EXEMPTION FROM PAYMENT OF DUTY ON DOCUMENTS AND TRANSFERS ORDER

EXEMPTION FROM PAYMENT OF DUTY ON

DOCUMENTS AND TRANSFERS

SUBSIDIARY LEGISLATION 364.01

EXEMPTION FROM PAYMENT OF DUTY ON

DOCUMENTS AND TRANSFERS ORDER

24th February, 1958

GOVERNMENT NOTICES dated 24th February 1958 and 4 of 1974,

and LEGAL NOTICES 50 of 1990, 193 of 1991, 14 of 1992, 141 of 1993, 37

and 54 of 1994, 55 of 1996, 23 and 275 of 1998, 196 and 197 of 1999, 90 of

2000, 172 of 2001, 310 of 2007, 157 of 2012 and 260 of 2013,

consolidated, and as amended by Legal Notices 425 of 2007, 105 of 2008

and 218 of 2012.

The title of this Order is the Exemption from Payment of

Duty on Documents and Transfers Order.

The following documents or transfers are, by virtue of the

provisions of the Duty on Documents and Transfers Act, to be

considered as specified documents or transfers and exempt from

duty in whole or in part

(a)

(i)

Any instrument whereby an agricultural a

vehicle is transferred or assigned.

(ii) For the purposes of this paragraph, "agricultural

vehicle" means any vehicle propelled by

mechanical power, intended and used solely for

agricultural purposes, and the word "transfer"

includes also a sale or transfer on the hire-

purchase system.

(b)

(i)

Deeds partitioning immovable property between

co-owners.

(ii) The exemption is granted subject to the

condition that a certificate released by the

Commissioner of Inland Revenue is annexed to

the relative deed showing that the property in

question came to the co-owners through a

succession or legacy in respect of which the

duties chargeable under the Succession and

Donation Duties Ordinance or the Death and

Donation Duty Act, have been settled.

(iii) The same exemption shall, mutatis mutandis,

apply also in the case of deeds of payment of

legacies of immovable property.

(c) As from 18th March, 1989, the tax which would

otherwise be imposed by virtue of the Duty on

Documents and Transfers Act shall not be levied on

the receipt of payments made by the Government to

the Archbishop’s Curia in respect of the Government

Subvention to the Church Schools and in terms of the

Agreement entered into by the Apostolic Nuncio and

the Minister of Education on the said date.

EXEMPTION FROM PAYMENT OF DUTY ON

DOCUMENTS AND TRANSFERS

(d) The duty chargeable under article 38(1) of the Duty on

Documents Act in respect of the transfer of immovable

property made under the provisions of the Schedule

entitled "Purchase of Government Dwelling-Houses

Scheme, 1990 (Scheme E)" to the Home Ownership

(Encouragement)

(Purchase

of

Government

Dwelling-Houses

Scheme)

Regulations,

published by Legal Notice 139 of 1990, shall be levied

on the subsidised price.

(e) The duty chargeable under the provisions of the Duty

on Documents Act in respect of the issue, and of any

subsequent transfer, of the 6% Unsecured Investment

Finance Bank Bonds, 1997 shall be exempt from

payment.

(f)

(i)

In respect of duty on the transfer of a sole,

ordinary residence, in terms of the provisions of

article 32 of the Duty on Documents and

Transfers Act, in such manner as for the words

"there shall be first calculated a duty in respect

of the ground-rent capitalised at fifty per

centum" in subarticle (4)(b)(ii) thereof, there

were substituted the words "there shall be first

calculated a duty in respect of the ground-rent at

fifty per centum"; and

(ii) In respect of duty on declarations causa mortis

in terms of the provisions of article 33 of the

Maltese text of the Duty on Documents and

Transfers Act, in such manner as for the words

"lilu trasferita proprjetà causa mortis" in

subarticle (1) thereof, there were substituted the

words "lilu trasferita proprjetà immobbli causa

mortis".

(g) The transfer of securities on the Malta Stock Exchange

shall be exempt from duty with effect, as applicable,

from the dates mentioned in article 1 of the Duty on

Documents and Transfers Act.

(h) The transfer of immovable property (land and

buildings) belonging to Marina Milling and Grain

Handling Co. Limited, Triticum Limited, Pisani Flour

Mills Limited, St Joseph Flour Mills Co. Limited,

Zerafa Brothers Limited, and St Publius Flour Mills

Co. Limited from the said companies to Federated

Mills Limited.

(i)

The duty otherwise chargeable in terms of the

provisions of article 42 of the Duty on Documents and

Transfers Act, in respect of the transfer of marketable

securities between persons who are married or were

formerly married to each other, consequent to a

consensual or judicial separation or to a divorce between

such persons, shall not be levied.

(j)

As from the 16th January, 1998, the duty otherwise

chargeable in terms of the provisions of article 27 of

EXEMPTION FROM PAYMENT OF DUTY ON

DOCUMENTS AND TRANSFERS

the Duty on Documents and Transfers Act shall not be

levied in respect of the policies of insurance listed

hereunder

Aviation;

Marine Cargo;

Marine Hull or Boat; and

Export Credit and Suretyship.

(k) As from the 1st January, 1999, the increase in duty

otherwise chargeable in terms of the provisions of

article 32(2) of the Duty on Documents and Transfers

Act in respect of transfers of immovable property

requiring a permit by the Minister under the

Immovable Property (Acquisition by Non-Residents)

Act, and provided the application for such a permit

was made to the Minister after the 31st December,

1998, shall be reduced to three per cent of the amount

or value of the consideration for the transfer of the

immovable property or of the value of the immovable

property, whichever is the higher.

(l)

As from 23rd November, 1999, the duty otherwise

chargeable in terms of the provisions of article 32(1)

of the Duty on Documents and Transfers Act, shall be

reduced to €5 for every €100 or part thereof of the

amount or value of the consideration for the transfer of

such thing or of the value of such thing, whichever is

the higher.

(m) As from the 23rd November, 1999, the increase in duty

otherwise chargeable in terms of the provisions of

article 32(2) of the Duty on Documents and Transfers

Act in respect of transfers of immovable property

requiring a permit by the Minister under the

Immovable Property (Acquisition by Non-Residents)

Act, and where the relevant application for such a

permit was made to the Minister after the 22nd

November, 1999, shall not be levied.

(n) As from the 1st June, 2000, the duty otherwise

chargeable in terms of article 36 of the Duty on

Documents and Transfers Act in respect of the

assignment of a right involving "intellectual property",

defined for the purposes of the exemption as "any

trademark, copyright, design right or any other similar

right whether registered under national legislation or

not", shall not be levied.

(o) As from the 1st June, 2001, the duty otherwise

chargeable in terms of article 36 of the Duty on

Documents and Transfers Act in respect of the

assignment

involving

international

factoring

operations shall not be levied, provided that such

operations are carried out through entities registered

and licensed either as banks or financial institutions in

Malta and both the debtor and the client of those

EXEMPTION FROM PAYMENT OF DUTY ON

DOCUMENTS AND TRANSFERS

entities relating to any assignment involving

international factoring operations are situated outside

Malta.

(p) As from the 16th October, 2007 in respect of transfers

inter vivos, and on every declaration made in

accordance with article 33 in respect of persons from

whom the transfer causa mortis originates who died on

or after the 16th October, 2007, the duty otherwise

chargeable in terms of the said Act, shall be reduced

and levied as follows

(i) in terms of the provisions of article 32(4)(a)

thereof, in such manner as for the words "in

respect of the first seventy thousand euro

(70,000) or such greater amount as may be

prescribed," there shall be substituted the words

"in respect of the first one hundred and

seventeen thousand euro (117,000) or such

greater amount as may be prescribed,";

(ii) in terms of the provisions of article 32(4)(b)(i)

thereof, in such manner as for the words "do not

exceed seventy thousand euro (70,000)" there

shall be substituted the words "do not exceed

one hundred and seventeen thousand euro

(117,000)";

(iii) in terms of the provisions of article 32(4)(b)(ii)

and in article 32(4)(c) thereof, in such manner as

for the words "seventy thousand euro (70,000)",

there shall be substituted the words "one

hundred

and

seventeen

thousand

euro

(117,000)";

(iv) in terms of article 40(3) thereof, in such manner

as for the words "the duty chargeable under this

Act on the first three thousand and five hundred

euro (3,500) or such greater amount as may be

prescribed of the yearly ground-rent" there shall

be substituted the words "the duty chargeable

under this Act on the first five thousand and

eight hundred and fifty euro (5,850) or such

greater amount as may be prescribed of the

yearly ground-rent"; and

(v) in terms of the provisions of article 35 thereof,

immediately after sub-paragraph (ii) of

subarticle (2) thereof, there shall be inserted the

new sub-paragraph

"(iii) where such property consists of a

dwelling house, being the ordinary

residence of the person from whom the

transfer originates, and the beneficiary

of such residence is the surviving

spouse, no duty shall be levied at the

time of the transfer, provided that if such

residence is transferred by the surviving

EXEMPTION FROM PAYMENT OF DUTY ON

DOCUMENTS AND TRANSFERS

spouse during the lifetime of such

surviving spouse, the duty which would

have been payable on the death of the

predeceased spouse shall be levied at the

time of the transfer by the surviving

spouse.".

(q) As from the 1st of January 2012 but not after the 31st

December 2013, the duty otherwise chargeable in

terms of article 32(1) of the Duty on Documents and

Transfers Act, on the transfer of shares in a property,

which is used for purposes of private residence only,

between an individual who will have acquired his

shares in the property by means of a transfer causa

mortis, to another individual who is an heir and who is

a part-owner of the same property, shall not be

charged. Together with the application for exemption,

the applicant shall submit a certificate issued by the

Malta Environment and Planning Authority certifying

that the property which is the subject of the exemption

falls under a development area known as "Urban

Conservation Area" (UCA), or as a scheduled property

under Grade 1 or Grade 2 in accordance with article 81

of the Environment and Development Planning Act.

This exemption shall not apply to a body or other

association of persons whether granted legal

personality, in accordance with the provisions of the

Second Schedule to the Civil Code, or not.

(r) With effect from the 1st of January 2013, the duty

otherwise chargeable in terms of article 32(1) of the Duty

on Documents and Transfers Act on the purchase by

persons or companies of property outside an "Urban

Conservation Area" (UCA) but within specified zones

identified by the Malta Environment and Planning

Authority, for the purpose of restoration and

development, shall be reduced to the rate of two euro per

one hundred euro or part thereof, subject to the

conditions and parameters issued by the Malta

Environment and Planning Authority. Together with the

notice referred to in article 51 of the Duty on Documents

and Transfers Act, there shall be submitted a certificate

issued by the Malta Environment and Planning Authority

establishing the conditions under which the restoration

and development is permitted on the property in question.