S.L. 123.165 Art. 6Cessation of special tax status. Cap. 372.

(1) An individual shall, with effect from the appointed day, cease to possess special tax status under these rules:

(a) if, at any time after the appointed day, such individual becomes a permanent resident or a long-term resident of Malta;

(b) if he becomes a Maltese national;

(c) if, at any time, after the appointed day, such individual does not hold a qualifying property holding, including in the case where the said individual lets or sublets the qualifying property holding;

(d) if the individual fails to receive in Malta at least 40% of the UN pension or Widow’s / Widower’s Benefit as indicated in the documentary evidence submitted to the Commissioner according to rule 4(a);

(e) if, after the appointed day, the individual is not in possession of sickness insurance in respect of all risks normally covered for Maltese nationals for himself and his dependants;

(f) if the individual’s stay is not in the public interest, or

(g) if the individual stays in any other jurisdiction for more than one hundred and eighty-three days in a calendar year.

(2) An individual who ceases to possess special tax status for any of the reasons specified in sub-rule (1) shall notify the Commissioner of such event by not later than four weeks from the date when he becomes aware of such event. This notification is to be made on such form as may be required by the Commissioner. Where such notification is not made within the time specified, the person responsible for such event shall be charged an administrative penalty of five thousand euro (€5,000).

(3) An individual shall, with immediate effect, cease to possess special tax status from the relative year of assessment under these rules if he notifies the Commissioner of his intention not to remain in possession of special tax status on such form as the Commissioner may require.

(4) An individual shall, with effect from the beginning of the relative year of assessment, cease to possess special tax status under these rules if he is in breach of the Act and, or of the Income

Tax Management Act.

(5) The Minister shall have the power to condone any failure to satisfy any one of the conditions in sub-rule (1) if:

(a) such failure was due to unforeseen circumstances which are beyond the control of the individual;

(b) such individual notifies the Minister of such failure; and

(c) such individual has exercised his best efforts to remedy the failure.