Malta: Tax on profits derived from assignment of rights deferred to end of 2022
The 15% tax rate on profits derived from the assignment of rights under promise of sale agreements has been deferred to the end of 2022.
Tax on profits derived from assignment of rights deferred to end of 2022
Legal Notice 490 (24 December 2021) defers the 15% tax rate on profits derived upon the assignment of rights on a promise of sale of immovable property situated in Malta for another year, until the end of 2022 (from 2021).
Valid assignments of promise of sale agreements are those made in writing, signed by the assignor and assignee and authenticated by a notary/advocate, and then notified to the Commissioner for Revenue by means of a notice of assignment within 21 days from the date of the agreement (for which tax is paid). Certain expenses are allowed as a deduction from the proceeds received on assignment (such as brokerage fees).
The 15% final tax will be payable by the assignor and remitted to the notary/advocate who authenticates the agreement, and who in turn will remit the tax to the tax authority within 21 days of the assignment.
Read a January 2022 report prepared by the KPMG member firm in Malta
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.