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Malta Updates Guidelines On Automatic Exchange Of Account Info

Wednesday, January 8, 2020

Malta's Commissioner for Revenue on January 2, 2020, issued a single set of guidelines on the automatic exchange of financial account information.

According to the Commissioner, the guidelines incorporate further clarifications and salient changes, including:

  • A clarification on entity classification pertaining to cell companies, in line with the previous determinations issued by the Commissioner for Revenue;
  • Clarification that Holding and Treasury Companies of financial institutions (FIs) that do not fall within the definition of a financial institution are no longer deemed as FIs for the purposes of the US Foreign Account Tax Compliance Act (FATCA);
  • Clarification on Distributed Ledger Technology assets, to align the guidance with the guidelines issued by the Commissioner on this matter for tax purposes;
  • More complete notes on registration and modifications of domestic registrations and the introduction of guidance on the cancellation of domestic registration and Global Intermediary Identification Number (GIIN);
  • Clarifications on reporting obligations pertaining to structures with underlying structures that do not have a separate legal personality;
  • The definition of passive income has been aligned in its entirety with the Income Tax Act to ensure more certainty;
  • Current citizenship by investment/ residence by investment guidelines will be extended to FATCA;
  • To note changes to deadlines limited to the "excel spreadsheet" submissions;
  • The release of detailed guidelines on the completion of data elements; and
  • Updated information on recalcitrant accounts/ undocumented accounts.