TRUSTS (INCOME TAX) REGULATIONS

TRUSTS (INCOME TAX)

SUBSIDIARY LEGISLATION 123.89

TRUSTS (INCOME TAX) REGULATIONS

1st January, 2005

LEGAL NOTICE 2 of 2006, as amended by Legal Notice 409 of 2007.

(1) The title of these regulations is the Trusts (Income Tax)

Regulations.

(2) These rules shall be deemed to have come into force on 1st

January 2005.

(Regulation 2)

Amended by

(1) Trustees of a trust that are persons resident in Malta

have the obligation to ensure that such trust is registered for the

purposes of the Income Tax Acts. Such registration is to be made

on Form Trusts 01 contained in Schedule 1 within thirty days from

the date of appointment of the first trustee that is a person resident

in Malta, or from the date of publication of these regulations,

whichever is the later date. The said form shall be signed by each of

the trustees of such trust that are persons resident in Malta, and

such resident trustees shall have the joint obligation to submit the

said form to the Commissioner

Provided that the provisions of this subregulation do not

apply to those cases referred to in article 27D(3)(b) and (c) of the

Income Tax Act.

(2) An election for the purposes of the treatment of the income

attributable to a trust as income derived by a company ordinarily

resident and domiciled in Malta, as provided for in article 27D(1)

of the Income Tax Act, shall be made on Form Trusts 01 contained

in Schedule 1.

(3) An application to the Commissioner for a determination

under the provisions of article 27D(2) of the Income Tax Act shall

be made within thirty days from the date of appointment of the first

trustee that is a person resident in Malta, and that is in possession

of a valid licence issued in terms of the Banking Act or of the

Financial Institutions Act on Form Trusts 01 contained in Schedule

1.

L.N. 409 of 2007.

(Regulation 3)

Amended by

The return to be made under the provisions of article

5(19)(e) of the Income Tax Act by a trustee in respect of the gains

arising on the transfer of beneficial interest, shall be made on Form

Trusts 02 contained in Schedule 2.

L.N. 409 of 2007.

(Regulation 4(1))

Amended by

(1) The return to be made under the provisions of article

27D(2)(iv) of the Income Tax Act by a trustee with respect to the

income attributable to a trust for which a determination has been

made in terms of article 27D(2) of the Income Tax Act shall be

made on Form Trusts 03 contained in Schedule 3. This return shall

be signed by at least one trustee of such trust that is a person

resident in Malta and that is in possession of a valid licence issued

in terms of the Banking Act or of the Financial Institutions Act.

Such trustee shall have the obligation to submit the said return to

TRUSTS (INCOME TAX)

the Commissioner.

(2) Where a determination has been made in terms of article

27D(2), tax in relation to the income attributable to such trust is

payable not later than the tax settlement date.

L.N. 409 of 2007.

(Regulation 6)

Amended by

The return to be made under article 10 of the Income Tax

Management Act by a trustee with respect to the income

attributable to a trust for which a valid election as provided for in

article 27D(1) of the Income Tax Act has been made, shall be made

on the same form w hich has been prescribed t o be used by

companies for the declaration of their income. Such return shall be

signed by at least one trustee of such trust that is a person resident

in Malta and such resident trustee shall have the obligation to

submit the said form to the Commissioner.

L.N. 409 of 2007.

(Regulation 7)

Amended by

SCHEDULE 6 L.N. 409 of 2007. (Regulation 8)

The return to be made under article 10 of the Income Tax

Management Act by a trustee with respect to the income

attributable to a trust for which no election as provided for in

article 27D(1) of the Income Tax Act has been made, and no

determination under the provisions of article 27D(2) of the Income

Tax Act has been made, shall be made on Form Trusts 04 contained

in Schedule 4. Such return shall be signed by at least one trustee of

such trust that is a person resident in Malta and such resident

trustee shall have the obligation to submit the said form to the

Commissioner.

Emendata

A.L. 409 ta’ l-2007.

(Regolament 8)

The information referred to in article 24B of the Income

Tax Management Act shall be submitted to the Commissioner in the

Form Trusts 05 contained in Schedule 5.

(Regulation 9)

Information to be included in the certificate issued by the trustee to the beneficiary

of a trust upon an allocation

1. Amounts over which the beneficiary has vested right.

2. Amounts over which an entitlement has been bestowed to the beneficiary.

3. Amounts distributed to the beneficiary.

For each of the above, the trustee is to specify

1. Date of allocation

2. Date of distribution (where applicable)

3. The type of income

4. The country of source

5. The gross amount

6. Any foreign tax suffered on such amounts

7. The net amount

8. Declaration by trustee, where applicable, that tax has been paid in terms of

article 27D(4)(b)(iii) of the Income Tax Act.

(1) Where a person intends to transfer assets referred to in

article 5(1)(a)(i) and (ii) of the Income Tax Act, which transfer

constitutes a settlement of property on trust or a distribution or

reversion of property settled on trust, and no tax is payable on such

transfer in accordance with any of the relevant provisions of article

5(18), (21), (22) and (24) of the Income Tax Act, such person may

make and submit a declaration in duplicate to the Commissioner on

Form Trusts 06 contained in Schedule 6 not later than seven days

prior to the said transfer. This form shall be signed by all the

persons making the transfer and must be signed by at least one

person that is either the trustee of the relevant trust provided that

such trustee is authorised to act as trustee in terms of article 43 and

43A of the Trusts and Trustees Act, or an advocate or a notary. A

copy of a duly filled in Form Trusts 06 that is stamped as received

by the Commissioner, shall constitute sufficient evidence to the

relevant notary for the non-payment of provisional tax in relation to

such transfer. A copy of the said stamped Form Trusts 06 that is

presented to the relevant notary shall be annexed to the relevant

instrument of transfer of assets.

(2) The Commissioner shall retain all the relevant powers

conferred by the Income Tax Acts concerning the transfer of assets

referred to in the Form Trusts 06, even after having stamped such

Form as received.

TRUSTS (INCOME TAX)

The certificate referred to in article 27D(4)(b)(ii) of the

Income Tax Act shall contain the information specified in Schedule

7.

For the purposes of article 42(2) of the Income Tax

Management Act, and notwithstanding anything contained in any

regulations made thereunder, no provisional tax shall be payable in

respect of the income attributable to a trust unless a valid election

as provided for in article 27D(1) of the Income Tax Act has been

made.