January 2016 edition.

1. ©AlterDomus2016
MALTA NEWSLETTER
January 2016
www.alterDomus.com

2. 02
Disclaimer: Please note
that this Update is not
intended as a complete
study on all applicable
legislation nor has it
been written with a view
to providing legal advice
on any matter.
Edited January 2016
GENERAL TOPICS
Alter Domus Celebrates its 5th
Anniversary in Malta ....................................03
Changes in the Accounting Directive .............................................................03
Double Taxation Treaties ............................................................................... 04
Budget 2016 .....................................................................................................04
The MFSA revises the Personal Questionnaire ............................................. 05
Outcome of the thematic reviews carried out by the MFSA on Collective
Investment Schemes and Fund Managers in relation to Governance,
Compliance and Risk Management ............................................................... 05
OTHER NEWS
Business Office Services International expands to Malta..............................06
CONTACT
Contact............................................................................................................. 07
AGENDA

3. 03
MALTA NEWSLETTER - January 2016
GENERAL TOPICS
1. Alter Domus Celebrates its 5th
Anniversary in Malta
On October 22nd, 2015, Alter Domus Malta hosted
a splendid cocktail soirée in honour of the five year
anniversary and relocation to a brand new office.
The keynote speaker for the event was the Minister
for Finance, Prof. Edward Scicluna. In his speech, the
Minister said that, “Malta has reached the required
standards that allow international companies in
any sector, but particularly in the financial services
sector, to be based here and be serviced by highly-
qualified and highly-experienced professionals.”
“The reason many companies that used to operate
in North Africa and the Middle East are now basing
themselves in Malta is not just the fact that we
offer economic and political stability, but also
because here they can obtain the services of high-
calibre professionals and firms in the financial,
accountancy, IT and legal spheres,” the Minister
said. “Malta has become an ideal place from where
companies can operate, and this is attracting all
forms of investment to the country.”
On his part, Alter Domus Group’s Deputy Chairman,
Mr René Beltjens, said that after five years of
operations in Malta, the company is even more
convinced that it pays to continue to do business
here and that there is potential to grow.
Small entities Medium-sized entities Large entities
Balance sheet total €4,000,000 €4,000,000 -
€20,000,000
€20,000,000
Revenue total €8,000,000 €8,000,000 -
€40,000,000
€40,000,000
Number of employees 50 250 250
2. Changes in the Accounting
Directive
Directive 2013/34/EU was published in the EU
Official Journal on the 29th
of June, 2013. The aim
of this directive is to ensure comparability between
financial statements of entities registered in
different EU member states.
Locally, the requirements of this directive were
transposed in Legal Notice 289 of 2015 entitled
Accountancy Profession (General Accounting
Principles for Small and Medium-Sized Entities)
Regulations, 2015, and in the Companies Act and
will apply to financial reporting periods beginning
on or after January 1st
, 2016.
General Accounting Principles for Small and
Medium-Sized Entities (“GAPSME”) which were
introduced through the above mentioned legal
notice are applicable by default (unless the
shareholder requests otherwise), to small and
medium-sized entities. These are entities which
exceed two out of the following three criteria for
two consecutive financial periods:

4. 04
MALTA NEWSLETTER - January 2016
GENERAL TOPICS
Amongst other things, the introduction of
GAPSME, will simplify the accounting requirements
of entities qualifying as small and medium-sized
entities. Examples of such simplifications includes
cost accounting instead of fair value with respect
to certain financial assets.
Companies qualifying as small entities, will
amongst other things, be able to submit audited
financial statements which are composed of a
balance sheet, an income statement and notes to
the financial statements.
In addition to the above, medium-sized entities will
be required to prepare a statement of changes in
equity and a cash flow statement.
Furthermore, the Companies Act has been modified
with respect to the following items:
• abridged accounts no longer possible (given
the introduction of simpler and shorter financial
statements as mentioned above);
• small companies need not prepare directors’
report;
• small and private exempt companies need not
file profit loss account;
• removal of the financial holding company
exemption;
• removal of extension of period allowed for
laying accounts before general meeting; and
• changes to rules regarding the profits available
for distribution.
3. Double Taxation Treaties
On the 10th of November 2015, the double taxation
treaty entered between Malta and the Republic of
Mauritius came into force.
On the 18th of November 2015, Malta signed a
double taxation treaty with the Kingdom of the
Netherlands, in respect of Curacao.
4. Budget 2016
The following are some interesting items, proposed
during the Budget Speech for 2016:
• Coaches and players of any sport will benefit
from a reduced income tax rate of 7.5%.
• A donation to the arts will be considered
deductible at 150% of the amount donated.
• Businesses that purchase hybrid or electric
vehicles may claim a wear and tear allowance
amounting to 50% of the purchase price in the
year of acquisition.
• Wear and tear allowances previously restricted
to industrial buildings, hotels and car parks will
be available for office buildings.
• The option of applying for the final 15% tax
rate on gross rental income will be extended
to commercial property. This option is not
available to intra group rent arrangements.
• As from 1 January 2016, the final tax rate on
transfers of regenerated immovable property
situated in Urban Conservation Areas will be
reduced from 8% to 5% of the transfer value.
• The Micro Invest Scheme will be extended to
provide a maximum tax credit of €50,000 to
self-employed women and businesses that are
majority owned by women.
• A tax credit to facilitate research and innovation
will be granted to enterprises employing
individuals with a doctorate or reading for a
doctorate in science, ICT, or engineering. Such
enterprises will be eligible to a maximum tax
credit of €10,000, to the extent that such
period of employment is at least of 12 months.
• Companies may qualify for either a tax credit
or a grant for the ‘knowledge transfer’ between
employees. The incentive is intended to
transfer skills from existing employees to new
employees.
• The introduction of fiscal consolidation will
allow a group of companies owned by the
same persons, to compute taxable income
on a consolidated basis as if it were a single
company.

5. 5. The MFSA revises the Personal
Questionnaire
The MFSA has issued a revised version of the Personal
Questionnaire (“PQ”) effective as of December 1st
, 2015
and also revised the respective MFSA Rules, removing
the 21 day limit for the approval of directors, senior
managers, compliance officers and money laundering
reporting officers.
The revised PQ now includes a checklist of the
documentation which must be submitted to the
Authority and includes additional sections which are
used by the MFSA to collate the necessary information
for the due diligence process and which should make
the review process more efficient.
6. Outcome of the thematic
reviews carried out by the
MFSA on Collective Investment
Schemes and Fund Managers
in relation to Governance,
Compliance and Risk
Management
During 2014 and 2015, the MFSA conducted
21 thematic reviews in relation to governance,
compliance and risk management through focused
visits at the offices of a number of collective
investment schemes and fund managers. The
purpose was to verify the extent to which
the selected licence holders had the relevant
procedures in place and the extent to which they
were actually being complied with.
The document compiled by the MFSA lists the
common findings of these 21 visits in order to
encourage licence holders to avoid common pitfalls
in relation to lack of observance of regulatory and
compliance standards.
The main common findings related to:
1. Conflict of Interest – Policy, register and
relevant disclosures;
2. Proceedings at Board of Directors Meetings;
3. Keeping relevant breaches registers and
reporting;
4. Disclosure and Transparency requirements;
and
5. Policies, Manual and relevant procedures.
Copy of the Authority’s letter can be found on the
website of the MFSA.
05
GENERAL TOPICS
MALTA NEWSLETTER - January 2016

6. 06
MALTA NEWSLETTER - January 2016
Business Office Services International expands to Malta
OTHER NEWS
Business Office Services has recently opened a newly constructed state-of-the-art business centre, ideally located
along the Mrieħel Bypass in Malta, providing high quality office space to local and international clients supported
by an entire suite of business services. The offices were officially inaugurated on the 2 December 2015.
Vision Exchange Building • Territorials Street • Mriehel BKR 3000 • Malta
T + 356 2014 5300 • F + 356 2014 5999

7. ©AlterDomus2016
FUNDS EUROPE AWARDS
2013, 2014 2015
EUROPEAN
SPECIALIST
ADMINISTRATOR
WINNER
Alter Domus is a leading European provider of Fund and Corporate Services dedicated to international
private equity infrastructure houses, real estate firms, multinationals, private clients and private debt
managers. Our vertically integrated approach offers tailor-made administration solutions across the
entire value chain of investment structures, from fund level down to local Special Purpose Vehicles.
Founded in Luxembourg in 2003, Alter Domus has continually expanded its global service offer and
today counts 30 offices and desks across five continents. This international network enables clients
to benefit globally from the expertise of more than 850 experienced professionals active in fund
administration, corporate secretarial, accounting, consolidation, tax and legal compliance and debt
administration services.
We are proud to serve 9 of the 10 largest private equity infrastructure houses, 7 of the 10 largest real
estate firms in the world and 3 of the 10 largest private debt managers in the world.
MALTA
CHRIS CASAPINTA
Country Executive Malta
+356 22 05 1000
Chris.Casapinta@alterDomus.com
www.alterDomus.com