Malta Extends Special Registration Scheme

by Robert Lee, Tax-News.com, London

01 August 2007

Malta's Ministry of Finance has decided to extend the operation of the Special Registration Scheme, citing strong indications that a substantial number of persons who showed interest in the Scheme did not manage to register by the original closing date.

The Central Bank of Malta announced on Monday that the original closing date for registrations under the scheme of 31 July 2007 will be extended by one month to 31 August.

The Scheme was launched by the Ministry of Finance in April in preparation for the adoption of the euro as Malta’s national currency. Its purpose is to provide individuals residing in Malta with an opportunity to regularise their position in respect of their holdings of eligible assets in those cases where the associated income has not been declared for the purposes of the Income Tax Act.

Eligible assets may be registered under the Scheme through Appointed Registration Agents. These include banks, stockbrokers and investment services licence holders, as well as foreign exchange bureaux and other licensed financial institutions. In response to requests from the public and financial intermediaries, it has been decided that registration of eligible assets may also be effected through the Central Bank of Malta.

Maltese lira and euro currency notes registered under the Scheme must be deposited in a special term deposit account for a period of one year without interest. Such registered currency notes may be deposited either with local banks or the Central Bank of Malta at the option of the applicant. This increased flexibility has also been introduced in response to requests from the public and financial intermediaries.

One-off fees of between 4% and 6% must be paid to the government for any assets registered under the scheme.

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