MALTA: Updates for Automatic Exchange of Information.

As published on tax-news.com, Wednesday January 8, 2020.


Malta's Commissioner for Revenue on January 2, 2020, issued a single set of guidelines on the automatic exchange of financial account information.

According to the Commissioner, the guidelines incorporate further clarifications and salient changes, including:

  • A clarification on entity classification pertaining to cell companies, in line with the previous determinations issued by the Commissioner for Revenue;

  • Clarification that Holding and Treasury Companies of financial institutions (FIs) that do not fall within the definition of a financial institution are no longer deemed as FIs for the purposes of the US Foreign Account Tax Compliance Act (FATCA);

  • Clarification on Distributed Ledger Technology assets, to align the guidance with the guidelines issued by the Commissioner on this matter for tax purposes;

  • More complete notes on registration and modifications of domestic registrations and the introduction of guidance on the cancellation of domestic registration and Global Intermediary Identification Number (GIIN);

  • Clarifications on reporting obligations pertaining to structures with underlying structures that do not have a separate legal personality;

  • The definition of passive income has been aligned in its entirety with the Income Tax Act to ensure more certainty;

  • Current citizenship by investment/ residence by investment guidelines will be extended to FATCA;
    To note changes to deadlines limited to the "excel spreadsheet" submissions;

  • The release of detailed guidelines on the completion of data elements; and

  • Updated information on recalcitrant accounts/ undocumented accounts.