Malta Clarifies CGT Definition of Partnership

Trudy Marie Attard | Published on 21 May 2012

Ccmalta Default

In May 2012, by virtue of the adopted budget implementation Act, Act V of 2012 ‘An Act to implement Budget measures for the financial year  2012 and other administrative measures’ enacted on 14 May 2012, the definition of partnership for the purposes of capital gains taxation has been clarified and extended to:

(a)    any partnership constituted under the Companies Act or the Commercial Partnerships Ordinance, being either a commercial partnership en nom collectif or a commercial partnership en commandite the capital of which is not divided into shares;

(b)   any other partnership having a legal personality distinct from that of its members constituted, incorporated or registered under any other law in force in Malta;

(c)    any body of persons constituted, incorporated or registered outside Malta, and of a nature similar to the aforesaid partnerships;

(d)   a European Economic Interest Grouping (EEIG) formed pursuant to the provisions of the Companies Act (European Economic Interest Grouping) Regulations. An EEIG formed pursuant to the provisions of the Companies Act (EEIG) Regulations shall be deemed to be a partnership and the partners thereof are liable to tax notwithstanding the fact that the EEIG does not carry on a trade or business.

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