Amendment to the Tax Accounts (Income Tax) Rules

The Tax Accounts (Income Tax) Rules have been amended through LN 194 of 2019, published on 6 August 2019.

As a result of the amendment:

• Profits derived through the application of the participation exemption in terms of Article 12(1)(u) of the Income Tax Act (ITA) are no longer allocated to the Final Tax Account (FTA), and as a result would fall to be  allocated to the Untaxed Account; and
• Profits derived from transfers of immovable property situated in Malta and chargeable to tax through the application of the mechanism stipulated in Article 27G of the ITA (applicable to qualifying property transfers by companies with listed debt securities) will fall to be allocated to the FTA.

The amendment will come into force with effect from year of assessment 2020.