Cap. 123 Art. 4AProfits or income prior to a change residence or domicile.

When a person -in

(i) changes his residence and becomes resident in

Malta and he was at no time domiciled or resident in Malta prior to such change in residence; or

(ii) changes his domicile and becomes domiciled in Malta and he was at no time domiciled or resident in Malta prior to such change in domicile; or

(iii) is "a company resulting from the merger" which is registered in Malta as set out in regulation 3(2) of the Cross-border Mergers of Limited Liability Companies Regulations (hereinafter referred to as "Cross-border Mergers Regulations") and none of the assets owned by the company on the day of the merger was owned by any merging company which is domiciled and, or resident in Malta at any time prior to the date of the particular merger, and has made an election for the purpose of this paragraph by notice in writing to the Commissioner, all assets which are situated outside Malta and which were acquired by him, or in the case of a company resulting from the merger, by any non-resident merging company, prior to the above-mentioned change in domicile or residence or prior to the entry into force of the merger (each of which shall hereinafter be referred to as "occurrence"), shall be deemed, for the purpose of calculating any income that would not have been subject to tax had it arisen before the particular occurrence would have taken place, to be assets acquired on the date of the particular occurrence, at a cost which is proved to the satisfaction of the Commissioner to be the market value which it had on the date of the said occurrence: Provided that such an election shall not be available unless the particular person exercises the election by not later than the end of the year of assessment immediately following the basis year in which the occurrence takes place.