The Government of Malta has recently published LN 490 of 2021 entitled ‘Assignments of Rights Acquired under a Promise of Sale Agreement (Amendment) Rules, 2021. The LN is intended to amend LN 191 of 2020, by virtue of which any gains derived from the assignment of rights acquired under a promise of sale agreement that is made on or after 1st January 2020 will be subject to tax at the rate of 15%, when the consideration for the said assignment does not exceed Eur100,000.
The amendments to the rules provide that the income derived from an assignment that is made after the 31st December 2020 but not later than the 31st December 2022, shall be subject to tax at the rate of 15%, regardless of the amount of the consideration for that assignment. This will be made without reference to rules 6, 7, 8 and 9, which provide for the taxation on assignments when the consideration exceeds Eur100,000.
