S.L. 123.27 Art. 9Cost of acquisition of rights under a promise of sale or transfer or an emphyteutical grant.

(1) A transfer of any rights acquired under a promise of sale or transfer of immovable property or any rights over immovable property, including a promise of an emphyteutical grant, shall not be valid unless it is made by means of a written agreement signed by the transferor and the transferee and authenticated by a notary or an advocate and notice thereof is given to the Commissioner together with the relative payment in accordance with subrules (2) and (3).

(2) The notice referred to in subrule (1) shall be signed by the transferor and the transferee and authenticated by the notary or the advocate who authenticated the relative written agreement and shall be in the form set out in, and contain the information required by, Schedule B.

(3) The notice referred to in subrule (2) shall be delivered to the Commissioner (Capital Transfer Duty Department) in triplicate within twenty-one days of the relative written agreement and shall be accompanied by a payment of provisional tax equivalent to 7% of the consideration for the transfer.

(4) In computing the gains or profits on the transfer of any right to which this rule applies, the only deductions that shall be taken into account shall be in respect of:

(a) where the transferor had acquired that right from another person, the consideration, if any, which he had paid to that other person for that acquisition, to the extent that the consideration is supported by a receipt and results from an agreement that complies with this rule and in respect of which notice has been given and payment of provisional tax has been made as provided for in this rule: Provided that where the transferor had acquired that right under an agreement made before the date on which this rule came into force a deduction for the consideration paid for that acquisition shall be allowable if proof thereof is submitted to the satisfaction of the Commissioner;

(b) brokerage fees paid in respect of the said transfer, to the extent that they result from documentary evidence and supported by a receipt.

(5) This rule shall not apply to any transfer made on or after the 1 January 2020.