Make sure the price is right
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Buyers should beware when declaring the transfer price of immovable property because there are fiscal obligations they must comply with for their own serenity. A final judgment delivered on May 27 by the Administrative Review Tribunal presided over by MagistrMake sure the price is right
Buyers should beware when declaring the transfer price of immovable property because there are fiscal obligations they must comply with for their own serenity. A final judgment delivered on May 27 by the Administrative Review Tribunal presided over by Magistrate Gabriella Vella (application 160/11VG - C.H. Formosa Company Limited v Director General [income tax]) will explain why. The case is about the declared transfer value on a deed of sale dated March 20, 2008 for an immovable property. It was mainly about the real value of or payment for the immovable property at issue compared to the value declared by the parties in the deed of sale. The declared value amounted to €628,930.81. In line with article 32 of the Duty on Documents and Transfers Act (Chapter 364 of the Laws of Malta), duty is due inter alia on every document whereby any immovable property or real right thereon is transferred to any person. The duty amounts to €5 for every €100 “or part thereof of the amount or value of the consideration for the transfer of such thing or of the value of such thing, whichever is the higher”. The law allows the Commissioner for Revenue to assess the real value of or payment for the... Read more