Amendments to Malta Tax Schemes
The Malta Retirement Programme (“MRP”), the Global Residence Programme (“GRP”), the Residence Programme (“TRP”) and the United Nations Pensions Programme ("UNPP") have been recently updated through the publication of LN 69 of 2020. Such updates are effective from 1 January 2020.
e Malta Retirement Programme
This programme has been extended also to individuals who are not EU or EEA nationals. In this regard, the definition of the term “beneficiary” has been extended accordingly.
The definition of “household staff” has also been updated. The term household staff is now defined an individual who is in an employment relationship, as evidenced by a contract of service, with the beneficiary and who satisfies such conditions. This means that the requirement that the household staff has to be in an employment relationship, with the beneficiary for at least two years prior to the application no longer applies.
The amended rules provide that, following the death of a beneficiary, the special tax status granted through these rules shall be granted to a dependent of that deceased beneficiary who has inherited the property that was the primary residence of such beneficiary, or who rents a qualifying rented property immediately after the death of the said beneficiary and satisfies all the other requirements set out in the Regulations. Such status shall only be transferred once the said dependent provides proof to the Commissioner that all the requirements of rules are satisfied in such manner as the Minister for Finance may determine further to consultation with the Commissioner.
The amended rules include a definition of the term “permanent resident of Malta”. The term is defined as:
(a) a person who has right of permanent residence in terms of article 6 and is in possession of a permanent residence certificate issued in terms of
article 7 of the Free Movement of European Union Nationals and their Family Members Order; or
(b) a person who applies for right of permanent residence in terms of article 6 of the Free Movement of European Union Nationals and their Family Members Order”.
An individual who falls under the definition "long-term resident" or "permanent resident of Malta" shall be taxable on any income accruing in or derived from Malta or elsewhere, and whether received in Malta or not at the standard progressive rates of taxation and hence the 15% flat rate of taxation cannot be applied.
For more details about the Malta Retirement Programme click here
The Global Residence Programme, The Residence Programme; and The United Nations Pensions Programme
The common update for all the above captioned programmes relates to transfer of the Status under the respective programme following the death of the beneficiary. Following such updated, such status shall only be transferred once the said dependent provides proof to the Commissioner that all the requirements of the Rules are satisfied in such manner as the Minister for Finance may determine further to consultation with the Commissioner.
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