Income Tax Act (Cap. 123), article 41A

41A. For the purposes of the investment income provisions and notwithstanding anything to th e contrary contained therein: (a) when any income referred to in article 41( a) is paid to a collective investment sch eme it shall be treated as investment income only to the extent that - (i) it falls to be accounted for by that collective investment scheme as profits of a prescribed fund; and (ii) it is not paid by another collective investment scheme; (b) "prescribed fund" means a collective investment scheme or, in the case of a collective investment scheme divided into sub-funds, a sub-fund of that scheme, that satisfies such conditions as may be prescribed for the purpo se of this definition; (c) "payor" includes an authoris ed financial intermediary and all the obligations of a payor shall apply to such an intermediary with respect to all payments of investment income effected through his services. A payment of investment income is effected through the services of an authorised f inancial intermediary when such payment - (i) is made to the intermediary who holds the relevant investment for the benefit of the recipient; (ii) is made directly to the recipient who requires that an authorised financi al intermediary collects an amount of tax equal to f ifteen per cent of such income for onward payment to the Commissioner; (iii) is made through an arrangement approved by the Commissioner, which ar rangement enables the collection of tax on such income through an authorised financial intermediary; Cap. 370. (d) "authorised financial intermediary” means a person holding an investment serv ices licence issued under the Investment Services Act who is registered with the Commissioner and who satisfies such other conditions as may be prescribed; (e) "recipient" includes a co llective investment scheme resident in Malta; (f) a payor shall deduct tax from every payment of investment income referred to in paragraph ( a) at the rate of fifteen cents (0. 15) on every euro of such payment or at such other rate or rates, not being more than the said rate and not le ss than ten cents (0.10) on every euro of the said payment, as may be prescribed; (g) a collective investment scheme shall not have the right to elect to be paid investment income without deduction of tax being made; INCOME TAX [CAP. 123. 147 (h) in no case shall a refund be made to a collective investment scheme in respect of tax withheld in accordance with the provisi ons of this article from investment income paid to that collective investment scheme. Powers of the Minister. Added by: IX. 2001.27.