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Financial statements audits
Financial statements audits
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Financial statement reviews
Financial statement reviews
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Financial statements compilations
Financial statements compilations
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IFRS
IFRS
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Audit quality monitoring
Audit quality monitoring
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Global audit technology
Global audit technology
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Systems and risk assurance
Systems and risk assurance
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General business consulting
General business consulting
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Market research
Market research
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Sustainability
Sustainability is indeed a broad concept. Aside from mitigating the environmental changes caused by the interaction of the industrial world and society with nature, social and governance matters are subjected to increased public and government scrutiny, calling for the promotion of a sustainable performance agenda.
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Business planning and performance improvement
Business planning and performance improvement
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Change and program management
Change and program management
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Business intelligence and analytics
Business intelligence and analytics
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Business valuation and litigation support
Business valuation and litigation support
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Business process outsourcing and consulting
Business process outsourcing and consulting
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Family business consulting
Our business solutions for family businesses center on alignment of all aspects of the family and business, including culture, vision, mission, values, governance, ownership, leadership, communication and policy development.
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Quantitative small caps
Grant Thornton has a wide professional network with a vast array of technical skills that is coupled with a drive to understand the business problem; we can set up the most efficient financial risk management structure that fits your underlying business structure and your risk appetite.
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Data analytics
Data analytics is the process through which businesses leverage data to gain actionable insights and enhance their performance. This is based on a solid foundation of well-organised and accurate data. Many businesses have a large amount of data at their disposal however, most of them do not have the expertise to analyse the available data.
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Bookkeeping & financial accounting
Bookkeeping & financial accounting
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Payroll and personnel administration
Payroll and personnel administration
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Direct and Indirect tax compliance
Tax compliance within outsourcing
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Compilation of financial statements
Compilation of financial statements
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Business process outsourcing
Business process outsourcing including back office and secretarial
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Family business consulting
Family business consulting
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Startups
Startups
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Company formation
Company formation
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BOR
Entities in Malta, including companies, partnerships, foundations, trusts and associations, have an obligation to disclose the ultimate beneficial owner/s (physical person) of the entities. A beneficial owner is defined as the individual (s) who ultimately owns or controls a legal entity or arrangement through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that entity.
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Internal audit
Internal audit
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Risk management and internal controls consulting
Risk management and internal controls consulting
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Governance and risk management
Governance and risk management
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Regulatory services
Regulatory services
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Risk modelling services
Risk modelling services
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Forensic and investigation
Forensic and investigation
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Compliance audit
A compliance audit is a detailed review which focuses on whether an organisation is in conformity with statutory laws as well as internal rules and decisions. This type of audit also assesses the effectiveness of an organization’s internal controls by identifying weaknesses in compliance processes whilst finding measures to enhance such processes.
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Citizenship by naturalisation
The Maltese Citizenship Act (Cap 188) establishes who may become a citizen of Malta by naturalisation, provided that the applicant satisfies the relative provisions.
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Citizenship for Exceptional Services by Direct Investment
With the continuously changing global dynamics and evolving geopolitics, there is an ever-growing number of highly-talented high-net-worth individuals who are willing to invest and relocate to give themselves and their family members the chance to broaden their horizons and become part of a welcoming community.
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Grant of Citizenship for Exceptional Services
Malta has enacted legislation which extends to individuals providing excellent or manifestly superior contributions in the fields of science, research, sports, arts and culture as well as people of exceptional interest to the Republic of Malta, the right to become Maltese citizens.
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Acquisition of citizenship by registration
The Maltese Citizenship Act (Cap 188) establishes who can register as a citizens of Malta. The Act was amended on 1st August 2007, this making it possible for second and subsequent generations born abroad to acquire Maltese citizenship by registration.
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Maltese Family Businesses Resource Centre
For over 30 years Grant Thornton’s advisory teams have assisted family businesses in navigating the challenges of leadership and succession across generations
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Grooming
Preparing the next generation for leadership and ownership is an integral part of any succession process. Grant Thornton can help formulate the necessary grooming plan for all the potential successors.
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Tax services
Using a combination of reason and instinct, we can work with clients to develop a strategy that helps them understand and manage their tax liability in a transparent and ethical way.
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Governance
Having a proper governance structure is essential to ensure that the family and business strategies are achieved. Grant Thornton can advise on this, and facilitate the implementation of the ideal governance structure based on the exact scenario.
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Ownership succession
Letting go of your family business is difficult for all owners and even more so for founders; however, in a family business the additional challenge presented by the family component increases the complexity of this process. Our team of family business advisors will ensure that such ownership issues are dealt with in an effective and structured approach.
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Exit strategies
There are many 'exit strategies' that need to be considered to minimise the risk of conflict. They can arise from the eventual exit of a family member from the ownership ranks and can have many causes. See how we can help.
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Management succession
By implementing our family business guidelines to family succession and a proper governance structure, the management succession process can be completed with minimal conflict and will result in the most competent successor being chosen.
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DORA Consultancy
Firms within the financial sector face a critical imperative to fortify their operational resilience in the digital sphere. Get ahead & prepare for DORA!
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Cyber security Consultancy
Whether you are a multinational corporation, a small business, or an individual, the digital realm holds equal importance for us all.
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Digital Transformation
Build a solid foundation to fuel business reinvention and gain the flexibility you need to succeed through digital transformation.
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IT Audit and Assurance
Information systems procedures have evolved drastically, but so have hacking techniques. Assess your IT resilience & protect your firm!
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Fintech and Innovation
Are you ready to explore the fintech space? Grant Thornton is able to guide you from start to finish.
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Case Studies
Digital transformation has transitioned from being an option to a necessity. The race is on... The question is, are you ready?
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Operational and financial restructuring and reorganisation
Operational and financial restructuring and reorganisation
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Recovery
Recovery
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Financial regulatory services
Financial regulatory services
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GDPR consultancy
The General Data Protection Regulations (GDPR) have transformed the way we handle personal data. This regulation is a game-changer for businesses operating within the EU, or the handling of EU citizens' data worldwide.
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Ship and aircraft registration
Ship and aircraft registration
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Medical cannabis licensing in Malta
A study published in 2018 by market intelligence and strategic consultancy firm Prohibition Partners, has forecasted that the European cannabis market will be valued €115.7 billion by 2028. According to the same study, while patient numbers are currently below 100,000 across the region, their number is set to grow to over 30 million in the next decade. In 2018 Malta introduced a bill to legalise the use of medical marijuana and attract companies willing to produce high-grade medical cannabis for the European market.
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Trust and trustee services
As an entrepreneur, business owner, parent or guardian, you will want to ensure that whatever happens in the future, the rewards from your hard work can be protected as efficiently as possible. Grant Thornton Fiduciaire Limited (Grant Thornton) understands this and provides a professional and holistic trust management service.
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Family trusts
The law establishes the requirement of a license for one to be able to act as a trustee subject to certain limited exceptions. One such exception is found in the Rules for Trustees of Family Trusts which provide for an exception to this rule where a trust is set up to hold property settled by a settlor or settlors for the present and future needs of family members or of family dependants who are clearly identifiable.
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Programmes
Grant Thornton is authorised and regulated by the Government of Malta to handle and submit applications for both citizenship applications as well as residence permits under the various residence programmes available in terms of Maltese law.
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Ordinary residency in Malta
Any EU, EEA or third country national who resides in Malta for more than 3 months is obliged to apply for a Residence Permit. There are various grounds upon which an applicant may apply to require a residence permit, including: Self-Sufficiency, Employment or Self-Employment, Family Members, Permanent Residence, Study Purposes.
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Qualifying Employment in Aviation Rule
Malta provides qualified persons employed in the field of aviation with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta. For a candidate to qualify, their annual income must exceed €45,000. This does not include the value of fringe benefits and applies to the derived income received from an eligible office.
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Qualifying Employment in Innovation and Creativity (Personal Tax) (Amendment) Rules, 2019
These Rules allows persons employed in a role directly engaged in carrying out, or management of research, development, design, analytical or innovation activities, to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Qualifying Employment in Maritime and Offshore Oil & Gas Industry Rule
Malta provides qualified persons employed in the field of aviation, with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Nomad Residence Permit
The NOMAD residence permit, which was launched in June 2021, allows third-country nationals who would normally require a Visa to travel to Malta, to retain their current employment based in another country whilst legally residing on the island.
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Direct international tax
Direct international tax
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Indirect international tax
Indirect international tax
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Global mobility services
Global mobility services
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Transfer pricing
Transfer pricing
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Estate planning
Estate planning
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Wealth advisory
Wealth advisory
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Regulatory and legal
Regulatory and legal
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Corporate tax services
Corporate services
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VAT
At its simplest, VAT is a tax on consumption and is a multi-stage tax (ie applied at every stage of the production process), which is applied to both goods (ie tangible property) and services. Additionally, although the tax is ultimately borne by the consumer (by getting included in the price paid), responsibility for charging, collecting and passing the tax on to the tax authorities, rests with the supplier.
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2018 Amendments of the Income Tax Act
The following is a brief overview of the new tax provisions introduced in 2018 by the Budget Implementation Act (Act VII of 2018) and other legislative enactments
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Mergers and acquisitions
Mergers and acquisitions
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ESEF Reporting
Our ESEF reporting service is tailored to assist listed companies in complying with the European Single Electronic Format (ESEF) requirements. As of 2020, ESEF is mandated for annual financial reports of issuers with securities listed on regulated markets. We provide services for mapping the taxonomy and generating audit/regulator-ready xHTML reports.
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Prospects MTF
As of 2016, small and medium-sized enterprises in Malta can access the capital markets through Prospects - a market of the Malta Stock Exchange (MSE) designed specifically for Small and Medium sized Enterprises (SME). Prospects offers a cost-effective opportunity for entities looking to raise up to €5 million per issue.
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Project financing
Project financing
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Due diligence
Due diligence
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Valuations
Valuations
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Foreign direct investment
Foreign direct investment (FDI) is the category of international investment that echoes the objective of obtaining a lasting interest by an investor in one economy in an enterprise resident in another economy.
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Wholesale Securities Market
WSM is a joint venture between the Malta Stock Exchange and the Irish Stock Exchange, combining the best of each partner’s processes and technical skills.
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Aviation
The Maltese Government is constantly remaining to improve the position as the best place to do business within the aviation industry through exhaustive tax agreements, powerful legislation, and many aviation professionals. This is the best time for airlines, financiers and aircraft owners to be located in Malta.
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Maritime
For Maritime, Grant Thornton provide direction with regards to VAT guidelines for yacht leasing, as well as ship and aircraft registration.
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Automotive
We offer a broad range of services relating to automotive, ranging from Transaction advisory, access to finance, business advisory, process and inventory management, tax advisory, audit and advisory, outsourced support services.
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Gaming Regulations
Malta recently overhauled the framework regulating the iGaming sector. Going forward operators will still be required to obtain authorisation to carry out regulated activities.
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Licensing Process
Prior to submission all applicants are advised to go through a pre-application process with one of the MGA’s Licensing Officers. This will ensure that the application has been correctly compiled and all the key ingredients are present.
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Malta Real Estate Investment Trust (REIT)
As part of the 2019 budget, the government has pledged to introduce a Real Estate Investment Trust (REIT) framework in Malta.
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The Markets in Financial Instruments Directive (MiFID) II
MiFID II aims to protect investors and make sure that financial markets operate in the fairest and most transparent way possible. Building on stock and investment trading regulation introduced in 2007 it sets to ensure a more integrated financial market.
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Fintech and Innovation
At Grant Thornton we help innovative firms and entities operating in the fintech space launch new propositions and grow their business. We also help established businesses transform and take advantage of the fintech revolution.
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Asset Management
At Grant Thornton we help innovative firms and entities operating in the fintech space launch new propositions and grow their business. We also help established businesses transform and take advantage of the fintech revolution.
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Banking
Grant Thornton combines local insight with global scale to help banks meet regulatory expectations, improve technology, and finance the right companies. If you’re looking for a partner in the banking industry, our expertise can make a difference
Income tax
The following is a brief overview of the new tax provisions introduced in 2018 by the Budget Implementation Act (Act VII of 2018) and other legislative enactments.
Personal Tax
Married Rates
An unmarried individual, including a widow/er, and a separated or divorced individual may apply the married rates where:
- He/she maintains under his or her sole custody a child who was not over 18 years of age (previously 16) or not over 23 years of age (previously no age limit) if in full time education at any educational establishment or serving an apprenticeship; or
- Was incapactitated by infirmity from maintaining himself or herself;
Furthermore, the child was not in receipt of income of more than € 3,400 (previously € 2,400). These new rules apply as from year of assessment 2019.
No changes were made to the other conditions.
Maintenance payments
Maintenance payments paid by a parent to another parent in terms of a public deed regulating the obligations of the parents for the maintenance of that child will now be exempt from tax.
Exempt Pension Income
Where individuals avail of the single rate or parent rate, the maximum pension income exempt from tax is increased to € 13,200.
In the case of married couples in receipt of pension income and availing the married rate, maximum income exempt from tax is increased to € 13,200 as to pension income and € 1,000 as to other sources of income.
Corporate Income Tax
Insurance companies
As from year of assessment 2019, companies carrying on insurance business will be allowed to claim group loss relief.
Flat rate foreign tax credit (FRFTC) and Notional Interest Deduction (NID)
It is clarified that as from year of assessment 2018, the limitation applicable to NID is to be determined without the FRFTC gross up of income.
Participating Holdings
The qualification of a holding as a participating holding was set at a minimum 10% holding which is now reduced to 5%.
In addition, a holding in an EEIG that is not a property partnership and which has not elected to be treated as a company may also qualify as a participating holding provided the other conditions are satisfied. It also similarly applies to a partnership which is not a property partnership and has not elected to be treated as a company.
Investment Income Provisions
An important change was made to reporting by payors of investment income, such as banks, issuers of public bonds and collective investment schemes. Up to 2017, payors reported to the Commissioner investment income paid gross to persons resident in Malta.
As from 2018, payors will also be reporting, in respect of investment income paid net of withholding tax, the name of the account holder, address, income tax number, and the amount of investment income paid and tax deducted.
Payors have to submit their first report in respect of 2018 by not later than 31 January 2019.
A consequential amendment was made to the Income Tax Management Act with regard to the limitation of the power of the Commissioner to request information from banks, insurance companies, collective investment schemes, stockbrokers and persons holding an investment services licence to allow him to receive the said information.
This new reporting will provide the Commissioner with further armour to counter tax evasion.
15% tax on rents
Rents will now include ground rents received from urban or rural tenements. This provision applies retrospectively as from year of assessment 2017. We presume that taxpayers will be entitled to amend their last year's tax return.
Taxation of property transfers
A number of important changes have been introduced.
Definition of project
The term "project" does no longer include land acquired by the owner and divided into more than one transferable unit or divided for transfer into more than one transferable unit, and:
a. The land is transferred by the said owner in the same state as when acquired, that is no excavation or any other works whatsoever have been carried out on the property; and
b. A permit has not been issued by the Planning Authority during the period of ownership by the owner sanctioning the development of the land into more than one transferable unit.
On such transfers, the standard withholding tax regime will apply.
Principal residence exemption
Subject to satisfying the applicable conditions, the transfer of a personal residence is exempt from property transfer tax.
However, the tax exemption will not apply where the said principal residence forms part of a "project" (as defined).
Partitions
Certain partitions are now taxable even if no owelty is due.
Thus, where co-owners acquire property from a person and the said transfer was exempt from tax in terms of the principal residence exemption, tax will be chargeable upon the partition of the said property by the co-owners. The date of acquisition of the property by the co-owners, and therefore the applicable tax rate, is deemed to be the date of acquisition by the owner that made the tax exempt transfer to the co-owners. The value on which tax is chargeable is the market value of the said property.
This new rule does not apply to the partition of property which was inherited by the co-owners provided that no owelty is due on the division.
Deemed date of acquisition
Where a person transfers property acquired by means of a tax exempt donation from a relative, the date of acquisition of such property, and consequently the applicable withholding tax rate, is deemed to be the date of acquisition of the property by his relative (who made the tax exempt donation).
Similarly, where a person acquires property upon a tax exempt liquidation of a company, the deemed date of acquisition of the property by the said person is deemed to the date of the original acquisition of the property by the company.
These deeming provisions also apply where a person acquired property by way of a donation and transfers the said property within a period of 5 years of the donation. The deemed date of acquisition of the property is the date of acquisition by the donor.
Exemption on restructuring
It was provided that the transfer of property, not held as a capital asset, by one company to another, as part of a restructuring involving the transfer of the whole or part of a company's business to another company was exempt from tax provided that certain conditions were satisfied, including the condition that the property had been owned by the transferring company for a period exceeding twelve months.
The 12 month ownership period is now removed and the amendment is backdated to 1 January 2017.
Balancing Statement
Where initial and wear and tear deductions have been claimed by a taxpayer on property, such as hotels, industrial buildings and carparks, the said taxpayer is to draw up a balancing statement in the year in which the property is transferred, even if the source of income ceased to exist before the property was sold. Any balancing charge is chargeable to tax at the flat rate of 35% payable in accordance with the standard rules.
The balancing statement is to be submitted together with the tax return.
Payment deadlines
As from year of assessment 2019 (basis year 2018), the filing of Form TA24 and payment deadline for the special 15% tax on qualifying rental income is brought forward from 30th June to 30th April.
Similarly and from the same year of assessment, the filing of Form TA23 and payment deadline for tax due on part-time self-employment is also due by 30th April.
Changes to the Income Tax Management Act
Order of claiming tax credits
The Business Promotions Regulations set out the order of claiming of tax credits in terms of investment aid regulations.
This rule has now been removed backdated to year of assessment 2015 and the company is therefore entitled to determine the order in which these tax credits or part thereof may be claimed for set-off.
We presume that the taxpayer is entitled to submit tax adjustment forms in respect of tax returns filed in respect of previous years.
Official communications
The Commissioner is now authorised to serve official notices to a taxpayer be means of a verified email address. So watch your emails.
Tax deductible at source
An amendment to the Act clarifies that where a person fails to withhold tax as prescribed by law, or fails to remit the tax so deducted within the appropriate time limit, the said person will also be subject to the imposition of interest.
The privileged claim of a demand notice issued by the Commissioner in respect of these taxes over the assets of the employer is now extended, in the case of a body of persons, to the assets of a principal officer.
Note of privilege on judicial acts
The Commissioner is now also entitled to file a note of privilege for any amount demanded in a judicial act which note of privilege may be registered in the public registry or land registry by any advocate or notary.
Duty on Documents and Transfers Act
Transfers between spouses
The exemption from duty on transfers immovable property and marketable securities between spouses now applies to:
- Transfers between persons who are, or were formerly, married to each other, when the assets are assigned between them consequent to a consensual or judicial separation or to a divorce between them. For this purpose only, the term immovable property includes immovable property owned by a company which is fully owned by any or both persons;
- Transfers between persons who are, or were formerly married to each other, on the dissolution of the community of acquests between them;
- Transfers between persons married to each other, whether the community of acquests exists between them or otherwise, on any transfer inter vivos of the ordinary residence or part thereof, of any or both of the spouses;
- On the death of one spouse, on any partition of any property held in common between spouses, whether it is community property or otherwise, between the surviving spouse and the heirs of the deceased spouse.