S.L. 123.129 Art. 2Interpretation.

For the purposes of these rules, unless the context otherwise requires:

"Act" means the Income Tax Act;

"appointed day" means the date on which the Commissioner shall determine in writing that an individual qualifies for special tax status under these rules; "application" means an application filed in terms of rule 3(1); "authorised mandatory" means a person who is in possession of a warrant to practise as an advocate under the Code of Organization and Civil Procedure, a person who holds a warrant to practise as a legal procurator under the Code of Organization and Civil Procedure, a person who has been appointed notary public in accordance with the provisions of the Notarial Profession and Notarial Archives Act, a person who holds a warrant to practise the profession of accountant under the Accountancy Profession Act, a person who is a member of the Institute of Financial Services Practitioners, a person who is a member of the Malta Institute of Taxation or a person who is a member of the Malta Institute of Accountants or a person who is a member of the Institute of Management:

Provided that a person that is not an individual, having at least 75% (directly or indirectly) of its shareholders, partners or other members, as the case may be, who are persons in possession of the above-mentioned warrants or being a member of the above-mentioned institutes, shall also be considered to be an authorised mandatory;

"authorised registered mandatory" means an authorised mandatory who is registered with the Commissioner under these rules; "Commissioner" means the Commissioner for Revenue;

"dependent" means the beneficiary’s spouse, the beneficiary’s unmarried minor children, adopted minor children of the beneficiary or of the spouse, as the case may be, where the beneficiary or the spouse has custody and the minor children are financially dependent on him and children of the beneficiary or of

*See rule 1(2) of these rules, as originally promulgated. the beneficiary’s spouse who are not minors but who, because of circumstances of illness or disability of a serious gravity, are unable to maintain themselves; "EEA" means the members of the European Union, Iceland, Norway and Liechtenstein; "family members" means beneficiary’s ascendants in the direct line, descendants in the direct line, brothers, sisters, spouse/s or persons with whom beneficiary is in a stable and durable relationship; "lease" includes sub-lease;

"Minister" means the Minister responsible for Finance; "minor" is a person of either sex who has not yet attained the age of eighteen years; "primary residence" means the dwelling house in which an individual habitually resides in as his principal place of abode worldwide;

"property" means any immovable property situated in Malta and any right over such property;

"public interest" includes the interests of public safety, the protection of public order, national security, territorial integrity, public health or morals; "qualifying property" means either a qualifying owned property or a qualifying rented property, as the case may be; "qualifying property holding" means a holding which arises where a beneficiary either:

(a) owns qualifying owned property; or

(b) rents qualifying rented property as lessee;

and, in either case, occupies such property as his primary residence:

Provided that the persons who reside in the qualifying property are not persons other than the beneficiary and his family members; "qualifying owned property" means a property purchased after 1 January 2011 at a consideration of not less than four hundred thousand euro (€400,000), or a property purchased before 14 September 2011 for a consideration of not less than one hundred and sixteen thousand euro (€116,000) by a person who filed an application under the Residents Scheme Regulations which was duly received and acknowledged by the Commissioner before 14 September 2011: Provided that, for the purposes of this definition, the Commissioner shall have the discretion, upon good cause being shown, to treat a property covered by a promise of sale in respect of which notice thereof under the Duty on Documents and Transfers Act has been given to the Commissioner before 14 September 2011, and the relative deed of transfer in respect of which is published by 31 March 2012, as a property purchased by an applicant as aforesaid before 14 September 2011;

"qualifying rented property" means a leased property taken on at lease of not less than twenty thousand euro (€20,000) per annum:

Provided that, for the purposes of this definition, the Commissioner shall have discretion, upon good cause being shown, to treat a property covered by a lease agreement entered into prior to 14 September 2011 for an amount of not less than €4,150 per annum, by a person who filed an application under the Residents Scheme Regulations which was duly received and acknowledged by the Commissioner before 14 September 2011, as a leased property by an applicant as aforesaid if a copy of the relative lease agreement, attested by a notary or advocate, is deposited with the Commissioner by not later than 31 March 2012; "rights acquired under this law" means the right to pay tax at the reduced rate of tax contemplated in article 56(23) of the Act and these Rules;

"these rules" shall include the provisions of article 56(23) of the Act and the rules contained in these Rules;

"third-country national" means any person who is not a citizen of the European Union within the meaning of Article 20 of the Treaty on the European Union and the Treaty on the Functioning of the European Union: Provided that, for the purposes of these rules, EEA nationals and Swiss nationals shall not be considered to be third-country nationals.