Malta's 'Special Registration Scheme' Ends Today

by Robert Lee, Tax-News.com, London

31 July 2007

The Central Bank of Malta has issued a reminder to the public that the Special Registration Scheme, launched by the Ministry of Finance in April in preparation for the adoption of the euro as Malta’s national currency, will end on 31 July 2007.

The purpose of the scheme is to provide individuals residing in Malta with a one-time 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.

Full confidentiality is guaranteed as Registration Agents, as well as the Central Bank of Malta, are strictly prohibited by law from disclosing any information which is provided to them under the Scheme.

Holdings of eligible assets representing income that was duly declared for the purposes of the Income Tax Act should not be registered under the Scheme.

Registration is subject to a one-time fee of:

• 4% of the registered amount in the case of Maltese lira and euro currency notes;
• 6% of the registered amount in the case of deposits denominated in Maltese lira and/or euro held with local banks as at 16 April 2007;
• 6% of the registered amount in the case of securities denominated in Maltese lira and/or euro with a primary listing on the Malta Stock Exchange, held on 16 April 2007 (based on the market value prevailing on date of registration).

All currency notes registered under the Scheme (in Maltese lira and/or euro) must be duly deposited by the registration agent in a special deposit account fixed for a period of one year without interest with a local bank.

The special deposit account may be opened, at the discretion of the applicant, in the name of the beneficial owner or as a nominee account held in the name of the registration agent on behalf of his clients.

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