Malta Announces Once Off Investment Tax Amnesty

by Robert Lee, Tax-News.com, London

28 August 2003

The Maltese government has announced a one-off extension of an investment registration and tax amnesty that will allow residents to repatriate funds placed offshore in contravention of the Exchange Control Act.

The decision has been motivated in part by the apparent success of a previous scheme implemented by the government which resulted in the registration of some Lm291 million, with Lm55 million actually flowing back to Maltese shores.

The new scheme will be operational from September 1st to November 15th and is available through appointed registration agents and financial operators.

Under the programme, those who have invested overseas without the obligatory permits as laid down in the Exchange Control Act, including investors who have not paid the appropriate taxes under the Income Tax Act will have the opportunity to bring their financial and tax affairs in order without facing a penalty when they register any assets with a designated agent.

By doing this, the investor will expunge his tax liability from the assets in question though a registration fee equalling 5% of their market value will be levied.

Meanwhile, Parliamentary Secretary Tony Abela told reporters recently how the government is actively negotiating with the authorities of the major economic powers with a view to concluding a series of bilateral and multilateral exchange of information agreements concerning non-resident savings income.

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