S.L. 123.134 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 mandatary" 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 mandatary;

"authorised registered mandatary" means an authorised mandatary who is registered with the Commissioner under these rules; "beneficiary" means an individual, who is not in an employment relationship and who has been granted special tax status in terms of these rules: Provided that a beneficiary may hold a non-executive post on the board of a company resident in Malta or partake in activities related to any institution, trust or foundation of a public character and of any other similar organisation or body of persons, also of a public character, which is engaged in philanthropic, educational or research and development work in Malta; "Commissioner" means the Commissioner for Revenue; "dependent" means:

(a) the beneficiary’s spouse or person with whom the beneficiary is in a stable and durable relationship; or

(b) 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 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; and in any case -

(i) is not a beneficiary under the Global Residence Programme Rules; the High Net Worth Individuals – EU/ EEA/Swiss Nationals Rules; the High Net

Worth Individuals Rules – Non-EU/EEA/Swiss Nationals Rules; the Highly Qualified Persons Rules; the Qualifying Employment in Aviation

(Personal Tax) Rules; the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules; the Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry

Activities (Personal Tax) Rules; the Residence

Programme Rules; the Residents Scheme Regulations or the United Nations ("UN") Pensions Programme Rules; and

(ii) resides with the beneficiary in the qualifying property;

"household staff" means an individual who is in an employment relationship, as evidenced by a contract of service, with the beneficiary and who satisfies such conditions as the Commissioner may determine by guidelines; "lease" includes sub-lease;

"long-term resident" means:

(a) a person who has long-term resident status in terms of the Status of Long-term Residents (Third Country Nationals) Regulations; or

(b) a person who applies for long-term resident status under the Status of Long-term Residents (Third Country Nationals) Regulations;"

"Minister" means the Minister responsible for Finance; "occupational retirement scheme" means a retirement scheme established for, or by, an employer or a number of employers or an association representing employers, jointly or separately, for the benefit of employees and includes an overseas retirement scheme; "overseas retirement plan" means a bona fide scheme or arrangement, organized under the laws of a country outside of Malta, which govern the rights and responsibilities of the parties thereto, and under which payments are made to beneficiaries for the principal purpose of providing retirement benefits;

"overseas retirement scheme" means a scheme or arrangement, organised under the laws of a country outside Malta with the principal purpose of providing retirement benefits; "pension" means periodic payments paid to a former employee in respect of past employment including where remunerations are paid in respect of services rendered to a State or a political subdivision or local authority thereof. The term "pension" also includes remunerations paid as lifetime or temporary annuities, as well as regular income from an occupational retirement scheme, personal overseas retirement plan and insurance policies but does not include a pension in the form of a lump sum payment without periodic pension payments and any capital sum received by way of commutation of pension, retiring or death gratuity or received as consolidated compensation for death or injuries that are exempt under article 12(1)(h) of the Act; "permanent resident of Malta" means:

(a) a person who has right of permanent residence in terms of article 6 and is in possession of a permanent residence certificate issued in terms of article 7 of the Free Movement of European Union Nationals and their

Family Members Order; or

(b) a person who applies for right of permanent residence in terms of article 6 of the Free Movement of European

Union Nationals and their Family Members Order; "primary residence" means the dwelling house in which an individual habitually resides as his principal place of abode worldwide;

"property" means any immovable property situated in Malta or Gozo 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 a 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 (a) the beneficiary, and (b) persons that qualify as his dependants or household staff provided that the Commissioner has been notified that such dependants or household staff will be so residing; "qualifying owned property" means an immovable property purchased:

(a) after 1 January 2011 up to 30 June, 2013 at a consideration of not less than:

(i) two hundred and seventy-five thousand euro (€275,000) for a property situated in Malta; or

(ii) two hundred and fifty thousand euro (€250,000) for a property situated in Gozo;

(b) on or after 1 July, 2013, at a consideration of not less than:

(i) subject to the provisions of paragraph (b), two hundred and seventy-five thousand euro (€275,000) for a property situated in Malta; or

(ii) two hundred and twenty thousand euro (€220,000) for a property situated in Gozo or in the south of Malta: Provided that an immovable property purchased before 1 July 2013 for a consideration which is less than the amounts indicated in paragraph (b) above shall be considered to be "qualifying owned property" insofar as the value of such immovable property as declared on the date of application by the applicant is not less than the amounts indicated in paragraph (b) above as supported by a separate and independent architect valuation including architect’s plan which are delivered to the Commissioner upon application:

Provided further that the Commissioner, or any officer authorised by him in writing, architect or surveyor shall have full and free access to the qualifying owned property to the extent that such access is likely to assist him in determining the value of the said property;

"qualifying rented property" means a leased property taken on at a lease of not less than:

(a) subject to paragraph (b), nine thousand and six hundred euro (€9,600) per annum for a property situated in Malta; or

(b) eight thousand and seven hundred and fifty euro (€8,750) per annum for a property situated in Gozo or in the south of Malta;

"rights acquired under this law" means the right to pay tax at the rate of tax contemplated in article 56(23) of the Act and these Rules; "south of Malta" means the areas within set boundaries as designated in the Second Schedule to the Local Government Act of the localities listed in the Schedule to these rules; "these rules" shall include the provisions of article 56(23) of the Act and the rules contained in these Rules;