The new Individual Savings Account Rules 2014

Recently a new exemption from income tax has been added to list of exemptions.  The new exemption was introduced by means of Act XXXVII of 2014 which amended the Income Tax Act Cap. 123, whereby a new section was introduced in Article 12, namely Article 12(1)(x). The new exemption from income tax seeks to exempt […]

Written By ACT Team

On December 23, 2015
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Recently a new exemption from income tax has been added to list of exemptions.  The new exemption was introduced by means of Act XXXVII of 2014 which amended the Income Tax Act Cap. 123, whereby a new section was introduced in Article 12, namely Article 12(1)(x).

The new exemption from income tax seeks to exempt interest received by an individual from:

1.      A person carrying on the business of banking in accordance with the laws of any EU Member State in respect of a sum of money deposited into a special individual saving account as recognized by the Commissioner; and

2.      A Government of an EU Member State, any of its agencies or a corporation or authority established by law, or in respect of a public issue by a company, entity or other legal person, where the interest bearing securities are credited for the benefit of an individual to a special individual saving account recognized by the Commissioner.

By means of LN 469 of 2014, the Maltese tax authorities have published new rules to define what an Individual Savings Account (ISA) is and to establish new compliance requirements for payors of investment income.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].