Malta updates Guidelines on Automatic Exchange of Financial Account Information

On 2 January 2020, the Commissioner for Revenue in Malta published updated guidelines on the Automatic Exchange of Financial Account Information (Link). These guidelines include the following changes:

  • A clarification on entity classification pertaining to Cell Companies in line with the previous determinations issued by the Commissioner for Revenue.
  • The elimination of Holding and Treasury Company FI in FATCA. In this regard, Holding and Treasury Companies of FIs which do not fall within the definition of a Financial Institution are no longer deemed as Financial Institutions.
  • Clarification on Distributed Ledger Technology Assets to align it with the Guidelines issued by the Commissioner for Revenue 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 GIIN.
  • Clarifications on reporting obligations pertaining to structures with underlying structures which 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 CBI / RBI Guidelines will be extended to FATCA.
  • Changes in deadlines limited to the “Excel Spreadsheet” Submissions.
  • Detailed Guidelines on the Completion of Data Elements.
  • Updated information on Recalcitrant Accounts / Undocumented Accounts.

The related Maltese press release (Link) and more information on FATCA (Link) and CRS (Link) in Malta can be found on the Maltese Revenues website.

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