By means of Legal Notice 460 of 2021, the Government of Malta has extended the date by virtue of which a reduced rate of duty is applicable on donations of assets referred to below, made by individuals to persons referred to in Article 5(2)(e)(i) of the Income Tax Act.
The persons referred to in Article 5(2)(e)(i) of the Income Tax Act are the individual’s spouse, descendants and ascendants in the direct line and their relative spouses, or in the absence of descendants to the individual’s brothers or sisters and their descendants.
The assets referred to above consists of marketable securities issued by a company as well as immovable properties being commercial tenements that had been used in a family business as defined in the Family Business Act for a period of at least 3 years preceding the transfer.
The reduced rate of duty amounts to Eur1.50 on every one hundred euro or part thereof of the value of the above-mentioned assets. The applicability of the reduced rate of duty has been extended by a further year i.e. until 31st December 2022.