ACT No. IX of 1981 AN ACT further to amend the lncome Tax ACI, 1948.

I assent.

(L.S.)

ANTON BUTTIGIEG

President

17th March, 1981

ACT No. IX of 1981

AN ACT further to amend the lncome Tax ACI, 1948.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in th1s present Parliament

assembled, and by the authodty of the same, as follows:--

(1) This Act may be cited as the Income Tax (Amendment)

Act, 1981, and sha11 be read and construed as one with the Income Tax

Act, 1948, hereinafter referred to as "the principal Act".

(2) The provisions of this Act shaB come into force as follows

(a) the provisions of sections 2 and 3 sha11 come into force as

from the 1st day of January, 1982, in respect of. the year of assess-

ment commencing on that da te and of subsequent years of assess-

ment;

(b) the provisions of sectiol1s 4, 5 and 6 shaH be deemed to

have come into force as from the first day of January, 1981, in

respect of the year of assessment commencing on that date and of

subsequent years of assessment.

For paragraph (b) of subsection (3) of section 7 of the principal

Act there sha11 be substituted the following

"(b) commercial partnership en 110m co!/ecli!. Of commercial

partnership en commandite the capitaI of which is not divided into

shares;".

For paragraph (b) of subsection ([) of section 8 of the principal

Act there sha1l be substituted the fol1owing

"(b) the allowances payable under the provisions of Part

VIII, the matemity benefit payable under the provisions of Part X

and the marriage grant payable under sect ion 11 of the National

Insurance Act, 1956.".

For the proviso to subsectiol1 (l) of section 10 of ,t he principal

Act there shall be subsi:ituted the folIowing

"Provided that where a person engaged in trade Of business

derives gail1s Of profiots wholly or in part --

(i) from the sa1e or disposal of petroleum produced in

Malta under a licence granted before January l, 1981, under

the Petro1eum (Produetion) Aet, 1958, Of under that Aet and

under the Continental Shelf Aet, 1966, the t0'tal ineome of

sueh person shall be aseertained in accordance with the pro-

visions of sectiol1 10A of this Act;

(i i) from operations in Malta relating to the production

of petroIeum and the sale 01' disposal of such petroleum,

whether under a licence granted as aforesaid after J anuary l,

1981, or under a petroleum production sharing contraet or

any other arrangement, ,t he total income of such person shall

be ascertained in sueh manner as may be prescribed;

and the provisions of this subsection and of seetion 10B of this

Aet shall not apply.".

Section 14A of the principal Act shall be amended as fol10'ws

(a) in the proviso to subseetion (4) thereof for the words "in

excess of four hundred pounds" there shall be substituted the words

" .in ex cess of four hundred and seventy-five pounds", and

(0) in sub-paragraph (jii) of paragraph (b) of subsection (5)

thereof for the words "in excess of four hundred pounds" there

shall be substituted the words "in excess of four hundred and

seventy-five pounds".

Section 22 of the principal Act shall be amended as foHows

in paragraph (a) of subsection (1) thereof for the words

(a)

"deduction of nine hundred and twenty pounds" there shall be sub-

Act.

stitutcd the words "deduction of one thousand and seventy pounds";

(b) in subseetion (2) thereof -

(i) for the words "deduction of five hundred and thirty-

five pounds" there shaB be substituted the words "deduction

of six hnndred and thirty-five pounds", and

(iD for the words "not exceeding three hundred and

eighty-five pounds" in the proviso thereto there shall be sub-

stituted the words "not exceeding four hundred and thirty-five

pounds"; and

(c) in subsectiol1 (6) thereof for the words "deduction of four

hundred pounds" there sha1l be substituted the words "deduction

of four hundred and seventy-five pounds".

Sectiorr 25 of the principal Act shall be amended as folIows

Amendment of

section 25 of

(a) for subsection (1) thereof there shaH be substituted the

the principal

fol1owing

Act.

(1) Saving the other provisions of this section, the

tax upon the chargeable income of every person shall be

charged at the following rates

d of the fl·r.st fIOO

....

5e

bodics of 1:'or every poun.

--

lOc

For every pound of the next f100

15c

For every pound of the next f500

For every pOlmd of the next f500

20c

For every pound of the next f600

25c

For every pound of the next fI ,200

30c

For every pound of the next f600

40c

For every pound of the next 1:600

50c

For every pound of the next f800

60c

For every pound of the remainder

65c";

(b) in subsection (3A) thereof for the words "sha11 in no case

exceed the ra te of 32e5 on every pound" there shall be substituted

the words "sha11 in no case exeeed the ra te of 30c on every pound";

(c) for subseetion (4) thereof there shall be substituted the

fol1owing

(4) Notwithstanding the provisions of subseetion (1) of

this seetion, the tax upon the ehargeable ineome of any indi-

vidual who has been granted a residence permit under seetion

7 of the Immigration Aet, 1970, on Of after the fourteenth

day of November, 1972, shall be eharged at the following

rates

For every pound of the first f100

5e

For every pound of the next fI 00

10c

For every pound of the next f500

15e

For every pound of the next f500

20c

For every pound of the next f600

25c

For every pound of the remainder

30c

Provided that the minimum liabi1ity of any sueh indi-

vidual in respect of any year of assessment shall be one thou-

sand pounds.";

(d) for subsection (7) thereof there shall be substituted the

following

"(7) The tax upon the chargeable income of any person

engaged in the production of petroleum produced in Malta

shall be-

(a) where the gains 01' profits are ascertained as

provided in paragraph (i) of the proviso to subsection (1)

of section 10 of this Act, at the r ate of fifty :cents on

every pound of such part of his cha rgeable income as is

derived therefrom, and at the appropriate rates set out

in the other subsections of this secHon on that part which

is not so derived; or

(b) where the gains or profits are ascertained as

provided in paragraph (ii) of the proviso to subsection (1)

of section 10 of this Act, at the rate of fifty cents on

every pound of · such part of his chargea ble income as is

derived therefrom , and at the appropriate rates set out

in the other subsections of this section on that part which

is not so derived. ";

.

(e) for subsection (8) thereof 'there shall be substituted the

following

"(8) Every person referred 'lO in subsection (7) of this

. section shall -

(a) in the case of a persan referred to in paragraph

thereaf, have and maintain a permanent office in

(a)

Malta where all contracts for the sale or disposal of

petroleum produced in Malta Of of rights and interests

pertaining to sueh petroleum shall be made, and the sale

or disposal prices of sueh petroleum or rights and inte-

rests to be used in all accounting documents and in all

returns submitted for the purposes of 'this Act shall not

be less than the values attributed thereto for rayalty

purposes in accordance with the terms of the licence

granted to sueh person under the Petroleum (Production)

Act , 1958, Of under that Act and under the Continental

Shelf Act, 1966;

(b) in the case of a person referred to in paragraph

(b) there of, have and maintain a permanent office in

Malta for the conduct of operations under the licence,

contrac t or other arrangement, as the case may be, and

the values to be used by sueh person in all accounting

documents shall, for the purposes of this Act, be estab-

lished in the manner provided under paragraph (ii) of

the proviso to snbsection (l) of section 10 of this Act.";

and

(f) immediately af tel' subsection (9) thereof there shall be

added the following new subsection

"(9Al The provisians of subsection (9) of this section

shall apply mutatis mutandis to any person operating in Malta

under a licence, contract or othel' arrangement as is mentioned

in paragraph (ii) of the proviso to subsection (1) of section 10

of this Act.".

8. For the proviso to subsection (2) of sectioll 62 of the principal Amendment

Act there shall be substituted the foilowing

"Provided that the provisions of this subsection shall not principal Act.

apply to the irtcome of any body of persons arising from activities

relating Of ancil h,ry to banking, sound Of television broadcasting,

film renting or insurance (excl uding commissions derived from the

sale of insurance by bodies of pefsons residing in Malta) .".

Passed by the House of Representatives at Sitting No. 479 of the 16th March, 1981.

C. AGIUS

Speaker

C. MIFSUD

Clerk to the House of Representatives

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