S.L. 123.187 Art. 10Reverse hybrid mismatches.

(1) As from 1 January 2022, where one (1) or more associated non-resident entities holding in aggregate a direct or indirect interest in fifty per cent (50%) or more of the voting rights, capital interests or rights to a share of profit in a hybrid entity that is incorporated or established in Malta are located in a jurisdiction or jurisdictions that regard the hybrid entity as a taxable person, the hybrid entity shall be regarded as a resident of Malta and taxed on its income to the extent that that income is not otherwise taxed under any other provision of the Income Tax Acts or in any other jurisdiction.

(2) Sub-regulation (1) shall not apply to a collective investment vehicle. For the purposes of this regulation, "collective investment vehicle" means an investment fund or vehicle that is widely held, holds a diversified portfolio of securities and is subject to investor-protection regulation in the country in which it is established.

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