INDIVIDUAL SAVINGS ACCOUNT RULES

INDIVIDUAL SAVINGS ACCOUNT

SUBSIDIARY LEGISLATION 123.164

INDIVIDUAL SAVINGS ACCOUNT RULES

19th December, 2014

LEGAL NOTICE 469 of 2014, as amended by Legal Notice 136 of 2015.

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

Account Rules.

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

of assessment 2015.

In these rules, unless the context otherwise requires

"Act" means the Income Tax Act;

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

these rules;

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

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

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

the Act.

An individual savings account shall qualify as an ISA if

(a) the account holder is an individual who is at least

eighteen years old, and is ordinarily resident in Malta;

and

(b) the account holder

(i)

declares and undertakes in writing to a payor of

investment income that the account holder does

not hold any other ISAs with any person at the

time of application, and that he shall not

thereafter open any other ISAs for as long as the

ISA with such payor remains open in his name;

and

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

investment income pursuant to article 35 of the

Act to be paid any such investment income

arising from his holding of the ISA without

deduction of tax; and

(c) the payor of investment income shall identify the

relevant account as an ISA; and

(d) the income from such an individual savings account

consists exclusively of

(i)

interest payable to an individual in his own name

by a person carrying on the business of banking

in accordance with the laws of any European

Union or European Economic Area ("EU/EEA")

Member State in respect of a sum of money

deposited into the individual saving account,

and

INDIVIDUAL SAVINGS ACCOUNT

(ii) interest payable to an individual in his own name

by the Government of an EU/EEA Member State

or by any agency thereof, by a corporation or

authority established by law, or in respect of a

public issue by a company, entity or other legal

person howsoever constituted and whether

resident in Malta or otherwise;

(e) deposits by the individual into the individual savings

account and the value of interest-bearing securities

credited for the benefit of the individual into such

account do not exceed two thousand euro (€2,000)

during the year 2015 and one thousand euro (€1,000)

in any subsequent year

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

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

for the purpose of determining whether the aforesaid amount of one

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

An individual who holds an ISA may close and transfer all

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

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

upon closure of the previous ISA held in his name.

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

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

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

the Commissioner by the 31 January following the year for which

the return has been made.

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

year in respect of which the return is drawn up

(a) account numbers of all ISAs opened, maintained, or

closed by such payor during that year;

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

each person who held an ISA account with such payor

at any time during that year;

(c) the gross amount of investment income paid to each

such ISA account holder;

(d) date of opening of each ISA;

(e) date of closure of any ISA during that year;

(f)

the total deposits made in each ISA account during the

year; and

(g) the balance held in each ISA account at the end of the

year, or, if such account has been closed, the balance at

the time of closure.