S.L. 123.221 Art. 515% rate.

(1) In these rules and in article 56(23) of the Act, the rate of fifteen cents (0.15) for every euro shall apply to any income arising outside Malta, including income arising outside Malta and received in Malta during the whole of the year in which the special tax status was granted, in the year immediately preceding the year of assessment which is received in Malta by the beneficiary, the beneficiary’s spouse and children referred to in paragraphs (b) and (d) of the definition of the term "dependant" in rule 2, with the possibility to claim relief of double taxation in accordance with article 74(a) and

(b) of the Act:

Provided that the minimum amount of tax payable in terms of these rules and article 56(23) of the Act, in respect of the income arising outside Malta of the persons who have been granted special tax status in terms of rule 3(1)(a) and (b) shall be thirty-five thousand euro (€35,000) for any year of assessment. Such minimum amount is payable in full in both the year when the special tax status was granted and in the year when the individual ceases to possess the said special tax status:

Provided further that the minimum amount of tax payable in terms of these rules and article 56(23) of the Act in respect of any year of assessment by persons who have been granted special tax status in accordance with rule 3(1)(c) shall be fifteen thousand euro (€15,000) per year of assessment. Such minimum amounts are payable in full in both the year when the special tax status was granted and in the year when the individual ceases to possess the said special tax status.

(2) In the case of a beneficiary who has been granted special tax status in accordance with rule 3(1)(d), such beneficiary’s United Nations pension income or Widows’ and, or Widowers’ Benefit, as the case may be, received in Malta following the granting of the special tax status, shall be exempt from income tax. Tax shall be charged at the rate of fifteen cents (0.15) for every euro on any income, excluding the United Nations pension or Widows’ and, or Widowers’ Benefit arising outside Malta in the year immediately preceding the year of assessment in which it is received in Malta by the beneficiary, the beneficiary’s spouse and children referred to in paragraphs (b) and (d) of the definition of the term "dependant" in rule 2, following the granting of the special tax status, with the possibility to claim relief of double taxation under article 74(a) and (b) of the Act:

Provided that the minimum amount of tax payable in accordance with these rules and article 56(23) of the Act in respect of the income arising outside Malta, excluding United Nations pension income or Widows’ and, or Widowers’ Benefit of the persons referred to in this sub-rule shall be twenty thousand euro (€20,000) in respect of the beneficiary.

(3) Income of a beneficiary, the beneficiary’s spouse and children referred to in paragraphs (b) and (d) of the definition of the term "dependant" in rule 2 that is not chargeable to tax under these rules at the rate referred to in sub-rule (1) shall be charged as separate income at the rate of thirty-five cents (0.35) for every euro.

(4) Notwithstanding any provision of the Act:

(a) subject to the provisions of paragraph (b), the minimum tax referred to in the provisos to sub-rule (1) shall be payable by not later than the 30th April of the year immediately preceding the relevant year of assessment. Such payment shall be accompanied by a return submitted to the Commissioner that provides proof that all the requirements of rule 4 continue to be satisfied. The said return, which shall be in such form as the Commissioner may determine, does not need to be submitted in the year in which the special tax status is granted;

(b) in the case of the year in which the special tax status is granted, where it is evident that the special tax status shall not be granted before the 30th April, the minimum tax referred to in the provisos to sub-rule (1) is to be paid before the special tax status is granted;

(c) any tax paid in accordance with the provisions of sub-rule (1) shall not be refundable.

(5) (a) Notwithstanding any provision in the Act, an individual who falls under the definition of "long-term resident" or "permanent resident of Malta" as defined in rule 2 shall be taxable on any income accruing in or derived from Malta or otherwise, and whether received in Malta or otherwise in respect of income mentioned in article 4 of the Act and subject to tax at the rates mentioned in article 56 of the Act.

(b) In the case where the individual referred to in paragraph

(a) is a beneficiary or dependant, the relevant authorised registered mandatary shall:

(i) enquire and obtain information from the relevant beneficiary as to whether such beneficiary or any of his dependants falls under the said definition of "long-term resident" or "permanent resident of Malta" as at the 31st December of each year from the year of the appointed date onwards; and

(ii) notify the Commissioner of any individual that is a beneficiary or dependant that falls under the said definition of "long-term resident" or "permanent resident of Malta" by not later than the 30th April following the 31st December referred to in sub-paragraph (i) on such form as the Commissioner may determine. Where the authorised registered mandatary shall not be able to obtain such information, he is to notify the Commissioner by the said 30th April of this state of affairs and provide proof that at least two (2) attempts at enquiry were made. Where such notifications shall not be made within the time specified, the authorised registered mandatary shall be charged an administrative penalty of ten thousand euro (€10,000).