Being at the centre of the Mediterranean surrounded by crystal blue waters, Malta has been the number one berthing country for pleasure yachts for a number of years. This is mainly attributable for a number of factors, including Article 59A of the VAT directive.
Article 59A of the VAT Directive allows individuals to pay VAT on the lease of a yacht depending on the percentage and effective use within European waters. The new guidelines provide a concise point-of-reference and a clear mechanism in identifying and computing such use. This directive allows individuals who wish to own a pleasure yacht to reduce the VAT element from 18%, the standard VAT rate in Malta, to an effective 6.12% dependent on the percentage use in EU territorial waters. The process and method of such reduction in VAT rate is outlined in detail here.
However, such guidelines issued are specific for the leasing element of the structure.
The brief overview of the new guidelines is outlined below;
Such guidelines may be accessed from the document listed here-under.
For further information regarding VAT on pleasure crafts and how you can benefit from such legislation, you can contact us by following the link, and one of our tax experts will get back to you shortly.
The office of the Commissioner for Inland Revenue has issued a notification for Part-Time Self-Employed individuals containing the updated regulatory date of filing of the TA22 form. The latter is to be duly filed with payment by the 30th of April of the following year in lieu of the former official date of the 30th of June.
This notification also concerns individuals or companies who wish to opt for the 15% tax rate on the rental income generated during the year. The TA24 form is to duly filed with payment by the 30th of April of the following year.
Contact us for further information and details on tax matters involving companies and individuals, and one of our experts will guide you in reaching your compliance obligations.
On 26 June 2018, the Maltese Parliament unanimously approved the Virtual Financial Assets Bill in an act to embrace the exciting future of digital currencies and their use in building tomorrow's businesses.
The Virtual Financial Assets Bill
The bill, which is the very first of its kind in any jurisdiction, covers both issuers as well as investors in regards to any form of crypto-currencies, crypto exchanges and any other crypto-related services. The bill also provides a regulatory framework for Blockchain technology, smart contracts and other innovative technological arrangements.
The bill terms a Virtual Financial Asset as any form of digital medium recordation used as a digital medium of exchange, unit of account or store of value that excludes electronic money, financial instruments and virtual tokens. The bill intends to categorically distinguish popular Bitcoin, Ether and Litecoin amongst others from other virtual assets that have no utility, value or application outside a limited platform which cannot be exchanged for funds.
The VFA bill also regulates the provision of VFA services as well as VFA exchanges, and therefore applies to all those involved in the provision of such VFA services and exchanges. These include brokers, wallet providers, asset managers, investment advisors as well as market makers offering cryptocurrency services. Consequently, these activities will be subject to a license to be issued by the Malta Financial Services Authority (MFSA) as the competent regulatory authority.
On the other hand, VFA exchanges have further been classified as a VFR service and are thus deemed to be a licensable activity. This will regulate those platforms that act as an exchange for converting fiat money (i.e bank notes and regular money denominated in Euro, USD, GBP etc.) to cryptocurrencies such as Bitcoin and Litecoin, and vice-versa, as well as exchanges converting one type of cryptocurrencies to another.
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