17 July 2009 To: IFSP Members (cc Malta Institute of Taxation, Malta ...

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company falls under the responsibility of the Inland Revenue ITU Mriehel offices or Floriana offices. The advantages of a timely submission of the DDT10 form together with the relevant M&A or other document indicating shareholders’ details and the company’s objects facilitate – a. immediate categorisation as an ITU company; b. immediate categorisation of type (without this categorisation, the 18 month period for tax payment does not apply); c. immediate application of accounting date (which means that a NIL return will not need to be submitted for the first default year of assessment). In view of the above, and the current operational problems that the ITU are encountering from the non-timely submission of DDT10 forms, and in order to avoid problems in the future (e.g. issues where the 18 month period for tax payment is not recognised by the Inland Revenue in view of the fact that the Inland Revenue would not have been informed of the status of the company through a DDT10 form), the ITU have given instructions not to register companies for tax purposes unless the DDT10 form has also been submitted. The mere production of an M&A is not sufficient for this purpose. The proper documentation for this purpose (i.e. the DDT10 form complete with the relevant Form U where applicable) needs to be presented. Companies that do not fall within the scope of article 47 of the Duty on Documents and Transfers Act will only be considered to be ‘ITU Companies’ if they need to register their shareholders for the purposes of refund claims for the purposes of the provisions of Article 48(4A) of the Income Tax Management Act once such registration (of the relevant shareholders) is effectively made. Accordingly, all member practitioners are urged to ensure the timely presentation of the DDT10 form to the ITU at the time of registration of a company with the ITU. Member practitioners should also take note of the following: (i) The DDT10B form (in respect of an Article 47(3)(e) DDTA exemption determination) requires to be accompanied by a copy of the duly registered ROC Form U (Notice of claim for extension of period allowed for laying accounts by company carrying on business or having interests outside of Malta). In the absence of the submission of an ROC Form U, the company is required to provide evidence of its interests outside of Malta (for example: details of the company’s activities; its assets situated outside of Malta; business counterparts situated outside of Malta etc) (ii) The ROC Form U should be sent to the Registry of Companies for registration and not to the ITU. ITU should receive from the company only a copy of the duly registered Form U. (iii) The accounting reference period cannot exceed (not even by a day) an 18- month period from the date of incorporation of the company, or the date of the end of the previous accounting reference period. Address: P.O Box 37, Valletta, VLT 1000 Tel: 2569 6352 Fax: 2144 9212 E-mail: info@ifsp.org.mt Website: www.ifsp.org
(iv) Full details of the company declarant (including the full name of the individual signing, telephone number and email address) should be provided in Part V “Declaration” of the DDT10 Form (v) The DDT10 Form may be accompanied by copies of the first part of the Memorandum and Articles (with registration details and objects) together with documents showing details of Directors, Shareholders and currency. We have been informed by the ITU that it is intended to provide an electronic submission process for DDT10 forms in the future. The ITU are also considering merging the DDT10A and DDT10B forms into one form and widening the scope of the form to also include applications by Malta resident and non-Malta domiciled entities. Registration of Shareholders for purposes of Art. 48(4) and Art. 48(4A) ITMA tax refunds The ITU have requested that we remind member practitioners that any change in the details to a previously submitted Shareholder Tax Refund Registration form only requires a change to the existing registration form and not the re-submission of a new form afresh. Furthermore, all Shareholder Tax Refund Registration forms need to be checked as ‘finalised’ before submission to the ITU. It is expected that legislative amendments will be made to Legal Notice 80/2008 (Tax Refunds and Registration Procedure Rules, 2008) and wherein the registration of a shareholder for tax refunds will not be required to be made annually. However, until such amendment is effected, practitioners are reminded that the shareholder tax refund registration process in terms of LN80/2008 remains an annual requirement. Accordingly, practitioners are reminded to effect timely registration of shareholders for the purposes of tax refunds for Y/A 2010. Tax Refund claims The ITU have informed us of the following difficulties being encountered with claim forms that are submitted: (i) Tax refund claims are often received utilising old versions of the claim form. The current version of the claim form should be utilised for all claim forms. A copy of the current version of the claim form is attached to this Memorandum. (ii) The ITU will not accept unsigned tax refund claim forms. Practitioners should ensure that tax refund claim forms are completed with all information requested and duly signed by the shareholder / authorised representative before submission to the ITU, failing which the said tax refund claim form will not be processed by the ITU. (iii) Claims have been received by the ITU for a 6/7ths refund (in terms of Art. 48(4A) ITMA) for ‘International Trading Companies’ (ITCs) – Practitioners are reminded that, in terms of the ITMA, the applicable tax refund Address: P.O Box 37, Valletta, VLT 1000 Tel: 2569 6352 Fax: 2144 9212 E-mail: info@ifsp.org.mt Website: www.ifsp.org
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17 July 2009 To: IFSP Members (cc Malta Institute of Taxation, Malta ...

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