Contact ZETA
for further details on the news snippets.
2012 - 01 - 10:
MALTA - ZETA Capital Advisory launches a specialised fiduciary, trusts and foundation administrator named Premier Fiduciary & Trusts Ltd and regulated by the Malta Financial Services Authority.
2012 - 01 - 09:
A recent report by Jeremy Khan in Bloomberg Markets states
that there is an increased wave of of hedge-fund executives washing up on Malta's shores,
lured by low taxes, cheap labor and a coveted address inside the European
Union.
As of early November,
the number of funds located in Malta
had grown to more than 500 with 8 billion euros ($10.7 billion) under
management from 165 funds with less than 5 billion euros under management in
2006, according to the Malta Financial Services Authority, or MFSA.
While that's not much
compared with Luxembourg,
which has more than 143 billion euro under management across more than 700
hedge funds and funds of hedge funds, the number of funds in Malta and the
amount of their assets are expanding.
Since the end of 2010,
the number of funds increased almost 30 percent and their total assets were up
nearly 15 percent as of early December.
Demanding Transparency
Malta has also begun to win
business from more-established fund jurisdictions. The island has benefited
from a growing demand by investors for transparency as well as from fears among
hedge funds that the EU was becoming increasingly hostile to firms based
outside of it.
In 2010, nine
companies from the British Virgin Islands, seven from the Cayman Islands and
six from Luxembourg switched
their legal domicile to Malta,
according to the MFSA.
In addition, at least
a dozen large U.K. hedge
funds and funds of hedge funds have shifted part of their operations, including
accounting and investor relations, to Malta.
These include Clive
Capital LLP, which has about $4 billion under management, Comac Capital LLP,
which has $5.2 billion under management, the $1.2 billion commodities and
energy hedge fund BlueGold Capital Management LLP and the $2.8 billion fund-
of-funds company Liongate Capital Management LLP.
Many of these larger
hedge funds, while serviced from Malta,
remain legally domiciled elsewhere, so those assets aren't counted in Malta's
official tally.
Strategic Location
The growth of Malta's fund industry has been so rapid that
Prime Minister Lawrence Gonzi says he worries whether Malta, with a
population of just 414,000, has enough accountants and financial analysts to
keep up with demand.
Invasions, friendly or
otherwise, are nothing new to the Maltese. Phoenician sailors, Roman
centurions, Arab traders, pirates and Norman mercenaries were all drawn to the
island's natural harbors and strategic location between Europe and North Africa.
The Knights of St.
John, a Catholic military order popularly known as the Knights of Malta, ruled
the island for more than 250 years beginning in the early 16th century.
MALTA - ZETA Capital Advisory launches its new "Family Office" services for international High Net Worth Individuals that chose Malta as their new family financial hub.
2011 - 10 - 25:
A Convention for the
Avoidance of Double Taxation has been signed by Malta
and Israel.
The Convention fixes maximum withholding tax rates chargeable in the source
State on interest payments at 5% and on dividends derived from portfolio
investments at 15%. No tax would be chargeable in the source state on dividends
receivable from direct investments (>10%) or on royalty receipts. Of course,
Malta
does not withhold any tax on outbound interest, dividends or royalties in terms
of domestic tax laws.
The Convention also contains OECD Model style provisions for the exchange of
information between the competent authorities of the two States. As such,
whilst the Convention is intended and expected to strengthen economic relations
between the two countries once it is in force (it is understood that 68 limited
liability companies are currently registered in Malta
and owned, directly or indirectly, by persons resident in Israel), the Convention should also assist in
detecting abusive tax evasion in both Malta
and Israel.
2011 - 04 - 25:
MALTA - Maltese Finance, Economy and Investment Minister Tonio Fenech has introduced The Highly Qualified Persons Rules, 2011 - attractive tax incentives available to highly qualified individuals employed with companies licensed or recognised by the Malta Financial Services Authority. These rules establish that an individual not domiciled in Malta who is employed to fill a senior position within such a company may opt to pay tax at the flat rate of 15% on employment income derived in respect of work or duties carried out in Malta. This can be in respect of any period spent outside Malta in connection with such work or duties. Furthermore, in terms of the rules, no further Malta tax would be chargeable in respect of qualifying employment income exceeding Euro5,000,000.
2011 - 02 - 25:
ZURICH -(Dow Jones)- The
Swissgovernmentsaid Friday it signed a
double taxation agreement with Malta, including a less restrictive exchange of
information following changes to Swiss banking secrecy.
MAIN FACTS:
- The double taxation agreement, or DTA, will
contribute to the further positive development of bilateral economic relations
and also contains provisions on the exchange of information in line with
internationally applicable standards.
- Aside from
the exchange of information, Switzerland and Malta have in particular agreed
withholding tax exemption for dividend payments in the case of related
companies with a capital stake of at least 10% in the company making the
payment. This exemption occurs so long as the participating interest is held
for at least one year. These conditions also apply to interest payments being
exempt from withholding tax.
- The DTA with Malta
contains a clause on abuse, so that the envisaged withholding tax reductions
are not applicable to artificially arranged business activities. In addition,
most-favoured-nation treatment of Switzerland was agreed in an arbitration
clause. Should Malta negotiate an arbitration clause with another country, the
clause agreed between Switzerland and Malta would automatically become
applicable.
- The DTA
with Malta contains the rule on interpretation in the case of administrative
assistance recommended in mid-February 2011 by the Federal Council.
- After
negotiations finished, a report on the revised agreement was submitted to the
Conference of Cantonal Finance Directors and the business associations.
2010 - 11 - 19:
The Malta Financial Services Authority (MFSA), has awarded an insurance management licence to South Risk Partners Ltd. subsidiary, South Risk Management Cell. South Risk Partners Ltd. is a ZETA sister company that specialises in insurance and captive management.
2010 - 11 - 03:
A survey conducted by International Fund Investment has shown that 76
per cent of those interviewed are aware of the fact that Malta can be used as a
base for their funds or to open an office locally, or both.
The survey was highlighted during a presentation by International Fund
Investment attended by FinanceMalta on Manager Migration, Fund Servicing and
Domiciliation in the Mediterranean: The alternative to Ireland and
Luxembourg in London recently.
As one interviewee put it, Malta is another option for those looking
for a base in the EU. One manager said: Two years ago I wouldn't have
considered it but it now appears to be gaining momentum. Another interviewee
stated: We are setting up an office there right now. We like the fact that
there are other managers already there.
The IFI survey stated that 62 per cent of alternative fund managers
interviewed are re-domiciling or are launching funds in the EU. When asked what
views investors have on existing domiciles like Gibraltar, Ireland, Luxembourg
and Malta, the overwhelming response was that the domiciles in question are
well known.
Those interviewees stated that they prefer well-known domiciles that are
used substantially by other investors and managers. As one interviewee put it: We don't like surprises. Ireland and Luxembourg are known to all respondents
and therefore liked for this reason. But the majority of investors (83 per
cent) are aware that Malta is becoming a commonly used alternative to Ireland
and Luxembourg.
Of the 10 major domiciles available to investors, Switzerland was
considered to be the most popular followed by Malta and Guernsey. Hong Kong,
Jersey, Gibraltar and the Isle of Man followed in that order. When asked in
which jurisdiction investors were likely to domicile their EU-based funds,
Ireland was a major preference follow-ed by Luxembourg and Malta.
When asked if they would consider relocating funds to Malta or Gibraltar
as an alternative to Luxembourg or Ireland, 18 per cent said they are looking
at moving funds to Malta or Gibraltar while a further 26 per cent are open to
the idea, particularly if these locations continue to offer fund servicing on
the same level as Ireland or Luxembourg but at lower costs.
When questioned about their views on the regulatory environment in the
Mediterranean domiciles, all those respondents who visited the MFSA had
positive comments to make about the proactive approach that the Maltese
regulator has taken. One manager said that this was Malta's biggest selling
point. When asked if investors have any views on the quality of fund service
provision in the Mediterranean domiciles, one interviewee said that he was
aware of the fact that several international fund administrators had recently
launched offices in Malta and regarded this as a positive step for this
domicile.
The chairman of FinanceMalta, stated: The results of this
survey clearly show that Malta's visibility as an international financial
services centre is gaining traction. In fact, Malta was easily recognised as a
fund domicile with 76 per cernt of those interviewed aware that it is an
alternative jurisdiction for those looking for a base in the EU. Managers are
looking to use Malta as a base for their funds or to open an office. It was
interesting to note that the majority of investors interviewed in this survey
are aware that Malta is becoming a commonly used domicile and is considered as
one of the European options alongside established players like Ireland and
Luxembourg.
This survey supports the growing position that Malta is taking in the
international financial services market. The country is ranked 50th among 139
economies in a World Competitiveness Report issued by the World Economic Forum
for 2010-2011. Twenty-five licensed credit institutions have already
established operations in Malta up to 2009 of which 20 are EU-country based.
2010 - 07 - 31:
Italy is to remove Malta from its list of tax
haven jurisdictions following talks between the two countries going back
two years.
The aim behind the 'black list' of the Italian Controlled Foreign
Companies (CFC) law is to tax subsidiaries of Italian companies located
in so called low tax jurisdictions even if the profits of the relative
subsidiaries are not distributed to the Italian parent company
Malta featured on the black list prior to its EU membership and
although pursuant to its EU membership not all types of Maltese
companies were blacklisted, all Maltese companies were construed to be de facto blacklisted
due to the uncertainty resulting from the lack of clarity of the
wording on the legislation, sources in the financial services sector
said.
The Maltese Foreign Ministry had insisted that Malta should be
removed from the list after Maltese tax legislation was given the green
light by the EU Code of Conduct (Business Taxation) Group.
In March last year Malta and Italy reached a new double taxation avoidance agreement which further clarified the situation.
The Italian Minster of Finance signed the relative decree removing
Malta from the black list on Tuesday. The decree has to be published on
the Gazzetta Ufficiale to come into force. (Source: timesofmalta.com)
2010 - 07 - 15:
US Senate ratifies Double Tax Treaty with Malta. The treaty is based on the OECD Model tax Convention and is designed to remove any potential trade barriers between Malta and the United States. The treaty also establishes appropriate channels for the exchange of information in the mutual efforts of the countries for both countries to prevent fiscal evasion.
2010 - 07 - 13:
Double Taxation Agreement between Malta and Uruguay agreed. On the 13th July 2010, the Maltese government announced the conclusion of negotiations in connection with the double taxation agreement with Uruguay. The agreement is expected to be signed later on this year. This treaty is the first double taxation agreement between Malta and a South American country.
2010 - 07 - 13:
New Double Taxation Agreement between China and Malta. On July 13th 2010, the Maltese government announced the conclusion of the bilateral discussions with China in connection with a new Double Taxation Agreement. The agreement is expected to be signed later on this year. The new Treaty will replace the existing agreement signed on the 2nd February 2002.
2010 - 06 - 18:
The governments of Malta and Germany signed a new protocol to the double tax
convention in force since 2001 to include protocols for the exchange of tax
information upon request.
Finance Minister Tonio Fenech, who signed the agreement, said that it would
facilitate, in both countries, efforts to combat tax avoidance and evasion in
line with the Organization for Economic Cooperation and Development standard.
Speaking to reporters following the signing, he noted the significance of
the agreement with Germany as a very important trading partner with total imports
and exports for the past five years amounting to EUR261m and EUR271m, respectively.
Signing for Germany, Ambassador Bernd Braun acknowledged that the agreement
would facilitate increased trade and investment with Malta, a territory that
he noted Germany did not consider an 'offshore tax haven' but a
place for investment.
2010 - 05 - 11:
Distribution of Malta Domiciled Funds in Singapore. On the 11th May 2010, the Malta Financial Services Authority, MFSA, announced that it had reached an understanding with the Monetary Authority of Singapore, MAS, where Maltese domiciled funds may be offered to institutional and accredited investors as defined in Section 4A of the Securities and Futures Act, SFA, in Singapore.
2010 - 04 - 23:
QROPS Status for Maltese Registered Retirement Benefit Schemes. On the 23rd of April, the HM Revenue and Customs (HMRC) approved the first Maltese Qualifying Recognised Pension Schemes (QROPS) and in doing so, paved the way for individuals with UK pensions and who are or who will be non-UK tax residents, to transfer their pensions in a tax advantageous manner, to retirement benefit schemes established in Malta. 2010 - 04 - 19:
ZETA has moved to new offices at 43A/1 St. Paul's Buildings, West Street, Valletta, VLT 1532, Malta.
2010 - 01 - 25:
Malta and Jersey sign Double Taxation Agreement. The agreement, signed on the 25th January 2010, at the Malta High Commission in London, is the 16th double taxation agreement signed by Malta in the last 22 months and brings the total number of Malta's treaty partners to 57.
2009 - 12 - 15:
ZETA assisted in the incorporation of a Malta based risk advisory firm.
2009 - 05 - 01:
ZETA assisted in the set-up of a Malta based EU & North African focused trading company.
2008 - 06 - 15:
ZETA launches its new internet site
Contact ZETA
for further details on the news snippets.
