In Malta, stamp duty is a tax levied on certain documents and transactions, including the transfer of shares in a company. Here’s an overview of how stamp duty on share transfers in a Maltese company works:

Stamp Duty Rates

The standard rate of stamp duty on the transfer of shares in a Maltese company is generally 2% of the higher of the market value or the consideration for the shares. However, there are specific circumstances under which different rates or exemptions may apply.

Calculation of Stamp Duty

Stamp duty is calculated based on the value of the shares being transferred. The value can be determined by:

• The consideration paid for the shares, or
• The market value of the shares at the time of the transfer, whichever is higher.

Exemptions and Reductions

Certain transfers may be exempt from stamp duty or qualify for a reduced rate. Examples include:

• Transfers between spouses.
• Transfers upon inheritance.
• Transfers of shares in a company listed on a recognized stock exchange.
• Certain transfers within group companies.

Procedure for Paying Stamp Duty

1. Determine the Amount Payable: Calculate the stamp duty based on the value of the shares.
2. Submit Documentation: Provide the necessary documentation to the Commissioner for Revenue, which typically includes:
   • Share Transfer Form (Form T)
   • Share Transfer Agreement
   • Evidence of the consideration paid
3. Payment: Pay the calculated stamp duty to the Commissioner for Revenue. Payments can usually be made electronically or by bank draft.
4. Obtain Receipt: Obtain a receipt or confirmation of payment from the Commissioner for Revenue.
5. File with the Malta Business Registry: Submit evidence of stamp duty payment, along with the required forms, to the Malta Business Registry (MBR).

Example Calculation

If you are transferring 1,000 shares valued at €10 each (either as market value or consideration), the total value would be €10,000. The stamp duty at 2% would be €200

Relevant Forms and Documentation

• Form T: Used for transferring shares.
• Share Transfer Agreement: Outlines the terms and conditions of the transfer.
• Evidence of Payment: Proof of payment of stamp duty.

Important Considerations

• Due Dates: Stamp duty must be paid within the timeframe specified by Maltese law, typically within 15 days of the execution of the share transfer.
• Penalties: Failure to pay stamp duty on time may result in penalties and interest charges.
• Professional Advice: It is advisable to seek guidance from a legal or tax professional to ensure compliance with all regulations and to take advantage of any applicable exemptions or reductions.

By following these steps and understanding the requirements, you can ensure the proper payment of stamp duty on the transfer of shares in a Maltese company.