GAMING TAX REGULATIONS

SUBSIDIARY LEGISLATION 583.10

GAMING TAX REGULATIONS

20th July, 2018

LEGAL NOTICE 248 of 2018, as amended by Legal Notice 194 of 2022.

The title of these regulations is the Gaming Tax

Regulations.

(1)

In these regulations, save as provided in sub-

regulations (2) and (3), all words and phrases shall have the same

meaning as prescribed in the Gaming Definitions Regulations.

(2)

In these regulations, unless the context otherwise

requires -

"the Act" means the Gaming Act;

"charge" means the actual revenue derived from the provision

of either Type 3 gaming services or Type 4 gaming services, whether

computed by way of commission or otherwise;

"gaming revenue" means the aggregate stakes and wagers,

inclusive of any bonus or other player incentives which are

comprised within any stake or wager, less an amount to be

determined by summing up the aggregate player winnings to the

aggregate of any bonus or other player incentives which are

comprised within the amount of aggregate stakes and wagers, made

under the terms of the mentioned licence in regulation 3(1) of the

Gaming Licence Fees Regulations throughout the period of licence

and with regards to Type 3 and Type 4 gaming services, gaming

revenue means a charge, tournament fees and other such like

elements of revenue;

"qualifying activity" means any activity which consists of

providing or carrying out a gaming service from Malta or to any person

in Malta, subject to the requirement of a licence in terms of regulation

3 of the Gaming Authorisations Regulations, which for the avoidance

of doubt shall include the persons mentioned in regulations 8 and 22,

but not the persons mentioned in regulations 5, 7, 29, 30 and 31 of the

Gaming Authorisations Regulations and the term "qualifying

activities" shall be read and construed accordingly;

"tax period" means the financial year of the person conducting a

qualifying activity.

(3) All other terms used in these regulations shall have the

same meaning attributed to them in the Act.

Part II

Gaming Tax

Any person offering any gaming service constituting a

qualifying activity, whether through means of distance communication

or in gaming premises or by any other means to any player who is

physically present in Malta at the time when the gaming service is

actually provided shall, in addition to the levy on gaming devices, if

any, imposed in terms of regulation 4, pay to the Authority, for each

tax period, gaming tax to be computed at the rate of five per cent (5%)

of the gaming revenue generated from the said gaming services during

the relevant tax period

Provided that where the gaming service is provided by a

corporate group holding a licence in terms of regulation 10(3) of the

Gaming Authorisations Regulations, the entire corporate group shall

be considered to be the "person" for the purposes of this regulation

Provided further that where the gaming service is offered

solely by means of distance communications, the determination of

taxability shall not be whether the player is physically present in

Malta, but whether the player is established, has his permanent address

and, or usually resides in Malta.

Part III

Levy on Gaming Devices

There shall be due and payable to the Authority in each

and every tax period a levy on gaming devices. The levy shall be

computed in the manner stipulated in regulation 5 and shall be payable

jointly and severally by the person or persons deploying any gaming

device for the provision or conduct of any qualifying activity

Provided that, for the purposes of these regulations, the

person deploying the gaming device for the provision or conduct of a

qualifying activity shall be deemed to be the licensee under whose

licence the qualifying activity is undertaken and, in the absence of a

valid licence, it shall be each and every person directly or indirectly

enjoying any economic benefit generated by, or as a result of, the

deployment of the said gaming device.

(1)

The levy on gaming devices payable by any

person for each and every tax period in terms of regulation 4 shall be

determined by aggregating the amounts resulting from the

computational method prescribed in sub-regulation (2), (3), (4), (5)

and, or (6).

(2) The levy on gaming devices payable in each and every

tax period by reference to gaming devices deployed within gaming

premises in the provision or conduct of Type 1 and, or Type 2 gaming

services shall be thirty per cent (30%) of the aggregate gaming

revenue generated during the tax period from all gaming devices

deployed by that person in the provision or conduct of Type 1 and, or

Type 2 gaming services.

(3) The levy on gaming devices payable in each and every

tax period by reference to gaming devices deployed within gaming

premises in the provision or conduct of Type 3 and, or Type 4 gaming

services shall be twelve point five percent (12.5%) of the aggregate

gaming revenue generated during the tax period from all gaming

devices deployed by that person in the provision or conduct of Type 3

or Type 4 gaming services.

(4) The levy on gaming devices payable in each and every

tax period by reference to gaming devices deployed within controlled

gaming premises in the provision or conduct of Type 1, Type 2, Type

3 and, or Type 4 gaming services shall be fifteen percent (15%) of the

aggregate gaming revenue generated during the tax period from all

gaming devices deployed by that person in the provision or conduct

of Type 1, Type 2, Type 3 or Type 4 gaming services.

(5) Notwithstanding anything contained in sub-regulations

(2), (3) and (4), the levy on gaming devices payable in each and every

tax period by reference to gaming devices deployed within gaming

premises in the provision or conduct of Type 1, Type 2, Type 3 and,

or Type 4 gaming services shall, instead of the amounts in regulations

(2), (3), and (4), and if lawfully classified as a junket in terms of the

applicable regulatory instrument, be two point five percent (2.5%) of

the aggregate gaming revenue generated during the tax period from

all gaming devices deployed by that person in the provision or

conduct of Type 1, Type 2, Type 3 or Type 4 gaming services

classified as a junket.

(6) Notwithstanding anything contained in sub-regulations

(2), (3), and (4), the levy on gaming devices payable in each and

every tax period by reference to gaming devices deployed within

gaming premises in the provision or conduct of Type 3 gaming

services shall, instead of the amounts in sub-regulations (2), (3), and

(4), and if lawfully classified as a junket event in terms of the

applicable regulatory instrument, be two point five percent (2.5%) of

the aggregate gaming revenue generated during the tax period from all

gaming devices deployed by that person in the provision or conduct of

Type 3 gaming services classified as a junket event.

(7) Notwithstanding anything contained in this regulation,

any authorised person who uses premises as a studio to film, and, or

broadcast a gaming service or a critical gaming supply, shall pay a

fixed levy of five hundred euro (€500), in advance, for the following

twelve (12) running months, and on every anniversary thereof

Provided that no such one-time fixed levy shall be due if

such person is already paying the levy due in terms of sub-regulation

(2), (3), (4), (5) and, or (6).

Part IV

Payment

(1)

The amounts payable in terms of these regulations

for any given tax period shall be paid throughout the tax period by way

of monthly payments to be calculated on the gaming revenue accrued

during each and every month falling within a tax period, hereinafter

referred to as the "reference month". The tax due shall be paid together

with the submission of any return required in terms of regulation 7 on

the twentieth day of that month next following the reference month,

hereinafter referred to as the "settlement month".

(2) At the end of each reference month the gaming revenue

generated from each type of gaming services during that month shall

be determined and the corresponding amount of gaming tax as due in

terms of regulation 3 and the levy on gaming devices as due in terms of

regulations 4 and 5 shall be computed as prescribed in these

regulations.

(3) Where any amount payable in terms of these regulations

is not paid when due, interest shall be due and payable at the rate

prescribed in rule 2 of the Income Tax (Interest Rate) Rules, which rate

shall be applied to the unpaid amount for each month or part thereof

for which the amount remains unpaid.

(4) In any circumstances in which the amount actually paid in

terms of regulations 3, 4 or 5 exceeds the amount actually due by that

person in terms of regulations 3, 4 or 5 for that tax period, the excess

shall not be refundable and no interest shall accrue thereon in favour of

the payor but the said excess shall be available for set-off against any

amount payable by that person in terms of regulations 3, 4 and 5 in any

tax period commencing after the termination of the tax period in which

or by reference to which the excess was paid.

(5) The Minister may by regulations prescribe rules

allowing a credit of other turnover tax actually paid in Malta to the

relevant local competent authority by the holder of a licence falling

under paragraph 1(a) of the First Schedule to the Gaming

Authorisations Regulations against all or any amount due and

payable under these regulations, subject to such conditions as shall be

prescribed.

(7) The Authority may, with the consent of the Minister

responsible for the gaming sector, by binding instrument, regulate the

granting of any reduction, credit, set-off or other relief in respect of

any amount payable under these regulations, which shall be granted

either on a unilateral basis or pursuant to bilateral or multilateral

treaties, agreements, memorandum of understanding or other

arrangements entered into with any foreign government or any local

or foreign authority or government agency.

Part V

Returns and Assessment

(1)

Any person who undertakes any one or more

qualifying activities shall furnish to the Authority a return in the form

as shall be prescribed for every reference month falling within any

tax period by not later than the twentieth (20th) day of the settlement

month and any such other returns, statements, documents or

information as may be requested or prescribed.

(2) When any person who undertakes any one or more

qualifying activities does not furnish a return when due in terms of

these regulations or makes a return which in the opinion of the

Authority is incorrect, the Authority may make an assessment of the

amount payable under these regulations to which that person became

liable and shall serve that assessment on that person at any time after

the expiration of the time allowed in terms of these regulations for the

furnishing of that return.

(3) When any return furnished by a person to the Authority

contains an understatement of any amount payable under these

regulations, that person shall become liable to an administrative

penalty in an amount equivalent to twenty per cent (20%) of the

understated amount

Provided that where a person corrects an understatement

as is referred to in this sub-regulation before he is served with an

assessment by the Authority, that person shall only become liable to

an administrative penalty in an amount equivalent to ten per cent

(10%) of the understated amount.

(4)

An assessment shall not relieve the person from his

obligation to furnish a return.

(5) When a return is furnished after an assessment has been

made in accordance with sub-regulation (2), the Authority may at its

discretion amend or cancel that assessment, as the case may be.

Part VI

Objections and Appeals

(1)

Any person who undertakes any one or more

qualifying activities who is issued with an assessment by the Authority

may object to the assessment in writing within twenty (20) days of

receipt of the assessment.

(2) Upon receipt of the objection referred to in sub-regulation

(1), the Authority shall, within thirty (30) days of receipt thereof,

either confirm the original assessment and provide reasons for the

refusal of the objection made or shall communicate to the person

making the objection a revised assessment which revised assessment

shall constitute a new assessment of the purposes of sub-regulation (1)

Provided that the period referred to in this sub-regulation

may be extended by a further thirty (30) days following a notice by the

Authority to the relevant person.

(3) The person in receipt of the refusal of objection referred

to in sub-regulation (2) may enter an appeal in terms of article 43 of

the Act

Provided that, without prejudice to articles 43 and 44 of

the Act, an appeal against an assessment shall not be valid if

(a)

the return for the period to which the assessment

refers has not been delivered to the Authority before the appeal

is entered;

(b)

any amount due by the person to the Authority

which is not in dispute has not been paid;

(c)

it is not made within twenty (20) days from the

date of receipt of the refusal of objection referred to in sub-

regulation (2);

(d)

it is not made in such form and in such manner as

may be prescribed under the Act, or the Administrative Justice

Act.

(4) The onus of proving that any amount assessed by the

Authority is incorrect shall lie on the appellant.

(5)

The Tribunal shall deliver its decision in writing and shall

cause a copy of the decision to be given to the appellant.

(6) Any person who undertakes any one or more qualifying

activities and who, having appealed to the Tribunal, feels aggrieved

by the decision of the Tribunal, may appeal against that decision on a

question of law only to the Court of Appeal in accordance with article

45 of the Act.

(7) Where no valid appeal against an assessment has been

lodged within the time limits prescribed in theses regulations, or

where the appeal has been withdrawn or discontinued, or where the

amount of tax payable has been determined on appeal, the assessment

as made or agreed to or determined on appeal, as the case may be,

shall be final and conclusive as regards the amount payable in terms

of regulations 3, 4 and 5 for the period or periods to which the

assessment refers.

(8) Once an assessment is final and conclusive it shall

constitute an executive title within the meaning and for the purposes

of Title VII of Part I of Book Second of the Code of Organization and

Civil Procedure.

(9) Once an assessment is final and conclusive the

Authority may request the payment of the amount payable by means

of a demand note, and if payment is not made within fifteen (15) days

from the date of the service of such demand note, the Authority may

proceed to enforce payment in virtue of the executive title referred to

in sub-regulation (6) after two (2) days from the service on the debtor

of an intimation for payment made by means of a judicial act. Upon

the lapse of the period of two days mentioned in this sub-regulation

the Authority shall be entitled to register in the public registry or land

registry, as the case may be, a note of privilege for the amount

demanded in the judicial act which note of privilege shall be

registered by any advocate or notary.

(10) The provisions of article 468 of the Code of

Organization and Civil Procedure shall apply with respect to any

warrant issued on the strength of the executive title mentioned in this

regulation and to the paying out of the proceeds of the sale by auction

of the property seized, and no opposition or reservation in the

schedule of deposit shall stay the paying of any sum deposited in

court following any such warrant as aforesaid.

Part VII

Transitory Provisions

(1)

The provisions of these regulations shall not

apply to the holder of the National Lottery licence.

(2)

The provisions of these regulations with respect to gaming

services subject to a concession in accordance with article 11(3) of the

Gaming Act or otherwise determined by means of a gaming device in

gaming premises shall come into force on 1st January, 2019.

(3)

The inapplicability of these regulations with respect to the

holder of the national lottery licence in accordance with sub-regulation

(1) shall remain in effect until the 4th July, 2022, and these regulations

shall begin to apply to the holder of the National Lottery licence on the

5th July, 2022

Provided that the national lottery games shall be treated as

gaming devices deployed within gaming premises for the purposes of

these regulations, irrespective of the distribution channel used to offer

such games.