The Commissioner for Revenue in Malta (CFR) has recently issued a guidance note with their interpretation of “stock exchanges that are recognized by the Commissioner” for the purposes of the Income Tax Acts and the Duty on Documents and Transfers Act.
Recognized stock exchanges for the purposes of the Income Tax Acts and Duty on Documents and Transfers Act are deemed to constitute:
(a) Stock exchanges that are members of the World Federation of Stock Exchanges.
(b) The New York Stock Exchange.
(c) Stock exchanges that are included in the register of regulated markets within the European Economic Area maintained by the European Securities and Markets Authority (ESMA).
Why is this guidance note relevant and important?
This guidance is important in the context of the exemption from capital gains tax and stamp duty. Recently, the exemption from capital gains tax on the transfer of listed shares and securities has been widened to include the transfer of shares listed on a stock exchange recognized by the Commissioner. Previously, this exemption was restricted only to the transfer of shares and securities in a company listed on the Maltese stock exchange. Therefore, under certain conditions, the transfer of shares and securities in a company which is listed in one of the stock exchanges (a) to (c) mentioned above (and which also includes the Malta stock exchange) is exempt from capital gains tax and stamp duty.
FF International Limited provides a vast range of tax services including tax advisory and tax compliance services.
For further information, please contact:
Franco Falzon C.P.A. LL.M (Managing Director)
E: info@ffinternational.com.mt
T: +356 2010 7771 (office)
M: +356 9989 5679 (mobile)
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