PAYMENT OF PROVISIONAL TAX (P.T.) g S.L.372.18 1
SUBSIDIARY LEGISLATION 372.18
PAYMENT OF PROVISIONAL TAX (P.T.) RULES
21st March, 2000
LEGAL NOTICE 48 of 2000, as amended by Legal Notices 204 and 268
of 2002.
Title.
(P.T.) Rules.
Interpretation.
Cap. 372.
Cap. 123.
"basis period" means a period of twelve months ending on the
31st December or, in the case of a provisional tax payer who has
been permitted to make his accounts to any other date in
accordance with the provisions of article 11(2) of the Income Tax
Act, on such other date; 
"benchmark year of assessment" with respect to a basis period
means the later of:
( a ) the year of assessment 1999; and
( b ) the last year of assessment in respect of which a tax
return was due to be furnished before the
commencement of the calendar year in which the first
P.T. payment for that basis period falls due;
"provisional tax" means provisional tax paid or payable in
accordance with these rules or with the Payment of Provisional Tax
(P.T.) Rules, 1973;
"provisional tax payer" means and includes, unless the
Commissioner otherwise determines by means of a notice in
writing, any person who during a basis period is:
( a ) a company;
( b ) an individual who was liable to tax in Malta for the
relative benchmark year of assessment but excluding
an individual who was eligible to make an election in
terms of article 12 of the Act in respect of the
benchmark year of assessment;
( c ) a person who is not a company or an individual;
"P.T. benchmark" means the amount determined in accordance
with rule 6, 7, 8 or 9 as may be applicable;
"P.T. payment" means a payment of provisional tax required to
be effected in terms of rule 3.
Cap. 123.
(2) Except as otherwise provided, and unless the context
otherwise requires, words and expressions used in these rules have
the same meaning and the same interpretation as the meanings and
interpretations which they have in terms of the Act and of the
Income Tax Act.
2 g S.L.372.18 PAYMENT OF PROVISIONAL TAX (P.T.)
Liability to 
provisional tax.
Amended by:
L.N. 204 of 2002.
3. (1) Every provisional tax payer shall effect payments of
provisional tax during every basis period ending on or after the 31st
January, 2000 on account of his liability to tax for the year of
assessment commencing on the 1st January of the year immediately
following that during which the said basis period ends.
Cap. 123.
(2) P.T. payments shall be made in the amounts and within the
times prescribed in these rules or as otherwise notified by the
Commissioner under the provisions of article 11(4) of the Income
Tax Act.
(3) The amount of any P.T. payment due under these rules shall
be the amount determined in accordance with the applicable
provisions rounded up or down to the nearest lira.
Due dates. 4. (1) P.T. payments fall due on the 30th April, 31st August
and 21st December of each basis period.
(2) The first P.T. payment for a basis period of a provisional
tax payer is that which falls due on that of the said three dates
which comes first during that basis period and the order of the other
P.T. payments is regulated accordingly.
Amount of 
provisional tax 
payable.
Substituted by:
L.N. 204 of 2002.
5. Save as otherwise provided in these rules the total of the
P.T. payments during a basis period shall not be less than the P.T.
benchmark applicable at the time the third P.T. payment falls due
and shall be paid as follows:
( a ) at least twenty percent of the P.T. benchmark shall be
paid by the date on which the first P T. payment falls
due;
( b ) at least a further thirty percent of the P.T. benchmark
shall be paid by the date on which the second P.T.
payment falls due:
Provided that where the P.T. benchmark resulting
from the operation of rule 6(3) or rule 6(4) is higher
than that which had been determined in accordance
with rule 6(1) or rule 7, then the amount of provisional
tax which shall be paid by the date on which the
second P.T. payment falls due shall be at least fifty
percent of the P.T. benchmark as determined by rule
6(3) or 6(4) but subtracting therefrom any P.T.
payments already made for the basis period;
( c ) at least a further fifty percent of the P.T. benchmark
shall be paid by the date on which the third P.T.
payment falls due:
Provided that where the P.T. benchmark resulting
from the operation of rule 6(3) or rule 6(4) is higher
than that which had been determined in accordance
with rule 6(1) or rule 7, then the amount of provisional
tax which shall be paid by the date on which the third
P.T. payment falls due shall be the full P.T. benchmark
as determined by rule 6(3) or 6(4) but subtracting
therefrom any P.T. payments already made for the
basis period.
PAYMENT OF PROVISIONAL TAX (P.T.) g S.L.372.18 3
P.T. benchmark.
Amended by:
L.N. 204 of 2002;
L.N. 268 of 2002.
6. (1) Save as otherwise provided in these rules the P.T.
benchmark of a provisional tax payer for a basis period is
determined by taking the amount of tax payable, if any, for the
benchmark year of assessment as shown in the self assessment of
that provisional tax payer for that year and computed in accordance
with the provisions of article 10(2) of the Act and adding back
provisional tax taken into account in the said self assessment.
(2) For the purpose of sub-rule (1) no account shall be taken of
any further return submitted in accordance with article 13 of the
Act after the commencement of the month immediately preceding
that in which the first P.T. payment for the basis period in question
falls due.
(3) Where the Commissioner has made an assessment of the
chargeable income of a provisional tax payer in terms of article
31(5) of the Act for any benchmark year of assessment and has
given notice of that assessment to that provisional tax payer before
the commencement of the month in which a P.T. payment falls due,
the P.T. benchmark shall be arrived at by taking the amount of tax
shown as payable in that assessment and adding back any
provisional tax taken into account in the said assessment.
(4) Notwithstanding any other provision of these rules, where it
appears to the Commissioner that the P.T. benchmark of a
provisional tax payer as resulting from rule 6(1) or rule 7 is
substantially lower than the amount which in his opinion should be
payable for the period by the said provisional tax payer, he may at
any time establish an applicable benchmark and inform the
provisional tax payer accordingly by a notice in writing and where
such notice is given before the commencement of the month in
which a P.T. payment falls due, the P.T. benchmark shall be
equivalent to the amount shown in the said notice:
Provided that where the notice referred to in this sub-rule is
given during the month in which a P.T. payment falls due or during
any subsequent month in the same basis period, the P.T. benchmark
as established by the Commissioner under this sub-rule shall still
apply and the P.T. payment or payments based on the said
benchmark shall, notwithstanding the provisions of rule 4 but
without prejudice to the provisions of rule 10, become payable by
the last day of the month in which the notice has been given or by
such later date within the same basis period as may be determined
by the Commissioner.
P.T. benchmark in 
the case where self 
assessment has not 
been furnished.
Amended by:
L.N. 204 of 2002.
7. (1) When a provisional tax payer has not, before the
commencement of the month immediately preceding that in which
a P.T. payment falls due, furnished a self assessment for the
relative benchmark year of assessment the P.T. benchmark with
respect to that particular payment shall be determined as follows:
( a ) if the Commissioner has made a determination with
respect to the tax payable by that provisional tax payer
for the said year of assessment in terms of article 31(3)
of the Act and has given notice of that determination to
that provisional tax payer before the commencement
of the month in which the said P.T. payment falls due
4 g S.L.372.18 PAYMENT OF PROVISIONAL TAX (P.T.)
the P.T. benchmark shall be arrived at by taking the
amount of tax shown as payable in that determination
and adding back the provisional tax, if any, taken into
account therein;
( b ) if the provisions of paragraph ( a ) do not apply the P.T.
benchmark shall be an amount determined in the
manner specified in rule 6 except that the reference
therein to the benchmark year of assessment shall be
construed as a reference to the last year of assessment
in respect of which a self assessment has been
furnished being a self-assessment furnished before the
commencement of the month immediately preceding
that in which the P.T. payment in question falls due
and relating to a year of assessment preceding the
benchmark year of assessment;
( c ) if the Commissioner has not made a determination to
which paragraph ( a ) applies and the provisional tax
payer has not furnished a self assessment to which
paragraph ( b ) applies the P.T. benchmark shall be nil;
( d ) if, after having made a determination in terms of
article 31(3) of the Act with respect to the tax payable
for the year of assessment in question, the
Commissioner has made an assessment in terms of
article 31(5) of the Act and has given notice of that
assessment to that provisional tax payer, the P.T.
benchmark shall be determined in the manner
specified in rule 6(3).
(2) When the P.T. benchmark with respect to a P.T. payment
that fell due during a basis period has been determined in
accordance with any of the provisions of sub-rule (1) and as a result
of the submission of a self assessment that sub-rule is not
applicable to a subsequent P.T. payment that falls due during the
same period, the P.T. benchmark for that period shall be re-
calculated by reference to that self assessment as provided in rule
6. The re-calculated P.T. benchmark shall apply and shall be
deemed to have applied for all the purposes of these rules, but
saving the provisions of rule 10, with respect to all the P.T.
payments for that basis period.
(3) The foregoing provisions of this rule are without prejudice
to the Commissioner’s powers to take action for the collection of
any provisional tax due in an amount calculated under the
provisions of sub-rule (1) before a re-calculation falls to be made in
accordance with sub-rule (2).
New taxpayers. 8. (1) The P.T. benchmark with respect to provisional tax
payable on account of the first year of assessment of a provisional
tax payer who is not an individual is nil.
(2) The P.T. benchmark with respect to provisional tax payable
on account of the second year of assessment of a provisional tax
payer who is not an individual shall be determined in the manner
specified in rule 6 except that:
PAYMENT OF PROVISIONAL TAX (P.T.) g S.L.372.18 5
( a ) the reference to the benchmark year of assessment
shall be construed as a reference to that provisional tax
payer’s first year of assessment; and
( b ) the references to a self assessment shall be construed
as references to a computation made by that
provisional tax payer on the basis of his records in the
same manner as a self assessment.
Power of the 
Commissioner to 
determine the P.T. 
benchmark in the 
case of mergers 
and divisions of 
companies.
9. (1) Where it appears to the Commissioner that as a result
of a merger of companies or a division of a company the total of the
P.T. benchmarks for one or more basis periods of the companies
involved in the merger or the division computed in accordance with
the other provisions of these rules is or will be less than the amount
that would result if such merger or division did or does not take
place he may by order in writing determine the P.T. benchmark for
any or all of the said companies for the basis period or periods in
question in amounts which in his opinion compensate for the said
shortfall.
(2) Notwithstanding anything contained in these rules, but
without prejudice to the provisions of rule 10, the P.T. benchmark
determined in accordance with sub-rule (1) shall apply during the
basis period or periods in question as from the date of the service of
that order on the respective company.
Reduction in P.T. 
payment.
10. (1) Where it appears to a provisional tax payer that the tax
payable for a year of assessment (hereinafter in these rules referred
to as "the current year liability") is less than the P.T. benchmark for
the corresponding basis period, he has an option to limit the amount
payable as provisional tax during that basis period to an amount
that is not less than the current year liability.
(2) The option referred to in sub-rule (1) shall be exercised by
means of the delivery to the Commissioner of the form prescribed
in the Schedule and may be exercised more than once during the
same basis period.
(3) The amount of any P.T. payment that falls due during a
basis period after an option has been exercised as aforesaid with
respect to that period shall be the lower of:
( a ) the amount due in accordance with rule 5; and
( b ) the excess, if any, of the current year liability over the
total provisional tax already paid for the basis period
in question.
Provisional tax 
payer’s estimation 
of the tax payable.
11. For the purpose of rule 10 and subject to the provisions of
rule 12 the current year liability shall be deemed provisionally to be
an amount determined in the manner specified in rule 6 except that:
( a ) the reference to the benchmark year of assessment
shall be construed as a reference to the year of
assessment on account of which the provisional tax
payment in question is payable;
( b ) the references to a self assessment shall be construed
as references to a computation based on amounts
estimated by the provisional tax payer at the time that
6 g S.L.372.18 PAYMENT OF PROVISIONAL TAX (P.T.)
the option is exercised.
Revision of 
estimation.
12. (1) An amount that is provisionally deemed as the current
year liability in accordance with rule 11 shall be revised as
provided in sub-rule (2) when -
( a ) a self assessment for the year of assessment in
question is furnished to the Commissioner; or
( b ) the Commissioner makes a determination in terms of
article 31(3) of the Act with respect to the tax payable
for the year of assessment in question and serves a
notice of that determination on the provisional tax
payer.
(2) When a revision falls to be made in terms of sub-rule (1)
the current year liability for the purposes of rule 10 shall be deemed
to be and to have always been the amount resulting to be payable in
terms of the self assessment or the determination, as the case may
be, and the provisions of rule 14 shall be construed accordingly.
(3) The foregoing provisions of this rule are without prejudice
to the Commissioner’s powers to take action for the collection of
any provisional tax due in an amount calculated under the
provisions of rules 10 and 11 before a revision falls to be made in
accordance with rule 12.
Appropriation of 
payments, set off 
and refund of 
provisional tax.
13. (1) Provisional tax paid for a basis period shall be applied
towards the discharge of any provisional tax for that period that has
fallen due and any excess shall be appropriated to provisional tax
for that period that has not yet fallen due.
(2) Provisional tax paid by a provisional tax payer on account
of his tax liability for a year of assessment shall be set off for the
purpose of collection against the tax chargeable in respect of the
said year of assessment and if there is an excess after the aforesaid
set off has been made such excess shall be refunded in accordance
with the provisions of article 48 of the Act.
Additional tax.
Amended by:
L.N. 204 of 2002.
14. (1) When any provisional tax payable in accordance with
these rules is not paid by the date when it falls due additional tax
shall be charged as provided in article 44 of the Act in an amount
equal to one percent of the unpaid provisional tax for each calendar
month or part thereof during which such tax remains unpaid:
Provided that where the tax for the basis period which will
result from a provisional tax payer’s self-assessment is less than
that resulting from the P.T. benchmark, the additional tax
chargeable on this difference shall be reduced by ninety percent.
(2) No further additional tax shall be chargeable on unpaid
provisional tax for any month commencing after the tax settlement
date relative to the year of assessment on account of which that
provisional tax was due.
(3) Notwithstanding the provisions of rule 13 the amount of
provisional tax that would otherwise be available for set off in
accordance with sub-rule (2) of that rule against the tax chargeable
in respect of a year of assessment shall first be applied towards the
PAYMENT OF PROVISIONAL TAX (P.T.) g S.L.372.18 7
discharge of additional tax, if any, due on and up to the tax
settlement date corresponding to that year of assessment and the
amount available for set off shall be reduced accordingly.
(4) Any additional tax on provisional tax that has not been
discharged as provided in sub-rule (3) shall be deemed to be tax
due for the year of assessment on account of which the said
provisional tax was due and the provisions of the Income Tax Acts
relating to the collection and recovery of tax shall apply to the
collection and recovery of such additional tax.
(5) The foregoing provisions of this rule are without prejudice
to the Commissioner’s powers to take action for the collection of
any additional tax before the tax settlement date referred to in sub-
rule (2).
Powers of the 
Commissioner 
upon a change in 
the accounting 
date.
Cap. 123.
15. Nothing in these rules shall be construed as in any way
limiting the powers granted to the Commissioner under article
11(4) of the Income Tax Act.
Transitory 
provision.
16. When, in terms of the other provisions of these rules, the
date on which any P.T. payment for a basis period that ends during
2000 falls due is a date that falls during 1999 any such payment
shall be deemed, to the extent that it has not been paid, to fall due
on the 30th April, 2000 in addition to any other payment that falls
due on that date.
Saving.
these Rules, shall remain fully applicable with respect to any
provisional tax payment that was made or that was due to be made
on account of tax chargeable for any year of assessment preceding
the year of assessment 2001.
8 g S.L.372.18 PAYMENT OF PROVISIONAL TAX (P.T.)
SCHEDULE
(Rule 10)
P.T. REDUCTION FORM
In terms of rule 10 of the Payment of Provisional Tax (PT.) Rules, I opt to reduce
the amount payable as provisional tax for the basis period ending ........................ .
I estimate that the current year liability for the said basis period will be Lm ......... .
I declare that I am aware of the provisions of the said Rules and I understand that
I shall become liable to additional tax of 1% on any unpaid P.T. for each calendar
month or part thereof during which such provisional tax remains unpaid.
Name of P.T. payer
Reference No./ Identity Card No.
Address
Date
Signature
Permit No.*
* (only in case of persons who, in accordance with the provisions of article 11(2)
of the Income Tax Act have been permitted to make their accounts to a date other
than 31 December)
