DUTY ON DOCUMENTS AND TRANSFERS RULES

SUBSIDIARY LEGISLATION 364.06

DUTY ON DOCUMENTS AND TRANSFERS RULES

25th November, 1992

LEGAL NOTICE 98 of 1993, as amended by Legal Notices 57 of 1994,

75 of 1997, 350 of 2002, 7, 112, 348 and 352 of 2004, 113 of 2006, 425 of

2007, 189 and 350 of 2009, 310 and 452 of 2010, and 426 of 2012; Act

XXXIV of 2014; and Legal Notices 465 of 2014, 147 of 2015, 205 of 2016,

36 of 2017, 202 of 2018, 117 of 2019, 68 and 168 of 2020 and 158 of 2026.

The title of these rules is the Duty on Documents and

Transfers Rules.

Value of the usufruct as a percentage of the value L.N. 75 of 1997.

of the full ownership

Percentage of the

Age of the usufructuary

where the usufructuary has not completed twenty years of

age

where the usufructuary has completed twenty years of age but

not thirty years

where the usufructuary has completed thirty years of age but

not forty years

where the usufructuary has completed forty years of age but

not fifty years

where the usufructuary has completed fifty years of age but

not sixty years

where the usufructuary has completed sixty years of age but

not seventy years

where the usufructuary has completed seventy years of age

(1) The duty in respect of any document or transfer

executed in Malta shall be made at the Office of the Commissioner

within fifteen working days following that on which the document

or transfer is completed.

(2)

Deleted by Legal Notice 68 of 2020.

(3) Payment of duty in respect of documents executed outside

Malta which are liable to duty by reason of their use in Malta shall

be effected at the Office of the Commissioner before use thereof is

made in Malta.

(4) Payment of duty in respect of a schedule of redemption of

ground-rent to be filed in court shall be noted by the Commissioner

and it shall not be lawful to file any such schedule in Court before

payment thereof has been made.

(5) The duty chargeable on any transfer referred to in articles

32, 33 and 40 of the Duty on Documents and Transfers Act,

hereinafter referred to as "the Act", shall be paid by means of a

bank draft or a cheque drawn by the Notary who published the

transfer deed and a copy of the notice mentioned in article 51 of the

Act and in a format as provided by the Commissioner for these

purposes, duly stamped by the Commissioner, shall be annexed to

the deed relating to the transfer by the notary publishing such deed

Provided that where payment is effected by means of a bank

draft within the time in which such duty is payable in accordance

with these rules, no liability shall attach on the notary or the parties

to the deed if the bank draft is subsequently not honoured by the

bank issuing the draft.

(6) The receipt for the duty paid on any transfer referred to in

articles 36, 37, 39 and 42 of the Act shall be annexed to the

document relating to such transfer.

(1) (a) The value of any property subject to duty under

the Duty on Documents and Transfers Act, transferred inter vivos

or transmitted causa mortis, shall be the value of such property on

the date of the said transfer inter vivos or on the date of death of the

person from whom the transfer causa mortis originates, as the case

may be, (hereinafter referred to as "the relevant date") and such

value shall be established in accordance with the following

provisions

Provided that where a notice of a promise of sale is given

according to article 3(6) of the Duty on Documents and Transfers

Act, and the promise of sale is made for a period not exceeding one

(1) year, or three (3) years in the case of a property consisting of a

unit in a project acquired on plan, the relevant date shall be the date

of the promise of sale

Provided further that where improvements are made

between the date of the promise of sale and the date of transfer, the

relevant date shall be the date of transfer;

(b) The provisions of this sub-rule shall apply from the

15th October 2019.

(2) The value of the full ownership of any property on the

relevant date shall be the average price which such property would

fetch if sold on the open market on that date, in the state it is in as

on that date, including any improvements existing on that date,

whether made or paid for by the transferor, the transferee or any

other person

Provided that in the case of a transfer by a gratuitous title

by a person to his spouse, descendants and ascendants in the direct

line and their relative spouses, or in the absence of descendants to

his brothers or sisters and their descendants, who acquire such

property for the purpose of establishing therein or constructing

thereon their sole, ordinary residence, the value thereof shall be

deemed to be eighty per centum of the market value of the property

so transferred on the date of transfer.

(3) The value of the usufruct of any property on the relevant

date shall be established as follows

(a) where the duration of the usufruct is for the life of the

usufructuary or for any other indefinite period, the

value of the usufruct shall be the percentage of the

value of the full ownership set out in the Schedule

reckoned according to the age of the usufructuary on

that date: so however that where a usufruct devolves

on several persons jointly or successively, or jointly

and successively, and the provisions of the Act apply,

the value of the usufruct shall be determined according

to the age of the youngest of such persons on the

relevant date;

(b) subject to the provisions of paragraph (c), where the

duration of the usufruct is limited to a definite period,

the value of the usufruct shall be one and a half per

cent of the value of the full ownership of the property

multiplied by the number of years, or the remaining

number of years, (in all cases a fraction of a year being

taken as one whole year), of the duration of such

usufruct;

(c) the provisions referred to in paragraph (b) are

[S.L 364.06

DUTY ON DOCUMENTS AND TRANSFERS

(i)

where, having regard to the age of the person, or

if the usufruct devolves jointly or successively,

or jointly and successively, on more than one

person, the age of the youngest of such persons,

upon whom the usufruct devolves on the

relevant date, the value of such usufruct

established in accordance with the provisions of

paragraph (a) is less than the value established

in accordance with the provisions of paragraph

(b), the value of the usufruct shall be that

established in accordance with the provisions of

the said paragraph (a);

(ii) where it is provided that the usufruct is to

terminate on the death of a stated person even if

such death happens before the expiration of the

definite period, the value of the usufruct shall

also be that established in accordance with the

provisions of paragraph (a) or of paragraph (b),

whichever value is the less, having regard to the

age of the said person on the relevant date;

(iii) in no case shall the value of the usufruct

established in accordance with the provisions of

paragraph (b) hereof exceed the value of the full

ownership of the property;

(d) where a usufruct devolves on several persons jointly or

successively, or jointly and successively, and the

provisions of the Act apply -

(i)

where the usufruct devolves jointly, or jointly

and successively to the same persons, each

person shall be deemed to have received a

portion of the value of the usufruct calculated in

terms of the said provisions as is equal to the

proportion obtained by taking as denominator

the sum of the percentages appearing in the

Second Schedule as are appropriate to the age of

each beneficiary on the relevant date, and as

numerator the percentage appropriate to the said

person;

(ii) where the usufruct devolves successively, the

first beneficiary thereof shall be deemed to be

the sole beneficiary

Provided that if any other beneficiary is of

a younger age than the first beneficiary on the

relevant date, both the beneficiaries and any

other beneficiary who is younger than him, shall

be treated as beneficiaries, and the portion of the

value of the usufruct received by the first

beneficiary shall be the value attributable to him

under the Schedule, and the portion of the value

of the usufruct received by any other beneficiary

shall be deemed to be that portion of the value of

the usufruct as is equivalent to the value

attributable to him under the said Schedule, less

DUTY ON DOCUMENTS AND TRANSFERS

any part so attributable to any other beneficiary

of an older age also benefiting from the said

usufruct.

(4) The value of the nuda proprietas on the relevant date shall

be the difference between the value of the full ownership of the

property on that date and the value on the same date of the usufruct

encumbering it established in accordance with the provisions of

sub-rule (3).

(5) The value of the dominium utile of any property on the

relevant date shall be established as follows

(a) where the dominium utile is perpetual, or where its

remaining period is not less than fifty years, the value

of the dominium utile shall be the difference between

the value of the full ownership of the property

established in accordance with the provisions of sub-

rule (2) and the value of the dominium directum

established in accordance with the provisions of sub-

rule(7)(a);

(b) where the remaining period of the dominium utile is

less than fifty years, the value of the dominium utile

shall be such portion of the value of the dominium utile

of the same property, established as if it were perpetual

in accordance with the provisions of paragraph (a), as

takes fairly and adequately into account the duration of

the remaining period and all other relevant

circumstances.

(6) The value of the dominium directum of any property on the

relevant date shall be established as follows

(a) where the dominium utile of the property is perpetual,

or where its remaining period is not less than fifty

years, the value of the dominium directum of that

property shall be

(i)

in respect of a transfer causa mortis, the value

resulting from the capitalization of the annual

ground rent at the rate of eight per cent;

(ii) in respect of any document whereby a schedule

of redemption of ground rent is filed in Court,

the value resulting from the capitalisation of the

annual ground rent as established in any law

governing such redemption; and

(iii) in any other case, the value or the amount of the

consideration, whichever is the higher, which the

annual ground rent would fetch if redeemed or

transferred on the open market;

(b) where the remaining period of the dominium utile of

the property is less than fifty years, the value of the

dominium directum of that property shall be the

difference between the value of the full ownership of

that property and the value of its dominium utile on the

same date established in accordance with the

provisions of sub-rule (5)(b).

(7)

(a) Where the consideration for a transfer or the value

upon which the duty is to be assessed consists of a

periodical payment in perpetuity, or for a period of

twenty years or more, or for an indefinite period, an ad

valorem duty shall be charged on the total amount

payable during the period of twenty years.

(b) Where the periodical payment is to continue for a

definite period of less than twenty years, an ad valorem

duty shall be charged on the total amount payable

during such period.

(c) Where the periodical payment is to continue during

any life or lives, an ad valorem duty shall be charged

on the total amount payable during the period of twelve

years.

(d) Where a document is chargeable with ad valorem duty

in respect of an amount expressed in foreign currency,

the duty shall be calculated on such amount converted

into Maltese currency at the rate of exchange current

on the day of the date of the document.

(1) The transferee in a transfer inter vivos of any

immovable or any real right over an immovable, where the transfer

is effected by public deed or in the case of a declaration made in

terms of article 33 of the Act, and where such transfer takes place

on or after the 15th November 2014, may produce to the notary

publishing the relative deed, a professional valuation consisting of

a report as pro vided in sub-rule (2 ) drawn up by a Perit in

possession of a warrant issued under article 5 of the Periti Act. The

Perit’s report shall be annexed to the deed relating to the transfer by

the notary publishing such deed.

(2) The Perit’s report shall contain a clear explanation of the

conclusions of the valuation, setting out the basis of the valuation

including the type of valuation undertaken and the definition of

value and shall include the following information

(a) the date of the report, addressed to the transferee;

(b) a description of the physical attributes of the

immovable property, including a site plan, type of

property and access, footprint, locality including

description of the surrounding area, approximate age

of premises, status of property, standards of finishing,

description of surrounding view, other structural

characteristics and amenities;

(c) a description of the legal attributes of the immovable

property, including reference to the compatibility of

the property with the development permit;

(d) a description of the rights/interest in the property

which are the subject of the valuation;

(e) the date as of which the valuation applies and the date

of inspection of the immovable property;

(f)

a description of the extent and scope of the work

undertaken to determine the valuation including the

description of all assumptions and any limiting factors

on which the valuation is based as well as any special,

unusual or extraordinary assumptions including the

probability that such will occur;

(g) an explanation of the rationale that supports the

valuation conclusion in the report including a

description of the relevant information and data

examined;

(h) a market analysis and the valuation approaches and

procedures followed, where applicable;

(i)

the name, professional qualifications, and signature of

the expert responsible for drawing up the report and

carrying out the valuation

Provided that a professional valuation of the immovable or

any real right over an immovable shall not be valid if the date on

which the Perit’s report is drawn up is earlier than forty days

preceding the date on which the relative deed is published or is

later than twelve months from the date of death of the person from

whom the transfer causa mortis originates, as the case may be

Provided further that, if from the date on which the Perit’s

report was drawn up until the date of the deed, any changes and, or

alterations are carried out on the property, the transferee shall be

required to inform the Perit who has drawn up the report of such

changes and, or alterations and the Perit shall update the report

accordingly.

(3) Where the notary publishing the relative deed submits,

together with the notice referred to in article 51 of the Act, the

Perit’s report referred to in this rule, the Commissioner may at his

absolute discretion accept such valuation and in such case the real

value of the immovable property shall be such amount as

determined by the Perit. The Commissioner shall, for the purpose

of determining whether the immovable property has been

undervalued for the purposes of the application of this Act in

accordance with article 19(2) of the Act, take into account the said

report.

(4) Subject to the Commissioner’s right not to accept a

valuation made by a Perit, at the time of publication of the deed or

declaration, it shall be deemed that the valuation of the Perit is a

determination of value made by the Commissioner for the purpose

of article 52 of the Act and accordingly where the price or

consideration, or the value as declared in the deed of transfer or

declaration causa mortis made in accordance with article 33 of the

Act is not less than eighty-five per centum of the value provided by

the Perit, the duty payable, as applicable, shall be computed and

paid on the price or consideration, or the value as declared in the

deed of transfer, whichever is the higher, or the value as declared in

the declaration causa mortis.

(1) Where the Commissioner is of the opinion that any

document which has been produced to or obtained by him for any

purpose of Duty on Documents and Transfers Act, constitutes or

contains evidence of any act or omission on the part of a warrant

holder, and that such act or omission is an act or omission

mentioned in article 15(a)(i) to (iv) of the Periti Act, he shall,

subject to the other provisions of this rule, send a copy of that

document to the Chamber of Architects.

(2) The Commissioner shall certify any document he sends to

the Chamber of Architects in accordance with sub-rule (1) as a true

copy of the original and shall send to the Chamber of Architects

together with any such document a statement giving the reasons for

which he has formed his opinion.

(3) The Chamber of Architects may use any document received

in accordance with the provisions of this rule for the purpose of an

enquiry which it may conduct under the said Act but not for any

other purpose.

(4) A document sent to the Chamber of Architects and certified

as a true copy of the original in accordance with this rule shall be

admissible as evidence as if it were the original and the production

of such document shall not empower any court or authority to

request the Commissioner to produce the original of such document

or to give evidence on such document except as may be allowed

under the other provisions of the Act

Provided that the Commissioner may be required to

produce the original of any such document in any case where it is

necessary to prove the handwriting or the signature or the identity

of the warrant holder in question, but only for the purpose of such

proof and provided that the said original shall be returned to the

Commissioner as soon as it is no longer required for the purpose for

which it has been produced.

(5) Within a reasonable time from the receipt of any document

sent to it in accordance with this rule, the Chamber of Architects

shall inform the Commissioner in writing whether it proposes to

use the said document for the purpose referred to in sub-rule (3) or

not, and, in the latter case, the Chamber of Architects shall state the

reason for its decision not to make such a use and shall return the

document to the Commissioner.

(6) Within a reasonable time from the conclusion of any

enquiry in which any documents referred to the Chamber of

Architects in accordance with this rule have been used, the

Chamber of Architects shall deliver to the Commissioner a copy of

its decision on that enquiry.

(7)

Nothing in this rule shall be construed as -

(a) empowering the Chamber of Architects to request any

information or documents from the Commissioner or

to otherwise have access to documents or other

information held by the Commissioner;

(b) binding the Commissioner to give evidence or

explanations in respect of any documents sent by him

to the Chamber of Architects;

(c) binding the Commissioner to conduct any

investigation or make reports on the conduct of any

warrant holder.

(8)

The documents to which this rule refers are

(a) any report signed by a warrant holder;

(b) any information, records, or computations, or any

extract thereof, in respect of which a report referred to

in paragraph (a) has been made.

(1) The declaration of a transfer causa mortis to be made

in terms of article 33 of the Act shall be made within six months of

the relative transfer causa mortis.

(2)

The declaration shall contain

(a) the particulars referred to in article 28(1)(c) of the

Notarial Profession and Notarial Archives Act in

respect of the transferee causa mortis and of the

person from whom the transfer causa mortis

originates;

(b) the precise description of all the immovable property

or rights thereon transferred to the transferee causa

mortis including the requirements listed in article

28(1)(f)(ii) of the Notarial Profession and Notarial

Archives Act; and

(c) an indication of whether the transfer causa mortis

devolved on intestacy or otherwise, as well as a

reference to any will or any decree or judgement of

any court whereby the succession was declared open in

favour of the transferee causa mortis.

(1) Where the total duty payable at the rates specified in

article 32 of the Act on the value of any property contained in a

declaration made by a transferee causa mortis in accordance with

article 33 of the said Act is less than two thousand and three

hundred euro (2,300) such duty shall, for the purposes of article 34

of the Act, be rebated by an amount of €250 and where such rebate

exceeds the amount of duty chargeable the rebate shall be reduced

to the amount of duty so chargeable.

(2) Where a transferee causa mortis omits to make in a

declaration a full statement of all the property transferred to him

comprised in the transfer causa mortis, any subsequent declaration

making a statement of such property shall be deemed as one with

the first declaration and the said rebate shall apply to all the

declarations made by a transferee causa mortis in respect of any

one transfer causa mortis cumulatively.

(3) Such rebate shall not apply to such part of the duty in

respect of any property transferred to a transferee causa mortis and

contained in any declaration made more than six months after the

happening of the relative transfer causa mortis.

Deleted by Legal Notice 202 of 2018.

(1) For the purposes of article 46 of the Act, a person to

whom shares in a limited liability company registered in Malta are

transmitted causa mortis shall not later than six months after the

happening of the transfer causa mortis give notice thereof to the

Registrar of Companies.

(2)

The notice shall contain

(a) the name and last address of the person from whom the

transfer causa mortis originates;

(b) the name and address of the transferee causa mortis;

(c) the number of the official document produced for

ascertaining the identity of the transferee causa mortis

and of the person from whom the transfer causa mortis

originates;

(d) a complete list of the shares included in the transfer,

irrespective of whether the company to which the

transfer refers is registered with the Registrar of

Companies or otherwise; and

(e) the manner in which the shares devolved on the

transferee causa mortis giving all the details as are

referred to in rule 4(2)(c).

(3) The Registrar of Companies shall register and index the

said notice by reference to the name of the transferee, the name of

the person from whom the transfer causa mortis originates, and the

name of the company to which the shares refer.

(4) The payment of duty shall be indicated by the

Commissioner on the notice aforesaid, and no such notice shall be

accepted by the Registrar of Companies unless the payment of the

relative duty is so indicated thereon.

(1) For the purposes of article 51 of the Act, the notary

shall give notice of the relative deed to the Commissioner and it

shall not be lawful to deliver a note of enrolment for registration in

the Public Registry of such deed before it has been ascertained that

such notice has been filed with the Commissioner.

(2) The notice shall be made on the forms or means as supplied by

the Commissioner for this purpose and shall contain the information

required in respect of a deed of transfer of any immovable property

and in respect of a deed containing a declaration made in connection

with article 33 of the Duty on Documents and Transfers Act .

(3) The Commissioner shall not accept payment of the relative

duty before the said notice has been filed.

(4) The transferee in any transfer of residential property shall

submit to the Commissioner the information required on the forms or

means as supplied by the Commissioner, duly filled and certified by a

perit in possession of a warrant issued under article 5 of the Periti Act,

and this information shall be attached to the notice supplied by the

Commissioner for this purpose as mentioned in article 51 of the Duty

on Documents and Transfers Act.

(1) Claims for the refund of any duty under article 62 of

the Act shall be made in writing and shall not be considered by the

Commissioner if made after four years from the payment of the

duty

Provided that in the case of claims for refund of duty made

under article 62(1)(b) of the Act, the period of four years, or any other

established period, shall start to run from the date on which the court

judgment becomes a res judicata.

(2)

In the case of an assessment served under article 54 of the

Act -

(a) no claim for refund or adjustment shall be made after

the lapse of four years from the date on which the

assessment to which the claim refers becomes final

and conclusive in accordance with the provisions of

the Act; and

(b) in cases where no duty is chargeable, the claim may be

made within ten years of the date of the inter vivos or

causa mortis transfer.

(3) Documents, other than notarial acts, in respect of which a

refund is claimed shall be surrendered to the Commissioner.

(4) Any duty determined as refundable to a person for the

purpose of article 62 of the Act shall be considered as having

become due on the day of such determination, and shall be

refunded by not later than six (6) months from the day when it

becomes due.

(5) Interest at the rate as prescribed by the Minister shall be

payable by the Commissioner on any refund after the expiration of the

period of six (6) months mentioned in sub-rule (4).

(1) Any transferor or transferee to a promise of sale or of a

transfer of immovable property or of any real right thereon shall be

bound to give the notice referred to in article 3(6) of the Act, and

shall for this purpose engage a notary public or advocate to give the

said notice, provided that such notary or advocate is given all the

information required for notification

Provided that where the notary or advocate is engaged to

pay the provisional duty, if any is due, the transferee shall provide such

notary or advocate with the necessary funds to pay such provisional

duty

Provided further that no notice shall be given, and no

payment of provisional duty shall be made where the Housing

Authority or the Government of Malta is the transferor or where the

Water Services Corporation or Lands Authority or the Housing

Authority is the transferee.

(2)

The notice shall be made by electronic submission,

through the web portal established for the purpose by the

Commissioner, within twenty-one (21) days from the date on which

the promise of sale or promise of transfer is made and the relative

payment of provisional duty shall be made within ten (10) days from

the date on which approval is given by the Office of the Commissioner

or twenty-one (21) days from the date on which the promise of sale or

promise of transfer is made, whichever date is latest

Provided that where the notice of a promise of sale or

transfer or notice of the extension mentioned in sub-regulation (5)

cannot be made through the web portal due to a technical issue

resulting from the portal itself, and such technical issue is

acknowledged by the Commissioner, notice shall be given within three

(3) working days from when the said technical issue is resolved, unless

any other form of notification is accepted and acknowledged by the

Commissioner.

(3)

The Commissioner shall not accept payment of the

relative provisional duty, if any is due, before the said notice has been

submitted in accordance with sub-regulation (2). In the case of

notification of a promise of sale or a promise of transfer where no

provisional duty is due, notification shall be deemed to have been

made within the prescribed time-frame if a correct submission is made

within the prescribed time-frame, notwithstanding that the notice

would not yet have been approved by the Commissioner. In the case of

a notification of a promise of sale or a promise of transfer where

provisional duty is due, notification shall be deemed to have been

made within the prescribed time-frame if both the notification and the

payment are made within the prescribed time-frames, notwithstanding

that the receipt for payment would not yet have been issued by the

Commissioner.

(4)

The Commissioner shall not accept such notice if not

submitted at the Office of the Commissioner within twenty-one (21)

days following that on which the promise of a sale or promise of a

transfer of immovable property or any real right thereon is made

Provided that where the last day permitted for

submission falls on a Saturday or a public holiday as established in the

National Holidays and other Public Holidays Act, that day shall be

deemed to fall on the first working day, other than a Saturday,

following the said Saturday or public holiday.

(5)

An extension of the validity period of a promise of sale

or promise of a transfer of an immovable property or a real right

thereon shall also be notified by the transferor or transferee to the

Commissioner within twenty-one (21) days following the date thereof

by electronic submission through the web portal established for the

purpose by the Commissioner, and such transferor or transferee shall

engage a notary public or advocate to give notice of the said extension,

provided that such notary or advocate is given all the information

required for notification.

(6)

The provisional payment of duty relating to the promise

of a sale or of a transfer of immovable property or any real right

thereon shall be set off against the duty chargeable in terms of articles

32 and 40 of the Act

Provided that any obligation to attach a receipt of

provisional payment to the subsequent notarial deed of sale or transfer

of immovable property or any real right thereon is deemed to no longer

be applicable and to have never been applicable in all cases of

notifications of promises of sale or promises of transfer made through

the established web portal.

(7)

The Commissioner shall be authorized to request

additional information or the production of supporting documents he

may deem necessary from time to time.

(8)

Claims for refund of any duty paid provisionally in terms

of article 3(6) of the Act shall be made in writing by a transferee, or his

representative, and shall not be considered by the Commissioner

unless he is satisfied that such promise of a sale or promise of a

transfer of immovable property or any real right thereon has lapsed or

that both parties have rescinded same.

(9)

No notice shall be given, and no payment of provisional

duty shall be made, in the case of a unilateral obligation to transfer

immovable property or any real right thereon, commonly referred to as

"a right of first refusal", or in the case of a right of renewal of a

temporary emphyteutical concession

Provided that if the parties enter into a promise of sale or

promise of a transfer of the said immovable property, or any real right

thereon, notification in terms of article 3(6) of the Act shall be

required for its validity.

(10) The provisions of this rule shall apply from the 1 st January

2019.

(1) Subject to the provisions of article 42(2)(c) of the Act,

the provisions of sub-rules (5), (6) and (7) of rule 5 of the Capital

Gains Rules shall apply mutatis mutandis for the purpose of

determining the real value of a company and the real value of

shares in a company and references in the said sub-rules to "market

value" shall be construed as references to "real value".

(2) Notwithstanding the provisions of sub-rule (1), the real

value of marketable securities consisting of shares which do not

participate in any way in the profits of a company other than by

way of a fixed rate of return, shall be the book value of such shares

as resulting from the company’s financial statements or such other

value as the commissioner may determine in accordance with

article 10 of the Act.

(3) The transferee in any transfer of shares, other than a

transfer of shares referred to in sub-rule (2), shall submit to the

Commissioner a statement prepared by a certified public

accountant holding a practicing certificate in auditing made on the

forms or means as supplied by the Commissioner for this purpose

including a computation of the real value of the shares as required

by sub-rule (1), and shall be accompanied, where applicable, by a

Perit’s valuation of the real value of the immovable property taken

into account in determining the value of the shares , together with a

site plan issued by the Land Registry, signed and stamped by a Perit.

(4) The statement referred to in sub-rule (3) shall be delivered

in triplicate to the Commissioner together with the payment of duty

due on the transfer and the Commissioner shall stamp one of the

copies in acknowledgement of the receipt of same and return it to

the person who submitted it. The Commissioner shall not consider

that delivery or the notice of the transfer required in accordance

with the Act as valid unless payment is made as aforesaid.

12.(1)(i) Where as a result of a change in the issued share

capital of a company or a change in voting rights

attached to such shares, (herein after referred to as the

"change"), a transfer of value as provided for in article

42B of the Act is deemed to have taken place, the

value transferred to the transferee, shall be determined

in accordance with the following formula

Y = ( (A – B) + C – D ) x - 1

Where -

(a) "Y" represents the amount to be determined;

(b) "A" is the real value of the shares held by the

transferee in the company immediately before

the change;

(c) "B" is the real value of the shares held by the

DUTY ON DOCUMENTS AND TRANSFERS

transferee in the company immediately after the

change;

(d) "C" is the consideration paid by the transferee

for the acquisition of shares or additional shares

issued by the company, where the change

consists of an issue of share capital for

consideration;

(e) "D" is the amount paid by the company in

respect of a cancellation of shares held by the

transferee, where the change consists of a

reduction of share capital

Provided that where the result of the formula is a

negative amount the value of "Y" shall be taken to be

zero

Provided further that where the transferee does not

hold any shares in the company immediately before or

after the change, the value of "A" or "B" in the said

formula, as the case may be, shall be taken as zero

Provided also that, where the change in the issued

share capital consists of a conversion of securities, for

the purpose of paragraphs (b) and (c) the real value of

shares, which do not participate in any way in the

profits of a company other than by way of a fixed rate

of return, shall be taken as zero.

(ii) The amount determined in accordance with the said

formula shall be deemed for the purpose of article 42B

of the Act, to be the value transferred by the transferor

to the transferee and such value shall be deemed to

have passed into shares in or rights over the company

held by the transferee on which duty is chargeable in

accordance with the provisions of article 42 of the Act.

(2)

For the purpose of sub-rule (1)

(i)

the real value of shares held in a company is a

percentage of the real value of the said company

corresponding to the percentage of the issued share

capital represented by the nominal value of those

shares;

(ii) where the issued share capital of the company is made

up of different classes of shares (whether before or

after the change in the issued share capital) or where

the change consists of an alteration of voting rights,

the real value of shares held in the company shall,

notwithstanding paragraph (i), be the percentage of the

real value of the said company corresponding to the

percentage of the total voting rights in the company

represented by the total voting rights attached to those

shares;

(iii) notwithstanding paragraph (ii), where the value of "Y"

as determined by the application of sub-paragraph (i)

is higher than the value of "Y" as determined by the

application of sub-paragraph (ii), the value of "Y" is to

be determined by the application of sub-paragraph (i).

(3) The real value of a company shall, for the purpose of sub-

rule (2), be determined in accordance with rules 5(6) and (7) of the

Capital Gains Rules, and references in the said sub-rules to "market

value" shall be construed as references to "real value"

Provided that in determining the real value of the company,

the total net asset value referred to in rule 5(6) of the said rules

shall be that resulting from an accounting statement prepared by a

certified public accountant holding a practicing certificate in

auditing, to be drawn up as at the date of the deemed transfer of

value. The accounting statement shall consist of two balance sheets

showing the position of the company immediately before and after

the change and shall be drawn up using the same methods and the

same layout as used for its financial statements for the financial

year preceding that in which the change takes place.

(4) On a subsequent transfer of the shares held by the

transferee immediately after the change, made before the end of the

financial year in which the change took place, the real value taken

into account in determining the amount chargeable to duty shall,

notwithstanding the provisions of rule 11(1), not be lower than the

value of "B" referred to in subrule (1)(i)(c) of this rule, being the

value taken into account in determining the value transferred.

(5) The transferee in any transfer of value referred to in this rule

shall submit to the Commissioner a computation of the real value

of the shares, made on the forms or means as supplied by the

Commissioner for this purpose, accompanied by the accounting

statement referred to in sub-rule (3) and by a Perit’s valuation of

the real value of the immovable property taken into account in

determining the value of the company, together with a site plan

issued by the Land Registry, signed and stamped by a Perit.

(6) The form referred to in sub-rule (5) shall be delivered in

triplicate to the Commissioner and the transferee shall, together

with the delivery, pay to the Commissioner the amount of duty due

on the transfer in accordance with article 49(2) of the Act.

(7) The Commissioner shall stamp one of the copies of the

form submitted in accordance with sub-rule (5) in

acknowledgement of the receipt of same and return it to the person

who submitted it.

(8) Where a transfer of value is exempt from duty by virtue of

the proviso to article 42B of the Act, other than sub-paragraph (iv)

of the said proviso, the transferee shall submit to the Commissioner

a s t a t e m e n t m a d e on the forms or means as supplied by the

Commissioner for this purpose.

(9) For the purposes of this rule, the term "shares" or "share

capital" shall exclude shares, which do not participate in any way

in the profits of a company other than by way of a fixed rate of

return.

Persons who are subject to duty in terms of the provisions of

the Duty on Documents and Transfers Act shall be registered with the

Commissioner.