Income Tax Act (Cap. 123), article 68

68. (1) ( a) Any person who is not resident in Malta or any individual who is resident in Malta and who is in receipt of a dividend paid out of profits allocated to any of the taxed acco unts other than the final tax account shall not be obliged to disclo se the existence of such dividend in any return made pursuant to the provisions of the Income Tax Acts. (b) No person shall be charged to further tax under this Act in respect of the income ref erred to in paragraph ( a). (c) Any dividends paid out of profits allocated to the final tax account shall not be charged to further tax and shall not form part of the chargeable income of any person and no person may claim a credit or refund in respect of any tax directly or indirectly p aid on INCOME TAX [CAP. 123. 197 such profits and for the purpose of this paragraph a dividend received from a c ompany not registered in Malta shall to the ex tent that such dividend, directly or indirectly comprises a dividend paid by a company registered in Malta from profits al located to the final tax account, shall, to that exten t, be deemed to be a dividend paid by such company registered in Ma lta from profits allocated to t he final tax account directly to the person in receipt of the divi dend from the company not registered in Malta. (2) ( a) Any person, not being a company resident in Malta, shall not be obliged to disclose in any return made pursuant to the provisions of the Income Tax Acts those profits distributed by a collective investment scheme not constituted as a company, wher e such profits would have been allocated to the foreign income account or to the Maltese taxed account, had the collective investment scheme been constituted as a company. (b) No person shall be charged to further tax under this Act in respect of the profits referred to in paragraph ( a). (3) A dividend paid by a company shall be paid out of profits allocated to the immovable property account before any profits allocated to the Maltese taxe d account are distributed. (4) A dividend paid by a company which was resident in Malta before the 1 January 2007 out of profits allocated to the Malte se taxed account shall be deemed to be paid out of profits earned in accounting periods commencing prior to the 1 January 2011, and only when such profits are wholly distributed shall profits ear ned in subsequent accounting periods be considered as being distribute d for the purpose of the Income Tax Acts; and for this purpose an y dividend paid on or after the 1 January 2007 which did not invo lve the actual payment of a dividend in cash shall be ignored and deemed to never have been made. Cap. 372. (5) When any person is registered in terms of article 48(4A) of the Income Tax Management Act for the purposes of claiming a refund of tax chargeable on a company and that company has any profits allocated to its Maltese Taxed Account or its foreign income ac count the whole or part of which are actually distributed or deemed t o be distributed under any provision of the Income Tax Acts, such pe rson who is so registered shall be d eemed to have received, whether upon an actual distribution or deemed distribution as aforesaid, so much of such profits from each such ac count as corresponds to his perce ntage entitlement to participate in a distribution of profits of the said company. Any provisions in the memorandum and articles of association of the company or in any agreement which provide that a shareholder, who is so registered, shall be entitled to be paid dividends solely or mainly from the Maltese Taxed Account or the foreign income account shall be disregarded for the purpose of the Income Tax Acts: Cap. 325. Provided that where profits have been subject to tax at a rate pursuant to article 15 of the Business Promotion Act or article 56(20) of this Act, the provisions of this sub-article shall not apply as regards such profits and unless the sha res (including any shares substi tuting the original shares resultin g from any share exchange or 198 CAP. 123.] INCOME TAX reorganisation) which gave rise to the entitlement that such pr ofits be taxed in accordance with the afo rementioned articles are no lon ger in existence, such profits shall be distributable only to the pers on in respect of whom the aforementioned articles were applicable or to any other person who acquired th e shares from such person. Extent of liability. Added by: XVII. 1994.26. Cap. 372.