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Chapter 372

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Din il-liġi tirregola l-ġbir tat-taxxa fuq l-income u tistabbilixxi l-proċeduri amministrattivi meħtieġa għal dan il-ġbir.

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Legal text

I N C O M E TAX M A N A G E M E NT CHAPTER 372 INCOME TAX MANAGEMENT ACT To regulate the collection of income tax and to provide the administrative machinery for such collection. 23rd September, 1994 ACT XVIII of 1994 as amended by Acts XXIII and XXIV of 1995, XX of 1996 , XVI of 1997 , V of 1998 , I and IX of 1999, VI and IX of 2001, II of 2002 , II of 2003 , II and XIII of 2004, II of 2005 , and II, IV and IX of 2007; Legal Notice 425 of 2007 ; Acts I of 2008 , II of 2009 and I of 2010 ; Legal Notices 336 and 390 of 2010; and Acts IV of 2011 , V of 2012, III of 2013 , XII, XXXVII of 2014, XIII and XXXIII of 2015, XV of 2016 , XVI of 2017 VII of

  1. , VII of 2019, VIII of 2020, VIII and XVIII of 2021, XII of 2023 and XIII of 2024 and IX and XXX of 2025 and Act III of
  2. ARRANGEMENT OF ACT PART I PART II PART III PART IV PART V PART VI PART VII PART VIII PART IX PART X Preliminary Administration Persons assessable Returns Assessments Appeals Collection Refunds Offences and penalties Power to make rules Articles 1-2 3-4 5-9 10-29 30-33 34-39 40-47 49-57 58-60 I N C OM E TAX M A NA G E M E N T PART I Preliminary Short title. Interpretation.
  3. The short title of this Act is Income Tax Management Act.
  4. In this Act, and in any rules made under this Act, words and expressions shall, unless the subject in context otherwise requires, have the same meaning and the same interpretation as the meanings and interpretations contained in article 2 of the Income Tax Act. PART II Administration Appointment of administrative authority. Amended by: V. 1998.2; IX. 2001.30; II. 2004.
  5. 3.

(1)The administration of this Act and of the Income Tax Act, (hereinafter collectively referred to as "the Income Tax Acts") is vested in the Commissioner who may, in writing and subject to such limitations as he may think fit, delegate to any person any of the rights, duties, powers and other functions vested, conferred or imposed upon him by the Income Tax Acts.
(2)The Commissioner may appoint any person who in his opinion has the necessary qualifications to assist him in determining the value of any movable or immovable property for any of the purposes of the Income Tax Acts and such person shall, during the term of his appointment, be deemed to be an officer employed in the administration of the Income Tax Acts and serving in the Commissioner’s department. Official secrecy. Amended by: XXIV.1995.362; XVI. 1997.8; V. 1998.3; II. 2003.41; IV. 2007.24. L.N. 336 of 2010; XII. 2014.60; XIII. 2015.120; VIII.2021.8; IX.2025.46. 4.
(1)Except as may be necessary for the purposes of the Income Tax Acts, or where the Commissioner otherwise directs, every person having any official duty or being employed in the administration of the Income Tax Acts shall regard and deal with all documents, information, returns and assessments relating to the Income Tax Acts, or copies thereof, as secret and confidential and shall make and subscribe before the Court of Appeal a declaration on oath to that effect in the form prescribed.
(2)No person appointed under or employed in carrying out the provisions of the Income Tax Acts shall be required to produce any return, document or assessment or to divulge or communicate any matter or thing coming under his notice in the performance of his duties under the Income Tax Acts except as may be necessary for the purpose of carrying into effect the provisions of the Income Tax Acts, or in the course of any judicial or quasi-judicial proceedings when ordered to disclose information by a court or tribunal or for the purpose, or in the course, of an investigation or a prosecution for any offence committed against any of the provisions of the Income Tax Acts, or in the course of an investigation or a prosecution for any relevant offence. (2A) For the purposes of this article, "relevant offence" means a criminal offence, not being one of an involuntary nature, consisting of any act or omission which if committed in Malta, or in corresponding circumstances, would constitute an offence liable to the punishment of imprisonment or of detention for a term of one
(1)year or more. I N C O M E TAX M A N A G E M E NT
(3)Nothing contained in this article shall prejudice the international obligations that the Commissioner or any person referred to in sub-article
(2)may have, including confidentiality obligations under arrangements made under article 76 of the Income Tax Act and regulations implementing EU Directives under article 52B of the Income Tax Act and shall not prevent the disclosure to any authorised representative of any other Government of such information as is required to be disclosed in terms of (
  1. a)any arrangement made under article 76 of the Income Tax Act including the disclosure of such facts as may be necessary to enable proper relief to be given in Malta or elsewhere under any such arrangement or under article 89 of the Income Tax Act; (
  2. b)any other arrangement between Malta and other States or their tax authorities providing for the reciprocal exchange of information for tax purposes.
(4)(Deleted by Act XIII. 2015.120).
(5)(
  1. a)The Commissioner shall submit to the Speaker of the House of Representatives a certified statement s h ow i n g t h e d e t a il s o f i nc o m e d e c la r e d by e a c h Member of the House for the purpose of the Income Tax Acts from the year of assessment in which such Member first became a Member of the House and for every subsequent year of assessment up to and including the year of assessment following the year in which such Member ceases to be a Member of the House: Provided that if a Member having ceased to be a Member of the House as aforesaid again becomes a Member of the House, the Commissioner shall also submit to the Speaker the details of the income in respect of the period covering the years when such member ceased to be a Member until he again becomes a Member of the House. (
  2. b)The Speaker of the House of Representatives shall, upon a request in writing by any Member of the House or by the editor responsible for any newspaper registered under the Media and Defamation Act, furnish such Member or editor with the details of income in respect of any year of assessment declared by any Member of the House for the purposes of the Income Tax Acts, provided that the details of income so requested have been made available to the Speaker under the provisions of paragraph (
  3. a)and that prior to giving such information the Speaker shall notify such Member whose details of income are being requested, with a copy of such request and of the reply being given.
(6)Notwithstanding anything contained in this article, the Commissioner may permit the Auditor General of the Government I N C OM E TAX M A NA G E M E N T or any other officer duly authorised in that behalf by the Auditor General to have such access to any records or documents as may be necessary for the performance of his official duties. The Auditor General or any such officer shall be deemed to be a person employed in the administration of this Act for the purpose of this article.
(7)Notwithstanding anything contained in this article, the Commissioner may make use of the documents, information and returns relating to the income or items of income of any person for the purpose of the Duty on Documents and Transfers Act, and may produce or cause to be produced in court in any proceedings relating to duties levied or leviable, and for the collection of any penalty inflicted under such Act, a copy of any particulars contained in any document of return as aforesaid, certified by him or b y the chairma n of the Ad m i ni s tr a t i ve R e vi e w Tri b un a l constituted under article 34 or by the Registrar of Courts, as the case may be, to be a correct copy of such particulars: Provided that the Commissioner may produce or cause to be produced the original of any such document or return in any case where it is necessary to prove the handwriting or the signature or the identity of the person who wrote, made, signed or furnished such document or return, but only for the purpose of such proof.
(8)Nothing in this article shall prevent the delivery of documents by the Commissioner in accordance with article 57.
(9)Deleted by Act VIII.2021.
  1. PART III Persons Assessable Chargeability of agent or person residing out of Malta. Amended by: XIII. 2004.86; IV. 2011.55; VIII.2020.
  2. 5.
(1)Further to the provisions contained in Part IX of the Income Tax Act, a person not resident in Malta (hereinafter in this Act referred to as "a non-resident person") shall be assessable and chargeable in the name of his trustee, guardian, tutor, curator or committee, or of any attorney, factor, agent, receiver, branch or manager, whether such attorney, factor, agent, receiver, branch or manager has the receipt of the income or not, in like manner and to the like amount as such non-resident person would be assessed and charged to tax in Malta as if he were in the actual receipt of such income. A non-resident person shall be assessable and chargeable in respect of any income arising, whether directly or indirectly, through or from any attorneyship, factorship, agency, receivership, branch or management, and shall be so assessable and chargeable in the name of the attorney, factor, agent, receiver, branch or manager.
(2)Where the registered holder of a share holds such share for the benefit of another person, the Commissioner shall be entitled to treat such registered holder as beneficially entitled to such share except as provided in sub-article
(3). I N C O M E TAX M A N A G E M E NT
(3)Where the registered holder of a share had been licensed under article 51A of the Malta Financial Services Authority Act and until such time that he is so licensed or is authorised or otherwise permitted to act as a trustee under article 43 or 43A of the Trusts and Trustees Act, a central securities depository authorised under article 24 of the Financial Markets Act or is licensed under the Investment Services Act, to carry out activities within paragraph 4 of the First Schedule to that Act and provides the Commissioner with a certificate in writing that he holds the share for the benefit of a person or persons all of whom are not resident in Malta within the meaning of the Income Tax Acts, the Commissioner shall not treat the registered holder of the share as beneficially entitled to it: Provided that this sub-article shall only apply where the certificate referred to herein includes the names and taxpayer identification numbers of the person or persons for the benefit of which the share is held and of their ultimate beneficial owners, and any other details as the Commissioner may require.
(4)A person referred to in sub-article
(3)who issues a false certificate to the Commissioner shall be guilty of making a false statement within the meaning of article 52
(1)(b).
(5)The master of any ship owned or chartered by a nonresident person who is chargeable under article 28 of the Income Tax Act shall (though not to the exclusion of any other agent) be deemed the agent of such non-resident person for all the purposes of the Income Tax Acts.
(6)Where a non-resident person carried on business with a resident person, and it appears to the Commissioner that, owing to the close connection between the resident person and the nonresident person and to the substantial control exercised by the nonresident person over the resident person, the course of business between those persons can be so arranged and is so arranged that the business done by the resident person in pursuance of his connection with the non-resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from the business, the non-resident person shall be assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the nonresident person.
(7)Where it appears to the Commissioner that the true amount of the gains or profits of any non-resident person chargeable to tax in the name of a resident person cannot in any individual case be readily ascertained, the Commissioner may, if he thinks fit, assess and charge the non-resident person on a fair and reasonable percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid and in such case the provisions of the Income Tax Acts as to the delivery of returns or particulars by persons acting on behalf of others shall extend so as to require returns or particulars to be furnished by the resident person of the business so done by the non-resident person through or with the resident person, in the same manner as returns or particulars are to be delivered by persons acting for incapacitated or non-resident I N C OM E TAX M A NA G E M E N T persons in respect of income to be charged: Provided that the amount of the percentage shall in each case be determined having regard to the nature of the business and shall, when determined by the Commissioner, be subject to an appeal as provided by articles 35 and 37.
(8)Nothing in this article shall render a non-resident person chargeable in the name of a broker or general commission agent or other agent where such broker, general commission agent or agent is not an authorised person carrying on the regular agency of the non-resident person, or a person chargeable as if he were an agent in pursuance of sub-articles
(5),
(6)and
(7), in respect of gains or profits arising from sales or transactions carried out through such a broker or agent.
(9)The fact that a non-resident person executes sales or carries out transactions with other non-residents in circumstances which would make him chargeable in pursuance of sub-articles
(5)and
(6)in the name of a resident person shall not of itself make him chargeable in respect of gains or profits arising from those sales or transactions.
(10)Where a non-resident person is chargeable to tax in the name of any attorney, factor, agent, receiver, branch or manager in respect of any gains or profits arising from the sale of goods or produce manufactured or produced out of Malta by the non-resident person, the person in whose name the non-resident person is so chargeable may, if he thinks fit, apply to the Commissioner to have the assessment to tax in respect of those gains or profits made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and, on the proof to the satisfaction of the Commissioner of the amount of the profits on the basis aforesaid, the assessment shall be made or amended accordingly.
(11)A non-resident person shall not, by virtue of this article, be assessable or chargeable to tax in the name of an agent or other representative in respect of gains or profits arising to the nonresident person resulting from the provision in Malta by the agent or such other representative of any of the services listed in the First Schedule to the Investment Services Act, provided that: (
  1. a)the investment services concerned are carried out in the ordinary course of such business; and (
  2. b)the remuneration which the agent or other representative receives for the provision of investment services to the non-resident person is at a rate which is not less than that which is customary for that class of business, and in the case of an agent or other representative who provides investment services as part only of a business, the provisions of paragraphs (
  3. a)and (
  4. b)shall apply as if that part were a separate business. I N C O M E TAX M A N A G E M E NT
(12)For the purposes of sub-article
(11)an agent or other representative shall be deemed to have carried out an investment service on behalf of his principal whether he undertakes the transaction himself or gives instructions to another person.
(13)The activities of the agent or other representative shall not affect the residence of the non-resident person for tax purposes. 6. The person in whose name a non-resident person is chargeable, shall be answerable for all matters required to be done by virtue of the Income Tax Acts for the assessment of the income of any person for whom he acts and for paying the tax chargeable thereon. Acts to be done by trustees, etc. 7.
(1)The manager or other principal officer of every body of persons shall be answerable for doing all such acts, matters and things as are required to be done by virtue of the Income Tax Acts for the assessment of such body and payment of the tax. Manager of corporate bodies of persons. Amended by: V. 2012.44.
(2)Every such principal officer shall pay the tax out of the property of the body of persons. He shall, however, be liable for payment personally, and jointly and severally with any other person responsible therefor, if at any time after 1st January, 1979 he had in his possession or control any property belonging to the body of persons which could have been used to pay the tax then due.
(3)The liquidator of a company which is being wound up shall not distribute any of the assets of the company to its shareholders unless he had made provision, in so far as he is able to do so out of the assets of the company, for the payment in full of any tax which he knows of or might reasonably expect to be payable by the company under the Income Tax Acts and in default, such liquidator shall be liable personally, and jointly and severally with any other person responsible therefor, for payment of the tax due: Provided that this sub-article shall not apply to an official receiver, or any other person, appointed in accordance with the provisions of article 225 of the Companies Act. 8. Every person who in whatever capacity is in receipt of any money or value being income arising from any of the sources mentioned in the Income Tax Acts or belonging to any person who is chargeable in respect thereof, or who would be so chargeable if he were resident in Malta and not an incapacitated person, shall whenever required to do so by any notice from the Commissioner, prepare and deliver within the period mentioned in such notice a list signed by him containing - Lists to be prepared by representative or agent. (
  1. a)a true and correct statement of such income; and (
  2. b)the name and address of every person to whom the same shall belong, and the provisions of the Income Tax Acts with respect to the failure to deliver lists or particulars in accordance with a notice from the Commissioner shall apply to any such lists. 9. Every person answerable under the Income Tax Acts for the payment of tax on behalf of another person may retain out of Indemnification of representative. I N C OM E TAX M A NA G E M E N T any money coming to his hands on behalf of such other person so much thereof as shall be sufficient to pay such tax, and shall be and is hereby indemnified against any person whatsoever for all payments made by him in pursuance and in virtue of the Income Tax Acts. PART IV Returns Return of income. Substituted by: IX. 1999.2. Amended by: IV. 2011.56; VII.2018.54; VII.2019.46. 10.
(1)The Commissioner may, by notice in writing, require any person to furnish him by not later than such date as may be prescribed with a return of income together with and containing such particulars, statements, accounts, computations or other documents as may be necessary to enable such person’s income and allowable deductions and the tax payable by or repayable to that person to be readily ascertained in accordance with and for the purposes of the Income Tax Acts.
(2)The Commissioner may, by means of the notice referred to in sub-article
(1), require any person to include in his return of income for the year of assessment 1999 and any subsequent year of assessment a self-assessment, that is to say, a com putation showing: (
  1. a)the chargeable income of that person for the year of assessment on the basis of the information contained in the return of income; (
  2. b)the tax chargeable thereon; and (
  3. c)the tax payable by or repayable to that person for the year of assessment, being the difference between the tax computed under paragraph (
  4. b)and the aggregate of the amounts referred to in the following subparagraphs, disregarding any credit, relief or tax paid, withheld, payable or repayable for any other year of assessment: (
  5. i)any provisional tax paid and any tax deducted at source that falls to be set off or that is available as a credit in accordance with the provisions of the Income Tax Acts against the tax computed under paragraph (b); (
  6. ii)any tax credit or relief claimed and due in accordance with the provisions of Part X of the Income Tax Act relating to the chargeable income computed under paragraph (a); (iii) any tax credit or relief claimed and due in accordance with the provisions of any other law and relating to the chargeable income computed under paragraph (a): I N C O M E TAX M A N A G E M E NT (
  7. iv)Provided that notwithstanding anything in any enactment, with effect from year of assessment 2010 no account shall be taken of any requirement imposed on any company in terms of the Business Promotion Regulations to set-off any particular tax credits or any balance thereof granted in terms of the Business Promotion Regulations after the application of any other tax credits available to that company in terms of the Business Promotion Act and the Business Promotion Regulations, such that the company shall be entitled to determine the order in which such tax credits or part thereof shall be claimed for set-off against its income; and any other amount paid on account of the tax chargeable for the year of assessment as computed under paragraph (b). S.L.325.06
(3)A self-assessment shall not be construed as being an assessment for any purpose of the Income Tax Acts and any reference in the said Acts to an assessment shall not be construed as or as including a reference to a self-assessment.
(4)If a person required to file a return of income under this article is a company registered in Malta it shall furnish together with the return the documents specified in article 19
(4).
(5)No return purporting to have been filed in accordance with the provisions of this article shall be considered to have been so filed unless it is complete in all material respects, including a selfassessment when required by the notice referred to in sub-article
(1), and unless it is accompanied by such documents as are required under the other provisions of this article. 10A.
(1)The Commissioner may, when and as often as he deems necessary, give notice in writing to any person to furnish him, within a reasonable time stated in such notice, not being less than twenty
(20)days, such information as may be necessary in order to provide information, including documents, to foreign tax authorities where arrangements between Malta and the respective State or its tax authorities exist for the reciprocal exchange of information for tax purposes.
(2)The provisions of this article shall apply even if the Commissioner could not collect the relevant information for the purposes of the Income Tax Acts. The provisions of this article shall have effect in respect of any person, entity or scheme, including a person entity or scheme referred to in article 17, notwithstanding any obligation to secrecy or confidentiality, or to any other restriction relating to the disclosure of information.
(3)For the purposes of this article, "tax" means any tax to which an arrangement as referred to in sub-article
(1)applies.
(4)The powers of the Commissioner to require a person to provide information under this article include the power: (
  1. a)to require any person to complete and deliver to the Commissioner may request information. Added by: II. 2003.42. Amended by: II. 2005.31. Substituted by: I. 2008.2. Amended by: XXXIII. 2015.108; XVIII.2021.44. I N C O M E TA X M A N A G E M E N T Commissioner any return specified in that notice; (
  2. b)to summon any person who, he has reason to believe, is able to give information required for the purposes of this article, to attend before him and to examine such person on oath or otherwise; (
  3. c)to require any person to produce for examination any books, documents, accounts (including bank statements, passbooks and other bank documents) and any other document which the Commissioner may require or a copy or extract thereof; (
  4. d)to require any person to give information by means of written statements; (
  5. e)to require any person to authenticate in such form as the Commissioner may consider appropriate or as may be prescribed any document prepared by that person or an extract thereof or the copy of any document held by that person or of an extract thereof; (
  6. f)Rules for the collection and maintenance of information. to require any person to confirm on oath any declaration made by him or any document prepared by him; (
  7. g)to require any person to provide information, documents or written statements in such other form as the Minister may prescribe.
(5)The Minister may make rules for the collection and maintenance of information, even where arrangements between Malta and other relevant jurisdictions, or their tax authorities, for the purposes of exchange of information for tax purposes, are not in force: Provided that the person that is obliged to collect and maintain such information according to such rules shall not be obliged to provide such information to the Commissioner before an arrangement between Malta and the other relevant jurisdiction, or its tax authorities, for the purposes of exchange of information for tax purposes, enters into force. Where notice is not received. Substituted by: IX. 1999.2. 11. Where any person chargeable with tax has not received the notice mentioned in article 10
(1)in respect of any year of assessment for which he is so chargeable by such date as may be prescribed for the purpose of this article, the provisions of the said article 10 shall apply to him as if he has been duly served with a notice under sub-article
(1)of that article and, with respect of the year of assessment 1999 and any subsequent year of assessment, with a notice under sub-article
(2)of that article, and it shall accordingly be the duty of that person to furnish a return of income under that article including, when applicable, a self assessment for that year and to comply with all the other provisions of the said article. I N C O M E TAX M A N A G E M E NT 12.
(1)Notwithstanding the provisions of articles 10 and 11, but without prejudice to the other provisions of this Part, a person to whom this article applies shall not be required to furnish a return of income for a year of assessment if he makes an election for that year under and in accordance with this article.
(2)Election not to furnish return. Substituted by: IX.1999.2. Amended by: VIII.2020.56*. This article applies to: (
  1. a)an individual resident in Malta whose total income for the year of assessment (
  2. i)does not include any income falling under article 4
(1)(
  1. a)of the Income Tax Act; and (
  2. ii)does not exceed the amount to which a nil rate of tax applies in terms of the relevant provisions of article 56
(1)of the Income Tax Act; (
  1. b)an individual resident in Malta whose total income for the year of assessment consists solely of income that was subject to deduction at source, including income subject to a nil rate of deduction, in terms of regulations made for the purposes of article 23 and fully reported in a statement or statements of earnings prepared in accordance with the said regulations and held in his possession; (
  2. c)a person who is designated as a person to whom this article applies by regulations that may be prescribed under this article.
(3)(a) When a person has an option in terms of any provision of the Income Tax Act to disclose or not disclose income, that income shall not be taken into account for the purposes of sub-article
(2), and if that person makes an election under this article he shall be deemed for the purposes of the Income Tax Acts to have opted not to disclose that income and such income shall accordingly not form part of his total income. (
  1. b)When a person makes an election under this article, the income that he would have been required to disclose were it not for the provisions of this article shall be taken into account in determining his total income for any purpose of the Income Tax Acts. (
  2. c)When a person makes an election under this article and he is also eligible to make an election for a separate computation under article 50 of the Income Tax Act, that person shall be deemed to have taken the more advantageous option under that article according to his particular circumstances. (
  3. d)† With respect to a married individual living with his spouse, other than an individual in respect of whom an election for a separate return for the purposes of article 49A of the Income Tax Act is effective references in *Applicable as from year of assessment 2021. †Applicable as from year of assessment 2021. I N C O M E TA X M A N A G E M E N T this article to an individual shall be construed as references to the responsible spouse and references to the income or the chargeable income of an individual shall be construed as references to the income or the chargeable income of both spouses.
(4)(
  1. a)An election under this article shall be made by the delivery to the Commissioner of a signed declaration confirming the person’s eligibility to make the election in terms of this article and complying with the other provisions of this sub-article. (
  2. b)An election shall not be deemed to have been made under this article unless: (
  3. i)it is made by a person to whom this article applies; (
  4. ii)it is made on the prescribed form and contains such particulars and is accompanied by such documents as may be required by that form; and (iii) it is delivered to the Commissioner by not later than such date as may be prescribed. No obligation to furnish return of income. Added by: IV. 2007.25. 12A.
(1)Notwithstanding the provisions of articles 10, 11 and 12, but without prejudice to the other provisions of this Part, a p er so n s h a l l n o t b e r e q u i r e d t o f u r n i sh a r e t u r n o f i n c o m e mentioned in article 10
(1)or to make an election in terms of article 12 where the Commissioner gives notice in writing to this effect to such person.
(2)The notice mentioned in sub-article
(1)shall include a person’s income which is required to be disclosed for the purposes of the Income Tax Acts as known to the Commissioner at the time of service of the said notice.
(3)When a person who is served with a notice mentioned in sub-article
(1)has income required to be disclosed that is higher than that shown in the said notice it shall be the duty of that person to furnish a return of income under article 10
(1).
(4)Where the notice mentioned in sub-article
(1)results in a refund of tax, the Commissioner shall refund such tax after the person in receipt of such notice has agreed in writing that the refund is due to him, and if it then results that the refund is wholly or partly not due to the said person and that the said person has failed to abide by the provisions of sub-article
(3)the provisions of article 48
(9)shall apply. Further returns. Substituted by: IX. 1999.
  1. Amended by: II. 2009.29; XVIII.2021.
  2. 13.
(1)The Commissioner may when and as often as he thinks necessary give notice in writing to any person who has filed a return under article 10 requiring him to furnish, within a reasonable time stated in such notice, not being less than thirty days, fuller or further returns respecting any matter as to which a return is required by the said article.
(2)The Commissioner may give notice in writing to any person who has made an election under article 12 to make a return of income and to make a self assessment under article 10 and to I N C O M E TAX M A N A G E M E NT comply with the other provisions of that article within a reasonable time stated in such notice and not being less than thirty days.
(3)A person who has delivered a return of income may at any time before an assessment is made under article 31 make such corrections to or additions to that return as he may consider appropriate by furnishing a further return in such manner and on such form as may be prescribed.
(4)When a further return made pursuant to sub-article
(3)with respect to a year of assessment produces a reduction in the tax payable by or an increase in the tax repayable to that person as resulting from a previous return, it shall not have any effect for the purposes of this Act if it is made later than five years from the expiration of that year of assessment: Provided that, this sub-article shall not apply when a further return is filed with the Commissioner for the purposes of implementing an agreement reached pursuant to a Mutual Agreement Procedure in terms of an arrangement in terms of article 76 of the Income Tax Act including Convention 90/436/EEC of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises.
(5)A person who has made an election under article 12 with respect to a year of assessment may at any time within that year of assessment or within five years from the expiration thereof, but before an assessm en t is ma de un der a rt icl e 31 , furni sh th e Commissioner with a return of income including a self-assessment on such form as may be prescribed.
(6)When a return for a year of assessment is furnished pursuant to and in accordance with this article it shall be deemed to be a return of income made under article 10 and shall be read and construed as one with any other return that may have been so made for that same year, and any determination made under article 31 shall be revised and replaced as necessary, provided that: (
  1. a)such return shall not relieve any person of any penalty, tax, additional tax or interest to which he may have become liable in accordance with any provision of the Income Tax Acts; (
  2. b)a person who has made an election under article 12 and who submits a return in accordance with sub-article
(2)or sub-article
(5)shall not be deemed to have made a default by reason only of the fact that the return is submitted after the time prescribed for the purposes of article 10
(1).
(7)The Commissioner may give notice in writing to any person informing him that an enquiry will be conducted into that person's tax declarations and liabilities in respect of such years of assessment as shall be indicated in the said notice. Power to call for returns, books, etc. Amended by: II. 2003.43;| IV. 2011.57; VIII.2021.9. I N C O M E TA X M A N A G E M E N T 14.
(1)For the purpose of obtaining full information in respect of any person’s income, the Commissioner may, notwithstanding any other provision of this Act or of the Income Tax Act, give notice to such person requiring him within a reasonable time to complete and deliver to the Commissioner any return specified in such notice and/or to attend personally or by representative before him and to produce for examination any books, documents, accounts and returns (including bank statements and passbooks) which the Commissioner may deem necessary.
(2)Notwithstanding any provision of the Income Tax Acts or any other law the Commissioner may, for the purpose of obtaining full information in respect of any person’s income, give notice in writing to such person requiring him to furnish the Commissioner within the time indicated in such notice, not being less than thirty days from the date of service of such notice, a statement containing particulars of (
  1. a)all property held in his own name or in the name of his spouse, minor children or dependents, or in any other name, in which he is or has been interested or has or has had a beneficial interest, or in respect of which he has or has had the power to operate or dispose, jointly or solely, in his own economic interest and which property is in existence or which has existed at any time during the period stated in the notice; (
  2. b)all income derived from the property referred to in paragraph (a); (
  3. c)all other property wherever situated not referred to in paragraph (
  4. a)and the income derived therefrom; (
  5. d)any property transferred or delivered by him to, or which is currently held by, any person, including a designated person referred to in sub-article
(3), during the period or periods specified in such notice; and (e) all facts bearing upon his liability to income tax which he is, or has been, liable to.
(3)(a) Where the Commissioner has reasonable grounds to suspect that the tax has been, is, or may be evaded by any person, he may request, by notice in writing to a designated person, that the designated person provides the Commissioner, within the time indicated in such notice not being less than fifteen
(15)days from the date of service of such notice, with all such information and documentation which the designated person may have relating to property of any kind or description, transferred or delivered to him by that person and owned, possessed, or held by the designated person under any title on behalf of or for the benefit of any such person on the date of the said notice or during the period specified in such notice not commencing earlier than five
(5)years from the date of such notice. I N C O M E TAX M A N A G E M E NT (
  1. b)Any designated person who receives such notice shall provide the Commissioner with the information requested in the notice and this notwithstanding anything to the contrary in the Income Tax Acts, any provision of the Professional Secrecy Act, any obligation of secrecy or confidentiality, or to any other restriction relating to the disclosure of information whether arising from a provision of law or any agreement or other arrangement. The Commissioner shall keep confidential any information provided to him by the designated person and shall not disclose such information to any other person except where the Commissioner is bound at law to effect such disclosure or where he requires to use such information in the context of proceedings under this Act; provided that the Commissioner may report any act or failure by the designated person to the relevant regulatory authority which issued a licence or authorization to such designated person. Any information obtained by the Commissioner shall be used by him solely for the purpose of the investigation being carried out by the Commissioner as to whether tax has been, is, or may be evaded by the relevant person being investigated and, or any related proceedings under this Act. (
  2. c)The Commissioner shall specify in a notice issued under this article what information he requires and whether with reference to the property held on the date of the notice and, or at any point during a period of time (not commencing earlier than five years from the date of such notice), and the designated person receiving the notice shall supply the following information: (
  3. i)details of any such property owned, possessed or otherwise held under any title and which had been transferred or delivered (whether directly or indirectly through a transaction or a number of transactions which the designated person is aware
  4. of)to the designated person or vested in such designated person by or on the instructions of the person in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph (a); and (
  5. ii)details of the person or persons who transferred or delivered or made arrangements for the designated person to receive the property or on whose behalf the property was so transferred delivered or vested in the designated persons: Provided that this paragraph (
  6. c)shall also apply to any property transferred or delivered to the designated person and is no longer held by the designated person or has been converted into a different form of property I N C O M E TA X M A N A G E M E N T or has increased or decreased in value or extent or has been transferred to another designated person, but shall not apply where the property has been held temporarily for the purpose of a transaction and has been returned to the person who is being investigated. (
  7. d)If the designated person in receipt of a notice (
  8. i)has not held any property which was transferred or delivered (whether directly or indirectly through a transaction or a number of transactions which the designated person is aware
  9. of)to the designated person or vested in such designated person by the person in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph (a); or (
  10. ii)holds or has held the aforesaid property on a temporary basis or as a simple administrator; or (iii) has returned the aforesaid property to the person in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph (a), he shall inform the Commissioner accordingly and shall have no further obligations in this regard unless the Commissioner seeks further information specifically on such circumstances in which case the provisions of this article shall apply mutatis mutandis. (
  11. e)(
  12. i)The provisions of this sub-article shall override and shall apply notwithstanding the provisions of any law imposing fiduciary obligations of the designated person or associate towards any person, including his customer, principal or other person who may have delivered, settled, donated or otherwise transferred property to the designated person. S.L. 586. 09. (
  13. ii)The rights of the data subject referred to in regulation 4 of the Restriction of the Data Protection (Obligations and Rights) Regulations, in particular the right of access, shall be restricted, partially or completely, where such a restriction is necessary and proportionate for a designated person to adhere to his obligations under this sub-article. (iii) Disclosures made in the following circumstances shall not constitute an offence under this paragraph: (A) disclosures to the Commissioner or to a person authorised by the Commissioner; (B) disclosures made by the designated person to an associate or by an associate to another associate that are necessary in order for him to comply with the Commissioner’s request for information pursuant to this sub-article; I N C O M E TAX M A N A G E M E NT (C) disclosures made in the course of proceedings instituted in any court or tribunal or administrative body against the designated person or associate to the extent that the disclosures are required for the proper defence of the designated person or associate; (D) disclosures made in the course of any proceedings in any court or tribunal, or to any administrative body or authority, as long as a waiver for such disclosure has been given in writing by the Commissioner. (
  14. iv)In this paragraph, "associate" means an employee, employer, partner or assistant of the designated person but does not include the person or any of the persons whose details are indicated in the notice issued pursuant to this sub-article as required by sub-paragraph (
  15. ii)of paragraph (c). Such further notice in writing may be served on a person either personally or by being sent by post to his last known business or private address, and shall in the latter case be deemed to have been served within three working days from the date it is sent by post. (
  16. f)For the purposes of this article: (
  17. i)"property" means property of any kind or description, whether movable or immovable, personal or real, and wherever situated, and in relation to rights and interests whether vested, contingent, voidable or future, and including any money, investments, and amounts in savings, loan and other bank accounts (whether fixed, overdraft, current, deposit, or otherwise, and whether business or private accounts); (
  18. ii)a designated person is any person who may be acting as mandatory, nominee, trustee, agent, depository, custodian, under a contract of work or otherwise, and includes without limitation any of the following: (A) (B) (C) (D) a person who is in possession of a valid licence issued in terms of the Banking Act; or a person who is licensed in terms of the Investment Services Act; or a person who is authorized in terms of the Insurance Business Act or enrolled in the Brokers List under the Insurance Distribution Act; or a person who is authorised under the Trusts and Trustees Act to act as a trustee or as an administrator of any private foundation; or I N C O M E TA X M A N A G E M E N T (E) advocates, notaries, legal procurators, accountants, auditors and other persons holding warrants to exercise a profession, and irrespective of whether such person is in actual possession of authorisations or is exempt from requiring such authorisations under any law or is acting in breach of law when holding such property without authorisation required to do so by applicable law; (iii) owning, possessing and holding property includes owning, possessing and holding with others or through others and, or enjoying a power to operate or dispose of such property in such manner as renders secret the ownership rights or interests of the person being investigated and does not include circumstances where such person remains registered as the owner of the property in a public register in Malta or where the designated person is owning, holding or possessing the property temporarily for the purposes of a transaction relating to or involving such property or is otherwise a simple administrator of such property. (
  19. iv)Repealed by Act VIII.2021.9. (
  20. g)Where a designated person gives any false, misleading or incorrect information in relation to a notice issued under this sub-article he shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than ten thousand euro (€10,000) and not exceeding twenty-three thousand euro (€23,000). Returns to be deemed to be furnished by due authority. 15. A return, statement or form purporting to be furnished under the Income Tax Acts by or on behalf of any person shall for all purposes be deemed to have been furnished by that person or by his authority, as the case may be, unless the contrary is proved, and any person signing any such return, statement or form shall be deemed to be cognizant of all matters therein. Official information. Amended by: II. 2005.32; I. 2008.3. 16. The Commissioner may require any person having an office or employment, whether paid or o therwise, with the Government of Malta or with any organisation or other body whether having a legal personality or not in which the Government of Malta or any such body as aforesaid have a controlling interest or over which they have effective control to supply such particulars in respect of any matter as may be required for the purposes of the Income Tax Acts and which may be in the possession of such person having such office or employment: Provided that, subject to article 10A, no such person having such office or employment as aforesaid shall, by virtue of this article, be obliged to disclose any information in relation to a person in respect of which such person having such office or employment is under the duty of professional secrecy. Where any information is protected by professional secrecy for the benefit of I N C O M E TAX M A N A G E M E NT any person, nothing in this proviso shall preclude the giving of such information in respect of any other person, excluding therefrom the name of the person in whose interest such protection is given 17. Repealed by Act XVIII.2021.46. 18.
(1)Where any return, statement or form completed and delivered to the Commissioner for the purposes of the Income Tax Acts has been lost or destroyed, or has been so defaced or damaged as to be illegible or otherwise useless, the Commissioner may require the person by or on whose behalf such return, statement or form has been completed and delivered to furnish him to the best of his ability with a duplicate copy of such return, statement or form or to give such information, particulars or evidence as may be required in replacement. Professional secrecy. Amended by: I. 2008.4; IV. 2011.58; VII.2018.55.* Substitution of original returns. Amended by: IX. 1999.3.
(2)Nothing in this article contained shall affect the provisions of article 30
(4)and
(5)or article 31
(5)and
(6), nor shall the Commissioner be empowered to require a copy of any return, statement or form, or the provision of any information, particulars or evidence in respect of any year of assessment where the raising of the relative assessment is statute-barred i n terms of the provisions of the said sub-articles. 19.
(1)Every person carrying on a trade, business, profession or vocation shall keep proper and sufficient records of his income and expenditure to enable his income and allowable deductions to be readily ascertained.
(2)The records referred to in sub-article
(1)shall include: (
  1. a)proper accounts with respect to (
  2. i)all sums of money received or expended and the matters in respect of which the receipt or expenditure takes place; and (
  3. ii)all sales, purchases or services rendered, as well as any other transaction, act or operation pertaining to the trade, business, profession or vocation; (
  4. b)a profit and loss account or equivalent annual statement; (
  5. c)a statement of the assets and liabilities as on the date on which the annual accounts of the trade, business, profession or vocation are made up or, in the case of a company, a balance sheet.
(3)Subject to such conditions as he may deem fit to impose, the Commissioner may exempt any person in respect of any year of assessment from keeping any record or statement referred to in sub* Applicable as from the year of assessment 2019. Records to be kept. Amended by: XX.1996.21; II. 2007.23; IV. 2007.26; VII.2018.56; XIII.2024.33. I N C O M E TA X M A N A G E M E N T article
(2).
(4)The records required to be kept under the provisions of this article shall be supported by such documents as may be appropriate in the circumstances, including - (
  1. a)* in the case of a company registered in Malta, the balance sheet and profit and loss account, which shall comply in every detail with the applicable provisions of articles 167, 168 and 169 of the Companies Act, and the said balance sheet and profit and loss account shall have attached thereto a report drawn up by a certified public auditor as provided by the applicable provisions of articles 179 and 181 of that Act, save as may otherwise be expressly provided in rules which the Minister may prescribe: Provided that in the case of a company which is not resident in Malta, such records shall be those which refer to the company’s activities in Malta; (
  2. b)in the case of a co-operative society, the audited financial statements of the society, prepared in all respects as required by the law for the time being in force regulating co-operative societies and accompanied by any report which is by any such law required to accompany the audited financial statements of the society.
(5)All records required to be kept by any of the provisions of this article shall be retained for a period of not less than nine years after the completion of the transactions, acts or operations to which they relate: Certain powers of the Commissioner. Amended by: XI. 2001.31; II. 2005.33; L.N. 425 of 2007; IV. 2011.59; VIII.2021.10. Provided that the provisions of this sub-article shall not apply where effect has been given to the provisions of article 26, of article 163
(5)or of article 324
(2)of the Companies Act. 20.
(1)The Commissioner, or any officer authorised by him in writing shall have full and free access to all business or professional premises such as offices, factories, workshops, warehouses, garages and land serving such purposes in order to inspect any books, documents, accounts, returns and electronic data or to observe and record the nature and importance of any business or professional activity carried on there, and to check the existence of merchandise and means of production and transport and shall have full and free access to any property or other asset whose value is required to be determined for any of the purposes of the Income Tax Acts to the extent that such access is likely to assist him in determining the said value: Provided that the Commissioner or any officer authorised by him as aforesaid may not seize any notarial act or register, and may not inspect public wills, the acts of delivery of secret wills and registers thereof during the life of the testator or testators, without the permission in writing of such testator or testators: *Applicable to accounting periods commencing on, or after 1st January 2024. Vide article 32
(2)of Act XIII of 2024. I N C O M E TAX M A N A G E M E NT Provided further that the Commissioner or any officer authorised by him as aforesaid may not inspect any document or other record which is protected by the duty of professional secrecy or listen to any conversation or recording device which is protected by the same duty.
(2)If, in the exercise of his powers under sub-article
(1), the Commissioner or a person authorised by him as aforesaid, requires access to premises occupied in whole or in part for the purposes of habitation, such access shall require the presence of an officer of the Police of a rank not below that of inspector and shall not take place between nine in the evening and five in the morning.
(3)The Commissioner shall, for the purpose of assessing the tax under the Income Tax Acts, be entitled to make the application referred to in article 68
(2)(a) of the Notarial Profession and Notarial Archives Act, and the provisions of the said sub-article
(2)shall apply to such application in so far as applicable.
(4)If any person prevents or obstructs the Commissioner or the said officer in the execution of his duties, or refuses to comply with any request made by the Commissioner or by the said officer in accordance with the pro visions of this art icle, he shall , on conviction by the Court of Magistrates, sitting as a court of criminal judicature, be liable to a fine (multa) of not less than fiftyeight euro
(58)and not exceeding four hundred and sixty-five euro
(465)or to imprisonment for a term not exceeding six months or to both such fine and imprisonment.
(5)The powers of investigation under this article shall not be exercised unless the Commissioner or any officer authorised by him, has reasonable grounds to suspect that tax is being evaded in respect of operations carried out by the taxpayer on the premises referred to in sub-article
(1): Provided that in the exercise of the said powers and for such purpose the Commissioner may request the assistance of the Police Force, who shall for such purpose exercise such powers as are vested in them at law. 21.
(1)Every employer when required to do so by notice from the Commissioner shall, within the time limited by the notice, prepare and deliver for any year a return containing (
  1. a)the names and places of residence of all persons employed by him; (
  2. b)the payments and allowances made to those persons in respect of that employment, and the provisions of the Income Tax Acts with respect to the failure to deliver returns or particulars in accordance with a notice from the Commissioner shall apply to any such return.
(2)Where the employer is a body of persons, the manager or other principal officer shall be deemed to be the employer for the purposes of this article, and any director of a company, or person engaged in the management of a company, shall be deemed to be a Return to be delivered by employer. I N C O M E TA X M A N A G E M E N T person employed. Payment of tax of individuals employed but not domiciled or ordinarily resident in Malta. 22.
(1)In this article the expression "individual to whom this article applies" means an individual who is not domiciled in Malta or who, if so domiciled, is not ordinarily resident therein.
(2)Where any person employs in Malta an individual to whom this article applies and who is or is likely to be chargeable with tax under the provisions of the Income Tax Acts, he shall give notice in writing to the Commissioner not later than three months after the date of the commencement of such employment, stating the full name and address of such individual, the date of commencement and the terms of employment.
(3)Any person ceasing to employ in Malta an individual to whom this article applies and who is or is likely to be chargeable with tax under the Income Tax Acts, shall give notice in writing to the Commissioner not less than one month before such individual ceases to be employed by him in Malta stating the name and address of the individual and the expected date of cessation: Provided that the Commissioner may accept such shorter notice as he may deem reasonable.
(4)Any person who employs in Malta an individual to whom this article applies and who is to the knowledge of such person about to leave or intending to leave Malta on termination of his employment with such person shall give notice in writing to the Commissioner of the expected date of departure of such individual. Such notice shall be given not less than one month before the expected date of departure: Provided that the Commissioner may accept such shorter notice as he may deem reasonable.
(5)Where any person in his capacity as employer of an individual hereinafter mentioned has in his possession any monies which whatsoever are or may be payable to or for the benefit of an individual to whom this article applies and who has ceased or is about to cease to be employed by such person in Malta, he shall not without the permission of the Commissioner, notwithstanding the provisions of any other law, pay any part of such monies to or for the benefit of such individual until the expiry of thirty days after the receipt by the Commissioner of such notice as is required to be given under sub-article
(4).
(6)The Commissioner may by notice in writing whenever he thinks fit declare any person who employs in Malta an individual to whom this article applies, being an individual who is or is likely to be chargeable with tax under the Income Tax Acts, to be the representative taxpayer of such individual, and the person so declared shall be the representative taxpayer of such individual for the purposes of the Income Tax Acts and may be required to pay any tax due by such individual from property or monies, including pension, salary, wages or any remuneration which may be due by him to such individual and, in default, such payment shall, notwithstanding the provisions of any other law, be recoverable from the representative taxpayer so declared by the Commissioner I N C O M E TAX M A N A G E M E NT in the manner provided in Part VII of this Act.
(7)Any notice to be given to the Commissioner in accordance with the provisions of this article shall be given in addition to any other notice to be given under article 23.
(8)Where services are rendered in Malta for any person resident in Malta by an individual who does not have an employer in Malta the foregoing provisions of this article shall apply to such resident person in the same manner as if he were the employer of the said individual. 23.
(1)Where any person pays income chargeable under article 4
(1)(a), (
  1. b)or (
  2. d)of the Income Tax Act, or any other income as may be prescribed, he shall, at the time of payment deduct tax therefrom at such amount and in such manner as may be prescribed under this sub-article or under any other provision of the Income Tax Acts.
(2)Any tax deducted as required under sub-article
(1)shall be remitted to the Commissioner in such manner and within such period as may be prescribed.
(3)Deductions of tax made under sub-article
(1)shall be set off for the purposes of collection against the tax chargeable on the corresponding income for the year of assessment following that during which the relative deductions are made, or for any other year of assessment as the Commissioner may elect and any tax w h i c h c a n n o t b e s e t o ff a s a f o r e s a i d s h a l l b e r e f u n d e d i n accordance with the provisions of article 48: Provided that such tax shall not be set off or refunded as aforesaid unless the person receiving the income has declared that income in a return of income furnished in accordance with article 10 or made an election under article 12 for the year of assessment following that during which the deductions were made or has complied with such conditions that may be prescribed to the extent that they are relevant to the income in question: Provided further that the provisions of this sub-article shall not apply where any tax deducted as aforesaid has not been remitted to the Commissioner and the Commissioner is satisfied that such non-remittance was due to any fault or connivance on the part of the person receiving the income.
(4)If any person fails to deduct tax in accordance with the provisions of any rules referred to in sub-article
(1)or after deducting such tax, fails to pay it to the Commissioner within the prescribed period or who otherwise fails to comply with the provisions of such rules, he shall be liable to the prescribed additional tax which the Commissioner is empowered to impose under sub-article
(5)hereof and where applicable he shall, in addition, be chargeable with the tax which should have been deducted or paid together with interest, which shall be charged as provided in article 44(2A).
(5)Where the Commissioner has reason to believe that a person has made a default against the provisions of any rules Payment by deduction at source from certain income. Amended by: V. 1998.5; IX. 1999.4; II. 2003.44; II. 2004.49; L.N. 425 of 2007; IV. 2011.60; VII.2018.57. I N C O M E TA X M A N A G E M E N T referred to under this article he may at any time serve upon such person a default notice as prescribed showing the tax which should have been deducted or remitted together with interest and/or any additional tax imposed upon him as aforesaid, sohowever that such additional tax shall not exceed the amount of one thousand euro (€1000) for every such default; and any interest and additional tax so imposed shall be borne by the person to whom sub-article
(4)applies and shall not be recoverable by such person wholly or in part from the person receiving the income.
(6)If any person feels aggrieved by a default notice served upon him under sub-article
(5)hereof, he may apply to the Commissioner in writing contesting such notice in the manner and within such period as may be prescribed.
(7)Where a person has not contested the default notice referred to in sub-article
(5)hereof or where his contestation has been refused, the Commissioner may, where the payment of the amount due has not already been made, serve a demand notice on such person showing the tax which should have been deducted or remitted together with interest and/or any additional tax imposed upon him; and, unless the contrary is proved, the said notice shall be sufficient evidence that the amount shown therein is the amount due to be paid to the Commissioner by the said person: Provided that a person on whom a demand notice has been served in consequence of a refusal by the Commissioner in accordance with this sub-article may appeal such decision in a court of law within fifteen days from the date of service of such notice.
(8)The Commissioner may in his discretion remit wholly or in part any additional tax imposed under the provisions of this article.
(9)Any additional tax imposed under the provisions of this article shall not be deemed to be part of any tax paid or payable for the purposes of any other article of this Act or of any article of the Income Tax Act or any rules made thereunder.
(10)The powers conferred upon the Commissioner by this article shall be in addition to any right conferred upon him to c o m m e n c e p r o c e e d i n g s i n r e s p e c t o f a n o ff e n c e u n d e r t h e provisions of sub-article
(13).
(11)Notwithstanding the provisions of any other law, the demand notice by the Commissioner referred to in sub-article
(7), showing the amount due to be paid under this article, shall constitute a privileged claim over the assets of the employer (including the assets of a principal officer in the case of a body of persons) ranking immediately after the wages of employees and claims of the Director of Social Security for any amounts due by way of contribution under article 116 of the Social Security Act, and shall be paid after such wages and claims in preference to all other claims whether privileged or hypothecary. I N C O M E TAX M A N A G E M E NT
(12)Any person to whom this article applies shall at all times maintain proper and sufficient records as may be prescribed and shall, whenever called upon to do so by the Commissioner or by any public officer authorised by him in writing, produce for inspection at such person’s premises or as otherwise directed, all wage sheets, lists and documents and other records whatsoever relating to any payment made by him of income chargeable under paragraph (b) or (d) of sub-article
(1)of article 4 of the Income Tax Act, to any other income as may be prescribed, to any tax deduction made therefrom or to the accounting of any such payment or tax deduction: Provided that all such records shall be retained for a period of not less than nine years after the completion of the transactions, acts or operations to which they relate and shall be made readily available for examination at any time during such period. The aforesaid period of prescription shall in no case c o m m e n c e b e f o r e su c h p e rs o n h a s f u l l y c o m p li e d w i t h t h e provisions of this article and of any rules made thereunder.
(13)Any person who contravenes or fails to comply with the provisions of this article or of any rules referred to in sub-article
(1)shall be liable, on conviction, to a fine (multa) of not less than one hundred and sixteen eu ro
(116)and not exceeding one thousand and one hundred and sixty euro (1,160) or to imprisonment for a term not exceeding six months or to both such fine and imprisonment, and to a further fine (multa) of not less than four euro
(4)but not exceeding twenty-three euro
(23)for every day during which the offence continues after conviction: Provided that the Commissioner may compound any offence under this sub-article and may before judgment stay or compound any proceedings thereunder: Provided further that the offence under this sub-article shall continue to subsist until the offender shall have conformed and complied with the provisions of this article or of any rules referred to therein. 24.
(1)Where any person in any capacity whatsoever (
  1. a)receives any profits or income to which the provisions of the Income Tax Acts apply which belong to some other person; or (
  2. b)pays to some other person, or to his order, any profits or income to which the provisions of the Income Tax Acts apply and which belong to such other person, then the Commissioner may give notice to such first-named person requiring him to furnish within the time limited by such notice, not being less than thirty days from the date of service of such notice, a return containing (
  3. i)a true and correct statement of all such profits and income; and (
  4. ii)the name and address of every person to whom the same belong or are paid: Return to be furnished of income received on account of, or paid to, other persons. Amended by: IX. 1999.5; XIII. 2004.87; I. 2008.5. I N C O M E TA X M A N A G E M E N T Provided that, subject to the provisions of article 10A, no such person shall, by virtue of this article, be obliged to disclose any information in relation to another person which he holds in the capacity of a trustee of a trust or which is otherwise covered by the duty of professional secrecy.
(2)A notice under sub-article
(1)may be given by the Commissioner so as to apply either generally to persons to whom such profits or income as are mentioned in that sub-article belong or are paid or to any particular person or class of persons as aforesaid. Returns to be furnished by trustees. Added by: XIII. 2004.88. 24A.
(1)The Commissioner may give notice to a trustee of a trust requiring him to furnish, within the time limited by such notice, not being less than thirty days from the date of service of such notice, a return containing (a) a true and correct statement, certified by a warrant holder referred to in article 57, of the income attributable to such trust as referred to in article 27B of the Income Tax Act; and (b)
(2)(i) the names and addresses of those beneficiaries to whom income has been allocated as provided in article 27D
(4)of the Income Tax Act, together with the relative amounts so allocated; and (
  1. ii)the amount, date of allocation, type and country of source of the income so allocated for each beneficiary referred to in subparagraph (i). (
  2. a)A return under the provisions of this article shall be deemed to be a return required to be furnished under the provisions of article 10. (
  3. b)A trustee who issues a false certificate to the Commissioner shall be guilty of making a false statement within the meaning of article 52
(1)(b). Returns to be furnished by settlors. Added by: XIII. 2004.88. Amended by: L.N. 425 of 2007. 24B. Where (
  1. a)the settlor of a trust is a person resident in Malta; and (
  2. b)none of the trustees of such trust is a person resident in Malta; and (
  3. c)property is settled into such trust after such date as the Minister responsible for finance may, by notice in the Gazette, appoint, the said settlor shall inform the Commissioner of the property so settled together with a copy, where applicable, of the relevant trust instrument or of any other document evidencing the existence of such trust. This information shall be submitted to the Commissioner by not later than thirty days from the date of the relevant settlement. Any settlor who fails to comply with the provisions of this article shall be guilty of an offence and liable on conviction to a fine (multa) of not less than one hundred and sixteen euro
(116)and not exceeding one thousand and one hundred and sixty euro (1,160) and to a further fine (multa) of not I N C O M E TAX M A N A G E M E NT less than four euro
(4)but not exceeding twenty-three euro
(23)for every day during which the offence continues after the lapse of the said thirty days. 24C. For the purpose of ensuring compliance with the provisions of the Income Tax Acts, the Commissioner may: (
  1. a)demand and request from any person the production of information which, in the opinion of the Commissioner, relates to the income or the economic activities of any other person or class of persons; Powers of the Commissioner to request information. Added by: II. 2005.34. Amended by: I. 2008.6. (
  2. b)inspect and request the production of any books, records or documents or a copy or extract thereof, which, in the opinion of the Commissioner, relate to the income or the economic activity of any person or class of persons: Provided that, subject to article 10A, the information requested under this article may not include: (
  3. i)any information falling within the definition of a "professional secret" or "secret" in terms of article 2 of the Professional Secrecy Act; or (
  4. ii)any information falling within the definition of "sensitive personal data" in terms of article 2 of the Data Protection Act: Provided further that, subject to article 10A, where any such information is protected by professional secrecy or the provisions of the Data Protection Act and such protection is for the benefit of any person, such information in respect of any other person shall be given excluding therefrom the name of the person in whose interest such protection is given. 25. The Commissioner may give notice in writing to any person who is the occupier of any house, property, land or industrial building requiring him to furnish within a reasonable time a return containing - Occupiers to furnish return of rent payable. (
  5. a)the name and address of the owner of such house, property, land or industrial building; and (
  6. b)a true and correct statement of the rent payable and any other consideration passing therefor. 26. The Commissioner may give notice in writing to any person requiring him within the time limited by such notice, not being less than thirty days from the date of service of such notice, to furnish a return containing the name of any lodger or inmate who is at the date of the notice resident in his house, hotel or institution, and has been so resident, except for temporary absences, throughout the preceding three months. Return of lodgers and inmates. Certain partnerships. Amended by: V. 2012.45; XIII. 2015.121; XV. 2016.27. I N C O M E TA X M A N A G E M E N T 27.
(1)Where income from any source accrues to or is received by a partnership that is carried on by any two or more persons jointly and the partnership is not a "company" in terms of article 2 of the Income Tax Act (including, for the avoidance of doubt, partnerships in respect of which no election in terms of subarticle
(6)of this article is in force), the income of any partner from the partnership, shall be deemed to be the share to which he was entitled during the year preceding the year of assessment in the income of the partnership, such income being ascertained in accordance with the provisions of the Income Tax Acts and shall be included in the return of income to be made by such partner under the provisions of the Income Tax Acts.
(2)The precedent partner, that is to say the partner who of the partners resident in Malta (
  1. i)is first named in the agreement of partnership, or (
  2. ii)is the precedent acting partner if the partner named with precedence is not an acting partner, shall, when required by the Commissioner, make and deliver a return of the income of the partnership for any year, such income being ascertained in accordance with the provisions of the Income Tax Acts, and declare therein the names and addresses of the other partners in the firm together with the amount of the share of the said income to which each partner was entitled for that year; and (
  3. a)where no partner is resident in Malta, the return shall be made and delivered by the attorney, agent, manager or factor of the firm resident in Malta; and (
  4. b)the provisions of the Income Tax Acts with respect to the failure to deliver returns or particulars in accordance with a notice from the Commissioner shall apply to any return required under this article.
(3)Where the Commissioner is not satisfied that income from any source accrues to or is received by two or more persons jointly, the particular income shall be deemed to have accrued to or been received by such person entitled to a share of such income as the Commissioner may elect, and assessment of tax shall be made accordingly.
(4)Where an assessment has been made in accordance with the provisions of sub-article
(3), the partnership shall not be considered to be a body of persons for the purposes of article 60 of the Income Tax Act.
(5)Nothing in this article contained shall prevent the decision of the Commissioner in the exercise of any discretion given to him from being questioned in an appeal in accordance with articles 35 and 37.
(6)Any partnership or EEIG referred to in sub-paragraph (iii) of paragraph (
  1. a)or sub-paragraph (
  2. ii)of paragraph (
  3. b)of the definition "company" in article 2
(1)of the Income Tax Act shall be entitled to make an election in writing to be treated as a company for all purposes of the Income Tax Acts, and in such case, the provisions of this article shall not be applicable thereto. Such an I N C O M E TAX M A N A G E M E NT election shall be made on such form and under such conditions as the Commissioner may determine and shall be effected not later than sixty days after the date of setting up of the partnership or EEIG as the case may be: Provided that if no such election is made, the taxation of the partnership or EEIG, as the case may be, shall be regulated by the provisions of this article: Provided further that whether or not the partnership or EEIG elects to be treated as a company or otherwise, the status of the said partnership or EEIG shall remain effective until such time as the Commissioner, at his sole discretion and for a reasonable cause, authorises a change following a request in writing made by the partnership or EEIG, as the case may be, on such form and under such conditions as the Commissioner may determine. 28.
(1)Every notice which shall be given by the Commissioner under the Income Tax Acts shall be signed by the Commissioner or by a person appointed by him from time to time for such purpose, and every such notice, including a receipt for payment of tax, shall be valid if the signature of the Commissioner or of such person is duly printed, stamped or written thereon: Signature of notices. Amended by: II. 2003.45; III.2026.40. Provided that any notice in writing under the provisions of the Income Tax Acts to any person requiring him to furnish information to the Commissioner, or any other notice under the Income Tax Acts requiring the attendance of any person or witness before the Commissioner shall be personally signed by the Commissioner or by any person duly authorised by him: Provided further that any notice given electronically by the Commissioner shall not require to be signed and shall be valid if it is: (a) made available to that person through the web portal designated by the Commissioner for this purpose; or (b) sent to that person from any electronic address belonging to the Commissioner, including generic electronic addresses, or belonging to a person authorised by the Commissioner.
(2)A signature attached to any notice and purporting to be the signature of any person so appointed shall be taken to be the signature of that person until the contrary be shown. 29.
(1)Notice may be served on a person either personally or by electronic means to his email address as provided to the Commissioner or made available to that person through the web portal designated by the Commissioner for that purpose or by being sent by post to his last known business or private address, and shall in the latter case, unless the contrary be proven, be deemed to have been served, in the case of persons resident in Malta, on the third (3rd) day following the day of postage, and in the case of persons not resident in Service of notices. Amended by: I. 2010.46; VII.2018.58; III.2026.41. I N C O M E TA X M A N A G E M E N T Malta, the day subsequent to the day on which the notice would have been received in the ordinary course by post, and in proving such service it shall be sufficient to prove that the letter containing the notice was properly addressed and posted: Provided that where such notice is not served because the person could not be found or for other reasons attributable to him and the Commissioner publishes a notice on the web portal designated for that purpose or publishes a notice in the Gazette and in one
(1)or more daily newspapers, stating that a notice has been given and may be collected from the location indicated by the Commissioner, then such notice shall be deemed to have been duly served. Free postage.
(2)All returns, additional information and resulting correspondence and payment of tax under the provisions of the Income Tax Acts may be sent free of postage to the Commissioner in envelopes marked "Income Tax". Time and date for delivery of returns, etc., and for payments. Added by: IX. 1999.6. 29A.
(1)Any period or date laid down in or under the Income Tax Acts for the furnishing, delivery or service of a return, notice or other document to or on the Commissioner or for any payment to the Commissioner shall be deemed to expire at noon of the last day of that period or of that date or at such later time as may be prescribed.
(2)When the date on which a return, notice or other document is to be furnished, delivered or served or deemed to be served or on which a payment is to be made in terms of any provision of this Act falls, were it not for the provisions of this sub-article, on a Saturday or a public holiday as established in the National Holidays and Other Public Holidays Act, that date shall be deemed to fall on the first working day, other than a Saturday, following the said Saturday or public holiday. PART V Assessments Assessments relating to years preceding the year of assessment 1999. Substituted by: IX. 1999.7. Amended by: II. 2004.50. 30.
(1)Where a person has delivered a return of income for any year of assessment preceding the year of assessment 1999 the Commissioner may (
  1. a)accept the return and make an assessment accordingly; (
  2. b)after considering such further returns, books or evidence, if any, as may be produced before or obtained by him, refuse to accept the return and to the best of his judgement determine by order in writing the amount of the chargeable income of the person and assess him accordingly.
(2)Where a person has not delivered a return of income for any year of assessment preceding the year of assessment 1999 and the Commissioner is of the opinion that such person is liable to pay tax, he may, according to the best of his judgement, determine the amount of the chargeable income of such person and assess him accordingly, but such assessment shall not affect any liability I N C O M E TAX M A N A G E M E NT otherwise incurred by such person by reason of his failure or neglect to deliver a return.
(3)Where it appears to the Commissioner that a person has not been assessed or has been assessed at a lesser amount than that which ought to have been charged for any year of assessment preceding the year of assessment 1999, the Commissioner may assess such person at such amount or additional amount as, according to his judgement, ought to have been charged and the provisions of sub-article
(1)(b) shall apply to such an assessment.
(4)An assessment for a year of assessment made pursuant to any of the foregoing provisions of this article shall be made within that year of assessment or within eight years after the expiration thereof: Provided that in cases where there has not yet been a final decision or a final judgement, the notification of an assessment to the taxpayer after the expiration of the periods specified in this subarticle shall not constitute and shall not be deemed to have ever constituted a reason for the said assessment or notice thereof being declared prescribed, time-barred or otherwise quashed, if such assessment is delivered by not later than the 31st December, 2007: Provided further that where such notification is not made by the 31st December, 2007 because the taxpayer could not be found or for other reasons attributable to him, such assessment shall be deemed to have been duly notified if, not later than 31st December 2008, the Commissioner publishes a notice in the Gazette and in one or more daily newspapers stating that such assessment has been made and inviting the taxpayer to call for it at the Department.
(5)Notwithstanding the provisions of sub-article
(4), where a person has not made to the Commissioner the returns required by the Income Tax Acts for any year of assessment preceding the year of assessment 1999 or a full and true disclosure of all material facts necessary for his assessment for any such year and there has been an avoidance of tax, the Commissioner, where he is of the opinion that the avoidance of tax is due to fraud or evasion, may at any time assess such person at such amount or additional amount as according to his judgement ought to have been charged and take action for the payment of tax, additional tax and any penalty.
(6)Where in the opinion of the Commissioner there has been fraud or evasion as aforesaid, such decision shall be subject to appeal under the provisions of articles 35 and
  1. Assessment, and determinations relating to the year of assessment 1999 and subsequent years. Substituted by: IX. 1999.
  2. Amended by: II. 2003.46; I. 2010.47; L.N. 336 of 2010; XII. 2014.61; VII.2018.59; III.2026.
  3. I N C O M E TA X M A N A G E M E N T 31.
(1)Where a person has delivered a return of income under article 10 that includes a self-assessment for the year of assessment 1999 or any subsequent year of assessment, the Commissioner shall determine the chargeable income, the tax chargeable thereon and the tax payable by or repayable to that person for that year of assessment in the amounts indicated by that person in the selfassessment, making such arithmetical adjustments as may result to be necessary on the basis of the information contained in that return.
(2)Where a person has made an election under article 12 for a year of assessment the Commissioner shall, on the basis of the information in his possession, determine the chargeable income, the tax chargeable thereon and the tax payable by or repayable to that person for that year of assessment. (2A) Where a person disagrees with the Commissioner’s determination made in accordance with the provisions of subarticles
(1)or
(2), such person may file an adjustment form (AF) on such form as the Commissioner may determine, within ten
(10)years from the date on which the person is notified of such determination: Provided that, notwithstanding any other provision of this Act, if the adjustment form is filed later than three months from the date of the notification of the determination, interest shall become payable by the Commissioner on a repayment of tax that may result to be due in terms of the adjustment only if the repayment is paid later than one month from the filing of the said adjustment form and shall run from the expiration of the said period of one month.
(3)Where a person has not delivered a return of income for the year of assessment 1999 or any subsequent year and has not made an election under article 12 or, having made such an election has, after being given notice by the Commissioner to make a return as provided i n article 13, failed to fi le such a return, a nd the Commissioner is of the opinion that such person is liable to pay tax, he may determine the amount of the tax payable by that person for that year of assessment on the basis of an estimate made in such manner and by such method as the Commissioner deems fit without prejudice to any liability otherwise incurred by that person by reason of his failure or neglect to deliver a return. (3A) Where an estimate has been made in the circumstances mentioned in sub-article
(3)and the return has still not been delivered, the Commissioner may make an assessment under the provisions of sub-article
(5)on the person concerned, without the need to have previously notified the said person that an enquiry is being conducted into his tax declarations and liabilities.
(4)The Commissioner may make such enquiries and verifications as he deems fit with respect to any tax payable by or repayable to a person and m ay m ake such adjustments to a determination made under the other provisions of this article as may be agreed upon in writing with that person or as may be required in accordance with article 13
(6).
(5)Where it appears to the Commissioner that the tax payable I N C O M E TAX M A N A G E M E NT by a person for the year of assessment 1999 or any subsequent year of assessment has been determined at a lesser amount than that which ought to have been charged, the Commissioner may after considering such further returns, books or evidence, if any, as may be produced before or obtained by him, to the best of his judgement make an assessment of the chargeable income of that person, the tax chargeable thereon and the tax payable by or repayable to that person for that year of assessment, and where the Commissioner after having made an assessment is of the opinion that any tax so assessed has been assessed at a lesser amount than that which ought to have been charged he may, in the same manner, make an additional assessment or assessments: Provided that if there is evidence that, after being requested by the Commissioner by means of a notice in writing, such person failed to produce without any reasonable excuse any records, documents, accounts and electronic data within thirty days from the date of service of such notice and an order in writing by the Commissioner referred to in article 33
(5)has been issued, such person shall not be allowed to produce such records, documents, accounts and electronic data before the Administrative Review Tribunal or in any Court of law.
(6)An assessment or additional assessment for a year of assessment under sub-article
(5)shall be made not earlier than the time prescribed under article 10
(1)for the submission of the return of income for that year and not later than five years from the end of the year in which a return of income or a further return for that year was furnished or in which an election under article 12 for that year was made.
(7)Notwithstanding the provisions of sub-article
(6)where a person: (
  1. a)has furnished the Commissioner with a return or returns and has not made therein a full disclosure of all material facts relevant to the determination of his income and allowable deductions; or (
  2. b)for the purpose of avoiding tax or through gross or wilful neglect has furnished the Commissioner with a return which is incorrect or misleading in any material respect, an assessment or an additional assessment under sub-article
(5)may be made at any time after the time laid down in accordance with this Act for the submission of the return of income for that year.
(8)A decision on the existence of any circumstance that warrants the application of the provisions of sub-article
(7)shall be subject to appeal under the provisions of articles 35 and 37.
(9)A determination made pursuant to sub-article
(1),
(2)or
(3)shall not be construed as being an assessment for any of the purposes of the Income Tax Acts. I N C O M E TA X M A N A G E M E N T Assessment and payment of tax in foreign currency. Added by: IX. 1999.
  1. 31A. The tax chargeable on the income of a company shall be declared, determined, assessed and paid in the currency (or where applicable, in currencies pro rata) in which its share capital is denominated and any refunds and repayments made in accordance with the provisions of the Income Tax Acts in respect of such tax shall be made in the same currency (or, where applicable, in currencies pro rata) in which such tax was paid. Cancellation of assessments. Amended by: XXIII. 1995.2; I. 1999.2; II. 2002.
  2. 32.
(1)The Commissioner may for the purposes of the Income Ta x A c t s c a n c e l a n y a s s e s s m e n t r a i s e d b y h i m , a n d s u c h cancellation shall be without prejudice to the raising of any assessment required to be raised under this Act in replacement of the assessment so cancelled which shall be deemed not to have been raised.
(2)Nothing in this article contained shall empower the Commissioner to cancel or raise any assessment for any year where such cancellation or raising of any assessment would involve the opening of any matter which has been determined on appeal for that year.
(3)Notwithstanding any other provisions of the Income Tax Acts where more than eight years have elapsed since the expiration of the year of assessment to which an assessment raised by the Commissioner before 1st January, 1992 refers and such assessment is still not final and conclusive in terms of article 38, and it appears to the Commissioner that such assessment may be invalid or void because of any mistake, defect or omission by the Commissioner in making such assessment or in the notice thereof, the Commissioner may within ten years from 1st January 1992 or within two years from the date the taxpayer applies to the Commissioner in writing indicating as a further ground of objection such mistake, defect or omission raise a new assessment in terms of article 30 for the year of assessment in question and the provisions of the Income Tax Acts as to notice of assessment, appeal and other proceedings under the Income Tax Acts shall apply to such an assessment and to the tax charged thereon: Provided that: (
  1. i)the provisions of this sub-article shall similarly apply to those assessments which have been raised by the Commissioner on 1st January 1992 or any subsequent date other than assessments raised under article 31 of the Act; and (
  2. ii)where a new assessment in terms of article 30 and to which this sub-article or paragraph (
  3. i)of this proviso refers has not been raised by the Commissioner within the period referred to in this sub-article, the Commissioner may at any time raise a new assessment on the taxpayer on all or any part of the chargeable income of the taxpayer as declared by him for the year of assessment in question upon which no valid assessment has been raised; and except for the provisions of article 30
(4), the provisions of the I N C O M E TAX M A N A G E M E NT Income Tax Acts as to notice of assessment, appeal and other proceedings under the Income Tax Acts shall apply to such assessment and to any tax chargeable thereunder. 33.
(1)The Commissioner shall cause to be served personally on or sent by registered post to each person assessed to tax a notice addressed to him at his usual place of abode or business, stating the amount of his chargeable income and the amount of tax payable by him and informing him of his rights under the provisions of subarticle
(2). Power of the Commissioner to revise assessment in case of objection. Amended by: XXIII. 1995.3; XX. 1996.21.
(2)If any person disputes the assessment he may apply to the Commissioner, by notice of objection in writing, to review and to revise the assessment made upon him. Such application shall state precisely the grounds of his objection to the assessment and shall be made within thirty days from the date of the service of the notice of assessment: Provided that the Commissioner, upon being satisfied that owing to absence from Malta, sickness or other reasonable cause, the person disputing the assessment was prevented from making the application within such period, shall extend the period as may be reasonable in the circumstances: Provided also that no such notice may be validly entered against any assessment unless (a) the return for the respective year of assessment has been filed in terms of articles 10 and 11 before the notice is given to the Commissioner; (b) the tax not in dispute for the said year of assessment has been paid in full before the time limit set out in article 42
(1)where the main income of the person for the year immediately preceding the said year of assessment is derived from sources other than those falling under article 4
(1)(
  1. b)and (
  2. d)of the Income Tax Act which are subject to deduction of tax under the PAYE rules: Provided further that where any person has already delivered any notice under this article against any assessment and such assessment is still not final and conclusive in terms of article 38 he shall comply with the preceding proviso hereto by the 28th June, 1996, otherwise the notice given will be rejected and the assessment objected to will become final and conclusive on such date.
(3)On receipt of the notice of objection referred to in subarticle
(2), the Commissioner may require the person giving the notice of objection to furnish such particulars or information as the Commissioner may deem necessary with respect to the income of the person assessed and to produce all books or other documents in his custody or under his control relating to such income, and may summon any person who, he thinks, is able to give evidence respecting the assessment to attend before him and produce all books or other documents in his custody or under his control and I N C O M E TA X M A N A G E M E N T may examine such person on oath or otherwise: Provided that the clerk, agent, employee or other person confidentially employed in the affairs of the person to be charged and the parents, spouse or children of such person shall not be examined except on the request of the assessee: Provided further that except at the request of the assessee, no person shall be examined in relation to any information concerning the assessee in respect of which the said person is under the duty of professional secrecy.
(4)In the event of any person assessed, who has objected to an assessment made upon him, agreeing with the Commissioner as to the amount at which he is liable to be assessed, the assessment shall be amended accordingly, and notice of the tax payable shall be served upon such person.
(5)If no agreement is reached the Commissioner shall determine the tax by order in writing: Provided always that in the event of any person who, under the provisions of sub-article
(2), has applied to the Commissioner for a revision of the assessment made upon him, failing to agree with the Commissioner as to the amount at which he is liable to be assessed, his right of appeal under the provisions of this Act, against the assessment made upon him, shall remain unimpaired. PART VI Appeals Administrative Review Tribunal. Substituted by: L.N. 336 of 2010. Amended by: L.N. 390 of 2010; VII.2018.60. 34.
(1)The Administrative Review Tribunal established by article 5 of the Administrative Justice Act, hereinafter referred to as "the Tribunal", shall be competent to hear and determine appeals in accordance with the provisions of article 35.
(3)The provisions of the Administrative Justice Act, in so far as they apply to the Administrative Review Tribunal, shall apply to any proceedings before the said Tribunal and the words "public administration" in the said enactment shall be construed as a reference to the Commissioner.
(2)The Tribunal shall carry out such functions as are assigned to it in terms of this Act.
(4)The Tribunal shall have the power to summon any person to give evidence or to produce books or other documents before it: Provided that – (
  1. i)the clerk, agent, employee or other person confidentially employed in the affairs of the appellant and the parent, spouse or children of such appellant shall not be called to give evidence or to be examined except on the request of the appellant; (
  2. ii)any person, other than the Commissioner, who has or I N C O M E TAX M A N A G E M E NT has had any official duty, or is or has been employed, in the administration of the Income Tax Acts, shall not be called to give evidence or to be examined in connection with any official matter concerning the assessment under appeal except on the request of the Commissioner; (iii) except at the request of the appellant, no person shall be examined in relation to any information concerning the appellant in respect of which the said person is under the duty of professional secrecy.
(5)The Tribunal members shall not be personally liable for any act or default of the Tribunal done or omitted to be done in good faith in the course of the operations of the Tribunal.
(6)The provisions of article 25 of the Administrative Justice Act shall apply to any proceedings pending before the Board of Special Commissioners and any such proceedings shall be assigned to the Administrative Review Tribunal in terms of the aforesaid article 25 with effect from 1st June, 2010: Provided that any proceedings pending before the Board of Special Commissioners and which have already commenced on the 1st June, 2010, shall remain pending before the said Board of Special Commissioners for decision, and the provisions of this subarticle shall not apply to those proceedings. 35.
(1)Any person who, being aggrieved by an assessment made upon him, has failed to agree with the Commissioner in the manner provided in article 33
(4)may enter within thirty days after the date of service upon him of notice of the refusal of the Commissioner to amend the assessment as desired, an appeal against such assessment to the Administrative Review Tribunal.
(2)Every person appealing shall appear before the Tribunal either in person or by agent on the day and at the time fixed for the hearing of the appeal: Provided always that if it be proved to the satisfaction of the Tribunal that owing to absence from Malta, sickness or other reasonable cause, any person is prevented from attending at the hearing of his appeal on the day and at the time fixed for that purpose, the Tribunal may postpone the hearing of such appeal for such reasonable time as it thinks necessary for the attendance of the appellant.
(3)The onus of proving that the assessment complained of is excessive shall be on the appellant.
(4)Subject to the provisions of sub-article
(3), the Tribunal shall confirm, reduce, increase or annul the assessment or make such order thereon as to it may seem fit.
(5)No appeal shall lie from the decision of the Tribunal except on a question of law only.
(6)An appeal to the Tribunal made by a taxpayer or on his behalf cannot be withdrawn or discontinued except with the consent of the Commissioner. Appeal. Amended by: IV. 2007.27; L.N. 336 of 2010; XII. 2014.62. I N C O M E TA X M A N A G E M E N T
(7)The Tribunal may order the correction of any arithmetical error incurred in any of its decisions on an application served on the other party and filed within ten days after the date of the decision. Certain provisions to be followed in the hearing of appeals. Amended by: IV. 2007.28; I. 2010.48; L.N. 336 of 2010. 36. The following provisions shall have effect for the purposes of any appeal made under article 35: (
  1. a)the Tribunal shall summarily reject any appeal before it for any year of assessment and confirm the assessment complained of unless prima facie proof is brought before it that, by the date on which the appeal was entered, appellant had filed under articles 10 and 11 a return of his income chargeable for the said year of assessment; (
  2. b)notwithstanding the provisions of article 34
(7), where the assessment complained of has been raised by the Commissioner in accordance with the provisions of article 30
(1)(b) or
(2)or
(3), or of article 31
(5), no evidence shall be considered by the Tribunal as sufficient to warrant any change in the assessment concerning that income if the person appealing against the Commissioner’s decision has failed to provide without any reasonable excuse the records, documents, accounts and electronic data in accordance with the proviso to article 31
(5); (
  1. c)the Commissioner may at any time during the hearing of an appeal require a declaration by the Tribunal as to whether the appeal should be rejected and the assessment complained of confirmed in accordance with the provisions of paragraph (
  2. a)or (b). Appeals to the Court of Appeal. Amended by: VI. 2001.25; IV. 2007.29; L.N. 425 of 2007; L.N. 336 of 2010; XII. 2014.63. 37.
(1)Any person who, having appealed to the Tribunal feels aggrieved by its decision may, by application filed within twenty days from the date of the Tribunal’s decision, on a question of law only (
  1. i)where the total amount of tax, additional tax, fines and interest in dispute at the time when the appeal was lodged before the Tribunal is less than one million and one hundred and sixty-five thousand euro (1,165,000), to the Court of Appeal (Inferior Jurisdiction); and (
  2. ii)where the total amount of tax, additional tax, fines and interest in dispute at the time when the appeal was lodged before the Tribunal is of one million and one hundred and sixty-five thousand euro (1,165,000) or more, to the Court of Appeal.
(2)The Commissioner may, if he is dissatisfied with the decision of the Tribunal, appeal against the decision on a question of law only to the court that is competent to take cognizance of the a p p e a l i n a c c o r da n c e w i t h su b - a r t i c l e
(1)( i ) a n d ( i i ) b y a n application filed within twenty days from the date of the Tribunal’s decision. I N C O M E TAX M A N A G E M E NT
(3)Unless rules made hereunder provide a longer period, seven clear days’ notice shall be given to the parties of the date fixed for the hearing of the appeal.
(4)The court may confirm, reduce, increase or annul the assessment or make such orders thereon as it may deem fit.
(5)Notice of the amount of tax payable under the assessment as determined by the court shall be served by the Commissioner, either personally on, or by registered post to, the other party.
(6)The Commissioner shall publish within a reasonable time all decisions of the court giving the facts of the appeal and the arguments.
(7)The cost of the appeal shall be in the discretion of the Court of Appeal or of the Court of Appeal (Inferior Jurisdiction), as the case may be, and shall be a sum fixed by the registrar.
(8)The Minister responsible for justice may by regulations under this sub-article establish the fees payable in the registry of the courts in relation to the filing of judicial acts in connection with an appeal to the Court of Appeal and to the Court of Appeal (Inferior Jurisdiction), as the case may be, under this article: Provided that until such fees have been so established by the Minister, the fees contained in Schedule A to the Code of Organization and Civil Procedure shall apply. 38. Where no valid objection or appeal has been lodged within the time limited by this Part against an assessment or order as regards the amount of the chargeable income assessed thereby or the tax rebate granted in terms of article 57 of the Income Tax Act, or where the amount of the chargeable income or tax rebate has been agreed to under article 33
(4), or where the appeal has been withdrawn or discontinued, or where the amount of such chargeable income or tax rebate has been determined on objection or appeal, the assessment or order as made or agreed to or determined on appeal, as the case may be, shall be final and conclusive for all purposes of the Income Tax Acts as regards the amount of such chargeable income or tax rebate: Assessments or amended assessments to be final. Amended by: I. 2010.49. Provided that nothing in this Part shall prevent the Commissioner from making any refund under the provisions of article 48 or any assessment or additional assessment for any year of assessment which does not involve reopening of any matter which has been determined on appeal for the year. 39.
(1)No assessment, warrant or other proceeding purporting to be made in accordance with the provisions of the Income Tax Acts shall be quashed, or deemed to be void or voidable, for want of form, or be affected by the reason of a mistake, defect or om i s s i o n t h e r e i n , i f t h e s a m e i s i n su b s t a n c e a n d e ff e c t i n conformity with or according to the intent and meaning of the Income Tax Acts or any Act amending the same, and if the person a s s e s s e d o r i n t e n d e d t o b e a s s e s s e d o r a ff e c t e d t h e r e b y i s designated therein according to the common intent and understanding. Errors, etc., in assessments and notices.
(2)I N C O M E TA X M A N A G E M E N T An assessment shall not be impeached or affected (
  1. a)by reason of a mistake therein as to (
  2. i)the name or surname of a person liable; or (
  3. ii)the description of any income; or (iii) the amount of tax charged; (
  4. b)by reason of any variance between the assessment and the notice thereof: Provided that in cases of assessment, the notice thereof shall be duly served on the person intended to be charged and such notice shall contain, in substance and effect, the particulars on which the assessment is made.
(3)In the case of a body of persons it shall be sufficient for the purposes of the Income Tax Acts if only the name of the body of persons appears on any notice issued thereunder by or on behalf of the Commissioner.
(4)Where any appeal has been entered from any assessment raised by the Commissioner and such assessment is by final decision or judgment declared invalid or void, the Commissioner may, within one year of the final decision or judgment as the case may be, where a new assessment cannot be issued under any other provision of the Income Tax Acts, raise a new assessment on the taxpayer on all or any part of the chargeable income of the taxpayer as declared by the taxpayer for the year of assessment in question upon which no valid assessment has been raised; and the provisions of the Income Tax Acts as to notice of assessment, appeal and other proceedings under the Income Tax Acts shall apply to such assessment and to any tax chargeable thereunder. PART VII Collection Executive title. Amended by: XXIII. 1995.4; V. 1998.6; II. 2004.51; I. 2010.50; IV. 2011.61; VII.2018.61. 40.
(1)The following shall constitute an executive title within the meaning and for the purposes of Title VII of Part 1 of Book Second of the Code of Organization and Civil Procedure, namely: (a) the notice referred to in article 73
(4)(
  1. c)of the Income Tax Act; (
  2. b)the notice referred to in article 23
(7); (
  1. c)the final and conclusive assessment or order referred to in article 38; (
  2. d)the notice referred to in article 42
(6); (e) the notice referred to in article 43
(6); (f) the notice referred to in article 46
(1)and the notice of assessment and demand in writing by the Commissioner referred to in article 46
(3); (g) the notice referred to in article 47A
(2): Provided that except in the cases referred to in paragraph (f), the procedure laid down in articles 44
(1)(
  1. b)or 44(2A)(
  2. c)shall I N C O M E TAX M A N A G E M E NT be followed in all cases before payment is enforced in virtue of such title.
(2)Where in accordance with the provisions of articles 44
(1)(b) or 44(2A)(c), a payment is enforceable against a body of persons in virtue of an executive title, the Commissioner may, without the need of any other act, proceed with such enforcement against every officer thereof who is personally liable therefor in terms of article 7 or of any rules made thereunder. Upon the lapse of the period of two days mentioned in the articles referred to in this subarticle the Commissioner shall be entitled to register in the public registry or land registry, as the case may be, a note of privilege for the amount demanded in the judicial act which note of privilege shall be registered by any advocate or notary. 41.
(1)Where notice of objection or appeal against an assessment has been given, the tax assessed thereunder which is in dispute may be kept in abeyance.
(2)This article shall not apply to the tax deductible in accordance with the provisions of article 23 and to the tax payable in accordance with the provisions of article 42
(2). 42.
(1)Tax due for any year of assessment preceding the year of assessment 1999 shall be payable within the period ending on the last day of the first calendar month immediately following that during which service has been made of a notice of assessment under article 33. (1A) Tax chargeable for the year of assessment 1999 or any subsequent year of assessment shall be due and payable by not later than such date, being a date not earlier than the tax return date as determined in accordance with article 10, during that year, in the Income Tax Acts referred to as the "tax settlement date", as may be prescribed.
(2)Notwithstanding anything contained in sub-article
(1)and (1A), provisional tax shall be paid to the Commissioner in the year immediately preceding the year of assessment by every person in respect of his liability for the year of assessment in such amount and in such manner and on such date as may be prescribed: Provided that the provisions of this sub-article shall not apply to the income of any body of persons arising from activities relating or ancillary to banking, sound or television broadcasting, film renting or insurance (excluding commissions derived from the sale of insurance by bodies of persons residing in Malta) in respect of the liability of such body of persons for any year of assessment preceding the year of assessment 1990.
(3)Apart from any payment of provisional tax which may be due under the provisions of sub-article
(2)(
  1. a)every person shall make payments to be determined by the Commissioner on account of the said person’s outstanding liability to tax for any year of assessment in such amount and in such manner and on such date as may be prescribed; and Procedure in cases where objection or appeal is pending. Amended by: VII.2019.47. Time within which payment is to be made. Amended by: XX. 1996.21; IX. 1999.8; XII. 2014.64; XXXVII. 2014.5; XV. 2016.28; VII.2018.62. I N C O M E TA X M A N A G E M E N T (
  2. b)(Deleted by XV. 2016.28). (
  3. c)every person required to make a self assessment in accordance with article 10
(2), including any person to whom article 12 applies but who does not make an election under that article for that year, shall, by not later than the tax settlement date, pay the amount, if any, that is required to be determined in that selfassessment as the amount of tax payable by that person for that year of assessment; (
  1. d)notwithstanding any other provision contained in this Act or in any other law no person may set off against the tax payable for a year of assessment in accordance with paragraph (
  2. c)any amount whatsoever, including any amount repayable to him or due to him as a credit under the Income Tax Acts for any other year of assessment; Amended by: VII.2018.62.*
(4)(a) Payment of tax due by individuals in terms of article 90A
(7)(
  1. b)of the Income Tax Act shall be made by not later than the 30th April of the year following the relevant year in respect of the income arising during the period January to December of the relevant year. This payment shall be accompanied by a statement of accounts indicating the taxable net profits for the relevant year. (
  2. b)For the purposes of paragraph (
  3. a)"relevant year" means the year during which the income from part-time work is earned; and "taxable net profit" is the result of all incomes and expenses in accordance with established accounting practices but duly adjusted for income tax purposes. Amended by: VII.2018.62.† (
  4. c)Payment of tax due by persons in terms of article 31D of the Income Tax Act shall be made by not later than the 30th April of the year following the relevant year, in respect of the gross rental income received during the period January to December of the relevant year. This payment shall be accompanied by the relevant form which the Commissioner may prescribe indicating the gross rental income received for the relevant year. For the purposes of this paragraph "relevant year" means the calendar year during which the gross rental income is received: Provided that in the case of an individual who exercises the option referred to in article 31D(6A) of the Income Tax Act, payment of tax shall be made by not later than the 30th June 2015. *Applicable as from the year of assessment 2019. †Applicable as from the year of assessment 2019. I N C O M E TAX M A N A G E M E NT
(5)If any person fails to pay any tax as prescribed under or pursuant to this article he shall be chargeable with the tax which should have been so paid and, in addition, with further tax or interest as provided for in article 44, and such tax, additional tax and interest shall be recovered from such person in the same manner as other tax assessed and charged upon him.
(6)For the purposes of sub-article
(5)a notice by the Commissioner to any person showing the tax which should have been paid and any additional tax and interest to which he is liable for having failed to pay the tax shall, unless the contrary is proved, be sufficient evidence that the amount shown in the said notice is the amount due to be paid to the Commissioner by the said person.
(7)The powers conferred upon the Commissioner by subarticles
(5)and
(6)shall be in addition to any right conferred upon him to commence proceedings in respect of an offence under subarticle
(8).
(8)(a) Any person who contravenes or fails to comply with the provisions of this article or of any rules made thereunder shall be liable on conviction to a fine (multa) of not less than one hundred and sixteen euro
(116)and not exceeding one thousand and one hundred and sixty euro (1,160) and to a further fine (multa) of not less than eleven euro
(11)but not exceeding one hundred and sixteen euro
(116)for every day during which the offence continues. (b) The Commissioner may compound any offence under this article and may before judgment stay or compound any proceedings thereunder.
(9)Notwithstanding anything contained in the preceding provisions of this article, any tax payable by an international trading company and by a company with respect to profits allocated to the foreign income account shall not become payable before the earlier of: (
  1. a)the date of distribution of such profits by the company; or (
  2. b)eighteen months after the end of the accounting period in which the aforesaid profits were made by the company. 42A. Notwithstanding anything contained in article 42, tax payable on the income attributable to a trust as defined in article 27B of the Income Tax Act for any year of assessment, shall be paid not later than the tax settlement date as defined in the Income Tax Acts. Time limit within which payment is to be made by trustees. Added by: XIII. 2004.89. Advance Company Income Tax. Added by: II. 2007.24. Amended by: XIII. 2015.122. I N C O M E TA X M A N A G E M E N T 42B.
(1)In addition to the other provisions of this Part and in particular articles 42 and 43 hereof a company shall also pay the tax chargeable on its income in the manner set out in this article.
(2)Upon the payment of a dividend from profits allocated to the foreign income account or the Maltese taxed account the tax which a company is entitled to deduct in terms of article 59 of the Income Tax Act in respect of such dividend together with any additional tax payable in terms of article 44
(1)(a), after deducting any tax credits relative to the profits out of which the dividend is paid excluding any tax credits relative to a claim for relief of double taxation under the articles referred to in articles 74(a), (
  1. b)and (
  2. c)of the Income Tax Act, shall be referred to as Advance Company Income Tax: Provided that with effect from year of assessment 2015, the Advance Company Income Tax shall be determined before deducting tax credits which such company may deduct from its tax otherwise payable other than the tax credit referred to in article 74(
  3. d)of the Income Tax Act.
(3)The amount of Advance Company Income Tax less any claim for relief of double taxation and any tax that the company has paid, as at the date of payment contemplated herein, on the profits out of which the said dividend is paid shall be paid by the company within sixty days the end of the month following that in which the dividend is paid.
(4)Where a dividend is paid out of profits earned in the accounting period in which the dividend is paid the dividend shall, for the purpose of this article, be deemed to have been paid on the last day of that accounting period.
(5)Where a payment of Advance Company Income Tax has been made in accordance with this article, the amount so paid, excluding any additional tax included therein, shall be set-off against any other future

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