S.L. 123.127 ст. 13Automatic exchange of information.

(1) The competent authority in Malta shall, by automatic exchange, communicate to the competent authority of any other EU

Member State all information that is available concerning residents of such other EU Member State, on the following specific categories of income and capital:

(a) income from employment;

(b) director’s fees;

(c) life insurance products not covered by other Union legal instruments on exchange of information and other similar measures;

(d) pensions;

(e) ownership of and income from immovable property;

(f) royalties;

(g) non-custodial dividend income other than income from dividends exempt from corporate income tax in accordance with Articles 4, 5 or 6 of Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member

States, as transposed through the European Union Directives Regulations.

(2) Reporting Malta Financial Institutions shall perform the reporting and due diligence rules included in Annexes I and II. In accordance with such applicable reporting and due diligence rules, the competent authority in Malta shall, by automatic exchange, communicate to the competent authority of any other Member State, the following information regarding taxable periods as from 1 January 2016 concerning a Reportable Account of residents in such other Member State:

(a) the name, address, TINs and date and place of birth, in the case of an individual, of each Reportable Person that is an Account Holder of the account and, in the case of any Entity that is an Account Holder and that, after application of due diligence rules consistent with the Annexes I and II, is identified as having one (1) or more Controlling Persons that are Reportable Persons, the name, address, and TINs of the Entity and the name, address, TINs and date and place of birth of each Reportable Person;

(b) the account number, or functional equivalent in the absence of an account number;

(c) the name and identifying number, if any, of the Reporting Financial Institution;

(d) the account balance or value including, in the case of a Cash Value Insurance Contract or Annuity Contract, the Cash Value or surrender value, as of the end of the relevant calendar year or other appropriate reporting period or, if the account was closed during such year or period, the closure of the account;

(e) in the case of any Custodial Account:

(i) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to the assets held in the account, in each case paid or credited to the account, or with respect to the account, during the calendar year or other appropriate reporting period; and

(ii) the total gross proceeds from the sale or redemption of Financial Assets paid or credited to the account during the calendar year or other appropriate reporting period with respect to which the Reporting Financial Institution acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder;

(f) in the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar year or other appropriate reporting period;

(g) in the case of any account not described in paragraphs

(e) or (f), the total gross amount paid or credited to the Account Holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the Reporting Financial Institution is the obligor or debtor, including the aggregate amount of any redemption payments made to the Account Holder during the calendar year or other appropriate reporting period;

(h) whether a valid self-certification has been provided for each Account Holder;

(i) the roles by virtue of which each Reportable Person that is a Controlling Person of an Entity Account Holder is a Controlling Person of the Entity and whether a valid self-certification has been provided for each such Reportable Person;

(j) the type of account, whether the account is a Pre-existing Account or a New Account and whether the account is a joint account, including the number of joint Account Holders; and

(k) in the case of any Equity Interest held in an Investment Entity that is a legal arrangement, the roles by virtue of which the Reportable Person is an Equity Interest holder: Provided that for the purposes of exchange of information under this sub-regulation, unless otherwise foreseen in this sub-regulation or in the Annexes, the amount and characterisation of payments made with respect to Reportable Accounts shall be determined in accordance with Maltese legislation: Provided further, the first paragraph of this sub-regulation shall prevail over paragraph (c) of sub-regulation (1) or any other Union legal instrument, to the extent that the exchange of information at issue would fall within the scope of paragraph (c) of sub-regulation

(1) above or of any other Union legal instrument.

(3) (a) The competent authority in Malta, where an advance cross-border ruling or an advance pricing arrangement was issued, amended or renewed after 31 December

2016 shall, by automatic exchange, communicate information thereon to the competent authorities of all other EU Member States as well as to the European

Commission, with the limitation of cases set out in the proviso to paragraph (e).

(b) The competent authority in Malta shall also communicate information to the competent authorities of all other EU Member States as well as to the European Commission, with the limitation of cases set out in the proviso to paragraph (e), on advance cross-border rulings and advance pricing arrangements issued, amended or renewed within a period beginning five years before 1 January 2017: Provided that if advance cross-border rulings and advance pricing arrangements are issued, amended or renewed between 1 January 2012 and 31 December 2013, such communication shall take place under the condition that they were still valid on 1 January 2014: Provided further that if advance cross-border rulings and advance pricing arrangements are issued, amended or renewed between 1 January 2014 and 31 December 2016, such communication shall take place irrespective of whether they are still valid: Provided also that information on advance cross-border rulings and advance pricing arrangements issued, amended or renewed before 1 April 2016 to a particular person or a group of persons, excluding those conducting mainly financial or investment activities, with a group-wide annual net turnover, as defined in point (5) of Article 2 of Directive 2013/34/ EU of the European Parliament and of the Council of less than forty million euro (€40,000,000), or the equivalent amount in any other currency, in the fiscal year preceding the date of issuance, amendment or renewal of those cross-border rulings and advance pricing arrangements shall be excluded from the communication referred to in this sub-regulation.

(c) Bilateral or multilateral advance pricing arrangements with third countries shall be excluded from the scope of automatic exchange of information under this sub-regulation where the arrangements under which the advance pricing arrangement was negotiated does not permit its disclosure to third parties. Such bilateral or multilateral advance pricing arrangements will be exchanged under regulation 14, where the arrangements under which the advance pricing arrangement was negotiated permits its disclosure, and the competent authority of the third country gives permission for the information to be disclosed: Provided that where the bilateral or multilateral advance pricing arrangements would be excluded from the automatic exchange of information under the first sentence of this paragraph, the information identified in paragraph (e) referred to in the request that lead to issuance of such a bilateral or multilateral advance pricing arrangement shall instead be exchanged under paragraphs (a) and (b).

(d) (i) paragraphs (a) and (b) shall not apply in the case where an advance cross-border ruling exclusively concerns and involves the tax matters of one (1) or more natural persons: Provided that where such an advance cross-border ruling was issued, amended or renewed after 1 January 2026 and where:

(A) the amount of the transaction or series of transactions of the advance cross-border ruling exceeds one million and five hundred thousand euro (€1,500,000) or the equivalent amount in any other currency if such amount is referred to in the advance cross-border ruling; or

(B) the advance cross-border ruling determines whether a person is resident for tax purposes in Malta or otherwise;

(ii) for the purposes of paragraph (A) of the proviso to sub-paragraph (i) and without prejudice to the amount referred to in the advance cross-border ruling, in a series of transactions regarding different goods, services or assets the amount of the advance cross-border ruling shall comprise the total underlying value. The amounts shall not be aggregated if the same goods, services or assets are transacted several times;

(iii) notwithstanding the provisions of paragraph (B) of the proviso to sub-paragraph (i), the exchange of information on advance cross-border rulings concerning natural persons shall not include such rulings on taxation at source with regard to non-residents’ income from employment, director’s fees or pensions.

(e) The information to be communicated by the competent authority in Malta pursuant to paragraphs (a) and (b) shall include the following:

(i) the identification of the person, other than a natural person, except where the advance-cross border ruling concerns a natural person and shall be communicated pursuant to paragraphs (a) and (d), and where appropriate the group of persons to which it belongs;

(ii) a summary of the advance cross-border ruling or advance pricing arrangement, including a description of the relevant business activities or transactions or series of transactions and any other information that could assist the competent authority in assessing a potential tax risk, without leading to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information whose disclosure would be contrary to public policy;

(iii) the dates of issuance, amendment or renewal of the advance cross-border ruling or advance pricing arrangement;

(iv) the start date of the period of validity of the advance cross-border ruling or advance pricing arrangement, if specified;

(v) the end date of the period of validity of the advance cross-border ruling or advance pricing arrangement, if specified;

(vi) the type of the advance cross-border ruling or advance pricing arrangement;

(vii) the amount of the transaction or series of transactions of the advance cross-border ruling or advance pricing arrangement if such amount is referred to in the advance cross-border ruling or advance pricing arrangement;

(viii) the description of the set of criteria used for the determination of the transfer pricing or the transfer price itself in the case of an advance pricing arrangement;

(ix) the identification of the method used for determination of the transfer pricing or the transfer price itself in the case of an advance pricing arrangement;

(x) the identification of the other EU Member States, if any, likely to be concerned by the advance cross-border ruling or advance pricing arrangement;

(xi) the identification of any person, other than a natural person, except where the advance-cross border ruling concerns a natural person and shall be communicated in accordance with paragraphs

(a) and (d), in the other EU Member States, if any, likely to be affected by the advance cross-border ruling or advance pricing arrangement;

(xii) the indication whether the information communicated is based upon the advance cross-border ruling or advance pricing arrangement itself or upon the request referred to in paragraph (c): Provided that information as defined under sub-paragraphs (i), (ii), (viii) and (xi) shall not be communicated to the European Commission.

(f) The competent authority in Malta shall confirm immediately, if possible by electronic means, receipt of the information to the competent authority of the other EU Member State which provided the information without delay and in any event no later than seven working days.

(g) The competent authority in Malta shall in accordance with regulation 12, provide additional information, including the full text of an advance cross-border ruling or an advance pricing arrangement.

(4) (a) The Ultimate Parent Entity of an MNE Group that is resident for tax purposes in Malta, or any other Reporting Entity in accordance with Section II of Annex III, shall file with the Commissioner for Revenue a country-by-country report with respect to its Reporting Fiscal Year in accordance with Section II of Annex III.

(b) The competent authority in Malta shall, by means of automatic exchange, communicate the report received pursuant to paragraph (a) to any other EU Member State in which, on the basis of the information in the country-by-country report, one or more Constituent Entities of the MNE Group of the Reporting Entity are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment within the time limit laid down in sub-regulation (8)(d). Such information shall be exchanged by electronic means using the CCN network.

(c) The country-by-country report shall contain the following information with respect to the MNE Group:

(i) aggregate information relating to the amount of revenue, profit (loss) before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees, and tangible assets other than cash or cash equivalents with regard to each jurisdiction in which the MNE Group operates;

(ii) an identification of each Constituent Entity of the MNE Group setting out the jurisdiction of tax residence of such Constituent Entity, and where different from such jurisdiction of tax residence, the jurisdiction under the laws of which such Constituent Entity is organised, and the nature of the main business activity or activities of such Constituent Entity.

(5) For the purposes of this regulation, any capitalised term shall have the same meaning as assigned to it in the Annexes.

(6) For the purposes of regulation 13(4), a Maltese Constituent Entity shall annually report the country-by-country report as specified in Tables 1, 2 and 3 of Section III of Annex III in such manner as set out in Annex III and within twelve months of the last day of the fiscal year of the MNE group.

(7) (a) Intermediaries shall file information that is within their knowledge, possession or control on reportable cross-border arrangements with the Commissioner within thirty (30) days beginning:

(i) on the day after the reportable cross-border arrangement is made available for implementation; or

(ii) on the day after the reportable cross-border arrangement is ready for implementation; or

(iii) when the first step in the implementation of the reportable cross-border arrangement has been made, whichever occurs first: Provided that intermediaries referred to in paragraph (b) of the definition "intermediary" shall also be required to file information within thirty (30) days beginning on the day after they provided, directly or by means of other persons, aid, assistance or advice.

(b) In the case of marketable arrangements, a periodic report shall be made by the intermediary every three

(3) months, providing an update which contains new reportable information as referred to in sub-paragraphs (i), (iv), (vii) and (viii) of paragraph (o) that has become available since the last report was filed.

(c) An intermediary is liable to file information on reportable cross-border arrangements with the Commissioner for Revenue in the following instances, taken in the following order:

(i) the intermediary is resident in Malta for tax purposes;

(ii) the intermediary is not resident for tax purposes in any EU Member State (including Malta) but has a permanent establishment in Malta through which the services with respect to the arrangement are provided;

(iii) the intermediary is incorporated in Malta or is governed by the laws of Malta and the provisions of sub-paragraphs (i) and (ii) do not apply;

(iv) the intermediary is registered with a professional association related to legal, taxation or consultancy services that is established in Malta and sub-paragraphs (i), (ii) and (iii) do not apply.

(d) Where information is to be filed with the Commissioner and the same information is to be filed with any other competent authority of an EU Member State, the intermediary shall be exempt from filing the information in Malta if it has proof that the same information has been filed in another EU Member State: Provided that the proof may be in such form as the Commissioner may determine.

(e) An intermediary whose profession is referred to in article 3 of the Professional Secrecy Act has the right to a waiver from filing information on a reportable cross-border arrangement where the reporting of such information would constitute an offence under article 257 of the Criminal Code. In such circumstances, the intermediary must notify, without delay and in any event no later than seven working days from the relevant date established by paragraph (a), any other intermediary or, if there is no such intermediary, the relevant taxpayer of their reporting obligations under sub-regulation (6): Provided that intermediaries may only be entitled to a waiver under this paragraph to the extent that they operate within the limits of the relevant national laws that define their professions: Provided further that where an intermediary has waived such reporting obligation, the intermediary shall provide an annual update to the Commissioner, consisting of a list of the reportable cross-border arrangements where the reporting obligation has been waived on to another intermediary or the relevant taxpayer. Such information shall be in such form as the Commissioner may determine: Provided further that an intermediary whose profession in accordance with the Professional Secrecy Act is that of an advocate, notary and legal procurator and such intermediary has waived such reporting obligation, the intermediary shall notify, without delay and in any event not later than seven (7) working days from the relevant date established by paragraph (a), his client, if such client is an intermediary or, where there is no such intermediary, such client is the relevant taxpayer, of that client’s reporting obligations under sub-regulation (6). For the purposes of this paragraph, the term "client" means any intermediary or relevant taxpayer, who receives services, including assistance, advice, counsel or guidance, from a legal professional as defined in accordance with Directive 98/5/EC of the European Parliament and of the Council of 16 February 1998 to facilitate practice of the profession of lawyer on a permanent basis in a Member State other than that in which the qualification was obtained, in relation to a reportable cross-border arrangement: Provided further that with effect from 1st January 2027, an intermediary shall only have the right to a waiver from filing information on a reportable cross-border arrangement in terms of this sub-regulation if such intermediary is a legal professional as defined in terms of Directive 98/5/EC of the European Parliament and of the Council.

(f) Where there is no intermediary or the intermediary notifies the relevant taxpayer or another intermediary of the application of a waiver under paragraph (e), the obligation to file information on a reportable cross-border arrangement shall lie with the other notified intermediary, or, if there is no such intermediary, with the relevant taxpayer.

(g) The relevant taxpayer with whom the reporting obligation lies shall file the information with the Commissioner within thirty (30) days, beginning on:

(i) the day after the reportable cross-border arrangement is made available for implementation to that relevant taxpayer, or

(ii) when it is ready for implementation by the relevant taxpayer, or

(iii) when the first step in its implementation has been made in relation to the relevant taxpayer, whichever occurs first:

(h) A relevant taxpayer has an obligation to file information on the reportable cross-border arrangement with the Commissioner for Revenue, in the following instances, taken in the following order:

(i) the relevant taxpayer is resident in Malta for tax purposes;

(ii) the relevant taxpayer is not resident for tax purposes in any EU Member State (including Malta) but has a permanent establishment in Malta benefiting from the arrangement;

(iii) the relevant taxpayer receives income or generates profits in Malta, although the relevant taxpayer is not resident for tax purposes and has no permanent establishment in any EU Member State and the provisions of sub-paragraphs (i) and (ii) do not apply;

(iv) the relevant taxpayer carries on an activity in Malta, although the relevant taxpayer is not resident for tax purposes and has no permanent establishment in any other EU Member State and sub-paragraphs (i), (ii) and (iii) do not apply.

(i) Where, pursuant to paragraph (g), there is a multiple reporting obligation, the relevant taxpayer shall be exempt from filing the information if it has proof that the same information has been filed in another EU Member State: Provided that the proof may be in such form as the Commissioner may determine.

(j) Where there is more than one intermediary, the obligation to file information on the reportable cross-border arrangement shall lie with all intermediaries involved in the same reportable cross-border arrangement. An intermediary shall be exempt from filing the information only to the extent that it has proof that the same information referred to in paragraph (o) has already been filed by another intermediary: Provided that the proof may be in such form as the Commissioner may determine.

(k) (i)Where the reporting obligation lies with the relevant taxpayer and where there is more than one relevant taxpayer, the relevant taxpayer that is to file information in accordance with paragraph (f) shall be the one that features first in the list below:

(A) the relevant taxpayer that agreed the reportable cross-border arrangement with the intermediary;

(B) the relevant taxpayer that manages the implementation of the arrangement.

(ii) Any relevant taxpayer shall only be exempt from filing the information to the extent that it has proof that the same information referred to in paragraph (o) has already been filed by another relevant taxpayer: Provided that the proof may be in such form as the Commissioner may determine.

(l) A relevant taxpayer shall file information as the Commissioner may determine, about the use of the arrangement to the tax administration in each of the years for which they use it.

(m) Intermediaries and relevant taxpayers shall file information on reportable cross-border arrangements the first step of which was implemented between 25th June th 2018 and 30 June 2020. Intermediaries and relevant taxpayers, as appropriate, shall file information on those th reportable cross-border arrangements by 28 February 2021.

(n) The competent authority in Malta shall, by means of an automatic exchange, communicate the information specified in paragraph (o) to the competent authorities of all other EU Member States.

(o) The information to be communicated by the competent authority in Malta pursuant to paragraph (n) shall contain the following, as applicable:

(i) the identification of intermediaries, other than intermediaries exempt from the reporting obligation in accordance with paragraph (e), and relevant taxpayers, including their name, date and place of birth, in the case of an individual, residence for tax purposes, TIN and, where appropriate, the persons that are associated enterprises to the relevant taxpayer;

(ii) details of the hallmarks set out in Annex IV that make the cross-border arrangement reportable;

(iii) a summary of the content of the reportable cross-border arrangement, including a reference to the name by which it is commonly known, if any, and a description of the relevant arrangements and any other information which may assist the receiving competent authority in assessing a potential tax risk, without leading to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information the disclosure of which would be contrary to public policy;

(iv) the date on which the first step in implementing the reportable cross-border arrangement has been made or will be made;

(v) details of the national provisions that form the basis of the reportable cross-border arrangement;

(vi) the value of the reportable cross-border arrangement;

(vii) the identification of the EU Member State of the relevant taxpayer(s) and any other EU Member States which are likely to be concerned by the reportable cross-border arrangement;

(viii) the identification of any other person in an EU Member State likely to be affected by the reportable cross-border arrangement, indicating to which EU Member States such person is linked: Provided that information as defined under sub-paragraphs (i), (iii) and (viii) shall not be communicated to the European Commission.

(p) The fact that the Commissioner does not trigger an enquiry in relation to a reportable cross-border arrangement shall not in any way affect any of the powers of the Commissioner under the provisions of the Income Tax Management Act

(8) The communication of information shall take place as follows:

(a) for the categories laid down in sub-regulation (1), at least once a year, within six months following the end of the year immediately preceding the year of assessment during which the information became available;

(b) for the information stipulated in sub-regulation (2), annually, within nine (9) months following the end of the year of assessment during which the information became available: Provided that the competent authority in Malta shall communicate the information referred to in paragraphs

(h) to (k) regarding taxable periods as from 1st January 2026;

(c) for the information laid down in sub-regulation (3):

(i) within three months following the end of the half of the calendar year during which the advance cross-border rulings or advance pricing arrangements have been issued, amended or renewed, in respect of the information exchanged pursuant to sub-regulation (3)(a): Provided that with effect from 1st January 2023, the communication of information shall take place without delay after the advance cross-border rulings or advance pricing arrangements have been issued, amended or renewed and at the latest three

(3) months following the end of the half of the calendar year during which the advance cross-border rulings or advance pricing arrangements were issued, amended or renewed;

(ii) before 1 January 2018 in respect of the information exchanged pursuant to sub-regulation (3)(b).

(d) for the information laid down in sub-regulation (4), annually, within fifteen months of the last day of the fiscal year of the MNE Group to which the country-by-country report relates. The first country-by-country report shall be communicated for the fiscal year of the MNE Group commencing on or after 1 January 2016, which shall take place within eighteen months after the last day of that fiscal year.

(e) for the information laid down in sub-regulation (7), within one (1) month of the end of the quarter in which the information was filed. The first information shall be communicated by 30th April 2021;

(f) for the information laid down in sub-regulation (12), within two ( 2 ) months following the end of the Reportable Period to which the reporting requirements applicable to the Reporting Malta Platform Operator relate. The first information shall be communicated for Reportable Periods as from 1st January 2023;

(g) for the information stipulated in sub-regulation (13), within nine (9) months following the end of the calendar year to which the reporting requirements applicable to Reporting Malta Crypto-Asset Service Providers relate. The first information shall be communicated for the relevant calendar year or other appropriate reporting period as from 1 January 2026.

(9) For the purposes of this regulation: "automatic exchange of information" means:

(a) for the purposes of sub-regulations (1), (3), (4), (7), (12) and (13), the systematic communication of pre-defined information to another Member State, without a prior request, at pre-established regular intervals. For the purposes of sub-regulation (1), the reference to available information relates to information in the tax files of Malta, which is retrievable in accordance with the procedures for gathering and processing information in Malta;

(b) for the purposes of sub-regulation (2), the systematic communication of pre-defined information on residents in other EU Member States to the relevant EU Member State of residence, without prior request, at pre-established regular intervals; for the purposes of the provisions of these regulations that (c) implement the EU Administrative Cooperation Directive, other than sub-regulations (1), (2), (3), (4), (7), (12) and (13), the systematic communication of pre-defined information provided in paragraphs (a) and (b); "advance cross-border ruling" means any agreement, communication, or any other instrument or action with similar effects, including one issued, amended or renewed in the context of an enquiry in terms of article 13 of the Income Tax Management

Act, including a tax audit, and which meets the following conditions:

(a) is issued, amended or renewed by the Commissioner, or on behalf of, the Government of Malta, irrespective of whether it is effectively used;

(b) is issued, amended or renewed, to a particular person or a group of persons, and upon which that person or a group of persons is entitled to rely;

(c) concerns the interpretation or application of a legal or administrative provision concerning the administration or enforcement of Maltese law relating to taxes;

(d) relates to a cross-border transaction or to the question of whether or not activities carried on by a person in another jurisdiction create a permanent establishment or to the question of whether or not a natural person is resident for tax purposes in the Member State issuing the ruling; and

(e) is made in advance of the transactions or of the activities in another jurisdiction potentially creating a permanent establishment or in advance of the filing of a tax return covering the period in which the transaction or series of transactions or activities took place. For the purpose of this definition:

(i) a cross-border transaction may involve, but is not restricted to, the making of investments, the provision of goods, services, finance or the use of tangible or intangible assets and does not have to directly involve the person receiving the advance cross-border ruling;

(ii) "cross-border transaction" means a transaction or series of transactions where:

(A) not all of the parties to the transaction or series of transactions are resident for tax purposes in Malta;

(B) any of the parties to the transaction or series of transactions is simultaneously resident for tax purposes in more than one jurisdiction;

(C) one of the parties to the transaction or series of transactions carries on business in another jurisdiction through a permanent establishment and the transaction or series of transactions forms part or the whole of the business of the permanent establishment. A cross-border transaction or series of cross-border transactions shall also include arrangements made by a person in respect of business activities in another jurisdiction which that person carries on through a permanent establishment; or

(D) such transactions or series of transactions have a cross border impact.

"advance pricing arrangement" means any agreement, communication or any other instrument or action with similar effects, including one issued, amended or renewed in the context of an enquiry in terms of article 13 of the Income Tax Management Act, including a tax audit, and which meets the following conditions:

(a) is issued, amended or renewed by the Commissioner, or on behalf of, the Government of Malta or more EU Member States irrespective of whether it is effectively used;

(b) is issued, amended or renewed, to a particular person or a group of persons and upon which that person or a group of persons is entitled to rely; and

(c) determines in advance of cross-border transactions between associated enterprises, an appropriate set of criteria for the determination of the transfer pricing for those transactions or determines the attribution of profits to a permanent establishment. For the purpose of this definition:

(i) enterprises are associated enterprises where one enterprise participates directly or indirectly in the management, control or capital of another enterprise or the same persons participate directly or indirectly in the management, control or capital of the enterprises;

(ii) transfer prices are the prices at which an enterprise transfers physical goods and intangible property or provides services to associated enterprises, and "transfer pricing" is to be construed accordingly;

(iii) "cross-border transaction" means a transaction or series of transactions involving associated enterprises which are not all resident for tax purposes in the territory of a single jurisdiction or a transaction or series of transactions which have a cross border impact, and "enterprise" means any form of conducting business. "arrangement" shall also include a series of arrangements. An arrangement may comprise more than one step or part; "cross-border arrangement" means an arrangement concerning either more than one EU Member State or an EU Member State and a third country where at least one of the following conditions is met:

(a) not all of the participants in the arrangement are resident for tax purposes in the same jurisdiction;

(b) one or more of the participants in the arrangement is simultaneously resident for tax purposes in more than one jurisdiction;

(c) one or more of the participants in the arrangement carries on a business in another jurisdiction through a permanent establishment situated in that jurisdiction and the arrangement forms part or the whole of the business of that permanent establishment;

(d) one or more of the participants in the arrangement carries on an activity in another jurisdiction without being resident for tax purposes or creating a permanent establishment situated in that jurisdiction;

(e) such arrangement has a possible impact on the automatic exchange of information or the identification of beneficial ownership;

"reportable cross-border arrangement" means any cross-border arrangement that contains at least one of the hallmarks set out in Annex IV; "hallmark" means a characteristic or feature of a cross-border arrangement that presents an indication of a potential risk of tax avoidance, as listed in Annex IV; "intermediary" means any person:

(a) that designs, markets, organises or makes available for implementation or manages the implementation of a reportable cross-border arrangement;

(b) that, having regard to the relevant facts and circumstances and based on available information and the relevant expertise and understanding required to provide such services, knows or could be reasonably expected to know that they have undertaken to provide, directly or by means of other persons, aid, assistance or advice with respect to designing, marketing, organising, making available for implementation or managing the implementation of a reportable cross-border arrangement: Provided that any person shall have the right to provide evidence that such person did not know and could not reasonably be expected to know that that person was involved in a reportable cross-border arrangement. For this purpose, that person may refer to all relevant facts and circumstances as well as available information and their relevant expertise and understanding. In addition to the above, in order to be an intermediary, a person shall meet at least one of the following additional conditions:

(a) be resident for tax purposes in an EU Member State; have a permanent establishment in an EU Member (b) State through which the services with respect to the arrangement are provided;

(c) be incorporated in, or governed by the laws of an EU Member State;

(d) be registered with a professional association related to legal, taxation or consultancy services in an EU Member State. "relevant taxpayer" means any person to whom a reportable cross-border arrangement is made available for implementation, or who is ready to implement a reportable cross-border arrangement or has implemented the first step of such an arrangement. For the purposes of sub-regulation (7), "associated enterprise" means a person who is related to another person in at least one of the following ways:

(a) a person participates in the management of another person by being in a position to exercise a significant influence over the other person;

(b) a person participates in the control of another person through a holding that exceeds 25% of the voting rights;

(c) a person participates in the capital of another person through a right of ownership that, directly or indirectly, exceeds 25% of the capital;

(d) a person is entitled to 25% or more of the profits of another person: Provided that:

(i) if more than one person participates, as referred to in paragraphs (a) to (d), in the management, control, capital or profits of the same person, all persons concerned shall be regarded as associated enterprises;

(ii) if the same persons participate, as referred to in paragraphs (a) to (d), in the management, control, capital or profits of more than one person, all persons concerned shall be regarded as associated enterprises;

(iii) for the purposes of this definition, a person who acts together with another person in respect of the voting rights or capital ownership of an entity shall be treated as holding a participation in all of the voting rights or capital ownership of that entity that are held by the other person;

(iv) in indirect participations, the fulfilment of requirements under paragraph (c) shall be determined by multiplying the rates of holding through the successive tiers. A person holding more than 50% of the voting rights shall be deemed to hold 100%;

(v) an individual, his or her spouse and his or her lineal ascendants or descendants shall be treated as a single person;

"marketable arrangement" means a cross-border arrangement that is designed, marketed, ready for implementation or made available for implementation without a need to be substantially customised; "bespoke arrangement" means any cross-border arrangement that is not a marketable arrangement; "non-custodial dividend income" means dividends or other income treated as dividends in the payer’s Member State which are paid or credited to an account other than a Custodial Account as defined in sub-paragraph (3) of paragraph C of Section VIII, of Annex I; "life insurance products not covered by other Union legal instruments on exchange of information and other similar measures" means Insurance Contracts, other than Cash Value Insurance Contracts subject to reporting under Section I of Annex I, where benefits under the contracts are payable on the death of a policy holder;

"distributed ledger address" means distributed ledger address referred to in Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937;

(10) The coming into effect of the above provisions shall be as follows:

(a) the provisions of sub-regulation (1) and (7)(a) shall be on 1 January 2015: Provided that the provisions of sub-regulation (1)(f) shall be deemed to have come into force on 1 January 2024;

(b) the provisions of sub-regulation (2) and (7)(b) shall be on 1 January 2016;

(c) the provisions of sub-regulation (3) and (7)(c) shall be on 1 January 2017; (d the provisions of sub-regulation (4) and (7)(d) shall be on 5 June 2017;

(e) the provisions of sub-regulations (7) and (8)(e) shall be on 1 July 2020;

(f) the provisions of sub-regulations (8)(f) and (12) shall be deemed to have come into force on 1st January 2023;

(g) the provisions of sub-regulations (2)(h) to (k) and (13) shall be deemed to have come into force on 1 January 2026.

(11) The competent authority in Malta shall provide the

Commission, on an annual basis, with statistics on the volume of automatic exchanges in accordance with this regulation and, to the extent possible, with information on the administrative and other relevant costs and benefits relating to exchanges that have taken place and any potential changes, for both tax administrations and third parties.

(12) (a) A Reporting Malta Platform Operator shall apply the due diligence procedures and fulfil reporting requirements laid down in Sections II and III of Annex V.

(b) The competent authority in Malta shall, by means of automatic exchange, communicate the report received in accordance with paragraph (a) within the time limit laid down in sub-regulation (8)(f), to the competent authority of the Member State in which the Reportable Seller is resident as determined pursuant to paragraph D of Section II of Annex V and, where the Reportable Seller provides immovable property rental services, in any case to the competent authority of the Member State in which the immovable property is located.

(c) The information regarding each Reportable Seller to be communicated by the competent authority in Malta pursuant to paragraph (b) shall be the following:

(i) the name, the registered office address, the TIN and, where relevant, the identification number of the Reporting Malta Platform Operator, as well as the business name of the Platform in respect of which the Reporting Platform Operator is reporting;

(ii) the n a m e a n d s u r n a m e of the Reportable Seller who is an individual, and the legal name of the Reportable Seller that is an Entity;

(iii) the Primary Address;

(iv) any TIN of the Reportable Seller, including each Member State of issuance or, in the absence of a TIN, the place of birth of the Reportable Seller who is an individual;

(v) the business registration number of the Reportable Seller that is an Entity;

(vi) the VAT identification number of the Reportable Seller, where available;

(vii) the date of birth of the Reportable Seller who is an individual;

(viii) the Financial Account Identifier to which the Consideration is paid or credited, insofar as it is available to the Reporting Malta Platform Operator, and unless the competent authority of the Member State where the Reportable Seller is resident within the meaning of paragraph D of Section II of Annex V has not notified the competent authorities of all other Member States that it does not intend to use the Financial Account Identifier for this purpose;

(ix) where different from the name of the Reportable Seller, in addition to the Financial Account Identifier, the name of the holder of the financial account to which the Consideration is paid or credited, to the extent available to the Reporting Malta Platform Operator, as well as any other financial identification information available to the Reporting Malta Platform Operator with respect to such account holder;

(x) each Member State in which the Reportable Seller is resident determined pursuant to paragraph D of Section II of Annex V;

(xi) the total Consideration paid or credited during each quarter of the Reportable Period and the number of Relevant Activities in respect of which it was paid or credited; and

(xii) any fees, commissions or taxes withheld or charged by the Reporting Malta Platform Operator during each quarter of the Reportable Period;

(xiii) the Identification Service identifier and the Member State of issuance, where the Reporting Platform Operator relies on direct confirmation of the identity and residence of the Seller through an Identification Service made available by a Member State or the Union to ascertain the identity and tax residence of the Seller; in such cases it is not necessary to communicate to the Member State of issuance of the Identification Service identifier the information referred to in sub-paragraphs

(iii) to (vii): Provided that where the Reportable Seller provides immovable property rental services, the following additional information shall be communicated:

(i) the address of each Property Listing, determined on the basis of the procedures set out in paragraph E of Section II of Annex V and the respective land registration number or its equivalent under the national law of the Member State where it is located, where available;

(ii) the total Consideration paid or credited during each quarter of the Reportable Period and the number of Relevant Activities provided with respect to each Property Listing; and

(iii) where available, the number of days each Property Listing was rented during the Reportable Period and the type of each Property Listing.

(d) Where the information that is required to be reported in accordance with paragraph B of Section III of Annex V is incomplete or inaccurate, the Commissioner may request the reporting of complete and accurate information as is required in accordance with these regulations.

(e) A Reporting Malta Platform Operator within the meaning of sub-paragraph A(7) of Section 1 of Annex V shall register with the Commissioner in such manner and within such period of time that the Commissioner mayrequire, by means of guidelines published on the website of the Commissioner for Revenue in accordance with the provisions of article 96(2) of the Income Tax Act:

Provided that a Reporting Malta Platform Operator within the meaning of sub-paragraph A(7)(e) of Section 1 of Annex V shall register once it commences its activity as a Platform Operator:

Provided further that a Reporting Malta Platform Operator within the meaning of part A(7)(e) of Section 1 of Annex V shall use service providers to fulfil its registration and reporting obligations specified in these regulations, which obligations shall remain the responsibility of the Reporting Malta Platform Operator:

Provided further that a Reporting Platform Operator within the meaning of sub-paragraph A(4)(b) of Section I of Annex V shall not be required to register with the Commissioner for the purpose of these regulations, if such Platform Operator is resident for tax purposes in a non-Union jurisdiction which has an Effective Qualifying Competent Authority Agreement, which already provides for the automatic exchange of equivalent information with Malta on Reportable Sellers resident in Malta.

(f) The Reporting Platform Operator, having successfully registered with the Commissioner in Malta as its Member State of its single registration, shall notify the competent authority in Malta of any change in the information provided in accordance with sub-paragraph B(2) of Section III of Annex V.

(g) (i) Notwithstanding the administrative penalties stipulated in regulation 52, where a Reporting Platform Operator, after having registered with the Commissioner in Malta as its Member State of its single registration, fails to report the information required to be reported in accordance with sub-paragraph A(3) of Section III of Annex V following two (2) reminders by the Commissioner, it shall have its registration revoked. The registration shall be revoked not later than after the expiration of ninety (90) days but not prior to the expiration of thirty (30) days after the second reminder.

(ii) A Reporting Platform Operator whose registration has been revoked may be permitted to re-register with the Commissioner on the condition that it provides appropriate assurances as regards to its commitment to comply with the reporting requirements within the Union, including any outstanding unfulfilled reporting requirements.

(iii) The competent authority in Malta, as the competent authority of the Member State of single registration, shall remove a Reporting Platform Operator from the central register in the following cases:

(A) the Platform Operator notifies the Commissioner in Malta that it no longer carries out any activity as a Platform Operator;

(B) in the absence of a notification pursuant to point (A), there are grounds to assume that the activity of a Platform Operator has ceased;

(C) the Platform Operator no longer meets the conditions laid down in A(7)(e) of Section 1 of Annex V;

(D) the Commissioner in Malta revoked the registration pursuant to this paragraph.

(h) Where a Platform Operator is deemed to be an Excluded Platform Operator, the competent authority in Malta shall notify the competent authorities of all other Member States accordingly, including any subsequent changes.

(i) Subject to the provisions of article 19 of the Income Tax

Management Act, a Reporting Malta Platform Operator shall maintain and retain all the documentation and information it collects in the course of meeting its reporting and due diligence obligations specified in this sub-regulation and Sections II and III of Annex V for a minimum period of five (5) years which start to run from the end of the year to which the information relates. In so doing, a Reporting Malta Platform Operator shall keep records of the steps undertaken in relation to any evidence relied upon for the performance of its obligations and adequate measures to obtain the said records.

(13) (a) A Reporting Malta Crypto-Asset Service Provider shall apply the due diligence procedures and fulfil reporting requirements established in Sections II and III of Annex VI.

(b) The competent authority in Malta shall, by means of automatic exchange, communicate the information specified in paragraph (c) to the competent authorities of the EU Member States concerned within the time limit established in sub-regulation (8)(g).

(c) The competent authority in Malta shall communicate the following information regarding each Reportable Person:

(i) the name, address, Member States of residence, TINs and, in the case of an individual, date and place of birth of each Reportable User and, in the case of any Entity that, after application of the due diligence procedures established in Section III of Annex VI is identified as having one (1) or more Controlling Persons that is a Reportable Person, the name, address, Member States of residence and TINs of the Entity and the name, address, Member States of residence, TINs and date and place of birth of each Controlling Person of the Entity that is a Reportable Person, as well as the roles by virtue of which each such Reportable Person is a Controlling Person of the Entity:

Provided that where the Reporting Crypto-Asset Service Provider relies on direct confirmation of the identity and residence of the Reportable Person through an Identification Service made available by a Member State or the Union to ascertain the identity and tax residence of the Reportable Person, the information which shall be communicated to the Member State of issuance of the Identification Service identifier regarding the Reportable Person shall include the name, the Identification Service identifier and the Member State of issuance, as well as the roles by virtue of which each Reportable Person is a Controlling Person of the Entity;

(ii) the name, address, TIN and, if available, the individual identification number referred to in paragraph (g) and the global legal entity identifier of the Reporting Crypto-Asset Service Provider;

(iii) for each type of Reportable Crypto-Asset with respect to which the Reporting Crypto-Asset Service Provider has effectuated Reportable Transactions during the relevant calendar year or other appropriate reporting period, where relevant:

(A) the full name of the type of Reportable Crypto-Asset;

(B) the aggregate gross amount paid, the aggregate number of units and the number of Reportable Transactions in respect of acquisitions against Fiat Currency;

(C) the aggregate gross amount received, the aggregate number of units and the number of Reportable Transactions in respect of disposals against Fiat Currency;

(D) the aggregate fair market value, the aggregate number of units and the number of Reportable Transactions in respect of acquisitions against other Reportable Crypto-Assets;

(E) the aggregate fair market value, the aggregate number of units and the number of Reportable Transactions in respect of disposals against other Reportable Crypto-Assets;

(F) the aggregate fair market value, the aggregate number of units and the number of Reportable Retail Payment Transactions;

(G) the aggregate fair market value, the aggregate number of units and the number of Reportable Transactions and subdivided by transfer type where known by the Reporting Crypto-Asset Service Provider, in respect of Transfers to the Reportable User not covered by points (B) and (D);

(H) the aggregate fair market value, the aggregate number of units and the number of Reportable Transactions, and subdivided by transfer type where it is known by the Reporting Crypto-Asset Service Provider, in respect of transfers by the Reportable User not covered by points (C), (E) and (F); and

(I) the aggregate fair market value, as well as the aggregate number of units of Transfers effectuated by the Reporting Crypto-Asset Service Provider to distributed ledger addresses referred to in Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations No (EU) 1093/2010 and No (EU) 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 not known to be associated with a virtual asset service provider or Financial Institution:

Provided that for the purposes of points (B) and (C), the amount paid or received shall be communicated in the Fiat Currency in which it was paid or received. In case the amounts were paid or received in multiple Fiat Currencies, the amounts shall be communicated in a single Fiat Currency, converted at the time of each Reportable Transaction in a manner that is consistently applied by the Reporting Crypto-Asset Service Provider:

Provided further that for the purposes of points (D) and (I), the fair market value shall be determined and communicated in a single Fiat Currency, valued at the time of each Reportable Transaction in a manner that is consistently applied by the Reporting Crypto-Asset Service Provider:

Provided further that the information communicated shall specify the Fiat Currency in which each amount is reported.

(d) The European Commission shall not have access to the information referred to in sub-paragraphs (c)(i) and (ii).

(e) For the purpose of complying with the reporting requirements referred to in paragraph (a), a Crypto-Asset Operator within the meaning of sub-paragraph B(2) of Section IV of Annex VI shall register with the Commissioner in such manner and within such period of time that the Commissioner may require, by means of guidelines published on the website of the Commissioner for Tax and Customs in accordance with the provisions of article 96(2) of the Income Tax Act.

(f) A Crypto-Asset Operator whose registration has been revoked in accordance with sub-paragraph F(7) of Section V of Annex VI shall only be permitted to register again if it provides to the Commissioner appropriate assurance as regards its commitment to comply with the reporting requirements within the Union, including any outstanding unfulfilled reporting requirements.

(g) Paragraphs (e) and (f) shall not apply to Crypto-Asset Service Providers within the meaning of sub-paragraph B(1) of Section IV, of Annex VI.