TAX REFUNDS AND REGISTRATION PROCEDURE RULES

SUBSIDIARY LEGISLATION 372.25

TAX REFUNDS AND REGISTRATION PROCEDURE

RULES

1st January, 2007

LEGAL NOTICE 80 of 2008, as amended by Legal Notices 193 of 2010,

284 of 2016, and 377 of 2017.

The title of these rules is the Tax Refunds and Registration

Procedure Rules.

For the purposes of these rules

"trust" means a trust, the trustee of which has made an

election in terms of the provisions of sub-article 27D(1) of the

Income Tax Act;

"trustee" means any trustee of a trust where such trustee is

resident in Malta; and

"shareholder" includes a partner or member of any body of

persons that has elected to be treated as a company in terms of

article 27(6) of the Income Tax Management Act and for as long as

such election remains in force.

Any person, except for shareholders of an international

trading company, making a claim pursuant to article 48(4) or

pursuant to article 48(4A) shall, in order to be entitled to make

such a claim, be registered with the Commissioner in accordance

with these rules.

(1) A person who wishes to be registered with the

Commissioner in terms of these rules shall advise, in writing, the

company or trustee, as the case may be, from which he expects to

receive a dividend or a distribution of profits in relation to which

he wishes to make a claim to be registered and the company or the

trustee, as the case may be, shall forthwith effect the registration in

the manner set out in rule 4

Provided that where the company or the trustee, as the case

may be, as a result of such registration may be deemed to be a

payor in terms of article 41(b) of the Income Tax Act, the said

company or trustee shall not be obliged to register the said person

who, after having been requested by the said company or trustee,

has not provided the company or trustee with security, including a

bank guarantee, for the tax that may be payable by it in terms of

article 33 of the Income Tax Act

Provided further that the trustee shall be required to

register only those beneficiaries whom he expects shall be entitled

to receive distributions out of profits of the trust.

(2) The registration by the company or by the trustee, as the

case may be, in terms of sub-rule (1) will apply for the year of

assessment in which registration with the Commissioner in terms of the

said sub-rule (1) is duly effected and for all subsequent years of

assessment until such time that the person notifies the company or the

trustee, as the case may be, of his wish to cancel his registration in terms

of rule 7 and such de-registration is effected by the

Commissioner

Provided that for each applicable year of assessment following

the registration referred to in these rules and until such time that the

cancellation of registration is notified in accordance with the provisions

of these rules, it shall be deemed that

(a) the registered shareholder or the registered

beneficiary, as the case may be, intends to make a

claim in relation to the tax assessable in relation to

each of the said years of assessment;

(b) the relevant registration has been renewed for each of

the said years of assessment with the original details

on the application and, if applicable, as amended by

any new details notified in writing by the company or

the trustee, as the case may be, to the Commissioner;

(c)

in the case of a company, the registered shareholder

expects to receive a dividend out of the profits earned

in relation to each of the said years of assessment; and

(d) in the case of a trust, the registered beneficiary expects

to receive a distribution out of the profits attributable

to the trust in relation to each of the said years of

assessment.

The company or the trustee, as the case may be, shall effect

the said registration in such manner as shall be determined by the

Commissioner.

(1)A person shall only be entitled to make a claim

pursuant to the sub-articles mentioned in rule 2 if, at the time of

making the claim, he is registered in terms of these rules and that

registration was made not later than the date on which the first

provisional tax payment instalment of the company or the trust, as the

case may be, for the relevant year of assessment falls due or the date

on which the company or the trustee, as the case may be, makes a

payment of tax in respect of that year of assessment whichever is

the earlier

Provided that where the period commencing from the first day

of the accounting period ending in the year preceding the relevant

year of assessment and the date on which the first provisional tax

payment instalment falls due is less than one hundred and twenty

days, the said registration must have been made not later than the

date on which the second provisional tax payment instalment of the

company or the trustee, as the case may be, for the relevant year of

assessment falls due or the date on which the company or the trustee, as

the case may be, makes a payment of tax in respect of that year of

assessment (other than the payment in respect of the first provisional

tax payment for that same year of assessment) whichever is the earlier

Provided further that where the relevant year of assessment is

the first year of assessment of the company or the trust, as the case

may be, the said registration must have been made not later than the

date on which the second provisional tax payment instalment for the

relevant year of assessment of the company or the trust, as the case

may be, would have fallen due had that year of assessment been the

second year of assessment and not the first year of assessment or the date

on which the company or the trustee, as the case may be, makes a payment

of tax in respect of that accounting period whichever is the earlier.

(2) Notwithstanding the provisions of sub-rule (1) but subject

to the provisions of sub-rule (3) the registration referred to in sub-

rule (1) shall be made not later than the tax settlement date for that

year of assessment of the company or the trust, as the case may be.

(3)

Where on the date of publication of these rules or on the date

of any relevant amendment thereto, the time period within which a

registration is to be made in accordance with the preceding provisions

of this rule has already elapsed or is a date falling within one hundred

and twenty days from such date, the registration referred to in sub-

rules (1) and (2) shall be made not later than one hundred and twenty

days from the date of publication of these rules or from the date of

any relevant amendment thereto as the case may be.

(4) Notwithstanding the provisions of sub-rules (1), (2) and (3),

the Commissioner may, in his discretion and provided that there are

sufficient serious reasons for the request, accept a request for

registration of a person for entitlement to make a claim pursuant to

the sub-articles mentioned in rule 2 provided that such request is made not

later than eighteen months after the end of the accounting period to

which the registration under these rules refers.

(5)

In this rule

(a) the "relevant year of assessment" is the first year of

assessment in which the tax in respect of which a

claim and registration is made or is to be made in

terms of these rules is assessable;

(b)

the "company" is the company which makes a

payment of a dividend as a result of which the said

person is entitled to make a claim pursuant to the sub-

articles mentioned in rule 2;

(c)

the "trustee" is the resident trustee which makes a

distribution out of profits as a result of which the said

person is entitled to make a claim pursuant to the sub-

articles mentioned in rule 2.

(1)The registration of a person under these rules shall

indicate that person’s entitlement to receive by way of dividend or

distribution the whole or part of the distributable profits of the

company or the trust, as the case may be, and such entitlement is

hereinafter referred to as the "profit entitlement".

(2) Where a company or trustee, as the case may be, registers a

person in terms of these rules, the company or the trustee, as the case

may be, shall also provide the following information

(a) details of the profit entitlement of all other

shareholders of the company or beneficiaries of the trust,

as the case may be, irrespective of whether such

shareholders or beneficiaries have required registration in

terms of these rules indicating separately any entitlement

to any profit entitlement of a fixed amount;

(b) such details on the ultimate beneficial owners of the

company or of the beneficiaries of the trust as shall be

determined by the Commissioner; and

(c) such other information as the Commissioner may

require.

(3) Any change to the details of a registration made in terms of

these rules, including any change to the profit entitlement where

applicable, shall be notified to the Commissioner in such manner as

the Commissioner may determine.

(4) Where the change relates to a change in a person’s profit

entitlement relative to a company or trust and as a result of such

change, the profit entitlement of a person who is registered in terms

of these rules is reduced and the profit entitlement of another

person who may or may not be registered in terms of these rules is

increased by a c o r r es p o n d i n g am o u n t o r p er c en t ag e, t h e

registration of the latter person in terms of these rules in respect

of such increase in profit entitlement shall take effect from the

date of the change and the provisions of rules 5 and 7 shall not

apply to such change

Provided that the said registration is notified to the

Commissioner contemporaneously with the notification to the

Commissioner of the corresponding cancellation or reduction in the

profit entitlement registered in the name of the former person as a result

of the said change.

(5) Where in relation to a change in the profit entitlement

relative to a company or trust

(a) the conditions of sub-rule (4) are not satisfied, the

provisions of rule 5 shall apply to any registration of the

additional profit entitlement of a person resulting from

that change;

(b) any person registered in terms of these rules is no

longer entitled to any profit entitlement in the

company or trust, his registration shall be cancelled by

means of the said notification which cancellation shall

be effective as from the date of the change;

(c) any person registered in terms of these rules has had

his profit entitlement reduced, his registration shall be

amended to reflect the new profit entitlement and such

change shall be effective as from the date of the

change.

A person who wishes to cancel his registration in terms of

these rules relative to a company or a trust shall inform in writing such

company or the trustee of such trust, as the case may be, and the

company or trustee shall de-register him by completing such forms as

the Commissioner may determine and delivering the said form to the

Commissioner in such manner as the Commissioner may determine.

Such de-registration shall have effect upon its notification to the

Commissioner.

A claim for refund shall be made on such form as the

Co mm issio ner m ay deter m in e an d sh all be deliver ed to the

Commissioner in such manner as the Commissioner may

determine.

The Commissioner may require that any registration and

any cancellation or any change to such registration may be made by

electronic means and all such registrations, cancellations or

changes and any forms which the Commissioner may require to be

made in terms of these rules shall be considered to be acts which

can be made by electronic means in terms, and under the provisions

of, the Electronic Communications Rules prescribed under the

Commissioner for Revenue Act.

All registrations, changes and cancellations of registrations

shall be made by the relevant company or trustee, as the case may be,

upon a written request by the relevant shareholder or relevant

beneficiary of the trust, as the case may be.