S.L. 123.129 Art. 6Cessation of status.

(1) An individual shall, with effect from the appointed day, cease to possess special tax status under these rules:

(a) if, at any time, after the appointed day, such individual does not hold a qualifying property holding;

(b) if the individual is not in receipt of stable and regular resources which are sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta;

(c) if, after the appointed day, he is not in possession of sickness insurance in respect of all risk normally covered for Maltese nationals for himself and his dependents;

(d) if he establishes his domicile in Malta;

(e) if he becomes a Maltese national or a third country national;

(f) if the beneficiary’s stay is not in the public interest; or

(g) if he stays in any other jurisdiction for more than one hundred and eighty-three days in a calendar year.

(2) An individual who ceases to possess special tax status for any of the reasons specified in sub-rule (1) shall notify the Commissioner of such event by not later than four weeks from the date when he becomes aware of such event. This notification is to be made on such form as may be required by the Commissioner. Where such notification is not made within the time specified, the person responsible for such event shall be charged an administrative penalty of ten thousand euro (€10,000).

(3) An individual shall, with immediate effect, cease to possess special tax status from the relative year of assessment under these rules if he notifies the Commissioner of his intention not to remain in possession of special tax status on such form as the Commissioner may require.

(4) An individual shall, with effect from the beginning of the relative year of assessment, cease to possess special tax status under these rules if he is in breach of the Act and, or of the Income Tax Management Act.

(5) The Minister shall have the power to condone any failure to satisfy any one of the conditions in sub-rule (1) if:

(a) such failure was due to unforeseen circumstances which are beyond the control of the individual;

(b) such individual notifies the Minister of such failure; and

(c) such individual has exercised his best efforts to remedy the failure.