News

Use of Side Pockets by Collective Investment Schemes

Side pockets are devices used by funds to rectify situations when assets of the fund’s portfolio become illiquid or hard to value, thereby hindering both calculation of the Net Asset Value as well as the redemption of units by investors.  The Malta Financial Services Authority (“MFSA”) has issued guidance notes regarding the use of side pockets for Professional Investor Funds (UCITS and non-UCITS Schemes are expressly excluded). Continue reading “Use of Side Pockets by Collective Investment Schemes”

Croatian EU Membership to catalyse investor’s interest in Malta

Poland’s Prime Minister Donald Tusk,  who assumes the presidency of the EU bloc, claimed,after talks with the leaders of Denmark and Cyprus, who take over the rotating leadership of the EU in 2012,  that Croatia could sign up its European Union entry deal as early as this year. Continue reading “Croatian EU Membership to catalyse investor’s interest in Malta”

No Employment Licence required for EEA / Swiss citizens

The Immigration Act (Chapter 217 of the Laws of Malta) prescribes that all foreign nationals seeking to work in Malta require an employment licence.

Continue reading “No Employment Licence required for EEA / Swiss citizens”

Guidelines on Profit Participating Loans (PPLs)

The EU Code of Conduct Group had recommended a guideline concerning Profit Participating Loans (PPLs) whereby a hybrid loan arrangement is to be deemed as a financial instrument that has characteristics of both debt and equity. In as far as payments under a hybrid loan arrangement are qualified as a tax deductible expense for the debtor in the arrangement, Member States shall not exempt such payments as profit distributions under a participation exemption. Continue reading “Guidelines on Profit Participating Loans (PPLs)”

LGA sets tax & accounting rules for iGaming companies

In order to maintain a level playing ground and ensure player protection, the Maltese Lotteries and Gaming Authority (“LGA”) prescribes maximum transparency measures for all licensed igaming companies in Malta. Continue reading “LGA sets tax & accounting rules for iGaming companies”

Malta Holding Companies ideal vehicles for Spanish investors

Malta has as of April 2011, ratified over fifty double tax treaties with an extensive network of jurisdictions.  One of the beneficial double tax treaties is the one entered into between Malta and the Kingdom of Spain. Continue reading “Malta Holding Companies ideal vehicles for Spanish investors”

Share Capital Requirements for Maltese iGaming Companies

iGaming licences shall only be issued by the Maltese Lotteries and Gaming Authority (“LGA”)  if the licence holder is Maltese registered corporate entity. The most commonly used form is a Maltese limited liability company. Applicants, must at application stage, submit a business plan outlining the methodology (marketing methods, technologies used, games to be operated etc;). The LGA shall assess the viability of the project as well as the expertise and know-how of the applicant. Continue reading “Share Capital Requirements for Maltese iGaming Companies”

Complete Overview of Malta Double Tax Treaties

Malta has, as of April 2011, ratified double tax treaties with 56 jurisdictions, with a significant number of other treaties, such as with the Swiss Federation signed, but awaiting ratification. Most of the treaties which Malta has entered into are based on the Organisation for Economic Cooperation and Development (OECD) Model Convention.  Continue reading “Complete Overview of Malta Double Tax Treaties”

Opening of Bank Accounts in Malta

Malta has a fastly-growing banking industry with, as of March 2011, 25 licence holders, offering bespoke corporate, merchant and individual solutions.   With the increase of the financial services industry in Malta, many banks now also offer specialised niches such as wealth management, trusts services and private banking.  Continue reading “Opening of Bank Accounts in Malta”

Forex Trading as white label partner subject to less stringent regulations

Online Forex Trading acting as a riskless principal (“white label partner”) may benefit from a less restrictive regulatory regime than forex traders dealing on own account. Continue reading “Forex Trading as white label partner subject to less stringent regulations”

Crackdown on US Poker Sites confirms need for regulated igaming regime

Federal authorities in the US have closed down on three major US poker sites: Poker Stars, Full Tilt Poker and Absolute Poker, casting serious doubt regarding the future of the online gaming industry in the US.   Top US poker sites which continued to operate despite the  Unlawful Internet Gambling Enforcement Act (UIGEA) are now facing severe and possibly far-reaching consequences as a result of accepting deposits from US residents. Continue reading “Crackdown on US Poker Sites confirms need for regulated igaming regime”

Malta Residence & Work Permits

EU/EEA citizens shall be issued with a work permit from the Employment and Training Corporation in a timely manner (seven (7) to ten (10) working days). Continue reading “Malta Residence & Work Permits”

Mobile Betting identified as fastest growing gaming medium

The Green Paper on iGaming services in the internal market released on the 24th March 2011 has highlighted a number of interesting facts regarding online gaming across the European Union.  The Green Paper has identified mobile betting as the technological medium which has experienced the greatest growth, a trend which is most likely to continue with the increased popularity of smartphones. Continue reading “Mobile Betting identified as fastest growing gaming medium”

United States – Malta Double Tax Treaty Ratified

After years of negotiation, the double taxation agreement between the United States and Malta  was signed on Tuesday 2nd November 2010, and ratified the agreement, with effect as of January 1, 2011.  The double taxation agreement replaces an earlier agreement which was terminated in 1997.
Continue reading “United States – Malta Double Tax Treaty Ratified”

Hedge Fund Managers re-domiciliating to Malta

Some of the most prominent and largest UK hedge funds managers are shifting their operations to Malta following  rising costs of business and the growing regulatory burden in the UK. Continue reading “Hedge Fund Managers re-domiciliating to Malta”

Setting up a company in Malta

Focus Business Services has a long and reputable track-record when it comes to the company formations in Malta.  Since its foundation in 1998, the Focus Group has incorporated, advised upon, re-domiciled or formed branches of thousands of companies in various jurisdictions. Continue reading “Setting up a company in Malta”

Professional Investor Funds – USD Thresholds

The Malta Financial Services Authority has issued a revised version of the Investment Services Rules for Professional Investor Funds. The changes reflect the introduction of fixed US Dollar amounts with respect to the minimum investment thresholds of Experienced, Qualifying and Extraordinary Investors (US$ 10,000 / US$ 75,000 / US$ 750,000).  The said changes shall serve to eliminate all currency exchange uncertainties previously created with respect to USD denominated funds, by requiring the currency equivalents of the fixed Euro amounts. Continue reading Professional Investor Funds.

Malta Corporate Tax

Malta’s corporate tax rate is enshrined in a highly attractive, investor friendly legal framework which, has been approved by the EU in 2007 under State Aid and Code of Conduct. Continue reading “Malta Corporate Tax”

Danish investors express interest in Malta’s Company Tax

Malta Corporate Bank Account

Provided the company or any other corporate entity has registered shareholders (no bearer shares), any Maltese or foreign company can also open a bank account in Malta in virtually any currency.  Maltese Banks offer a sophisticated range of banking products, such as internet and mobile banking and can open bank accounts at attractive interest rates. Corporate business accounts are not subject to exchange control regulations. Continue reading “Malta Corporate Bank Account”

Malta Bank Account for non-residents

Bank accounts are not confined to solely Maltese residents; it is also possible to open a bank account in Malta for non-residents.  Malta offers a vast array of banking options, including retail banking services with telephone, internet and mobile banking facilities, as well as specialised wealth management banking services.   Most of the largest banks in Malta have a dedicated international clients centre, aimed at providing solutions expressly for non-residents. Continue reading “Malta Bank Account for non-residents”

Highly Qualified Persons / People – Income Tax Amendments

By virtue to amendments to the Income Tax Act, it is now possible for highly qualified professionals , carrying out their work and duties in or outside Malta, to benefit from a highly attractive rate of 15% over their personal income tax.

For a more thorough understanding of the eligibility criteria, continue reading the “Highly Qualified Persons Rules“.