May 2012 saw the introduction of a new proviso to the intra-group exemption provision under both the property transfers tax (Art 5A (12A) (b)) and tax on capital gains provisions (Art 5 (9A) (b)).
May 2012 saw the introduction of a new proviso to the intra-group exemption provision under both the property transfers tax (Art 5A (12A) (b)) and tax on capital gains provisions (Art 5 (9A) (b)).
The proviso furthers the application of a tax exemption on the transfer of property between two companies where they are deemed to be part of a group of companies for tax purposes. It holds that where a company ceases to be a member of the original group solely as a result of a change in the direct or indirect individual shareholders of the company from which it had acquired the shares in question, the chargeable company will not be treated as ceasing to be a member of the original group.
Pursuant to the introduction of this measure, it shall be deemed that such change had not occurred for the purposes of the tax exemption so that the transfer remains exempt from tax.
