CAPITAL GAINS TAX FAQ: Taxable Transfers under the New System
1. Which transfers are taxable under the new system?
Transfers of property situated in Malta made as from 1 November, 2005 are now taxable under the new system in terms of article 5A. This system applies to transfers of property that were previously taxed under article 5 (capital gains) as well as to transfers that were previously taxed as income from trade in terms of article 4(1)(a).
Certain transfers are excluded from article 5A and are therefore taxable under the "old" system. Some transfers are exempt from tax completely (see here).
A transfer is deemed to have taken place when property passes from one person to another. This includes transfers through an inheritance. "Transfer" has the same broad meaning given in article 5 and includes transfers made through an assignment, sale, partition, donation, etc.
The method of taxation under the new system depends on how the property was acquired and when it was acquired.
Immovable property can be acquired by onerous title (e.g. through purchase) or by gratuitous title (e.g. through donation or inheritance).
Use the following links to obtain more information about the taxation of the transfer of property aquired through:
o Purchase (or any other onerous title)