Cap. 123 Art. 33Obligation of payor to deduct tax from investment income.

(1) A payor shall deduct tax from every payment to a recipient of investment income, howsoever made, at a rate of fifteen cents (€0.15) on every euro of such payment:

Provided that where the recipient derives, or is deemed to have derived pursuant to the provisions of article 43(6)(a) or (b), investment income referred to in article 41(a)(viii), tax shall be deducted at the rate specified in article 56(6) or such other rate as may be prescribed and rules may also be prescribed on how the investment income provisions are to be applied in particular circumstances.

(2) A payor shall render an account to the Commissioner of all amounts so deducted, and, subject to the provisions of sub-article

(3), every amount deducted shall be a debt due from such payor to the Commissioner payable not later than the fourteenth day following the end of the month in which the payment was made and shall be recoverable as such.

(2A) A payor shall render an account to the Commissioner of all payments of investment income falling under the provisions of this article made during any year. The account shall be submitted to the Commissioner by the 31st January following the year in which the investment income is paid. Such account shall include details of the recipient’s name, address and the income tax registration number as well as the amount of investment income paid, and the tax deducted, by the payor to the recipient during that year:

Provided that a payor shall not be required to render an account to the Commissioner once nine years have elapsed following the end of the year in which the investment income becomes payable.

(3) The payor shall upon making a payment of investment income furnish each recipient with a certificate in a form acceptable to the Commissioner setting forth the gross amount paid by the payor, and the tax deducted.

(4) Where a payor makes a payment of investment income to a person not resident in Malta (and therefore not a recipient within the definition contained in article 41(c)), the payor shall be obliged to obtain a certificate of non-residence from the person receiving such payment in such form as the Commissioner shall require.

(5) For the purposes of the investment income provisions, tax shall be deducted on the amount of the investment income before

*Applicable from the year of assessment 2019. †Applicable from the year of assessment 2019. deducting any foreign tax, whether charged directly or by way of witholding.

(6) Where the tax deductible in accordance with the provisions of this article is not remitted to the Commissioner within the time stipulated in sub-article (2), or an account is not rendered to the Commissioner in the manner required under this article, the payor shall be guilty of an offence and shall be liable on conviction to a fine (multa) of not more than twenty-three thousand euro (€23,000).