5 January 2015

As we reported last month, the rate of stamp duty is to be increased in Malta from 10 cents in the Euro to 11 cents. The minimum threshold increases from €11.65 to €13.00. However, the effective date has been put back to 1 February and the precise cutover rules are now known.
The new rates will apply if the inception date is on or after 1st February 2015. Thus, premium received in January 2015 will be subject to the new rates if the inception date is later. Premium received in February or later will be subject to the old rates if the inception date was prior to 1 February 2015, but the tax should be declared at the inception date according to the tax point rules in Malta.
The new rates will be:
  • Premium under €13.00 – duty of 11%
  • Premium of €13 to €118 – duty of €13.00
  • Premium over €118 – duty of 11 cents per euro or part thereof
These bands are also slightly different to those reported last month.