S.L. 123.221 Art. 2Interpretation. Cap. 123.  Cap. 12.  Cap. 12.  Cap. 55.  Cap. 281. S.L. 123.79. S.L. 123.129.  S.L. 123.130.   S.L. 123.141. S.L. 123.126.  S.L. 123.218.    S.L. 123.219.  S.L. 123.168.   S.L. 123.182.  S.L. 217.05.   S.L. 217.05.      S.L. 460.17.    S.L. 460.17.

In these rules, unless the context otherwise requires:

"Act" means the Income Tax Act;

"appointed day" means the date on which the Commissioner for Tax and Customs shall determine in writing that an individual is granted special tax status under these rules;

"application" means an application submitted in accordance with rule 3(1);

"authorised mandatary" means a person who is:

(a) in possession of a warrant to practice as an advocate under the Code of Organization and Civil Procedure;

(b) a person who holds a warrant to practice as a legal procurator under the Code of Organization and Civil Procedure;

(c) a person who has been appointed notary public in accordance with the provisions of the Notarial Profession and Notarial Archives Act; or

(d) a person who holds a warrant to practice the profession of accountant under the Accountancy Profession Act:

Provided that a person that is not an individual, having at least seventy-five per cent (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 shall also be considered to be an authorised mandatary;

"authorised registered mandatary" means an authorised

*Not yet in force. mandatary who is registered with the Commissioner for Tax and Customs under these rules;

"beneficiary" means an individual who has been granted special tax status in accordance with rule 3;

"Commissioner" means the Commissioner for Tax and Customs;

"dependant" means:

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

(b) minor children including adopted minor children and children who are in the care and custody of the beneficiary or the person mentioned in paragraph (a);

(c) children who are under the age of twenty-five (25), including adopted children and children who are in the care and custody of the beneficiary or the person mentioned in paragraph (a), provided that such children are not economically independent; and

(d) children including adopted children and children who are in the care and custody of the beneficiary or the person mentioned in paragraph (a), 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

Residents Scheme Regulations, the High Net

Worth Individuals - EU/EEA/Swiss Nationals

Rules, the High Net Worth Individuals - Non-EU/

EEA/Swiss Nationals Rules, the Qualifying

Employment in Innovation and Creativity

(Personal Tax) Rules, the Highly Qualified

Persons Rules, the Senior Employees of Family

Offices, Back Offices and Treasury Management

Operations Tax Rules, or the Tax Treatment of

Highly Skilled Individuals Rules, Qualifying

Employment in Aviation (Personal Tax) Rules and

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

(ii) resides with the beneficiary in the qualifying property; "EEA" means the members of the European Union, Iceland, Norway and Liechtenstein;

"Fund" means the United Nations Joint Staff Pension Fund;

"household staff" means an individual who has been providing services regulated by a contract of service to the beneficiary for at least two (2) years prior to an application for special tax status in terms of these rules provided that the Commissioner for Tax and Customs is satisfied that the service is required to be provided in whole or in part within the qualifying property;

"lease" includes sub-lease;

"long-term resident" means:

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

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

Country Nationals) Regulations;

"Member organisation" means the United Nations and any specialised agency or other organisation admitted to membership in the Fund;

"Minister" means the Minister responsible for finance;

"minor" is an individual of either sex who has not yet attained the age of eighteen (18) years;

"not economically independent" means a person who is not able to financially support oneself without relying on the beneficiary;

"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, organised 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:

Provided that "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, retirement 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) an individual who has the right of permanent residence in accordance with article 6 and is in possession of a permanent residence certificate issued in accordance with article 7 of the Free Movement of

European Union Nationals and their Family Members Order; or

(b) an individual who applies for the right of permanent residence in accordance with 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 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:

(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 only the beneficiary and the persons qualifying as his dependants or household staff reside in the qualifying property, provided that the Commissioner has been duly notified of such dependants or household staff who shall so reside therein:

Provided further that persons who do not qualify as dependants in accordance with these rules but who are bound to live within the same matrimonial home may reside in the qualifying property together with the beneficiary, as long as the Commissioner has been notified that such financially independent persons shall so reside therein;

"qualifying owned property" means an immovable property purchased at a consideration of not less than seven hundred thousand euro (€700,000) for a property situated in Malta or Gozo:

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

Provided further that an immovable property purchased by a beneficiary before or up to the date of the coming into force of these rules for a consideration which is less than the amount indicated above shall be considered to be a "qualifying owned property", as may be determined by the Commissioner in guidelines published under the provisions of article 96(2) of the Act;

"qualifying rented property" means a property taken on at lease of not less than fourteen thousand euro (€14,000) per year for a property situated in Malta or Gozo;

"rights acquired under this law" means the right to pay tax at the rate of tax provided in article 56(23) of the Act and these rules;

"special carer" means an individual who has been in an employment relationship with the beneficiary, as evidenced by a contract of service, for at least two (2) years prior to the application in accordance with rule 3, provided that the Commissioner is satisfied that the service is required to be provided, whether in whole or in part, within the qualifying property;

"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;

"United Nations pension" means a pension paid out of the United Nations Joint Staff Pension Fund;

"Widows’ and, or Widowers’ Benefit" means the benefit payable to the surviving spouse of a participant who, at the date of death, was entitled to a retirement, early retirement, deferred retirement or disability benefit, or who died in service, provided that the surviving spouse was married to the participant at the date of death or, where separated prior to the death of the participant, was married to the participant at the date of separation and remained so married until the participant’s death.