Malta Table of Statutes
This is a non-exhaustive list of the main
statutes affecting offshore and non-resident
business. The statutes are listed in alphabetical order – click on the statute for a fuller description of the statute, the legal regime it forms part of, or in some cases the text of the law.
Business
Promotion Act 2003
Collective Investment Funds Law 1988
Companies Act 1995
Exchange
Control Act 1972
Financial Services Centre Act 1988
Freeports Act
Immigration Act 1970
Income Tax Act
Industrial Development Act
Investment Services Act 1994
Offshore Trusts Act 1988
Prevention
of Financial Markets Abuse Act, 2005
Professional Secrecy Act 1994
Recognition of Trusts Act 1994
Trusts And Trustees Act 2004
Trusts
Income Tax Regulations 2005
Venture Capital Fund (Tax Credit)
Regulations 2006
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Malta Trust Law
The
Offshore Trusts Act 1988 was amended by
The
Trusts and Trustees Act 2004, which became
effective in January 2005, and allows Maltese
residents and firms to use local trusts,
while also furthering Malta’s international
obligations on non-discrimination, transparency
and the prevention of money laundering.
The
government believes that the legislation,
which creates a more streamlined and simplified
trust regime, will make Malta much more
attractive to both international and domestic
clients, by offering greater flexibility
and certainty. The new Act eliminates the
nominee company regime, and introduces a
licensing regime for professional trustees.
Until 2005, trusts in Malta were based on
the Offshore Trusts Act 1988, which was
largely based on Jermal trust law, itself
a common law implant stemming from English
trust law. Trusts under this Act must have
non-resident settlor and beneficiaries,
and trust assets must not include Maltese
real estate.
The
Recognition of Trusts Act 1994 gave effect
to the Hague Convention, and results in
a division of trusts into:
- Maltese
trusts, where the proper law of the
trust is Maltese, and the governing
legislation is ) The Trusts and Trustees
Act 2004; and
- Foreign
trusts, governed by whatever law the
settlor has nominated..
All
trusts, including foreign ones, must register
with the Maltese Financial Services Centre
(MFSC), which costs EUR250 for application
and processing and EUR100 upon approval.
A further EUR2,500 is payable upon the issuance
of approval and annually thereafter. Foreign
trusts which do not register with the MFSC
will not benefit from the tax advantages
of registered foreign trusts (they are tax-exempt).
Under the 2004 Act, transfers of assets
into a trust or a change of beneficiaries
may give rise to a charge to tax.
Under
the 2004 Act, a registered trust must have
a Maltese Professional Trustee as one of
its trustees, which files an annual declaration
of conformity with the law; no accounts
or tax returns need be filed.
Some
of the main features of Maltese trust law
are as follows:
- The
perpetuity period for Maltese trusts
is 100 years;
- The
settlor may be a beneficiary under the
trust;
- Powers
of the trustee are wide and flexible;
- The
office of Protector is allowed for;
- Forced
heirship provisions are excluded.
Unit Trusts
There are no special provision in Maltese
law covering Unit Trusts, which are therefore
treated in the same way as ordinary Maltese
trusts, and have the same tax
regime.
Confidentiality
Maltese trust law establishes the confidentiality
of trust documents and dealings and the
actions of the trustee. The Professional
Secrecy Act 1994 imposes strict confidentiality
rules on all professionals, officials and
other individuals who recieve privileged
information in the course of their duties;
the sanctions are heavy fines and imprisonment.
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Malta Ship Management
and Maritime Operations
The
original Maltese Merchant Shipping Act 1973
based on English law has been adapted and
modernised in 1986, 1988 and 1990; and further
improvements are planned. The Merchant Shipping
Directorate of the Malta Maritime Authority
supervises the sector and has developed
a world-wide network of surveyors and inspectors.
Malta is a member of the International Maritime
Organisation and has adopted almost all
the major international maritime conventions,
including:
CLC69,
Tonnage 69, COLREG 72, FUND 71, INMARSAT,
Load Lines 66, London 72, MARPOL 73/78,
SOLAS 74/78 and STCW 78.
The
Maltese registry accepts all types of vessel,
from pleasure yachts to oil rigs, provided
they are owned by citizens of Malta or a
company registered in Malta. Provisional
registration is given quickly, allowing
six months (can be extended to 12) for formalities
to be completed. The documents required
for provisional registration are:
- registration
application from the owner or authorised
representative giving details of the
ship and current registry, if any;
- proof
of Maltese company registration, or
citizenship;
- declaration
of ownership by the owner or authorised
representative;
- evidence
of seaworthiness (only for trading vessels);
- payment
of initial and annual registration fees.
Initial
Registration fees are on a sliding scale
from EUR575 for up to 2,500 tons with an
annual registration fee of EUR875, a fee
of EUR0.23 per ton is payable from 2,500
tons to 8,000 tons. Above 8,000 tons, the
fee for tonnage above the minimum drops
to EUR0.07 and the initial registration
fee increases to EUR1,840 for 8,001 to 10,000
ton vessels, EUR1,980 for 10,001 to 15,000
ton vessel, EUR2,330 for 15,001 to 20,000
ton vessels, EUR2,680 for 20,001 to 30,000
ton vessels, EUR3,380 for 30,001 to 50,000
ton vessels and EUR4,780 for vessels above
50,000 tons.
Annual
fees are EUR875 and EUR0,35 per ton in excess
of 2,500 tons and up to 8,000 tons, EUR2,800
for 8,000 to 10,000 ton vessels with EUR0.19
per ton in excess of 8,000 tons, EUR3,180
for 10,000 to 15,000 ton vessels plus EUR0.14
per ton in excess of 10,000 tons, EUR3,880
for 15,000 to 20,000 ton vessels plus EUR0.12
per ton in excess of 15,000 tons, EUR4,480
for 20,000 to 30,000 ton vessels plus EUR0.09
per ton in excess of 20,000 tons, EUR5,380
for 30,000 to 50,000 ton vessels plus EUR0.07
per ton in excess of 30,000 tons and EUR6,780
for vessels above 50,000 tons plus EUR0.05
per ton in excess of 50,000 tons.
Permanent
registration requires a considerable amount
of documentation, essentially similar to
that required by all registries.
Bareboat charter registration is allowed
both of foreign ships under the Maltese
flag and of Maltese ships under a foreign
flag. There are no restrictions on the nationality
of crew in Maltese law, and no age limit
for ships, although ships older than 20
years must pass an inspection before or
within one month of provisional registration;
ships older than 25 years must pass an inspection
before provisional registration.
The
shipping laws are flexible with regard to
sale or mortgaging of ships. Following provisional
registration, mortgages can be registered,
transferred or discharged with the Maltese
Registrar. A registered mortgage can be
enforced under Maltese law without the need
for a judgement. A Maltese registry can
be closed at the owner's request provided
that liabilities towards Malta have been
fulfilled, and with the consent of all registered
mortgagees.
Masters
and Officers must be certified by recognised
authorities; crew lists must be provided
giving rank, seamen book numbers and nationality.
There must be a Crew Agreement between the
Master and the seamen, witnessed by a shipping
master; it is submitted to the Registrar.
Maltese local minimum wage agreements apply
to seamen and officers.
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