New Tax Measures Relating To Collective Investment Schemes

Various budget measures have been discussed in Parliament. These measures include amendments to the Income Tax Acts relating to:

	fringe benefits, on which we have issued a separate newsletter dated 20 February 2001
	a change to the definition of 'International Trading Company' that extends the permitted activities of an ITC to include services to collective investment schemes that are marketed exclusively outside Malta
	a change to the rules on relief for undelying tax, which is now available to companies resident in Malta that own less than 10% of the paying company
	the taxation of income derived by or through collective investment schemes and corresponding provisions on unit linked products

This newsletter sets out a summary of the salient new provisions which effect the taxation of collective investment schemes.