Malta: Trusts (Income Tax) Regulations

1. (1) The title of these regulations is the Trusts (Income Tax) Regulations.
(2) These rules shall be deemed to have come into force on 1st January 2005.

2. (1) Trustees of a trust that are persons resident in Malta have the obligation to ensure that such trust is registered for the purposes of the Income Tax Acts. Such registration is to be made on Form Trusts 01 contained in Schedule 1 within thirty days from the date of appointment of the first trustee that is a person resident in Malta, or from the date of publication of these regulations, whichever is the later date. The said form shall be signed by each of the trustees of such trust that are persons resident in Malta, and such resident trustees shall have the joint obligation to submit the said form to the Commissioner:
Provided that the provisions of this subregulation do not apply to those cases referred to in article 27D(3)(b) and (c) of the Income Tax Act.
(2) An election for the purposes of the treatment of the income attributable to a trust as income derived by a company ordinarily resident and domiciled in Malta, as provided for in article 27D(1) of the Income Tax Act, shall be made on Form Trusts 01 contained in Schedule 1.
(3) An application to the Commissioner for a determination under the provisions of article 27D(2) of the Income Tax Act shall be made within thirty days from the date of appointment of the first trustee that is a person resident in Malta, and that is in possession of a valid licence issued in terms of the Banking Act or of the Financial Institutions Act on Form Trusts 01 contained in Schedule 1.

3. The return to be made under the provisions of article 5(19)(e) of the Income Tax Act by a trustee in respect of the gains arising on the transfer of beneficial interest, shall be made on Form Trusts 02 contained in Schedule 2.

4. (1) The return to be made under the provisions of article 27D(2)(iv) of the Income Tax Act by a trustee with respect to the income attributable to a trust for which a determination has been made in terms of article 27D(2) of the Income Tax Act shall be made on Form Trusts 03 contained in Schedule 3. This return shall be signed by at least one trustee of such trust that is a person resident in Malta and that is in possession of a valid licence issued in terms of the Banking Act or of the Financial Institutions Act. Such trustee shall have the obligation to submit the said return to the Commissioner.
(2) Where a determination has been made in terms of article 27D(2), tax in relation to the income attributable to such trust is payable not later than the tax settlement date.

5. The return to be made under article 10 of the Income Tax Management Act by a trustee with respect to the income attributable to a trust for which a valid election as provided for in article 27D(1) of the Income Tax Act has been made, shall be made on the same form which has been prescribed to be used by companies for the declaration of their income. Such return shall be signed by at least one trustee of such trust that is a person resident in Malta and such resident trustee shall have the obligation to submit the said form to the Commissioner.

6. The return to be made under article 10 of the Income Tax Management Act by a trustee with respect to the income attributable to a trust for which no election as provided for in article 27D(1) of the Income Tax Act has been made, and no determination under the provisions of article 27D(2) of the Income Tax Act has been made, shall be made on Form Trusts 04 contained in Schedule 4. Such return shall be signed by at least one trustee of such trust that is a person resident in Malta and such resident trustee shall have the obligation to submit the said form to the Commissioner.

7. The information referred to in article 24B of the Income Tax Management Act shall be submitted to the Commissioner in the Form Trusts 05 contained in Schedule 5.

8. (1) Where a person intends to transfer assets referred to in article 5(1)(a)(i) and (ii) of the Income Tax Act, which transfer constitutes a settlement of property on trust or a distribution or reversion of property settled on trust, and no tax is payable on such transfer in accordance with any of the relevant provisions of article 5(18), (21), (22) and (24) of the Income Tax Act, such person may make and submit a declaration in duplicate to the Commissioner on Form Trusts 06 contained in Schedule 6 not later than seven days prior to the said transfer. This form shall be signed by all the persons making the transfer and must be signed by at least one person that is either the trustee of the relevant trust provided that such trustee is authorised to act as trustee in terms of article 43 and 43A of the Trusts and Trustees Act, or an advocate or a notary. A copy of a duly filled in Form Trusts 06 that is stamped as received by the Commissioner, shall constitute sufficient evidence to the relevant notary for the non-payment of provisional tax in relation to such transfer. A copy of the said stamped Form Trusts 06 that is presented to the relevant notary shall be annexed to the relevant instrument of transfer of assets.
(2) The Commissioner shall retain all the relevant powers conferred by the Income Tax Acts concerning the transfer of assets referred to in the Form Trusts 06, even after having stamped such Form as received.

9. The certificate referred to in article 27D(4)(b)(ii) of the Income Tax Act shall contain the information specified in Schedule 7.

10. For the purposes of article 42(2) of the Income Tax Management Act, and notwithstanding anything contained in any regulations made thereunder, no provisional tax shall be payable in respect of the income attributable to a trust unless a valid election as provided for in article 27D(1) of the Income Tax Act has been made.

SCHEDULE 7 (Regulation 9) Information to be included in the certificate issued by the trustee to the beneficiary of a trust upon an allocation:
1.Amounts over which the beneficiary has vested right.
2.Amounts over which an entitlement has been bestowed to the beneficiary.
3. Amounts distributed to the beneficiary. For each of the above, the trustee is to specify:
1.Date of allocation
2.Date of distribution (where applicable)
3.The type of income
4.The country of source
5.The gross amount
6.Any foreign tax suffered on such amounts
7.The net amount
8.Declaration by trustee, where applicable, that tax has been paid in terms of article 27D(4)(b)(iii) of the Income Tax Act.

See here for schedules 1-6.