In true Christmas spirit, GMX happily donated to the ever worthy L-Istrina initiative – the annual Boxing Day fixture on the Community Chest Find calendar. While the collection of funds is important to help out people in need, at GMX we also give importance to the joy of giving. This has always been our CSR ethos which we are determined to keep up.
Short-haul or long-haul, boarding a plane to go on holiday or a business trip has become so common that we rarely think of the legal issues that may arise beyond cancellation, delays and luggage lost or damaged in transit. Same for sea-travel.
Even those who are sticklers for insurance cover rarely flit through all the details involved especially if they are long-standing customers of a specific insurance firm. They are happy with the comfort of knowing that they are protected from the moment they have clinched their booking to the moment they return home. Others take the risk and travel without any coverage whatsoever. And a risk this certainly is for no amount of problem-free trips can guarantee the outcome of subsequent travelling.
Basic travel insurance usually offers the following covers and standard benefits:
Additional benefits such as rental vehicle insurance excess cover, music equipment cover, winter sports equipment related to a skiing holiday or pet cover may also be offered at a premium. Opting for a Personal Accident Insurance policy will yield even more comprehensive benefits while frequent flyers have the opportunity to go for a much more customized Annual Travel Insurance.
There is also the concept of ‘excess waiver’ to consider. As in all types of insurance policies, travel insurance requires a traveler to take part in the claims by paying the excess, specifically, the first part of the claim. This is the fraction that you pay towards each claim’s costs, subject to the maximum limits stated under each benefit. Take a case of lost baggage amounting to €600 where the maximum limit is set at €1,000 and the excess at €100.
As a result, you will have to pay the first €100 while the insurance company reimburses the remaining €500. Had the lost baggage exceeded €1,000, you will only get €900. Significantly, excess waiver may not be permissible for benefits which cover high risk sport or adventure travel. Millennials setting the trend for gung-ho adventurous travel please note.
Excess waiver further means that you do not have to pay an amount every time there is a claim against the travel insurance policy. The excess waiver would mean that you have to pay an additional premium amount as this really constitutes additional cover under your travel insurance policy. If you would like to lower your premium for the travel insurance, you can also have the excess increased.
Another useful tip is to check if your insurance company allows you to choose a medical excess level, or to change the excess into an amount you would like. As EU citizens, it is also a good idea to verify whether the European Health Insurance Card (EHIC) can be used against the excess amount.
Taking out a travel insurance policy in Malta is subject to three conditions, namely:
By default this means that a non-Maltese resident who has travelled to Malta without any travel insurance cover cannot purchase any insurance policy to cover his/her outbound flight or sea ticket irrespective of whether the home country is the destination. So imagine such a traveler who while in Malta spontaneously decided to buy something valuable to take home, he/she would have to take the risk of travelling without insurance protection.
Apart from what may be considered to be run-of-the-mill hitches, there are other possible (if rare) problems. These include: overbooking, food poisoning and food intolerance in cases of inadequately labelled meals or snacks offered during flights/voyaging at sea; or purchased at airports/sea terminals. Airlines and shipping companies have to shoulder the responsibility of food poisoning for inflight/at sea meals, whereas liability for food intolerance will depend on correct and adequate labelling of relevant ingredients as well as how careful and attentive the passenger would have been.
Despite the increased awareness of food intolerance and the now much banded lactose/gluten free advertising we need to keep in mind that rules and regulations regarding food products are not internationally standardized. And though well-established airline carriers and shipping companies are bound to take precautions, nothing should be taken for granted.
Falling victim to overbooking is another matter. In 2004 the European Parliament and the Council of the European Union passed EU Regulation 261/2004 (a.k.a. EC261). The Regulation sets common grounds for compensation and care for passengers in the event of being denied boarding when the passenger is not at fault. Air passengers can claim between €250 and €600 depending on the journey. There are however, a number of caveats which only legal advice can ensure that adequate compensation is paid out. Happily, airlines usually effect compensation there and then at the airport. But there have been exceptions and missing connection flights ups the complications
Yet another possibility is suffering preventable injury due to company negligence or certain conditions such as tightly squeezed seating or, faulty locks in the hand luggage compartments that may knock you down by an assortment of heavy bags. Nor should survivors (or surviving relatives) automatically assume recompense when plane crashes or accidents at sea lead to grievous injury or death.
Finally, it is vital for passengers to retain all documents related to their travelling (ticket, boarding pass, etc) as well as refrain from succumbing to subtle or thinly veiled coercion tactics to drop compensation claims. Once again, legal advice will save the day since seeking legal action against an airline is a costly and daunting task.
As islanders we probably rank as some of the world’s most frequent flyers. Cruising is also trending. So it makes sense to be in the know.
For further information contact Gauci-Maistre Xynou Legal | Assurance
Income tax
LN 37 of 2018 – introduced a notional interest deduction (NID) allowed to be utilized by undertakings on profits allocated to the Foreign Income account (FIA) and the Maltese taxed account (MTA) equivalent to a % calculated by reference to the yield to maturity on Malta Government stocks with a remaining term of approximately 20 years plus a premium of 5%. Undertakings benefitting from these reductions are deemed to have distributed interest to the shareholder or partner. When the shareholder or partner prepares his personal tax return, and the shareholder or partner of the undertaking is not resident in Malta, the deemed interest is exempt from tax in Malta under section 12 of the Income Tax Act if the specified criteria is met.
Also under article 56 of the Income Tax Act, from year of assessment 2019 (basis year 2018) individuals not chargeable under any scheme who are ordinarily resident in Malta but not domiciled in Malta, and who derive income amounting to not less than EUR 35,000 which is not received in Malta, shall be subject to a minimum tax of EUR5,000 per annum unless the individual can prove to the satisfaction of the Commissioner that without applying these sections, the total tax payable by him would have amounted to less than the minimum tax.
Startups and grants
LN 99 of 2018 relates to Applications for Startup Advance scheme, creates a scheme for eligible business activities to avail themselves from a grant, provided that these economic activities submit their application to Malta Enterprise by 30 October 2020.
LN121 of 2018 introduce a number of tax credits allowed for Micro enterprises and self-employed.
Maritime industry
After the EC decision which included a detailed list of 25 commitments, LN 128 of 2018 updated the Merchant Shipping Act of Malta regulating shipping activities which include the international carriage of goods or passengers by sea, the business of operating tonnage tax ships, and ancillary activities. In this legal notice, the income of these companies is exempt from Income tax under regulation 5, provided that all tonnage tax was duly paid and no further tax shall be charged or payable on any income, profits or gains of any shipping organization derived from the sale or other transfer of a tonnage tax ship. These shipping companies are required to submit a declaration in lieu of the tax return by a certified public accountant and auditor.
LN140 of 2018 set up the maximum income subject to tax for qualifying employment in maritime activities and the servicing of oil and gas industry activities.
VAT
LN 163 of 2018 updated the entry and exit threshold for a person to qualify as a small undertaking for VAT purposes. Article 11 registered persons as a small undertaking are not required to charge VAT on goods and services provided by them and they do not claim input VAT.
LN 162 of 2018 introduced VAT grouping provisions applicable to companies in the financial services and in the gaming industry listed in the schedule attached in this legal notice, where two or more persons can register as a single taxable person.
Ultimate beneficial owner
LN 184 of 2018 introduced a form required to be submitted to the Registry of Companies to register the beneficial owners of a company.
Gaming
Seven gaming legal notes were introduced during 2018 (LN242-LN248). In particular LN248 of 2018 announced the Gaming Tax Regulations Act which introduces a gaming tax and a levy on gaming devices.
Payroll matters
LN 148 of 2018 introduced a penalty of EUR 15 if a payer fails to submit the monthly FS5 as required and within the specified time to the Commissioner for Revenue, and a penalty of EUR 200 if a payer fails to submit the FS3 and FS7s on time.
LN 440 of 2018: The employer may only use up to twelve days for shut downs. Also, if an employee overuse his leave entitlement for a particular year, it shall give rise to a civil debt in the case of a termination of employment unless the leave was taken as forced leave.
LN439 of 2018: gives the right to an employee to request his sick leave balance up to a maximum of four times a year, the sick leave entitlement and the sick leave availed of during the year and the employer is required to provide the employee with this information within five days from the date of the request.
LN 443 of 2018: As advised during the last budget, employees are given a cost of living increase of EUR 2.33 per week which shall be increased by a mandatory increase of EUR 1per week for employees working 40 hours, or pro-rata for other employees.
The government has now updated the website with the new social security rates to be used for 2019:
https://cfr.gov.mt/en/inlandrevenue/personaltax/Pages/SSC1-2019.aspx
The sick benefits for 2019 have changed to EUR 20.79 for single parent or married person maintaining a spouse and EUR 13.46 for any other person.
Our services
If you have any queries kindly contact Gauci-Maistre Xynou Legal|Assurance, our renowned Maltese law firm on: info@gmxlaw.com
We take this opportunity to wish you all the best for the New Year we have just started.
Gauci-Maistre Xynou (GMX Law Firm) is a dynamically developing Greco-Maltese law firm having its head office in Malta. Due to the increase in work and the expansion process being undertaken by GMX, the firm is currently looking to recruit a corporate lawyer to join its Valletta office on a full-time basis.
The Corporate Lawyer, who will be reporting to Partners, will be working with both the firm’s legal team from different jurisdictions as well as the financial services team. The successful candidate will be requested to show initiative, take on certain responsibilities within the firm and will immediately be given the opportunity to further advance their career within the law firm.
– Providing legal advice and legal opinions;
– Drafting, revising, negotiating and concluding agreements;
– Assist with drafting / preparation of corporate documentation such as M&As, resolutions, MFSA forms, minutes of board meetings, etc.
– Assist with the review of agreements, forms or any other legal documentation;
– Assist with all corporate ventures such as incorporation, mergers, acquisitions, share transfers, corporate due diligence, licensing, etc.
– Liaising directly with the Maltese Registrar of Companies, and other national and international governmental authorities;
– Ensuring the legality of business practices;
– Assist with reporting requirements to local and overseas regulatory authorities, including those regulating anti-money laundering procedures;
-Ad hoc compliance and legal projects / duties as may be required from time to time;
-Drafting of Court applications;
-Provide training both in-house and to third parties in related sectors
-Undertaking any ad hoc projects, if required.
– University degree in law (LL.B / LL.D) and a Member of the Maltese Bar Association; a Master’s degree (LL.M) will be considered advantageous.
– A minimum of 5 years of corporate law experience, preferably in the financial services sector;
– Excellent written and verbal communication skills both in Maltese and English, whilst other languages will be considered advantageous;
– IT literate, with experience of Word, Excel, PowerPoint, database management and other major software applications;
– Ability to deal with a multi-cultural work environment and client base;
– Keen to develop his/her experience through training, qualification and continuing professional development;
– Strong interpersonal and organisational skills and ability to perform under pressure.
– Court experience will be considered advantageous
Get in touch and let’s discuss further! Send your CV on hr@gmint.com
Gauci-Maistre Xynou (GMX Law Firm) is a dynamically developing Greco-Maltese law firm having its head office in Malta. Due to the increase in work and the expansion process being undertaken by GMX, the firm is currently looking to recruit a corporate lawyer to join its Valletta office on a full-time basis.
The Corporate Lawyer, who will be reporting to Partners, will be working with both the firm’s legal team from different jurisdictions as well as the financial services team. The successful candidate will be requested to show initiative, take on certain responsibilities within the firm and will immediately be given the opportunity to further advance their career within the law firm.
– Drafting / preparation of corporate documentation such as M&As, resolutions, MFSA forms, minutes of board meetings, etc.;
– Drafting, revising, negotiating and concluding agreements;
– Reviewing agreements, forms or any other legal documentation;
– Assist the Compliance Officer / MLRO in day-to-day regulatory activities including addressing various queries;
– Providing legal advice and legal opinions;
– Liaising directly with the Maltese Registrar of Companies, and other national and international governmental authorities;
– Ad hoc compliance and legal projects / duties as may be required from time to time;
– Drafting of Court applications;
– Undertaking any ad hoc projects, if required
– University degree in law (LL.B / LL.D);
– A minimum of 3 years’ experience;
– Excellent written and verbal communication skills in English, whilst other languages will be considered advantageous;
– IT literate, with experience of MS Outlook, Word, Excel, PowerPoint, database management and other major software applications;
– Ability to deal with a multi-cultural work environment and client base;
– Keen to develop his / her experience through training, qualification and continuing professional development;
– Strong interpersonal and organisational skills and ability to perform under pressure;
– A Master’s degree (LL.M);
– Experience in an MLRO and compliance department;
– Court experience.
Get in touch and let’s discuss further! Send your CV on hr@gmint.com
Forget generation gap issues in our ‘Copy & Paste’ habits. Unless you don’t use a computer, copying and pasting is part of our keyboarding lives – especially when it comes to downloading images/video clips to finish off a presentation, blog/vlog post or website update. Precious time is spent scrolling down myriad visuals until ‘the one’ appears. With a Cheshire smile and a gleeful blurting of ‘YES!’ we click away without batting an eyelid.
The good news is that our search is over. The bad news is that the days of worry-free Ctrl +C, Ctrl +V are over too.
Following the EU Copyright Directive Amendments (Articles 11-13) enacted on September 12, 2018, we need to ask for and obtain the author or copyright holder’s permission to use any content on the internet … and spell out accreditation when go-ahead is granted. The exception being material that is not copyrighted.
As inconvenient as it may be, this directive is long overdue. Isn’t plagiarism a crime? Which is why academic and artistic honesty must be taken seriously. Don’t singers/musicians keep on receiving royalties for filling airtime? Which is why they keep on making money after passing away, even though royalties do not equate copyright. So why should digital creators, artists, broadcasters and journalists be discriminated against just because location shifts to the World Wide Web? Why shouldn’t their work on the Web be regarded as intellectual property and be compensated?
These are the arguments which enabled the Society of Authors, the Alliance for Intellectual Property and Proponents, Universal Music Group and Warner Music Group to finally win over a healthy majority of MEPs who up to last July had favoured the Computer & Communications Industry Association (CCIA) comprising the internet juggernauts of Google, Amazon, Facebook, eBay and Netflix. The latter had persuasively argued that such a law would suppress internet freedom and stifle creativity.
Spurred on by the Cόrdoba Copyright Case (C-161/17) which had photographer Dirk Renckhoff successfully sue the German town of Waltrop for making use of his shot of the Andalusian city without his consent, victory for WWW content creators is in the air. They have yet to lift the trophy because amendments to the Directive are still pending approval by the European Council and the European Commission. Upcoming December is the deadline for any tweaks to what is being proposed and sometime in January voting re the final wording of the amendments will take place. If the Directive goes through, member states will have two years to get their own legislation up-to-date. Only then can WWW content creators claim victory in the EU.
What do the amendments target?
What are the implications?
Although a closer look at the current amendments reveals some ambiguous phrasing that needs to be clarified, there is no doubt that the EU Copyright Directive Amendments are aimed at harmonizing the perception of all intellectual property in the digital age and paying for its digital use in all member states. Maltese copyright laws are already in line with EU directives making us obliged to follow the rules even if they get stricter.
Cutting through the legal jargon we must all remember that life is not a free ride.
The Christmas bash is often the only work event that embraces everyone in the business, and throws together individuals with polarised social, religious and political beliefs. Toss in some free alcohol and a dash of end of year fever and you have the perfect cocktail for an inappropriate comment or gesture which could lead to an employment tribunal claim.
The classic example is where a person makes a ‘joke’ about, say, sexual orientation; three people in the group laugh, but the fourth feels humiliated. Although the person who made the joke did not intend to discriminate, the employer could still be liable (as it is vicariously liable for the acts of its employees done in the course of employment), in addition to the individual who made the joke.
So ‘harmless banter’ at the office party could lead to an individual being on the receiving end of a formal grievance, being dismissed for gross misconduct.
Employers should therefore consider taking the following steps before the Christmas festivities begin:
Laws and policies are not introduced to stop people having fun – but rather to allow everyone to feel at ease in their workplace and when socialising with colleagues. After all, Christmas time should be the season of goodwill for everyone.
Commercial or private aircraft need a passport or identity card to fly. Hilarious? Ridiculous? The answer is neither for a means of identification is what registration of moveable property essentially is all about. And like any type of seagoing vessel, aircraft is not bound to place of manufacture but to its operational headquarters. This basic premise, however, is much more than stating a legal requirement. For deciding where to register one’s aircraft unravels a list of legal, geopolitical and financial considerations which demand strategic thinking if one wants to make the optimum choice.
What renders Malta an ideal jurisdiction for aircraft registration?
A scrupulous legislation that incorporates the exigencies of the Cape Town Convention (aka the Cape Town Treaty) is the first attractive key factor, that is in turn augmented by the fact that Malta is an EU member state. In fact, Malta was one of the first member states to ratify the treaty on 1 October 2010 [Read ‘Malta’s Aviation Register Ensues Flying High’ for more comprehensive details]. Furthermore, apart from Maltese, the legal system in Malta is also written and conducted in English. The elimination of a language barrier plus factoring in the island’s convenient proximity to Europe, North Africa and the Middle East as well as a stable political climate point to three other significant advantages.
Fiscal benefits are an inevitable, crucial issue. Once again, Malta offers much more that its onshore EU jurisdiction. To begin with, Malta’s Aircraft Register is all-inclusive meaning it integrates both the the aircraft and mortgage registers. As a result, details of ownership, technical data and third-party rights over the aircraft and its engines are available in a one stop shop manner. Ratification of the Cape Town Treaty entitles clients registering their aircraft in Malta to the ‘Cape Town discount’ which translates into a reduction on their borrowing costs. Operational costs are also significantly lower than other EU countries. In addition, Malta is an EASA certified state and has an FAA Category rating, so that safety and security standards are of the highest level.
The main financial incentives to register aircraft in Malta:
The impetus to promote Malta as a regional aviation hub has also enticed the likes of Lufthansa Technik to open their MRO workshop and training centre here in 2002 subsequently followed by SR Techniks, MCM, Medavia and Bravo Aircraft Technical Services Limited. Their presence offers ample proof of Malta’s appeal for stakeholders in the aviation industry.
While it would be unfair and unrealistic to compare Malta’s Aviation Register with the unequivocal success of its shipping counterpart, registering one’s aircraft in Malta seals an excellent deal.
GMX has considerable experience in advising clients in the aviation sector.
The firm offers the following services in relation to Aviation:
Registration of Aircraft;
Sale and Purchase Agreement;
Charter and Lease Agreements;
Finance and Securitization;
Maintenance,
Repair and Servicing Agreements;
Claims against carriers;
Operational structures and tax planning;
Negotiations and drafting of aviation related services agreement;
Air Operator Certificates; and
Air Services Licenses.
Legal Support
For further information about how GMX can help you with your aviation law requirements kindly contact us.
Aviation in Malta is an evolving success story. The island is attracting more and more multinationals to establish their flight operations in the heart of the Mediterranean because Malta ticks all the right boxes when it comes to a sound legal framework, highly competitive registration fees, favourable tax treatment, EU membership and above all compliance with the Cape Town Convention.
Legislation
Enacted in October 2010, the Aircraft Registration Act, 2010 (Cap 503) was tailormade to meet the obligations of the Cape Town Convention that came into force 14 years ago after being signed in 2001 and whose primary aim was to standardize transactions comprising movable property. The treaty subsequently paved the way to the Aircraft Protocol (2004) which applies specifically to aircraft and aircraft engines. As a result, Malta’s aircraft legislation follows the international standards set by the Cape Town Treaty – a most sagacious step since it offers prestige while being flexible enough to respond to the industry’s altering dynamics which to date cover:
Furthermore, registration is also open to private aircraft, aircraft engines and aircraft still under construction if the airframe is uniquely identifiable, therefore incorporating sub-sectors of both commercial and private planes. The entire legal framework is also available to OECD jurisdictions.
Significantly, trusts are also covered with assiduous care. Registering an aircraft under terms of a beneficial trust is subject to due diligence procedures enabling the Director General responsible for Civil Aviation in Malta to identify the actual beneficiaries without forfeiting confidentiality of the trust arrangement that itself is subject to trust law.
At the same time, the Director General is obliged to safeguard the confidential nature of any trust agreement despite disclosure of beneficiary identity for registration purposes. This essentially means that the Malta aircraft register is based on rigorous legislation and strict confidentiality to deliver a top-of-the league flag.
Given that aircraft offer a prime example of an exorbitant asset, Malta’s aviation laws also deal with fractional ownership which is gaining in standard business practice. The main advantage of collective ownership is the burden sharing of purchasing, leasing and operational costs. Flexibility of schedules comes next, closely followed by familiarity and comfort since unlike making use of chartered planes, fractional owners use the same aircraft. There is also a considerable list of perks. Yet like any ownership agreement, legal procedures must be followed and adhered to. Besides, the intricacies involved in multi-proprietorship clearly render legal protection mandatory.
Financial Benefits
Competitive registration fees which exclude import and stamp duty on the importation of civil aircraft into Malta combined with tax exemption for any income arising outside Malta and double taxation agreements offer attractive tax planning opportunities for airline and aviation operators who opt to set up operations in Malta. More so since income derived from the possession, leasing or operation of aircraft or aircraft engines is deemed to have arisen overseas and is therefore not liable to tax payment in Malta. This tax exemption is pertinent whether the aircraft calls to, or operates from, Malta irrespective of where it is registered.
In addition, tax treatment of finance leasing of aircraft distinguishes between under and over 4-year duration. The recent introduction of private aircraft leasing has also inspired a VAT treatment aimed at reducing the percentage of lease charges. The VAT rate is based on airtime within EU airspace, the aircraft range in kilometres and the percentage of community use. Moreover, since the use of private jets does not generate income, such use is not subject to tax liability. The same can be said for fringe benefits resulting from the use of a private aircraft by non-residents.
Malta’s meticulous legislation and efficient tax system renders it an ideal jurisdiction for stakeholders in the aviation industry.
To find out more please click here or contact us
Malta is one of the most important gambling hubs in the world, pushing to bring more operators to our shores. The gambling industry makes up around 12% of the annual GDP of the country, so it’s big business here. Many more operators are also locating to Malta, as Brexit has an impact on Gibraltar. It seems that the Maltese government have put themselves in a real position of power with this new regulation- The Gaming Act.
It will be easier now for operators to gain their licence, which is ideal for smaller operators or affiliates that want to bridge that gap. This speedier process will be sure to have a massive impact on the gambling industry around the world.
Malta’s reaction to the phenomenon of high-tech innovation and increased player interactivity has been commendable. Rather than stifling the industry by imposing penalties and straight-jacket rules, Malta set out to address the issue with a fresh outlook. Malta’s Regulations are considered to be a benchmark of regulatory excellence.
Malta has reacted to gaming in a prudent yet pragmatic manner. Gaming in Malta is regulated by a legal framework applicable to gaming operators and is approached by proper regulation rather than obliteration. This approach, mingled with high levels of player protection and industry supervision, has resulted in Malta being marked as the foremost gaming jurisdiction of choice linked with professionalism, regulation and trust.
As of 1st August 2018, the Gaming Act came into force incorporating the EU Technical Regulation Information System (‘TRIS’) process in accordance with EU Directive 2015/1535. A number of changes have come about as a result of the new legal framework affecting both present licensees as well as future companies interested in acquiring a gaming license in Malta.
The key changes are the following:
The MGA will ensure that such persons are:
(i)Fit and proper persons
(ii) Competent
(iii) Ready to provide the MGA with required information.
We assist new operators to set up shop in Malta.
GMX is fully geared to assist gaming operators in their corporate, licensing and compliance requirements.
What are the reasons for relocating or opening up a new iGaming business in Malta?
Our services include:
For additional information kindly contact GMX.
