It is currently Wed 21 Aug 2019 14:58 GMT
Change font size

    Latest Message from British Expat:

  • Five pub quiz questions – Quick Quiz
    As a change from our usual helping of country-related trivia, here's a tasty selection of five "pub quiz" type general knowledge questions. Have a go!

Money matters

Making sure get interest paid gross

No, really... it does!
But does it matter more in Malta than at home?

NO ADVERTISING - financial services adverts belong in our classifieds section. Get-rich-quick schemes belong in the trash.

Making sure get interest paid gross

Postby doc » Thu 7 May 2009 14:12 GMT

So I applied for registration certificate (of malta residence) from dept of citizenship and expatriate affairs and got a letter confirming that from them, though the actual certificate I am told might take 6months+!

In order that my non-maltese bank does not withhold tax from interest payments under the EU STD (savings tax directive) they appear happy to accept this letter as proof of residence BUT want me also to provide documentation that my tax status is such that I am exempt from EUSTD by providing "confirmation by the tax authority or a tax lawyer".

As far as I understand the remittance basis is open to any non-maltese person residing in Malta and not something granted or not to individuals. Is there some Malta government department anyone has come across that knows about this and can give me a boiler plate letter saying yes I would be taxed under the remittance basis?

Presumably other people have run into this and found out the way to do it without paying a lawyer to write a letter stating the obvious?

I searched for savings tax directive, STD etc on the forum and found no hits...

On the plus side I now have a malta ID card and the letter arrived to say I could go pick it up about 2weeks after applying.

Cheers

-doc
There's loads more to see and do on British Expat— why not check out our home page?
Posted by:
doc
Supporter
 
Posts: 113
Joined: Fri 26 Dec 2008 12:00 GMT
Location: Sliema

Postby gozomark » Thu 7 May 2009 14:47 GMT

As far as I understand the remittance basis is open to any non-maltese person residing in Malta and not something granted or not to individuals - correct

one of my banks asked for my Malta tax number, another just asked me to self certify that I was tax on a remittance basis. Maybe its the former that they mean by "confirmation by the tax authority " ?

doc - I've emailed you the names of the banks I use who were happy with the above
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Postby gozomark » Thu 7 May 2009 14:56 GMT

it was actually called a "Tax Identification Number" - TIN - a term both used on a form from the bank, and on a letter from the tax authorities.
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Postby doc » Thu 7 May 2009 16:10 GMT

I didnt register as a tax payer yet, so I dont have a TIN though I do have the malta ID card number as of today.

I guess the next step is to try get a TIN and while doing that ask the Inland Revenue Department what documentation they would provide re this bank request.

(And also ask the bank specifically what they want documented - Malta TIN letter or some statement about EUSTD - what they said so far is ambiguous).

http://www.ird.gov.mt/openinghours.aspx

Inland Revenue Departmet
Block 4
Vincenzo Dimech Street
Floriana

Maybe that would be the place to start.


btw thanks gozomark for the info about offshore accounts from UK banks, problem is I already have the account with this bank and I dont really want to change banks. It appears banks impose varying levels of doco requirements!

-doc
There's loads more to see and do on British Expat— why not check out our home page?
Posted by:
doc
Supporter
 
Posts: 113
Joined: Fri 26 Dec 2008 12:00 GMT
Location: Sliema

Re: Making sure get interest paid gross

Postby doc » Thu 6 Aug 2009 13:47 GMT

doc wrote:In order that my non-maltese bank does not withhold tax from interest payments under the EU STD (savings tax directive) they want me to provide documentation that my tax status is such that I am exempt from EUSTD by providing "confirmation by the tax authority or a tax lawyer".


So I sorted this all out, and I thought I'd say what docs to ask for etc.

I went here:

http://www.ird.gov.mt/openinghours.aspx

Inland Revenue Departmet
Block 4
Vincenzo Dimech Street
Floriana

(close to the police head quarters).


and they gave me on the spot (guy fills in a word doc template in front of you, prints and signs) two signed Inland Revenue Department headed letters, first one says:

RESIDENCE CERTIFICATE

The Malta tax authorities certify that to the best of their knowledge, <name> of <addess>, is a resident of Malta and has been registered for tax purposes on <date>, under Income Tax Registration Number <number> as from the Year of Assessment 2010, Basis Year 2009.

Francis Farrugia
F/Commissioner of Inland Revenue


So looking at that one I notice that it says nothing about remittance taxation, and so that means the bank probably wont accept it alone, and I dont want to pay a lawyer to write a letter stating the obvious (ordinarily resident, non-dom, malta = remittance tax), so I asked the guy if he has a better letter that says something about remittance taxation. He finds another word template and this one looks good:

RESIDENCE CERTIFICATE

This is to certify that <name> has taken up residence in Malta on <date> and is subject to tax in Malta on all remitted income each year as from date of arrival.

Francis Farrugia
F/Commissioner of Inland Revenue


and my bank accepted those two letters plus the other letter I had confirming I applied to be an ordinary resident (from the government office opposite the stock exchange). Maybe just these two letters would have done.

They needed to see the Malta ID card so get one of those first. Your tax number is the same as your malta ID card number.

Problem solved, no more EU savings tax directive witholding :D

-doc
There's loads more to see and do on British Expat— why not check out our home page?
Posted by:
doc
Supporter
 
Posts: 113
Joined: Fri 26 Dec 2008 12:00 GMT
Location: Sliema


Return to Money matters



cron