Legal Notices Q2 2018

L.N. 114 of 2018 – Tax Credit (Educational Qualifications) Rules, 2018 

Individuals obtaining educational qualifications recognised as being equivalent to a Level 7 or Level 8 qualification are entitled to claim a tax credit in accordance with the Rules set out in this Legal Notice.

The tax credit would be of an amount equivalent to the tax chargeable for the year of assessment in question on the income from whole-time employment. When the income from the whole-time employment exceeds €60,000, the tax credit for that year shall be calculated as if the income for the year was €60,000.

There are certain conditions that need to be adhered to for the tax credit to apply.

L.N. 120 of 2018 – Tax Credits Supporting the Refurbishment of Hotels and Restaurants Regulations, 2018

Through this Legal Notice, it was announced that Malta Enterprise will provide assistance to eligible hotels and restaurants if they opt to invest in refurbishing their establishments –  guidelines on this form of assistance will be issued by Malta Enterprise.

L.N. 128 of 2018 – Merchant Shipping (Taxation and Other Matters Relating to Shipping Organisations) Regulations, 2018

This Legal Notice brings into force the updated tonnage tax rules. Read more about this here.

L.N. 140 of 2018 – Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules, 2018

Similar to the Highly Qualified Persons Rules, these Rules allow individuals employed within the Maritime, Oil and Gas industries to qualify for a reduced tax rate of 15%.

A number of conditions must be met in order for individuals to benefit from this rate, including conditions on the position held and on the amount of income from the qualifying contract of employment. Such income, exclusive of the value of fringe benefits, must not be less than €65,000.

L.N. 141 of 2018 – Highly Qualified Persons (Amendment) Rules, 2018

The Highly Qualified Persons Rules entitle persons who hold eligible offices in a variety of sectors to benefit from a reduced rate of tax of 15% on their income, subject to satisfying the necessary conditions.

By way of this Legal Notice, persons employed in the Assisted Reproductive Technology sector may also benefit from the reduced rate of tax.

L.N. 142 of 2018 –Multilateral Convention (Implementing Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting) Order, 2018 

Malta ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), by way of this Legal Notice. Malta submitted its MLI position at the time of signature, listing its Reservations and Notifications and included 71 tax treaties that it wishes to be covered by the MLI.

L.N. 162 of 2018 – Value Added Tax (Registration as a Single Taxable Person) Regulations, 2018 

This legal notice introduces the concept of VAT Grouping which was announced in the last Budget. Read our article on this topic here.

L.N. 163 of 2018 – Value Added Tax Act (Amendment of Sixth Schedule) Regulations, 2018 

The threshold of exemptions from VAT for taxable persons whose economic activity principally consist in the supply of services with a high value added was extended to an annual turnover of €20,000. This represents a €6,000 increase from the current threshold. Furthermore, the annual turnover threshold to be eligible to shift from an article 10 to an article 11 VAT registration has also been increased from €12,000 to €17,000 as of 1 July 2018.

L.N. 182 of 2018 – Double Taxation Relief (Taxes on Income) (The Federal Democratic Republic of Ethiopia) Order, 2018 

L.N. 193 of 2018 – Double Taxation Relief (Taxes on Income) (The Republic of Botswana) Order, 2018

Through these two legal notices, Malta ratified the Double Tax Agreements with the Government of the Republic of Botswana and the Government of The Federal Democratic Republic of Ethiopia.

L.N. 209 of 2018 – Tax Credit (Construction Waste Recycling) Rules, 2018

Persons who hold a permit issued by the Environment and Resources Authority for the acceptance of material from third parties in a quarry may qualify for a tax credit of a maximum of 25% of the gross fees received for the provision of these services, if such fee does not exceed €5.50 per tonne.