S.L. 123.198 Art. 5Tax on assignments where the consideration does not exceed one-hundred thousand euro (€100,000). Cap. 372. Cap. 372.

(1) When the consideration for an assignment to which these rules apply does not exceed one-hundred thousand euro

(€100,000), the income derived from that assignment, computed in accordance with rule 4, shall be subject to tax at the rate of fifteen euro cents (€0.15) for every euro or part thereof.

(2) The tax mentioned in sub-rule (1) shall be final and shall be separate and distinct from that paid or payable under any other provisions of the Act or of the Income Tax Management Act. It shall not be available as a credit against the tax liability of any other person or as a refund.

(3) The income derived from an assignment mentioned in sub-rule (1) shall not form part of the total income of the person deriving that income. Any loss that may be incurred in any such assignment shall not be available by way of deduction from or set off against income derived from any other assignment or from any other source. When the assignor is an individual, he shall not be required to disclose that income in any return made pursuant to article 10 of the Income Tax Management Act. When the assignor is a company resident in Malta, it shall allocate the distributable profits derived from the assignment to its final tax account.

(4) The tax chargeable on the income derived from an assignment mentioned in sub-rule (1) shall be due by the assignor and shall be paid to the notary or advocate who authenticates the relative written agreement. The said notary or advocate shall remit the tax to the Commissioner within twenty-one (21) days of the relative assignment and, in default, shall be liable for the tax jointly and severally with the assignor:

Provided that the liability of the said notary or advocate in terms of this rule shall be limited to the amount of tax payable by reference to the information provided by the parties as recorded in the notice of the assignment.