Recently the Investment Registration Scheme Regulations 2014 (the “Regulations“) were published. The Regulations provide the framework of the Investment Registration Scheme 2014 (the “Scheme”) which enables residents of Malta owning eligible assets (as defined therein) to regularise their position and to benefit under the exemptions referred to in Article 9B of the Income Tax Act. The Scheme shall run until 30 September 2014.

Investment Registration Scheme

The Scheme is open for any eligible assets that were held on 4 November 2013 and were generated from income (including capital gains) that was never declared for the purposes of the relevant laws. The ‘relevant laws’ are defined as the Income Tax Acts, the Succession and Donation Duties Ordinance, the Death and Donation Duty Act, the Duty on Documents Act and the Duty on Documents and Transfers Act.

The term ‘eligible assets’ is defined as any of the following assets:

  • deposits held with credit institutions licensed in Malta, or abroad irrespective of the currency of denomination;
  • securities including:
      1. shares and stock in the capital of a company registered or incorporated in a reputable jurisdiction or other instruments creating or acknowledging an ownership interest in such company;
      2. debentures, certificates of deposit, bonds, notes and any other similar instrument creating or acknowledging indebted
      3. securities issued by central, regional or local governments, states or sub-divisions of any state or any supra-national organization (including Malta Government Securities – bonds and Treasury Bills);
  • units in a collective investment scheme,
  • life and annuity long term insurance policies, whether index-linked or not issued by a scheme or insurer licensed in Malta or abroad;
  • precious metal bullion;
  • warrants, options, futures and other derivatives as well as any other financial instruments entered into in Malta and, or abroad for investment purposes;
  • shareholder loans or other advances extended to a company registered in a reputable jurisdiction;
  • immovable property situated in or outside Malta

Registration is subject to a one-time registration fee of 7.5% of the original cost in the case of immovable property or 7.5% of the current market value in the case of any other asset listed above. The registration fee is that of 5% in the case of any asset (including immovable property) which is held abroad on 4 November 2013 and is still held abroad on the date of registration provided an irrevocable commitment to repatriate the proceeds within two weeks and to invest such funds locally (subject to certain conditions) is made by the applicant.

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