Malta: Tax on profits derived from assignment of rights deferred to end of 2022

The 15% tax rate on profits derived from the assignment of rights under promise of sale agreements has been deferred to the end of 2022.

Tax on profits derived from assignment of rights deferred to end of 2022

Legal Notice 490 (24 December 2021) defers the 15% tax rate on profits derived upon the assignment of rights on a promise of sale of immovable property situated in Malta for another year, until the end of 2022 (from 2021).

Valid assignments of promise of sale agreements are those made in writing, signed by the assignor and assignee and authenticated by a notary/advocate, and then notified to the Commissioner for Revenue by means of a notice of assignment within 21 days from the date of the agreement (for which tax is paid). Certain expenses are allowed as a deduction from the proceeds received on assignment (such as brokerage fees).  

The 15% final tax will be payable by the assignor and remitted to the notary/advocate who authenticates the agreement, and who in turn will remit the tax to the tax authority within 21 days of the assignment.

Read a January 2022 report prepared by the KPMG member firm in Malta


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