  COMMERCIAL BANKS (SPECIAL TAX)  ġ CAP. 402.  1
CHAPTER 402
COMMERCIAL BANKS (SPECIAL TAX) ACT
Further to impose a one time tax of 15% on the profits of Commercial
Banks.
(26th June, 1998) *
Enacted by ACT XV of 1998.
Short title.
Tax) Act.
Interpretation.
Cap. 371.
"commercial bank" means a credit institution licensed under the
Banking Act, but does not include such an institution which has a
licence limited to dealing only in currencies other than the Maltese
lira and does not include the bank known as Lohombus Bank
Limited;
"Commissioner" means the Commissioner of Inland Revenue;
"profits" means chargeable income as determined in accordance
with the Tax Acts but does not include profits from loans advanced
by commercial banks to individuals to assist them in the acquisition
or construction of a house to be used as their personal residence;
"special tax" means the tax imposed under this Act;
Cap. 123.
Cap. 372.
"Tax Acts" means the Income Tax Act and the Income Tax
Management Act;
"tax year" means the accounting period of the commercial bank
ending at any time during the calendar year 1997 and as established
under section 11 of the Income Tax Act.
Charge of special 
tax.
3. Subject to the provisions of this Act, a special tax shall be
payable at the rate of fifteen per centum upon the profits of a
commercial bank accruing in or derived from Malta or elsewhere
and whether received in Malta or elsewhere in respect of the tax
year:
Provided that where a commercial bank operates in Malta
only as a branch of a foreign bank, then for the purposes of this
section, profits shall be deemed to be the profits of the commercial
bank properly attributable to the operations of the branch or
branches in Malta.
Provisions of Tax 
Acts to apply.
4. (1) The provisions of the Tax Acts with respect to returns,
assessments, appeals, collection and penalties shall apply to the
special tax imposed under this Act, and the Commissioner shall
have all the powers in relation to the special tax as provided in the
Tax Acts in relation to income tax, subject however to the
provisions of the following subsections of this section.
* See  Government Notice No. 499 of 26th June, 1998.
  2  CAP. 402. ħ   COMMERCIAL BANKS (SPECIAL TAX)
(2) The provisions of the Tax Acts with respect to set-off or
refunds shall not apply to the special tax.
(3) The return to be submitted for the purposes of this Act shall
consist of the audited accounts of the commercial bank for the tax
year together with the income tax computation relative thereto.
(4) The return shall be submitted to the Commissioner by the
30th June, 1998, and shall be accompanied by the payment of the
special tax due.
Special tax not to 
be deductible for 
purposes of 
Income Tax Act.
Cap. 123.
5. The special tax payable under this Act shall not for the
purposes of section 14 of the Income Tax Act be considered to be
an expense wholly and exclusively incurred in the production of the
income for the year of assessment corresponding to the tax year or
for any other year of assessment.
