ATT Nru. XXXI ta' la1981 ACT No. XXXI of 1981 ATT maħruġ b'liġi mill-Parlament (dulyonpolicy)

A

Suppliment tal-Ga:zetta tal-Gvern ta' Malta Nru. 13,870, 31 ta' Lulju, 1981

Taqsima A

,

MALTA

ATT Nru. XXXI ta' la1981

ACT No. XXXI of 1981

ATT maħruġ

b'liġi

mill-Parlament

AN ACT enacted by the Parliament

ta' Malta.

of Malta.

ATT biex jipprovdi għall-imposizzjoni

AN ACT to provide for the imposition

of duty on certa in documents.

ta' taxxa fuq ċerti dokumenti.

A

ATI

TA'

L·1981

DWAR

IT·TAXXA

DOKUMENTI

FUQ

This Act may be cited as the Duty on Documents Act, 1981.

In this Act, unless the context otherwise requires

"body of persons" inc1udes any partnership, fellowship or

society of persons, whether corporate or unincorporate Of whether

vested with legal personality or not;

"cheque" inc1udes travel1eTs' cheque, dividend warrant and

banker's draft;

"Commissioner"

means

the

Commissioner

of

Inland

Revenue;

"Court" means any of the courts mentioned in sections 3 and

4 of the Code of Organization and Civil Procedure and any board

or tribunal established by law;

"document" inc1udes cheque, policy of insurance, bill of sale

and a notarial deed;

"duty" means the duty imposed by this Act;

"immovable things" has the meaning assigned to it in sec­

tion 348 of the Civil Code;

"Malta" has the meaning assigned to it in section 126 of the

Constitution;

"marketable security" inc1udes any share, stock, debenture,

bond and any interest in any company or corporation and any

document representing the same;

"Minister" means the Minister responsible for finance;

"prescribed" means prescribed by regulations under this Act;

"signature" includes any mark or declaration made in lieu of

a signature;

"transfer" inc1udes any assignment, conveyance, sale, parti­

tion, donation, sett1ement of dowry, hire-purchase agreement and

any acquisition under any other title. but does not inc1ude any

acquisition causa mortis.

PART II

General Provisions

Duties.

There shall be levied by the Commissioner on account of the

Government, the duties specified in this Act in accordance with the

provisions contained in this Act.

Ma'llner of

(]) The duty in respect of any documoot executed in Malta

��� ; ent of

shall be paid at the Office of the Commissioner within the eight work-

ing days following that in which the document is completed

Provided that the Minister may prescribe that the payment of

duty in respect of any document be denoted by a medallion stamp,

impressed or embossed stamp, or by means of franking machines or in

any other manner, and that any payment which is to 'be denoted as

aforesaid shall be effected before the relative document is drawn up,

signed or completed

Provided further that the Minister may also prescribe that the

payment of duty on more than one documoot of the sa me category

executed in determinate pcriods be effected by means of one payment

1t the end of such period.

(2) In the case of documents executed outside Malta which

are liable to duty by reason of their use in Malta according to the

provisions of this Act, the duty shall be paid before use thereof is made

in Malta.

For the purposes of this section

(3)

(a)

where a document has to be signed by two or more

persons, it shall be deemed to be complete with the signature of

the person by whom it is last signed;

(b) a notarial deed shal1 be deemed to be complete when it

is signed by the notary by whom it is published.

A document subject to duty under this Act shall become so

subj:!ct either from its origin if it is executed in Malta or by reason of

its use if it is executed outside Malta.

Documents executcd outside Malta shaH be chargeab1e

(1)

docurnen ts

with duty when use thereof is made in Malta, if such document would

executed

have been so chargeable according to the provisions of this Act, had it

been executed in Malta.

(2) F or the purposes of this section, a document executed

outside Malta is deemed to be made use of in Malta, where

(a) it is produced as evidence hefore a court, arbitrator or

referee; or

it is annexed to a public deed or private writing; or

(b)

(c) it is produced before

any

authority

or person for

its

enforcement; or

(d) when in any manner whatsoever the delivery and legal

transmission thereof is effected; or

(e) when the payment due or enforceable under such docu­

ment is made.

Every document mentioned in this Act shall be preserved by

the owner thereof for at 1east two years after the day on which duty

there on has or ought to have been paid, and any person who destroys

or mislays or fai1s to produce any such document before the lapse of the

said period shall be liable to the same penalty as if the duty had not

been paid.

Saving any other provision of law, if a document contains or

relates to several distinct matters, it shall be separately and distinctly

charged as if it were a separate docurnent in respect of each of such

matters.

Where in a document charged with ad valorem duty the value

is not ascertainable from the document itself or from any other docu­

ment annexed to it, or referred to in il, the parties shall make a dec1ara­

tion of such value according to their estimation and the duty shall be

charged and paid on the value so dec1ared.

(l) Without prejudice to the provisions of section 53 of this

Act, where in the opinion of the Commissioner the value expressed or

declared in a document is lower than the real value, at the time of the

execution of the document, he may file an application in the Court of

Appeal praying that the real value be assessed by referees to be

appointed in accordance with the rules contained in the Code of

Organization and Civi1 Procedure.

(2) If the assessment made by the referees as aforesaid is

greater than the value expressed or dec1ared in the document, the person

liable to pay the duty shall pay the difference between the duty due on

the value as assessed and the duty paid.

(3) Where the value assessed by the referees as aforesaid

exceeds the value expressed or dec1ared in the document by more than

one-eighth of the value assessed by the referees, the person liable to pay

the duty shall, in addition to the duty chargeable as in subsection (2) of

this section, pay by way of penalty, an additional sum, equivalent to the

amount of duty calculated on the total value assessed by the referees as

aforesaid.

(4) The Court may order that the costs incurred in connection

with the assessment made by the referees, be paid in accordance with

the provisions of subsections ( 1), (2) and (3) of section 221 of the Code

of Organization and Civil Procedure.

Any notary who receives any deed which does not contain a

dec1aration of value where such dec1aration is required under section 9

of this Act, or who fails to warn the parties particular1y as to the

importanCt of the truthfulness of such declaration or to record in the

deed that he has complied with such requirement, shall be liable to a

penalty of not less t-han five pounds and not more than twenty-five

pounds, to be imposed by the Court of Revision of Notarial Acts

ex officio and to the payment of the duty due, to be assessed by such

Court, if necessaTY with the assistance of referees, at the expense of the

notary, saving the latter's right to recover the amount paid by him in

respect of duty from any other person liable for the payment of the

duty.

(l) Where the consideration for a conveyance or the value

Ad valorem

duties.

upon which the duty is to be assessed, consists of a periodical payment

in perpetuity, or for a period of twenty years or more, or for an inde-

finite period, an ad valorem duty shall be charged on the total amount

payable during the period of twenty years.

(2) Where the periodical payment is to continue for a definite

period of less than twenty years, an ad valorem duty shall be charged

on the total amount payable during such period.

(3) Where the periodical payment is to continue during any

life or lives, an ad valorem duty shall be charged on the total amount

payable during the period of twelve years.

Mode of

Where a document is chargeable with ad valorem duty in

ca1culating

respect of an amount expressed in foreign currency, the duty shall be

ad valorem

ca1culated on such amount converted into Maltese currency at the ra te

dllty in

of exchange current on the day of the date of the document.

certain cases.

Production of

A document subject to duty under this Act and on which

documents, on

duty has not been paid shall not, except in criminal proceedings, be

which duty has

admitted in evidence before any Court, arbitrator or referee.

!lot been paid

before courts,

a.rbitra tors or

referees.

Duties of

(1) Where the production of a document has not been

person before

allowed in terms of section 14 of this Act, the Registrar of the Courts,

whom docllments

arbitrator or referee as the case may be, shall draw the attention of the

on which duty

person intending to produce the document in evidence to the fact that

has not been

duly pa.id to

duty on such document has not been paid, and shall within two days

report to

report this fact to the Commissioner.

Commissioner.

(2)

lf any, such officer or person fails to make such report,

he shall be liable to a penalty of not 1ess than five and not more than

twenty-five pounds.

Liability for

(1) The payment of any penalty imposed under the provi­

penalty not

sions of this Act shall not relieve any person liable to pay duty under this

affected by

Act from any obligation to pay any such duty or such part thereof as

payment of

may still be due.

duty.

(2) The payment of any duty shall not relieve any person from

any liability for any default for which a penalty could have been imposed

upon him in accordance with the provisions of this Act at the time the

duty was paid.

Actions for

(1) Save as otherwise exprcssly provided, all penalties which

I'ecovery of

may be imposed under this Act shall be imposed by the Commissioner

any penalty

and shall be paid to him, and all actions for the recovery of any duty

to be taken

due and of any penalty incurred under this Act shall be brought by the

by Commissioner.

COIhmissioner before the Court of civil jurisdiction, and the provisions

of section 466 of the Code of Organisation and Civil Procedure sha11

apply with regard to any such pena1ty or duty.

(2) No proceedings, however, shall be instituted against any

defaulter who, within eight days from an intimation to that effect made

to him by the Commissioner, pays the duty due on the document

together with the minimum of the penalty due in accordance with the

provisions of this Act.

(3) The provisions of subsection (2) of this section shall not

be applicable where the penalty is to be applied by the Court of Revi­

sion of Notarial Acts ex officio, or where, in the opinion of the Com­

missioner, the default would be adequately punished by the application

of the penalty in its minimum.

The action for the recovery of any pena1ty imposed by virtue

of this Act may not be brought after the lapse of five years from the

day on which the default occurs

Provided that no use shall be made of any document on

which duty chargeable under this Act has not been ful1y paid.

(1) Any public officer authorized by the Minister for the

purpose of ascertaining that the provisions of this Act are being com­

plied with shall have free access to any office, bank or other

establishment.

(2) Any such officer shall also have power to require any

person to produce any document which is liable to duty, and to seize

any document in respect of which the provisions of this Act have not

been complied with.

(3) The examination of notarial acts shall be carried out by

the Visitors constituting the Court of Revision of Notarial Acts.

(4) The said officer shall be bound t.o s�crecy in respect of

anything that may come to his knowledge in the course of the said

examination and he shall not disclose the resu1t thereof exceot to the

•

competent authorities.

(5) Saving any provisian of the Criminal Code where the

fact constitutes a crime liable to a higher punishment, any person who

prevents or obstructs the said officer in the execution of his duties. or

refuses to comply with any request made by such officer in accordance

with the provisions of this section, shall, on conviction, be liable to a

fine (multa) not exceeding fifty pounds Of to imprisonment for a term

not exceeding six months 01' to both s11ch fine and imprisonment.

(1)

lf any person --

forges any die, mark Of any other instrument used by

(a)

the Government Of under its authority, to denote the payment of

duty; or

(b)

sells or offers for sale, utters or makes use of any forged

die, mark, instrument used by the Government or under its

authority, to denote the payment of duty, or any impression,

thereof, knowing the sa me to be forged; Of

(c)

knowingly and without lawful excuse (the proof whereof

shall !ie on the accused) keeps in his possession any forged die, or

mark or instrument used by the Government or under its

au t hori t y

the payment of d u ty

or any impression

to denote

,

,

thereof,

he shaH be liable to .imprisonment f r om thirteen months to three ye ar s

.

(2) The same punishment established in s ubsecti o n (l) of

this seclion sh a ll app l y to a n y person wħo wit h o u t lawful a u t h ority

makes use of any genuine die, mark or other instrument used by the

Gove rnm e nt or under its a uthori t y to denote the p a y me n t of duty.

ln t he crimes referred to in section 20 o f this Act, any of the E:',xemption

offende r s who shall, prior to the c omm en ce ment of any proceedings. from penalty.

give information thereof to the Commissioner of P oli ce or other com-

petent authorities shall be exempted f rom punishment.

(I) The M in ister may make regulati o n s for securing the Power to

payment o f duty and gen e rall y for giving effect to th e provisions of th i s m:1·kc rcgulations.

Act, and i n particuJnr. but without p r e j u dice to the g e neral i ty of the

f o reg o ing

-

for regulating the p a ym ent of duty on any category of

(a)

documents otherwise than at the o ffice of the Commissioner;

for ordering the registration or the givi n g of a no t ice of

(b)

any class of documents chargeable with duty, and for p re s rcib i ng

the form of such registra t i o n or notice, the time within which such

r egi s t r a t ion or notice must be given. the persons bound to make

or giv e the same, the office in or to w h ic h the registration or

n otice is t o be made or given and the civil effects and s a n c tion s

consequent upon the default of slIch r egistrati o n or notice;

(C) for r e gul a ting the manner in w h ich duty on any pa r tic u l ar

category of documents is to be denoted;

(d) for prescrib ing any thing that may

be

p r escribe d

in

accord a n ce wi t h t h e pr o visi o n s of this Act;

(2) The rcgulations may provide f or the imposition of a

penalty of 110t more than o ne thousand po u nd s for allY failure to comply

therewith, which penalty shall be recover a b le as is provided in section 17

of this Act.

The Minister m a y by order direct that a specified document Power of

chargeable wit h duty under this Act, be exempt from duty in whole or Minister to

grant

in p ar t .

exemptious.

The Commissioncr sl1al1 iluve power to remit Of rcduce in his

Power of

d iscretion any penalty incurred under this Act, other than a pena Jt y

Commissiol1cr

to remit or

ordered by the Court of Rev is ion of Notarial Acts.

rcduce certain

pena1ties.

PART HI

DOClI/nellls c/wrge(/ble w i t h duly Oil thei,. origin

Title I

Cheques

T here shall be charged a duly of two c ent s on every chequc

Cheques.

Provided that 110 d u ty shall be payable

in respect of any

cbeque drawn on account of the Government.

(1) Responsibility for the payment of duty on cheques shall

1ie on the bank issuing the cheque form and on any other bank or

authorised dealer selling or encashing the cheque.

(2) For the purposes of subsection (1) of this section

"authorized dealer" has the meaning assigned to it in the Exchange

Control Act, 1972.

Any person who fails to observe the provisions of section 25

of this Act shall be liable to a penalty not exceeding ten pounds in

respect of each cheque on which duty has not been paid.

Title II

Insurance Policies

There shall be charged on every policy of insurance a duty of

ten cents to which the duties specified in the following sections shall be

added according to the different naturc of the policies of insurance

therein mentioned.

There shall be charged on aoy policy of life insurance a duty

of li fe i nsuran ce. of

teo cents for every one hundred pounds or part thereof of the sum

assured.

For the purpose of this Act, the expression "policy of life

insurance" means a policy of insurance upon any li f e or lives or upon

any event or contingency r elating to or depending on any life or lives,

other than a policy of insurance for any payment agreed to be made

upon the death of any person only from accident or violence or other­

wise than from a natural cause.

(1) A duty of fifteen cents shall be charged on every policy

Duty on policies

of insurance issued in respect of any one motor vehicle in accordance

with and for the purposes of the Motor Vehicles Insurance (Third Party

Risks) Ordinance and not for other additional purposes.

(2) A duty of twenty-five cents shall be charged on every

policy of insurance issued in respect of any one motor vehicle for

purposes additional to the purpose mentioned in subsection (1) of this

section and whether or not the purpose mentioned in the said subsection

(1) is included among the purposes of the policy.

(3) In this section, "motor vehicle" has the meaning assigned

to it in the Motor Vehicles Insurance (Third Party Risks) Ordinance.

There shall be charged on every policy of insurance in respect

of which this Act does not make specific provision, a duty of three cents

for every pound or part thereof of the agreed yearly premium, or, if �l

compounded premium is agreed upon as a lump sum payment, then of

that agreed consideration.

(1) Any endorsement of an insurance policy shall be charge­

able with duty as a new policy if the effect of the endorsement is to

make any alteration in the policy relating to -

(a)

the person or thing insured; or

the risks insured; or

(b)

the duration of the policy.

(c)

(2) Where an e n dors emen t increases the amount or the

insurance or of the premium duty shall be payable on such p o li cy as

,

endorsed but allowance shall be made for any duty paid in respect of

the policy.

(3) There shall be charged on endorsements of policies for

which provision is not m�de under subsection ()) or (2) of this section,

LI du ty of ten cents.

Any person who

-

insurance to bc

(a) becomes an insurer upon any in s u ra nce mentioned in the

issued in any

foregoing sections, or in the capacity of insurer enters into any

insure.

contract for any such insurance, or direct1y or indirectly receives,

or contracts or takes credit on account of any premium or considera­

tion for any such insurance, or knowingly takes upon himself any

risk, or renders himself 1iable to pay, or pays, any sum of money

upon any loss, peril 01' contingency relative to any such insurance,

unless the insurance is e x p re ss e d in a policy of insurance; or

(b) in the capacity of insured, makes or effects, or knowingly

procures to be made or effected, any insurance under the foregoing

sections, or directly or indirectly g iv e s or pays, or re nders himself

liable to pay, any prem i um or consideration for any such insurance,

or enters into any contract for any such insurance, unless the

insurance is expres se d in ,l policy of insmance; or

(e) is concerned in any fraudulent contrivance or device, or is

guilly of a n y wilful act, n e g l ect or omission, with intent to evadc

the duties payable on policies of insurance, or whereby the d uti es

may be evaded wholly or in part,

shall for every such offence, be liable to a p e n a lt y of not less than ten

pounds but not exceeding one h und r ed p o u n ds

.

Any person issuing or signing any policy of insurance referred

Liability to

p y du y o

to in the foregoing sections, shall pay duty thereon in accordance with

policies of

the provisions of this Act or of any regulations made t hereunder

.

insurance.

Penalty for

Any person who fails to comply with the provisions of section

failure to

35 of this Act shall be liable to pay a penaJty of not less than ten poullds

pay duty on

but not exceeding one hundred pounds.

policy of

insurance.

Copies of

Auy person who makes Of issues or causes to be m ade or

policies of

issued any document purpo rt in g to be a copy of a policy of insurance

insurance on

chargeable with duty where there is not, at the time, in existence, such

which duty has

a po l i cy shall, in addition to any other penalty to which he may be

lwt been duly

,

liable, be liable to a penalty of not less than ten pounds but not exceed­

paicl,

ing one hundred pounds.

Tit1e III

Sales and Other Transfers

There shall be cha rged on every document and on every Duty On sales

(] )

judgement, decree or order of any Court or other Iawful authority, and other

whereby any immovable or any real right ove r an immovable or any tra nsfcrs.

ship or 3ircraft or illterest in any ship or aireraft, is transferred to any

person, a duty of f2.60c for every fl 00 or part thereof of the amount

or value of the consideration for the transfer of sueh thing Of o f the

value of sueh thing, whichever is the higher.

(2) The provlsions of subseetion (l) of this section shall apply

to an assignment of any debt 01' other right, referred to in Sub-Title VII

of Title VI of Part II of Book Second of the Civil Code and to any

contract of antichresis where the period agreed upon for the restitution

of the debt in respect of which the contract of antichresis is made,

exceeds or may be made to exceed sixteen years.

Any document whereby any motor car as defined in the

Traffic Regu!ation Ordinance, whether with Of without licence, or such

licence on1y, is t r an sf erre d shall be chargeable with duty to be assessed

,

as follows

where the amount or value is less

f2.50c p er fI 00 or part thereaf.

than n,ooo

1S

where

the

amount

value

ar

B.OO per f l OO or part thereof.

B,OOO or more

Where the licence is sa transferred with the motor car the amount or

value in respect of the licence shal1, for the purpose of the assessment

af the duty, be added to that of the motor car.

(l) Saving any law which pre s cr ib e s a public deed, every

transfer to which sections 38 a n d 39 of this Act refers shal!, under pain

of nullity, be made in writing.

(2) No transfer of any ship, aircraft or mator car shall be

registered by any authority established by law for the purpase, befare

proof is prod uc e d to sueh authority that the duty due in accordance

with the provisions of this Act, has been duly paid.

41, (1) Where, in an auction sale of movab1es, the total amount

payable for the artic1e or articles purchased by any one person -

other than articles of food and drink - exceeds one hundred pounds

- there shaH be charged on the memorandum wherein such sale is

recorded and to which this section app1ies, a duty of f2.60c for every

f100 or part thereof of the price payable by such purchaser.

(2) Every auctioneer shall keep

memorandum

of each

a

sale effected by him in a sa l e by auction.

(3)

The

memorandum shal1 cantain a description of the

a rt i c1e sold, the price and lot number thereof. the date of the sale, the

.

name and address of the bidder to whom the sale is made, the total

alUount payable by each bidder for the artic1e or articles purchased and

the duty which may be due i n accardance with the provisions of this

Act.

The memorandum sha11 be kept in book form.

(4)

(5) Any auctioneer faiHng or omitting to comply with the

provisions of this section, shall be liable to a penalty of not less than

ten pounds but not e x cee d i ng one hundred pounds for each such failure

ar omission.

(l)

There shall be charged an every cautract af emphyteusis

a d uty to be assessed in respect of the y e a r I y ground-rent, as follows

if the term does not exceed 25 y ea r s

f6 per f l 00 or part thereof

where the term e xce ed s 25 years but

f30 per fl 00 or part thereof

c\aes not exceed 50 years

where the term exceeds 50 years but

f40 per fI 00 or part thereof

does not exceed 75 years

f50 per flOO or part thereof.

where the term exceeds 75 years ...

(2) Where the duration of the emphytellsis may be extended,

or is extended, or where two or more emphy t eutical grants are made

in respect of the same immovable in favour of the same emphyteuta o r

his successor i n title. duty shall b e assessed a t the rates applicable to

the total duration of the emphyteutical grant or grants. but allowance

shall be made for any duty already paid in respect thereof

.

(\) There shall be charged on every document whereby any

Duty on

f ore i gn marketable security is transferred to, or by any person in

tra nsfer of

Malta, a duty of two pounds for every one hundred ponnds or part marketable

securities.

thereof of the real vallle of sueh marketable security

Provided t hat no duty shall be chargeable when such transfer

is effected through a local bank.

(2) There shall be eharged on every document whereby a

marketable security, other than those mentioned in subsection (1) of

this section. is transferred to or by any persoll in Malta. a duty of two

pounds for every one hundred pounds or par t thereof of the real vall1e

of such marketa bJe security

Provided that on the allotment of any newly issued share Of

stock of a limited liability eompany which is registered in terms of

section 73 of the Commercial Partnerships Ordinance, 1962, the duty Ord. X o·f 1962

to be charged under this subsection shall be at the rate of ten cents for

every twenty-five pounds or part thereof of the real value of the share br

stock notwithstanding that the share or stock so allotted or issued is

not fully paid up.

Every transfer of marketable secuntles executed in Malta

shall, under pain of nullity, be made in writing.

Where the transfer of any fo r eign marketable security is

executed outside Malta upon an order given directly in Malta by any

person, such person shall give a notice in wri ti ng to the Commissioner

of sHeh transfer within e'ight working days of the completion of the

transaction.

Where any person fai1s to pr od uce to tbe Commissioner or

to the officer referred to in section 19. any document ehargeable with

duty, it shall be presumed that duty on such document has not been

paid and it shall t ben be lawful f or the Commissioner to proceed with

the collection of the duty and penalty due in a cc ordan ce with the

provisi o n s of this Aet.

Save as otberwise provided in section 51 any person who Penalty for

fails to comply with the provisions of sections 38, 39, 40. 41, 42, 43, 44, contravening

45 and 48 of this Act shaH be liable to a penalty of not less than ten 40, 41. 42. 43,

pounds but not exceeding five hundred pounds.

Any broker, agent or o t h e r person who as an intermediary

transfers any marketable security ro which section 43 refers, shall

draw np the documenl evidcncing SLH;h transfcr if the transfer is

effected in Malta 01' if the lransfer is effccted outside Malta, give noti(;c

of such tran sf er to the person on whose behalf he has acled within two

days from the transfer.

The duty chargeable on any transfer referred to in sections

38, 39, 41, 42 and 43 shall be p a i d at the Office of the Commissioner

within eight working days from the da te on which it is completed, and

the receipt for the duty so paid shaH then be annexed to the docllment

relating to the transfer.

Sa ving the provisions of se c t ion 51 of this Act, the transferor

and the transferee, and where the transfer is effected by public deed,

the notary publishing sueh deed, shall be jointly and severally liable to

pay the duty chargeable on slleh transfer

Provided that the duty ehargeable on the memorandum of

any auction sale shall be paid by the auctioneer, and the buyer shall

not be entitled to obtain delivery of such movable unless the amount

of duty so paid is reimbursed to the auctioneer.

Any notary who -

(l)

(a) fails to pay in whole or in part the duty chargeable

under the provisions of this Act on any deed received by him; or

(b) omits to annex to such deed the receipt mentioned in

section 49; or

(e)

fails to m ention in s u ch deed the amount of dUly so

chargeable,

shall be liable to a penalty of not less than one pound but not exceecl­

ing fifty pounds.

(2) Such p e n a1ty shall be inflicted by the Court of Revision

of Notarial Acts ex officio or on an applieation by the Attorney

General.

(l) Where a notary reeeives a deed o f sale of any immo­

vable property ehargeable with duty in accordance with the provi­

sion of this Act, he shall within the time prescribed for the payment of

the duty give notice of such deed to the Commissioner.

The notice shall be in th e form set

out in the First

(2)

Schedule to this Act.

(3) The Commissioner shall not aceept payment of the relative

duty before the said notice has been filed.

(4) Any notary who fails to give sueh notice or gives incorreet

or incomplete details shall incur a penalty of not less than one pound

and not more than fifty pounds.

(1) Subject to the provisions of this section, where the Minis­

ter, acting on the reeommendation of the Committee referred to in sub.

section (2) of this section, by notice published in the Gazette not later

than eight days after the receipt of the said recommendation, dec1ares

that it is the intention of the Government to assume a sale of any immo-

vable property specified in such reco m mendation the Commissioner of

.

Land shall, not later than ten days after the p U blication of such notice,

assume sueh saJe on behalf of the G ovemm e n t by filing in the Registry

of the eompetent Court of Civil Jurisdiction, a schedule of pre emption

-

and deposit (hereinafter referred to as the "sehedule"). The sa le shall be

assumed for the price and on the terms and eonc1itions as they appear

from the deed of sale.

(2) There shall be a Committee (in this section referred to

as the "Committee") consisting of five members appointed by the House

of R e presentatives from among its members, one of whom shall aet as

Chairman; the Chairman and two of the members shall be proposed by

thePrime Minister and the two other members sha ll be proposed by the

Leader of the Opposition

.

(3) The Committee shall have the function of recommending

to the Minister whether the right of pre emption referred to in sub­

-

se e ti on (l) of this section should be exercised with respect to any immo­

va ble property mentioned in subsection (7) of t his section.

(4) The Committee may aet notwithstanding any vacancy

in its membership but shall not aet unless at least three m embers are

,

present.

(5) T he decisions of the Committee shall be taken by a

majority of votes and in the ease of an equa hty of votes the Chairman

shall have a second or casting vote.

(6) Subject to the provisions of this section the Committee

shall regulate its own proeedure and shall have the right to obtain, under

such conditions as it may deem proper, any advice or expert opinion

from any source it may deem appropri a te to cOllsult. The Committe e

shall also have all the powers conferred by seetion 6 of the Inquiries Act,

1977 as if it were a Com m ittee for the purposes of that Act

.

(7) Where the Commissioner is satisfied that the price of an

im movable declared in the deed of sale is less than three-fourths of the

real value of the immovable sold, he shall in f orm the Minister aecord­

ingly and the Minister shall refer the matter for consideration by the

C ommitt e e.

(8) Where the Committee is in agreement with the opinion of

the Commissioner, and is further of the opinion that the deed of sale

does not reflect the true conditions of the sale, the Committee shall make

a recommendation to the Minister that the sale of the immovable made to

the person specified in sueh recommendation shall be assumed by the

Govenunent at the price and under the other terms and conditions

a ppearing on th e document whereby the sale is affeeted

Provided that no reeommendation under this section shall be

made, nor shall have effect if made, after the expiration of six months

from the day of the receipt by the Commissioner of the notice referred

to in se c tion 52 of this Aet.

(9) The assumption of the. sale referred to in this section

may be exercised not only against the buyer but also against ·any other

person in whose favour the property may have passed

.

(0) (a) The filing of a schedule under this section shall, in

respect of the property to which the schedule refers, operate in like

manner and shall have same force and effect as a judgement which

directly adjudges the transfer to the Government of immovable pro­

perty, or other real right there on, indicated in the sehedule; and

upon the filing of the schedule such property shall pass to the

Government free and unencumbered from any privi1ege, hypothec,

easement or other burden with which it may have become charged

after the sa le giving rise to the right of assumption exercisable under

this section.

(b) The provision of section 237 of the Code of Organi­

zation and Civil Procedure shall apply to a schedule as it applies to

a judgement refeITed to in paragraph (b) of subsection (1) thereof,

and for the purposes of that section the Commissioner of Land

shall be an interested party entit1ed to obtain the registration of the

transfel' of the property to which the scheduIe refers.

(11) In so far as they are not inconsistent with this Act, the

provisions of sections 1490 to 1540 (both inclusive) of the Civil Code

relating to the right of redemption shall, mutatis mutandis, apply to the

right granted by this section and to the schedule referred to therein.

Tit1e IV

Appraisements and Valuations

(l) There shall be charged on every appraisement or

valuation a duty of twenty cents for every one hundred pounds Of part

thereof of the amount of the appraisement or valuation

Provided that there shall be exempt from duty appraisements

and valuations

(a) made by any Government Department for a public

purpose;

made for the purposes of criminal proceedings;

(b)

(c) made in pursuance of a decree given by the Civi1 Court,

Second Hall.

(2) Any lega1ised copy of any document to which the

proviso to subsection (l) of this section refers, shall be chargeable with

duty assessed at the rate established in subsection (1) of this section.

(3) For the purposes of this section. where the rentaI value

of an immovable or the periodic and recurrent consideration payable

in respect of any right over an immovable is established in a valuation

or appraisement, the duty shall be calculated on the amount resulting

by capitalising the rent or payment for one year at five per centum.

(4) No duty shall be charged where the amount valued or

appraised is less than five hundred pounds.

( l ) Every appraiser. by whom an appraisement or valuation

chargeable with duty is made, shall, within fourteen days after the

making there of, com mit the same to writing.

Any appraiser who -

(2)

(a) faHs to abide by the provisions of subsection ( l) of this

section; or

(b} discloses the amount of the appraisement or valuation

before committing the same to writing; or

(c) fails to pay in whole or in part the duty chargeable on

suoh appraisement or valuation,

shall be liable to a penalty of not less than one pound and not more

than fifty pounds.

(3) Any person who receives from any appraiser or pays

for the making of any such appraisement or valuation not so written

out or on which duty has not been paid as aforesaid, shall be liable to

the penalty provided for in subsection (2) of this section.

The duty payable in respect of any appraisement or valua­ Duty on

tion of several immovables shall be assessed and paid separately for a ppraisements,

each immovable, notwithstanding that the appraisement or valuation

is contained in a single document.

Tit1e V

Receipts

( l ) There shall be charged on every receipt for money given D uty On

on deposit or in payment a duty of five cents for every one hundred receipts.

pounds or part thereof.

(2) Any receipt given against any deposit or delivery of

stock or other marketable security shall be subject to a duty assessed

as provided in subsection (]) of this section. Such duty shall be cal­

culated on the real value of the stook or security on the day on which

the recei pt is gi ven.

(3) Notwithstanding the foregoing provisions of this section

any receipt given for money deposited in any bank, or with any banker

in Malta, to be accounted for and expressed to be received of the

person to whom the sa me is to be accounted for. shall be exempt from

duty whatever the amount of such deposit.

For the purposes of this Title, "receipt" means any document

"recei.pt".

given by way of a total or partial discharge upon the payment of money

or upon a set-off or a credit entry or whereby a pre-existing debt is

extinguished. and inc1udes any writing whereby any money or market-

able security is acknowledged to have been received, deposited Of

de1ivered, and also any letter transmitted in any manner whatsoever for

acknowledging receipt of money when the receipt for such money is

chargeable with duty.

The duty upon a receipt shall be paid at the Office of the

Where duty

Commissioner within eight working days of the signing of the receipt.

( l ) Responsibility for the payment of duty chargeable under

Pen�ilty

regarding

section 57 of this Act shall 1ie with the person issuing the receipt.

Any person who -

(2)

(a) gives a receipt liable to duty and does not pay duty on

such receipt; or

(b) in any case where a receipt would be liable to duty, refuses

to give a receipt; or

(c) upon payment of any amount exceeding two thousand

pounds gives, a receipt for a sum not exceeding two thousand

pounds or separates or divides the amount paid; Of

makes use of. or acquiesces in the use of any document

(d)

other than a receipt with the intention of creating proof of payment

where such proof may be made by the issue of a receipt.

shall be liable to a penalty of not less than two pounds but not exceeding

ten pounds.

(3, The person to whom a receipt is given shall be entitled to

obtain from the Commissioner a declaration showing that the duty on

such receipt has been paid.

Notwithstanding the provision of section 57 of this A ct. no

duty shall be payable thereunder in respect of

receipts given for or in respect of

(a)

(i)

amounts of less than two thousand pounds;

(iD any donation or

bequest

made

for

charitable

or

phi1anthropic purposes;

(b) receipts

given by ,or Dn

behalf of

any

Government

Department;

(c) receipts given for the return of tax or duty overpaid to

any Government Department;

(d) receipts given for payment made for stock issued by

Government, for the refund of over-subscription to such stock or

for the redemption or conversion thereof.

PARTIV

Documents upon which duty must be paid before use thereof is made

(l) Duty on every document executed outside Malta being

such as, if executed in Malta would be liable to duty, shall, before any

use thereof is made in Malta, be paid by the person by whom such use

is made at the rate prescribed in this Act for such document were it

executed in Malta.

(2) Any person who fai1s to comply with the provisions of

this section shall be liable to the same penalty as wou1d be applicable

to the default if it were committed in respect of a document of an iden­

tical or analogous nature executed in Malta.

PART V

Refund of Duty

(l )

The Commissioner may refund the duty where

(a) any document has been inadvertent1y spoi1ed, mutilated,

or rendered unfit for use before it is executed; or

(b) a document is subsequently expressly declared to be null

by any competent Court; or

(c) the material condition of a document is such as to justify

its substitution by another document of a similar nature, provided

that the consent of the Commissioner for such substitution is

obtained before it is made and that the duty applicable for the

document

or

(d)

the amount received by the Commissioner was not due;

or

(e)

due to an error in computation, excessive duty has been

paid; or

(f) a document drawn for purposes of registration or filing

with an authority established by law is rejected owing to its non­

conformity with the requirements of the authority concerned,

where the document, whether or not it may be construed to have

some validity between the parties, has faiIed to achieve the purpose

for which it was executed; or

(g) in the case of cheque forms on which the duty paid is

denoted and which are surrendered to the Commissioner for dest­

ruction.

(2) Claims for the refund of any duty under this section

shall be made in writing.

(3) Claims for refund shalI not be considered by the Com­

missioner if made after two years from the payment of the duty.

(4) Documents, other than notarial acts, in respect of which

a refund is c1aimed shall be surrendered to the Commissioner.

PART VI

Transitory Provision

(1) The Stamp Duties Ordinance, hereinafter in this section

referred to as "the Ordinance", is hereby repealed.

(2) The rules and regulations listed in the Second Schedule to

this Act shall, to the extent that they are not incompatible with the pro­

visions of this Act, be deemed to have been made under this Act.

(3) The exemptions listed in the Third Schedule to this Act

shall be deemed to have been granted by the Minister under the powers

vested in him by section 23.

(4)

Reference made in any law other than this Act to any

provision of

the Ordinance, where the context so requires, shall,

mutatis mutandis, be construed as reference to the provisions of this Act,

and in particular a reference to stamp duty in any law shall be deemed

to be a reference to the duty imposed under the provisions of this Act.

SCHEDULES

Section 52

First Schedule

NOTICE TO BE FILED BY NOTARIES IN TERMS OF SECTION 52

OF THE DUTY ON DOCUMENTS ACT, 1981

Name of Notary

Date of Deed

Number of Deed

PARTIES TO THE DEED

Vendor

l

Address

Name

Buyer

I

The amount or value of the consideration or

the value dec1ared

(P,T.OJ

A

Nature of Transaction

(N.B. In transactions of immovable property a fuH description of such

property is to be given and in cases of sale of rural property a copy of the

site plan is to be annexed).

Signature of Notary

FOR OFFICIAL USE

Duty Paid on

Receipt No.

Commissioner of Inland Revenue

Second Schedule

Section 64(2)

Government Notice No. 282 published on the 7th October, 1921, regulating the

stamping of cheques and cheque books.

Legal Notice No. 62 entitled "Payment of Stamp Duty on Cheque Forms Regula­

2. tions, 1975".

Third Schedule

Section 64(3)

Order by Governor in Council of 24th February, 1958.

1. (Exempting from duty transfers of agricultural vehic1es).

2. Order by A!Minister of Finance, Customs and Ports of 24th February, 1958.

(Exempting from duty transfer of Fishing Crafts).

Order by Minister of Finance, Customs and Ports of 2 1 st J anuary, 1971.

3. (Exempting from duty the Malta Drydocks Corporation on the sale of ships and

small crafts built in the Drydocks for export).

Order by Minister of Finance and Customs of 21 st March, 1974.

4. (Exempting from duty transfer of shares of the Bank of Valletta Ltd. by the

Malta Development Corporation to any person or body of persons).

Government Notice No. 4 of the 4th January, 1974.

5. (Exempting from stamp duty deeds of partition of immovables which came to

the co-owners through a succession or 1egacy).

6. Government Notice No. 583 of the 22nd November, 1976.

(Exempting from stamp duty transfer of foreign marketable securities).

Passed by the House of Representatives at Sitting No. 531 of the 29th July, 1981.

C. AGIUS

Speaker

C. MIFSUD

Clerk to the House of Representatives

Kastilia

Ippubblikat mit.Taqsima tat-Tagħrif -

Published by the Illformation Vivisioll - Kastilja

-

tal-Gvern

Prillted at the Govemnre1l1 Printillg Press

-

-