ARTICLE · 09 NOVEMBER 2020

The Bill For The Budget Measures Implementation Act For Financial Year 2021

KPMG Malta

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Bill No. 173 includes provisions to implement some Budget Measures for 2021.

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Following last week's budget speech by the Minister of Finance, on 20 October 2020, Bill No. 173 was published, which Bill includes provisions to implement some Budget Measures for the Financial Year 2021 and other administrative measures. We highlight herein the salient income tax and duty measures proposed in such Bill. The Bill, as is or with amendments, would be expected to be enacted in the first quarter of 2021.

Amendments to the Income Tax Act and Income Tax Management Act

Amendments to the Participation Exemption

Currently, Malta's Participation Exemption exempts dividends and capital gains derived from a participating holding, as defined, or from the transfer thereof, subject to the satisfaction of a number of conditions. The Bill proposes to disapply the exemption on dividends where the body of persons is resident in a jurisdiction which is included in the EU list of non-cooperative jurisdictions for a period of 3 months during the preceding year

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