Diligence Procedures.

2. If at any point there is a change of circumstances with respect to an

Individual Crypto-Asset User that causes the Reporting Malta Crypto-Asset Service

Provider to know, or have reason to know, that the original self-certification is incorrect

or unreliable, the Reporting Malta Crypto-Asset Service Provider cannot rely on the

original self-certification and shall obtain a valid self-certification, or a reasonable

explanation and, where appropriate, documentation supporting the validity of the

original self-certification.

B.

Due diligence procedures for Entity Crypto-Asset Users

The following procedures apply for the purpose of determining whether the

Entity Crypto-Asset User is a Reportable User or an Entity, other than an Excluded

Person or an Active Entity, with one (1) or more Controlling Persons who are

Reportable Persons.

1. Determining whether the Entity Crypto-Asset User is a Reportable Person.

(a) When establishing the relationship with the Entity Crypto-Asset User,

or with respect to Pre-existing Entity Crypto-Assets Users by 1 January

2027, the Reporting Malta Crypto-Asset Service Provider shall obtain a

self-certification that allows the Reporting Malta Crypto-Asset Service

Provider to determine the Entity Crypto-Asset User’s residences for tax

purposes and confirm the reasonableness of such self-certification based

on the information obtained by the Reporting Malta Crypto-Asset

Service Provider, including any documentation collected in accordance

with Customer Due Diligence Procedures. If the Entity Crypto-Asset

User certifies that it has no residence for tax purposes, the Reporting

Malta Crypto-Asset Service Provider may rely on the place of effective

management or the address of the principal office to determine the

residence of the Entity Crypto-Asset User.

(b) If the self-certification indicates that the Entity Crypto-Asset User is

resident in a Member State, the Reporting Malta Crypto-Asset Service

Provider shall treat the Entity Crypto-Asset User as a Reportable User,

unless it reasonably determines based on the self-certification or on

information in its possession or that is publicly available, that the Entity

Crypto-Asset User is an Excluded Person.

2. Determining whether the Entity has one (1) or more Controlling Persons

who are Reportable Persons. With respect to an Entity Crypto-Asset User, other than an

Excluded Person, the Reporting Malta Crypto-Asset Service Provider shall determine

whether it has one (1) or more Controlling Persons who are Reportable Persons, unless

it determines that the Entity Crypto-Asset User is an Active Entity, based on a self-

certification from the Entity Crypto-Asset User.

(a) Determining the Controlling Persons of the Entity Crypto-Asset User.

For the purpose of determining the Controlling Persons of the Entity

Crypto-Asset User, a Reporting Crypto-Asset Service Provider may rely

on information collected and maintained in accordance with the

Customer Due Diligence Procedures, provided that such procedures are

consistent with Directive (EU) 2015/849. If the Reporting Malta

Crypto-Asset Service Provider is not legally required to apply Customer

Due Diligence Procedures that are consistent with Directive (EU) 2015/

849, it shall apply substantially similar procedures for the purpose of

determining the Controlling Persons.

(b) Determining whether a Controlling Person of an Entity Crypto-Asset

User is a Reportable Person. For the purpose of determining whether a

Controlling Person is a Reportable Person, a Reporting Malta Crypto-

Asset Service Provider shall rely on a self-certification from the Entity

Crypto-Asset User or such Controlling Person that allows the Reporting

Malta Crypto-Asset Service Provider to determine the Controlling

Person’s residences for tax purposes and confirm the reasonableness of

such self-certification based on the information obtained by the

Reporting Crypto-Asset Service Provider, including any documentation

collected pursuant to Customer Due Diligence Procedures.

3. If at any point there is a change of circumstances with respect to an Entity

Crypto-Asset User or its Controlling Persons that causes the Reporting Malta Crypto-

Asset Service Provider to know, or have reason to know, that the original self-

certification is incorrect or unreliable, the Reporting Malta Crypto-Asset Service

Provider cannot rely on the original self-certification and shall obtain a valid self-

certification, or a reasonable explanation and, where appropriate, documentation

supporting the validity of the original self-certification.

Requirements for validity of self-certifications

1. A self-certification provided by an Individual Crypto-Asset User or

Controlling Person is valid only if it is signed or otherwise positively affirmed by the

Individual Crypto-Asset User or Controlling Person, it is dated at the latest at the date

of receipt and it contains the following information with respect to the Individual

Crypto-Asset User or Controlling Person

(a) first and last name;

(b) residence address;

(c) Member States of residence for tax purposes;

(d) with respect to each Reportable Person, the TIN with respect to each

Member State;

(e) date of birth.

2. A self-certification provided by an Entity Crypto-Asset User is valid only

if it is signed or otherwise positively affirmed by the Entity Crypto-Asset User, it is

dated at the latest at the date of receipt and it contains the following information with

respect to the Entity Crypto-Asset User

(a) legal name;

(b) address;

(c) Member States of residence for tax purposes;

(d) with respect to each Reportable Person, the TIN with respect to each

Member State;

(e) in the case of an Entity Crypto-Asset User other than an Active Entity

or an Excluded Person, the information described in sub-paragraph C(1)

with respect to each Controlling Person of the Entity Crypto-Asset User,

unless such Controlling Person has provided a self-certification in

accordance with sub-paragraph C(1), as well as the roles by virtue of

which each Reportable Person is a Controlling Person of the Entity, if

not already determined on the basis of Customer Due Diligence

Procedures;

(f)

if applicable, information as to the criteria it meets to be treated as an

Active Entity or Excluded Person.

D.

General due diligence requirements

1. A Reporting Malta Crypto-Asset Service Provider that is also a Financial

Institution for the purposes of these regulations may rely on the due diligence

procedures completed in accordance with Sections IV and VI of Annex I for the

purposes of the due diligence procedures pursuant to this Section. A Reporting Malta

Crypto-Asset Service Provider may also rely on a self-certification already collected for

other tax purposes, provided such self-certification meets the requirements of paragraph

C of this Section.

2. A Reporting Malta Crypto-Asset Service Provider may rely on a third

party to fulfil the due diligence obligations set out in this Section, but such obligations

remain the responsibility of the Reporting Malta Crypto-Asset Service Provider.

SECTION IV

DEFINED TERMS

The following terms have the meaning established below

A.

Reportable Crypto-Asset

1. "Crypto-Asset" means crypto-asset as defined in Article 3(1), point (5), of

Regulation (EU) 2023/1114.

2. "Central Bank Digital Currency" means any digital Fiat Currency issued by a

Central Bank or other monetary authority.

3. "Central Bank" means an institution that is by law or government sanction

the principal authority, other than the government of the jurisdiction itself, issuing

instruments intended to circulate as currency. Such an institution may include an

instrumentality that is separate from the government of the jurisdiction, whether or

not totally or partially owned by the jurisdiction.

4. "Reportable Crypto-Asset" means any Crypto-Asset other than a Central

Bank Digital Currency, Electronic Money, or any Crypto-Asset for which the

Reporting Crypto-Asset Service Provider has adequately determined that it cannot

be used for payment or investment purposes.

5. For the purposes of this Annex, "Electronic Money" means any Crypto-Asset

that is

(a) a digital representation of a single Fiat Currency;

(b) issued on the receipt of funds for the purpose of making payment

transactions;

(c) represented by a claim on the issuer denominated in the same Fiat

Currency;

(d) accepted in payment by a natural or legal person other than the issuer;

and

(e) by virtue of regulatory requirements to which the issuer is subject,

redeemable at any time and at par value for the same Fiat Currency upon

request of the holder of the product.

The term "Electronic money" does not include a product created for the

sole purpose of facilitating the transfer of funds from a customer to another

person pursuant to instructions of the customer. A product is not created for the

sole purpose of facilitating the transfer of funds if, in the ordinary course of

business of the transferring Entity, either the funds connected with such product

are held longer than sixty (60) days after receipt of instructions to facilitate the

transfer or, if no instructions are received, the funds connected with such product

are held longer than sixty (60) days after receipt of the funds.

B.

Reporting Crypto-Asset Service Provider

1. "Crypto-Asset Service Provider" means crypto-asset service

provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114.

2. "Crypto-Asset Operator" means a provider of Crypto-Asset

Services other than a Crypto-Asset Service Provider.

3. "Reporting Crypto-Asset Service Provider" means any Crypto-

Asset Service Provider and any Crypto-Asset Operator that conducts one (1) or

more Crypto-Asset Services effectuating Exchange Transactions for, or on

behalf of a Reportable User.

4. "Crypto-Asset Service" means crypto-asset service as defined in

Article 3(1), point (16), of Regulation (EU) 2023/1114, including staking and

lending.

C.

Reportable Transaction

1. "Reportable Transaction" means any

(a)

Exchange Transaction; and

(b)

Transfer of Reportable Crypto-Assets.

2. "Exchange Transaction" means any

(a)

exchange between Reportable Crypto-Assets and Fiat

Currencies; and

(b)

exchange between one (1) or more forms of Reportable

Crypto-Assets.

3. "Reportable Retail Payment Transaction" means a Transfer of

Reportable Crypto-Assets in consideration of goods or services for a value

exceeding $USD 50,000 or the equivalent amount in any other currency.

4. "Transfer" means a transaction that moves a Reportable Crypto-

Asset from, or to the Crypto-Asset address or account of one (1) Crypto-Asset

User, other than one maintained by the Reporting Crypto-Asset Service Provider

on behalf of the same Crypto-Asset User where, based on the knowledge

available to the Reporting Crypto-Asset Service Provider at the time of

transaction, the Reporting Crypto-Asset Service Provider cannot determine that

the transaction is an Exchange Transaction.

5. "Fiat Currency" means the official currency of a jurisdiction,

issued by a jurisdiction or by a jurisdiction’s designated Central Bank or

monetary authority, as represented by physical banknotes or coins or by money

in different digital forms, including bank reserves and Central Bank Digital

Currencies. The term also includes commercial bank money and electronic

money products (Electronic Money).

D.

Reportable User

1. "Reportable User" means a Crypto-Asset User that is a Reportable

Person resident in a Member State.

2. "Crypto-Asset User" means an individual or Entity that is a

customer of a Reporting Crypto-Asset Service Provider for the purpose of

carrying out Reportable Transactions. An individual or Entity, other than a

Financial Institution or a Reporting Crypto-Asset Service Provider, acting as a

Crypto-Asset User for the benefit or account of another individual or Entity as

agent, custodian, nominee, signatory, investment advisor, or intermediary, is not

treated as a Crypto-Asset User, and such other individual or Entity is treated as

the Crypto-Asset User. Where a Reporting Crypto-Asset Service Provider

provides a service effectuating Reportable Retail Payment Transactions for, or

on behalf of a merchant, the Reporting Crypto-Asset Service Provider shall also

treat the customer that is the counterparty to the merchant for such Reportable

Retail Payment Transactions as the Crypto-Asset User with respect to such

Reportable Retail Payment Transaction, provided that the Reporting Crypto-

Asset Service Provider is required to verify the identity of such customer by

virtue of the Reportable Retail Payment Transaction in accordance with domestic

anti-money laundering rules.

3. "Individual Crypto-Asset User" means a Crypto-Asset User that is

an individual.

4. "Pre-existing Individual Crypto-Asset User" means an Individual

Crypto-Asset User that has established a relationship with the Reporting Crypto-

Asset Service Provider as of 31 December 2025.

5. "Entity Crypto-Asset User" means a Crypto-Asset User that is an

Entity.

6. "Pre-existing Entity Crypto-Asset User" means an Entity Crypto-

Asset User that has established a relationship with the Reporting Crypto-Asset

Service Provider as of 31 December 2025.

7. "Reportable Person" means a Member State Person other than an

Excluded Person.

8. "Member State Person" with regard to Malta means an Entity or

individual that is resident in any other Member State under the tax laws of such

Member State, or an estate of a deceased person who was a resident of any

Member State. For that purpose, an Entity such as a partnership, limited liability

partnership or similar legal arrangement that has no residence for tax purposes

shall be treated as resident in the jurisdiction in which its place of effective

management is situated.

9. "Controlling Persons" means the natural persons who exercise

control over an Entity. In the case of a trust, such term means the settlors, the

trustees, the protectors, if any, the beneficiaries or classes of beneficiaries, and

any other natural persons exercising ultimate effective control over the trust, and

in the case of a legal arrangement other than a trust, such term means persons in

equivalent or similar positions. The term "Controlling Persons" must be

interpreted in a manner consistent with the definition of "Beneficial Owner"

contained in regulation 2 as well as that contained in regulation 2 of the

Prevention of Money Laundering and Funding of Terrorism Regulations, and the

level of control shall also be determined in line with such definitions, as far as

Reporting Crypto-Asset Service Providers are concerned.

10. "Active Entity" means any Entity that meets any of the following

criteria

(a)

less than fifty per cent (50%) of the Entity’s gross income

for the preceding calendar year or other appropriate reporting period is

passive income and less than fifty per cent (50%) of the assets held by the

Entity during the preceding calendar year or other appropriate reporting

period are assets that produce or are held for the production of passive

income;

(b)

substantially all of the activities of the Entity consist of

holding, in whole or in part, the outstanding stock of, or providing

financing and services to, one (1) or more subsidiaries that engage in

trades or businesses other than the business of a Financial Institution,

except that an Entity does not qualify for this 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;

(c)

the Entity is not yet operating a business and has no prior

operating history, but is investing capital into assets with the intent to

operate a business other than that of a Financial Institution, provided that

the Entity does not qualify for this exception after the date that is twenty-

four (24) months after the date of the initial organisation of the Entity;

(d)

the Entity was not a Financial Institution in the past five

(5) years and is in the process of liquidating its assets or is reorganising

with the intent to continue or recommence operations in a business other

than that of a Financial Institution;

(e)

the Entity primarily engages in financing and hedging

transactions with, or for Related Entities that are not Financial Institutions,

and does not provide financing or hedging services to any Entity that is not

a Related Entity, provided that the group of any such Related Entities is

primarily engaged in a business other than that of a Financial Institution;

or

(f)

the Entity meets all of the following requirements

(i)

it is established and operated in its jurisdiction of

residence exclusively for religious, charitable, scientific, artistic,

cultural, athletic, or educational purposes; or it is established and

operated in its jurisdiction of residence, and it is a professional

organisation, business league, chamber of commerce, labour

organisation, agricultural or horticultural organisation, civic

league or an organisation operated exclusively for the promotion

of social welfare;

(ii)

it is exempt from income tax in its jurisdiction of

residence;

(iii) it has no shareholders or members who have a

proprietary or beneficial interest in its income or assets;

(iv) the applicable laws of the Entity’s jurisdiction of

residence or the Entity’s formation documents do not permit any

income or assets of the Entity to be distributed to, or applied for

the benefit of, a private person or non-charitable Entity other than

pursuant to the conduct of the Entity’s charitable activities, or as

payment of reasonable compensation for services rendered, or as

payment representing the fair market value of property which the

Entity has purchased; and

(v)

the applicable laws of the Entity’s jurisdiction of

residence or the Entity’s formation documents require that, upon

the Entity’s liquidation or dissolution, all of its assets be

distributed to a Governmental Entity or other non-profit

organisation, or transferred to the government of the Entity’s

jurisdiction of residence or any political subdivision thereof.

Excluded Person

1. "Excluded Person" means

(a)

an Entity the stock of which is regularly traded on one (1) or more

established securities markets;

(b)

any Entity that is a Related Entity of an Entity described in point

(c)

a Governmental Entity;

(d)

an International Organisation;

(e)

a Central Bank; or

(f)

a Financial Institution other than an Investment Entity described in

sub-paragraph E(5), point (b).

2. "Financial Institution" means a Custodial Institution, a Depository

Institution, an Investment Entity, or a Specified Insurance Company.

3. "Custodial Institution" means any Entity that holds, as a substantial

portion of its business, Financial Assets for the account of others. An Entity holds

Financial Assets for the account of others as a substantial portion of its business if the

Entity’s gross income attributable to the holding of Financial Assets and related

financial services equals to, or exceeds twenty per cent (20%) of the Entity’s gross

income during the shorter of

(i)

the three (3) year period that ends on 31st December, or the final

day of a non-calendar year accounting period, prior to the year in which the

determination is being made; or

(ii)

the period during which the Entity has been in existence.

4. "Depository Institution" means any Entity that

(a)

accepts deposits in the ordinary course of a banking or similar

business; or

(b)

holds Electronic Money or Central Bank Digital Currencies for the

benefit of customers.

5. "Investment Entity" means any Entity

(a)

that primarily conducts as a business one (1) or more of the

following activities or operations for, or on behalf of a customer

(i)

trading in money market instruments (cheques, bills,

certificates of deposit, derivatives, etc.); foreign exchange; exchange,

interest rate and index instruments; transferable securities; or commodity

futures trading;

(ii)

individual and collective portfolio management; or

(iii) otherwise investing, administering, or managing Financial

Assets, money, or Reportable Crypto-Assets on behalf of other persons; or

(b)

the gross income of which is primarily attributable to investing,

reinvesting, or trading in Financial Assets or Reportable Crypto-Assets, if the

Entity is managed by another Entity that is a Depository Institution, a Custodial

Institution, a Specified Insurance Company, or an Investment Entity described in

sub-paragraph E(5), point (a).

An Entity is treated as primarily conducting as a business one (1) or more

of the activities described in sub-paragraph E(5), point (a), or an Entity’s gross

income is primarily attributable to investing, reinvesting, or trading in Financial

Assets or Reportable Crypto-Assets for the purposes of sub-paragraph E(5),

point (b), if the Entity’s gross income attributable to the relevant activities equals

to or exceeds fifty per cent (50%) of the Entity’s gross income during the shorter

of

(i) the three (3) year period ending on 31st December of the year

preceding the year in which the determination is made; or

(ii) the period during which the Entity has been in existence.

For the purposes of sub-paragraph E(5), point (a)(iii), the term "otherwise

investing, administering, or managing Financial Assets, money, or Reportable

Crypto-Assets on behalf of other persons" does not include the provision of

services effectuating Exchange Transactions for or on behalf of customers. The

term "Investment Entity" does not include an Entity that is an Active Entity

because it meets any of the criteria in sub-paragraph D(10), points (b) to (e).

This sub-paragraph shall be interpreted in a manner consistent with the

similar language stipulated in the definition of "financial institution" in Article 3,

point (2), of Directive (EU) 2015/849 on the prevention of the use of the

financial system for the purposes of money laundering or terrorist financing.

6. "Specified Insurance Company" means any Entity that is an insurance

company, or the holding company of an insurance company, that issues, or is obligated

to make payments with respect to, a Cash Value Insurance Contract or an Annuity

Contract.

7. "Governmental Entity" means the government of a jurisdiction, any

political subdivision of a jurisdiction, which for the avoidance of doubt, includes a

state, province, county, or municipality, or any wholly owned agency or instrumentality

of a jurisdiction or of any one or more of the foregoing. This category is comprised of

the integral parts, controlled entities, and political subdivisions of a jurisdiction.

(a)

An "integral part" of a jurisdiction means any person, organisation,

agency, bureau, fund, instrumentality, or other body, however designated, that

constitutes a governing authority of a jurisdiction. The net earnings of the

governing authority shall be credited to its own account or to other accounts of

the jurisdiction, with no portion inuring to the benefit of any private person. An

integral part does not include any individual who is a sovereign, official, or

administrator acting in a private or personal capacity.

(b)

A "controlled entity" means an Entity that is separate in form from

the jurisdiction or that otherwise constitutes a separate juridical entity, provided

that

(i)

the Entity is wholly owned and controlled by one or more

Governmental Entities directly or through one (1) or more controlled

entities;

(ii) the Entity’s net earnings are credited to its own account or

to the accounts of one (1) or more Governmental Entities, with no portion

of its income inuring to the benefit of any private person; and

(iii) the Entity’s assets vest in one (1) or more Governmental

Entities upon dissolution.

(c)

Income does not inure to the benefit of private persons if such

persons are the intended beneficiaries of a governmental programme, and the

programme activities are performed for the general public with respect to the

common welfare or relate to the administration of some phase of government.

Notwithstanding the foregoing however, income is considered to inure to the

benefit of private persons if the income is derived from the use of a

governmental entity to conduct a commercial business, such as a commercial

banking business, that provides financial services to private persons.

8. "International Organisation" means any international organisation or

wholly owned agency or instrumentality thereof. This category includes any

intergovernmental organisation, including a supranational organisation

(a)

that is comprised primarily of governments;

(b)

that has in effect a headquarters or substantially similar agreement

with the jurisdiction; and

(c)

the income of which does not inure to the benefit of private

persons.

9. "Financial Asset" includes a security, for example, a share of stock in a

corporation; partnership or beneficial ownership interest in a widely held or publicly

traded partnership or trust; note, bond, debenture, or other evidence of indebtedness,

partnership interest, commodity, swap, for example, interest rate swaps, currency

swaps, basis swaps, interest rate caps, interest rate floors, commodity swaps, equity

swaps, equity index swaps, and similar agreements, Insurance Contract or Annuity

Contract, or any interest, including a futures or forward contract or option, in a security,

Reportable Crypto-Asset, partnership interest, commodity, swap, Insurance Contract, or

Annuity Contract. The term "Financial Asset" does not include a non-debt, direct

interest in real property.

10. "Equity Interest" means, in the case of a partnership that is a Financial

Institution, either a capital or profits interest in the partnership. In the case of a trust that

is a Financial Institution, an Equity Interest is considered to be held by any person

treated as a settlor or beneficiary of all or a portion of the trust, or any other natural

person exercising ultimate effective control over the trust. A Reportable Person shall be

treated as being a beneficiary of a trust if such Reportable Person has the right to

receive directly or indirectly, for example, through a nominee, a mandatory distribution

or may receive, directly or indirectly, a discretionary distribution from the trust.

11. "Insurance Contract" means a contract, other than an Annuity Contract,

under which the issuer agrees to pay an amount upon the occurrence of a specified

contingency involving mortality, morbidity, accident, liability, or property risk.

12. "Annuity Contract" means a contract under which the issuer agrees to

make payments for a period of time totally or paartially determined by reference to the

life expectancy of one (1) or more individuals. The term also includes a contract that is

considered to be an Annuity Contract in accordance with the laws, regulations , or

practices of the Member State or other jurisdiction in which the contract was issued,

and under which the issuer agrees to make payments for a term of years.

13. "Cash Value Insurance Contract” means an Insurance Contract, other than

an indemnity reinsurance contract between two (2) insurance companies, that has a

Cash Value.

14. "Cash Value" means the greater of

(i)

the amount that the policyholder is entitled to receive upon surrender or

termination of the contract, determined without reduction for any

surrender charge or policy loan; and

(ii) the amount the policyholder can borrow under or with regard to the

contract. Notwithstanding the foregoing, the term "Cash Value" does not

include an amount payable under an Insurance Contract

(a)

solely by reason of the death of an individual insured under a life

insurance contract;

(b)

as a personal injury or sickness benefit or other benefit providing

indemnification of an economic loss incurred upon the occurrence

of the event insured against;

(c)

as a refund of a previously paid premium, less cost of insurance

charges whether or not actually imposed, under an Insurance

Contract, other than an investment-linked life insurance or

annuity contract, due to cancellation or termination of the

contract, decrease in risk exposure during the effective period of

the contract, or arising from the correction of a posting or similar

error with regard to the premium for the contract;

(d)

as a policyholder dividend, other than a termination dividend,

provided that the diidend relates to an Insurance Contract under

which the only benefits payable are described in point (b); or

(e)

as a return of an advance premium or premium deposit for an

Insurance Contract for which the premium is payable at least

annually if the amount of the advance premium or premium

deposit does not exceed the next annual premium that shall be

payable under the contract.

Miscellaneous

1. "Customer Due Diligence Procedures" means the customer due diligence

procedures of a Reporting Crypto-Asset Service Provider pursuant to Directive (EU)

2015/849 or similar requirements to which such Reporting Crypto- Asset Service

Provider is subject.

2. "Entity" means a legal person or a legal arrangement, such as a

corporation, partnership, trust, or foundation.

3. An Entity is a "Related Entity" of another Entity if either Entity controls

the other Entity, or the two (2) Entities are under common control. For this purpose,

control includes direct or indirect ownership of more than 50% of the vote and value in

4. "Branch" means a unit, business or office of a Reporting Crypto-Asset

Service Provider that is treated as a branch under the regulatory regime of a jurisdiction

or that is otherwise regulated under the laws of a jurisdiction as separate from other

offices, units, or branches of the Reporting Crypto-Asset Service Provider. All units,

businesses, or offices of a Reporting Crypto-Asset Service Provider in a single

jurisdiction shall be treated as a single branch.

5. "Effective Qualifying Competent Authority Agreement" means an

agreement between the competent authorities of a Member State and a non-Union

jurisdiction that requires the automatic exchange of information corresponding to that

specified in Section II, paragraph B, of this Annex, as determined by an implementing

act in accordance with Article 8ad(11) of the EU Administrative Cooperation Directive.

6. "Qualified Non-Union Jurisdiction" means a non-Union jurisdiction that

has in effect an Effective Qualifying Competent Authority Agreement with the

competent authorities of all Member States which are identified as reportable

jurisdictions in a list published by the non-Union jurisdiction.

7. "TIN" means Taxpayer Identification Number, or functional equivalent in

the absence of a Taxpayer Identification Number. The TIN is any number or code that a

competent authority uses to identify a taxpayer.

8. "Identification Service" means an electronic process made available free

of charge by Malta or the Union to a Reporting Crypto-Asset Service Provider for the

purpose of ascertaining the identity and tax residence of a Crypto-Asset User.

SECTION V

EFFECTIVE IMPLEMENTATION

A.

Rules to enforce the collection and verification requirements established in

Section III

1. Reporting Malta Crypto-Asset Service Providers shall enforce the

collection and verification requirements in accordance with Section III in

relation to their Crypto-Asset Users.

2. Where a Crypto-Asset User does not provide the information

required under Section III after two (2) reminders following the initial request by

the Reporting Malta Crypto-Asset Service Provider, but not prior to the

expiration of sixty (60) days, the Reporting Malta Crypto-Asset Service Provider

shall prevent the Crypto-Asset User from performing Reportable Transactions.

B.

Rules requiring Reporting Malta Crypto-Asset Service Providers to keep

records of the steps undertaken and any information relied upon for the performance of

the reporting requirements and due diligence procedures and adequate measures to

obtain those records.

1. Reporting Malta Crypto-Asset Service Providers shall keep

records of the steps undertaken and any information relied upon for the

performance of the reporting requirements and due diligence procedures

stipulated in Sections II and III, respectively. Such records shall remain available

for a sufficiently long period of time and in any event for a period of not less

than five (5) years but not more than ten (10) years following the end of the

period within which the Reporting Malta Crypto-Asset Service Provider is

required to report the information if the information is reportable pursuant to

Section II.

2. Reporting Malta Crypto-Asset Service Providers shall ensure that

all necessary information is reported to the Commissioner so that the competent

authority of Malta can comply with the obligation to communicate information

in accordance with regulation 13(13)(c).

C.

Administrative procedures to verify compliance of Reporting Malta

Crypto-Asset Service Providers with the reporting requirements and due diligence

procedures

Administrative procedures shall be set to verify the compliance of Reporting

Malta Crypto-Asset Service Providers with the reporting requirements and due

diligence procedures stipulated in Sections II and III, respectively.

D.

Administrative procedures to follow up with Reporting Malta Crypto-

Asset Service Providers where incomplete or inaccurate information is reported

Procedures shall be set for following up with Reporting Malta Crypto-Asset

Service Providers where the reported information is incomplete or inaccurate.

E.

Administrative procedure for authorisation of a Crypto-Asset Service

Provider

The Malta Financial Services Authority, being the competent authority of Malta

providing authorisation to Crypto-Asset Service Providers in accordance with

Regulation (EU) 2023/1114 and the Markets in Crypto-Assets Act shall communicate

on a regular basis and at the latest before 31 December of the relevant calendar year or

other appropriate reporting period to the competent authority of Malta a list of all

authorised Crypto-Asset Service Providers.

F.

Administrative procedure for single registration of a Crypto-Asset

Operator

1. A Crypto-Asset Operator that is a Reporting Malta Crypto-Asset Service

Provider as defined in Section IV, sub-paragraph B(3), shall register, in accordance with

regulation 13(13)(e), with the Commissioner, as determined in accordance with Section

I, sub-paragraph A(2), point (a), (b), (c) or (d), or paragraph B, before the end of the

period within which such Crypto-Asset Operator shall report the information stipulated

in Section II, paragraph B. If such Crypto-Asset Operator fulfils the conditions in

Section I, sub-paragraph A(2), point (a), (b), (c) or (d), or paragraph B, respectively, in

more than one Member State, it shall register with the competent authority of one of

those Member States, before the end of the period within which the Crypto-Asset

Operator shall report the information stipulated in Section II, paragraph B.

Notwithstanding sub-paragraph F(1), first sub-paragraph, a Crypto-Asset

Operator that is a Reporting Crypto-Asset Service Provider as defined in Section IV,

sub-paragraph B(3), shall not register with the competent authority of a Member State

in which such Crypto-Asset Operator is not required to complete the reporting and due

diligence requirements established in Sections II and III, respectively, pursuant to

Section I, paragraph C, D, E, F, G or H, by virtue of such requirements being completed

by such Crypto-Asset Operator in any other Member State.

2. If Malta is the Member State chosen for the purposes of single registration,

determined in accordance with sub-paragraph F(1), upon registration, the Crypto-Asset

Operator shall communicate to the Commissioner the following information

(a) name;

(b) postal address;

(c) electronic addresses, including websites;

(d) any TIN issued to the Crypto-Asset Operator;

(e) Member States in which Reportable Users are residents within the

meaning of Section III, paragraphs A and B;

(f)

any Qualified Non-Union Jurisdiction as referred to in Section I,

paragraphs C, D, E, F or H.

3. The Crypto-Asset Operator shall notify the Commissioner of any changes

in the information provided under sub-paragraph F(2).

4. An individual identification number shall be allocated to the Crypto-Asset

Operator and the competent authority of Malta shall notify it to the competent

authorities of all Member States by electronic means.

5. If Malta is the Member State for single registration, the Commissioner

shall be able to remove a Crypto-Asset Operator from the Crypto-Asset Operator

register in the following cases

(a) the Crypto-Asset Operator notifies the Commissioner that it no longer

has Reportable Users in the Union;

(b) in the absence of a notification pursuant to point (a), there are grounds

to assume that the activity of a Crypto-Asset Operator has ceased;

(c) the Crypto-Asset Operator no longer meets the conditions established in

Section IV, sub-paragraph B(2);

(d) the Commissioner has revoked the registration pursuant to sub-

paragraph F(7).

6. The competent authority of Malta shall forthwith notify the Commission

of any Crypto-Asset Operator within the meaning of Section IV, sub-paragraph B(2),

that has Reportable Users resident in the Union while failing to register itself in

accordance with this paragraph.

7. Where a Crypto-Asset Operator does not comply with the obligation to report in

accordance with Section II, paragraph B, of this Annex after two (2) reminders by the

Commissioner, if Malta is the Member State of single registration, the Commissioner

shall, without prejudice to Regulation 53, revoke the registration of the Crypto-Asset

Operator made in accordance with regulation 13(13)(e). The registration shall be

revoked not later than ninety (90) days after the second reminder and not earlier than

thirty (30) days after the second reminder.

COOPERATION WITH OTHER JURISDICTION ON TAX MATTERS REGULATIONS

Table of Provisions (58)

Statutory Text (58 Articles)

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