INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS EXEMPTION ġ S.L.123.58 1
SUBSIDIARY LEGISLATION 123.58
INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS 
EXEMPTION ORDER
16th October, 2001
LEGAL NOTICE 244 of 2001.
Title and 
application.
1. (1) The title of this Order is the Income Tax and Duty on
Documents and Transfers on Transfers of Dwelling Houses by
Commercial Partnerships Exemption Order.
(2) This Order applies to any transfer of a dwelling house
made by a commmercial partnership constituted under the laws of
Malta to an individual by means of a deed published not earlier
than the 21st November, 2000 and not later than 31st October, 2001
and which satisfies all the following conditions -
( a ) the transferee is on the date of the transfer a partner in
the said partnerhip and has been a partner of that
partnership without interruption since at least the 20th
November, 2000 up to the date of the transfer;
( b ) on the 20th November, 2000 and up to the date of the
transfer, the transferee alone or together with a
member or members of his family held directly or
indirectly an aggregate of at least twenty percent of the
interests or of the voting rights in that partnership;
( c ) at 20th November, 2000 and up to the time of the
transfer, the transferee or a member of his family
occupied without interruption the dwelling house as
his sole ordinary residence.
Interpretation.
( a ) a member of the family of the transferee means his
spouse, ascendant, descendant, brother or sister, or a
descendant of his brother or sister;
( b ) "dwelling house" includes a garage attached to or
underlying that house or a garage of not more than 30
square meters situated within 500 meters of that house
and transferred by the said partnership to the
transferee by means of the same deed with that house.
Exemptions.
Cap. 123.
( a ) if the use of the dwelling house by the occupier or
occupiers up to the date of the transfer is deemed to
constitute a benefit by reason of an employment or
office in terms of article 4(1)( b ) of the Income Tax
Act, no tax shall be chargeable under that Act on the
2 ġ S.L.123.58
INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS EXEMPTION
value of the said benefit;
( b ) if the transfer constitutes a benefit by reason of an
employment or office in terms of the said article
4(1)( b ) of the Income Tax Act, no tax shall be
chargeable under that Act, on the value of the said
benefit;
( c ) no gain shall be deemed to arise from the said transfer
for the purposes of article 5 of the Income Tax Act;
Cap. 364.
( d ) no duty shall be chargeable in terms of article 32 of the
Duty on Documents and Transfers Act in excess of
Lm2.50 for every Lm100 or part thereof of the deemed
transfer value determined in accordance with article
4( a ).
Exemptions 
subject to 
conditions.
4. The exemptions granted by this Order shall be subject to
the following conditions -
Cap. 372.
( a ) the deemed transfer value referred to in article 3( d )
shall be the cost at which the partnership had acquired
the dwelling house increased by the cost of
improvements incurred by the partnership before the
21st November, 2000 as shown in the records which
that partnership is required to keep in accordance with
article 19 of the Income Tax Management Act
disregarding any revaluation that may have been made
by the partnership of the value of the said property;
Cap. 123.
( b ) if the actual consideration for the transfer is less than
the deemed transfer value determined as aforesaid the
shortfall shall not be treated as a loss for any of the
purposes of the Income Tax Act;
( c ) for the purpose of determining the capital gains in
terms of the Income Tax Act arising upon a subsequent
transfer of the dwelling house in full or in part by the
transferee, the cost of acquisition of the dwelling
house shall be deemed to be the deemed transfer value
as determined in accordance with paragraph ( a ), and
notwithstanding the provisions of article 5(10)( b ) and
( c ) of the said Act, no capital loss resulting from or
bad debt incurred in relation to any other transfer shall
be set off against any capital gains determined as
aforesaid;
INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS EXEMPTION ġ S.L.123.58 3
Cap. 364.
S.L.364.06
( d ) when the parties to the transfer wish to avail
themselves of the exemptions granted by this Order
they shall make and give in a form supplied by the
Commissioner all the information specified in that
form. The declarations in the said form shall be signed
on behalf of the partnership by an individual who is
duly authorised for that purpose, by the transferee, by
a certified public auditor and by a notary public as
specified in the said Schedule and the form shall be
delivered to the Commissioner of Inland Revenue
together with the notice relative to the deed required in
terms of article 51 of the Duty on Documents and
Transfers Act and the Duty on Documents and
Transfer Rules, within the time limit prescribed for the
delivery of that notice:
Provided that in the case of a transfer made
before the date of this Order the said form shall be
delivered to the Commissioner at the Capital Transfer
Division of the Inland Revenue Department, Valletta,
by not later than the 31 October, 2001;
( e ) the parties to the deed shall furnish to the
Commissioner such further information and
documents as he may at any time reasonably require
for ascertaining the eligibility to the exemptions
granted by this Order;
( f ) in the event that any condition set out in this article is
not fulfilled or that any information or declaration
given or made for the purposes of this Order results to
be incorrect in any material respect, the exemptions
shall be forfeited;
( g ) this Order shall have such retroactive effect as may be
necessary to give effect to the exemptions granted
herein with respect to any transfer to which this Order
applies made before the date of this Order.
Exemptions may 
not be availed of in 
part.
5. The exemptions granted by this Order may not be availed
of in part, and when they have been validly availed of all the parties
to the transfer shall be deemed to have accepted the conditions set
out in article 4 notwithstanding any renunciation or reservation
made by any person.
4 ġ S.L.123.58
INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS EXEMPTION
SCHEDULE
Information and Declarations for the purposes of the Income Tax and Duty on 
Documents and Transfers on Transfers of Dwelling Houses by Commercial 
Partnerships Exemption Order
Part A
Description of the dwelling house and the transfer value information to be supplied and 
declaration to be made and signed by an individual who is an officer of the partnership duly 
authorised for this purpose
1. Address .......................................................................................
2. Date when acquired by the partnership ............................................
3. Cost at which the property was acquired by the partnership as recorded in the
partnership’s records ...............................................
4. Cost of improvements as recorded in the partnership’s records ........
5. Deemed transfer value (3 + 4) ......................................................
6. Value of consideration payable by the transferee for the transfer............
7. Excess (if any) of the deemed transfer value (as in 5) over the consideration (as in 6)
.................................................................
I declare that the above information is correct and that I am authorised by the partnership to
sign this declaration.
Signed for and on behalf of the partnership by (name of individual) ................
Designation ....................................
Address .................................................................................................
Identity document  number ....................................
Signature .....................................
Date ...........................................
Part B
Declaration by Certified Public Auditor
I declare that the information given in Part A corresponds to the relevant records of
................................................................ for the financial years ending
.............................................. .
Signed by (name of Certified Public Auditor) ........................................
Address .................................................................................................
Signature ...............................................
Official Stamp ........................................
Date ......................................................
INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS EXEMPTION ġ S.L.123.58 5
Part C
Description of the interests and voting rights in the partnership
Declaration to be made and signed on behalf of the partnership by an individual who is duly 
authorised for such purpose and by the transferee
Signed for and on behalf of the partnership by (name of individual) ................................
Signature .......................................
Name of transferee ..............................................................
Address .................................................................................................
Identity document number .....................................................................
Signature .............................................
Date ....................................................
Part D
Declaration to be made and signed on behalf of the partnership by an individual who is duly 
authorised for this purpose and by the transferee
We declare that on 20 November 2000 and up to today ...................... occupied the
dwelling house in question as his/their sole ordinary residence and that the said occupier/s is/
are related to the transferee as follows:
.....................................................................................................
Signed for and on behalf of the partnership by (name of individual) .....................................
Signature ...................................................
Name of transferee .........................................................
Signature ...................................................
Date .........................................................
Part E
Declaration by Notary Public
I declare that the declarations in Parts A, C and D have been signed in my presence after
that I, Notary, explained to the signatories the purport thereof and of the Tax on Transfers of
Dwelling Houses by Commercial Partnerships (Income Tax and Duty on Documents and
Transfers) Exemption Order.
Signed by (name of Notary Public) .............................................................
Address ........................................................................................................
Signature ..............................................
Official Stamp ......................................
Date ...................................
Name of partner Description of 
interests held
Voting rights held (as 
a percentage of total 
voting rights)
Relationship to 
transferee (if any)
6 ġ S.L.123.58
INCOME TAX AND DUTY ON DOCUMENTS AND 
TRANSFERS ON TRANSFERS OF DWELLING 
HOUSES BY COMMERCIAL PARTNERSHIPS EXEMPTION
