Acumum Legal & Advisory

07Nov

Malta EU Permanent Residency & Visa Rules For Non-EU Nationals

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Malta EU Permanent Residency

The Malta Residence & Visa Programme Regulations have come into force via Legal Notice 288 of 2015 (Malta Residence & Visa Programme Regulations 2015), providing Malta EU permanent residency for non-EU nationals.

Applying to 3rd country nationals (non-EU/EEA/Swiss), the regulations set out new rules as to who may be entitled to a Residency Certificate conferring upon them and their dependants the right to reside, settle and stay indefinitely in Malta, provided that certain conditions are satisfied.

Upon approval the Residency Certificate will be reviewed annually for 5 years, then every 5 years thereafter, to ensure adherence to the regulations.

Qualification Conditions
To qualify for the Malta Residence Certificate, the main applicant must:

be a third country national and not a Maltese, EEA or Swiss national;
not be benefiting from any other Maltese tax or residency programme;
must be a fit and proper person.

Main applicant must attest via affidavit that he/she has:

€100,000 annual salary; or
€5000,0000 in assets

Financial Contribution – €30,000 contribution to the Maltese Government

Property – Rental: minimum annual rental payment has to be at least €12,000 if the immovable property is situated in Malta or €10,000 if in Gozo or in the south of Malta, OR, Purchase: minimum value must be €320,000 or if property is in the south of Malta or in Gozo, the minimum value can be €270,000

Investment – €250,000 in Malta for a minimum of 5 years.

Further Conditions
The main applicant must:

have a valid travel document for himself and his dependants;
have an ‘all-risks’ EU wide health insurance for himself and his dependants;
provide an affidavit stating that from the date of application he has EITHER an annual income of not less than €100,000 arising outside Malta, OR has capital of not less than €500,000.

Current beneficiaries of the Global Residence Programme are allowed to apply for the issuance of this Certificate, provided they satisfy all the additional eligibility requirements of these regulations.

Dependants

The rules establish that dependants must be:

a)the main applicant’s spouse in a monogamous marriage, or in another relationship having the same or a similar status to marriage;
b)a child, including an adopted child, of the main applicant or of his spouse who is less than 18 years of age;
c)a child of the main applicant, or of his spouse, between the age of 18 and 26 and is not married and not economically active;
d)a parent or grandparent of the main applicant or the spouse, who is not economically active;
e)a child of the main applicant or spouse, who is at least 18 years of age, and who has been certified by a recognised medical professional as having a disability in terms of the Equal Opportunities (Persons with Disability) Act and who is living with, and is fully supported by, the main applicant.

Submission of applications

A non-refundable administrative fee of €5,500 is to be paid upon application. Upon the applicant’s acceptance under the Malta Residence & Visa Programme Regulations and the issue of a Letter of Approval by Identity Malta, the €5,000 is deducted from the contribution of €30,000.

Applications, must be represented by a registered approved agent or an accredited person.

Geraldine Noel of Acumum – Legal & Advisory is an accredited agent of the Malta Individual Investor Programme (Maltese Citizenship), as well as a Registered Mandatory Agent for all Malta Residency Programmes.

07Nov

Family Office Conference 2015 – Acumum Invited To Attend

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Acumum invited to attend Family Office Wealth

Management & Structuring Conference

Following last year’s innovative and excellent Family Office conference, Acumum’s Managing Partner has been invited again to attend this year’s Campden Wealth conference to be held in London on 21 and 22 April 2015.

This year’s conference theme is ‘Transparency, Transition and Communication’ and is expected to be as informative and practical as the Family Office event held in 2014.

From feedback obtained from participants, last year’s conference was undoubtedly a successful event, as the select advisers, speakers and members of various Family Offices were able to discuss pertinent topics ranging from effective, long – term organisation structuring, compliance issues, and the fraught process of advisory selection.

On the basis of Geraldine Noel’s participation in 2014, Geraldine has been invited to attend this year’s conference.

Acumum – Legal & Advisory, established in the tax and fiscal efficient jurisdiction of Malta can provide a range of services to single and multi Family Offices, including:

Legal, Compliance and Accounting Services
Net Worth Management
Risk Management
Tax and Structure Planning
Estate and Succession Planning
Philanthropic Planning
Governance and Education
Ongoing Management
Consolidated Reporting
Administrative Services
Referral Services
Adviser Coordination

If you are part of a or an adviser to a Family Office and you would like to discuss the needs of a particular or group of families, during the conference or at another time, kindly contact:

07Nov

Acumum Represented in Official Commonwealth Ministers Reference Book 2015

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Acumum Represented in Commonwealth Official Ministers Book 2015

In the run up to CHOGM 2015, we are very pleased to promote the Commonwealth Official Ministers Reference Book 2015 for which Acumum – Legal & Advisory was chosen to participate.

Launched to coincide with Commonwealth Day Observance on 9th March, the Ministers Reference Book aimed at fostering sustainable economic, social and environmental development across the Commonwealth family of nations, featuring perspectives from some of the world’s leading commentators.

To read the Minister’s Reference Book Commonwealth 2015, please go here.

Please do contact us should you wish to discuss trade opportunities in Malta prior to CHOGM 2015.

Geraldine Noel,

Managing Partner; Barrister – Registered in Malta

About Acumum – Legal & Advisory

Acumum Legal & Advisory is a well-established set of multidisciplinary legal, tax and accounting firms located and managed in the tax efficient EU jurisdiction of Malta. It operates as a full service law firm with services including aviation, corporate formation, accounting, estate & wealth planning, taxation, intellectual property and more. The firm is overseen by Geraldine Noel, a British barrister – registered in Malta, working alongside an expert team of lawyers and accountants with extensive specialist commercial and private client expertise, particularly to an individual, corporate and family office clientele.

07Nov

CEIP-Malta A Hub for Sustainable Development

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CEIP – Commonwealth Environmental Investor Platform Interview in the Times of Malta, 16th November 2014

Malta to be used as hub for sustainable development

CEIP interview – Malta is to be used as a hub for a Commonwealth-wide initiative aimed at promoting sustainable development through a mixture of investment opportunities and networking.

The Commonwealth Environmental Investment Platform (CEIP) is a joint venture between the Forbury Investment Network and the Royal Commonwealth Society charity. It is operated and hosted by Clarkslegal in London, whose chairman Michael Sippitt is also the CEIP chairman.

In less than two years, 14 hubs have been launched, offering services to over 27 countries.

“CEIP is quite unique in the Commonwealth as an innovative method to help sustainable development. There is nothing else in this space. There is a real lack of links, especially between export-driven SMEs. What we want to do is to inspire technology transfer, especially when it comes to climate change.”

“We are already reaching half the Commonwealth countries – in less than two years,” Mr Sippitt said. “That is a critical mass of some consequence. And with interest growing, we are on the cusp of a quantum leap. We are very excited about Malta because it has a strong role to play as an intermediary between the EU and the Commonwealth.”

Each hub comprises different expertise, ranging from energy experts to professional advisers and businessmen. Apart from exchange of information, the hubs help businesses to find partners, financing and new markets. They also offer services like assistance with business plans, for entrepreneurs and growing businesses.

As well as working within the Commonwealth, the CEIP is being approached by businesses outside the Commonwealth notably from the EU, who are keen to expand in the Commonwealth emerging economies.

“We use contacts with experts in universities and are also looking at crowdfunding. We have organised conferences and will also prepare investor briefing videos for all the hubs to use. And of course we engage where we can with the diaspora who make such a big contribution through remittances to their home countries,” Mr Sippitt said.

A British barrister registered in Malta, Geraldine Noel, came to Malta five years ago to set up a law firm which can offer services in different jurisdictions. She came across CEIP when she was looking for business opportunities in the Commonwealth. Her firm, Acumum, is now affiliated to CEIP and she intends to play a substantial role in the new Malta hub.

“As a small island state, Malta could lead by example. It would be a great way for Maltese SMEs to make contacts in other Commonwealth countries,” she said.

07Nov

Acumum Outsourcing Exhibits At Legal Futures Conference – Malta BPO & LPO Services

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Acumum to Exhibit at Legal Future’s Conference

‘Era of the Entrepreneur’, London, 18 November 2014

Acumum will be attending Legal Future’s Conference ‘Era of the Entrepreneur’ to exhibit it’s Malta LPO & BPO service offering.

Acumum enables corporations and law firms to leverage Legal Process Outsourcing and Business Process Outsourcing (BPO) strategies to reduce cost and engineer efficiency.

With a concentration on EU & US legal markets, Acumum opens the door to a deep near-shore talent pool of highly qualified legal, accounting and corporate professionals.

Acumum’s service offering is targeted at:

Why Malta?

Malta represents an ideal outsourcing destination, particularly as a near-shore option for the UK, continental Europe & the USA:

Full EU member state since 2004 – in close proximity to all major European capitals
Surplus of expertly qualified and experienced lawyers and accountants available at costs competitive with Asian outsourcing destinations and lower than competing mainland European near-shore destinations
Classified as an Advanced Economy by the IMF, Malta operates as one of the world’s financial centers, and possesses a mature business environment with an established BPO industry. Note that offshore destinations such as India, the Philippines, and South Africa, do not posses this classification.
English is an official language, with Italian and French common second languages
Secure and reliable telecommunication infrastructure
Low operating costs and unique tax advantages

Why Acumum?

Acumum brings to the table a wealth of managerial experience in the areas of legal process outsourcing, process management and lean project execution that ensures our LPO/BPO support team deliver optimal value.

The hallmarks of Acumum’s outsourcing practice are:

Providing consistent and high-quality work product – on time and within budget
Providing transparent and flexible pricing
Protecting confidentiality and data security

Language Capabilities

English
French
Italian
German
Maltese
Russian

If you would like to know more about how Acumum can serve to enhance your business, please contact Acumum’s Managing Partner, Geraldine Noel: [email protected] | +356 2778 1700 | Skype: acumum

07Nov

Malta – Mexico Tax Treaty – Now In Force

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Malta – Mexico Tax Treaty In Force

9th August 2014

The Malta-Mexico double tax treat provides for double taxation relief in relation to:

Mexico’s federal income tax and the business flat rate tax; and
Malta income tax.

The main features of this treaty are as follows:

Dividends – 0% withholding tax.
Interest arising in one Contracting States and paid to a resident of the other may be taxed in that other state and may also be taxed in the Contracting State in accordance with the laws of that State.

If the beneficial owner of the interest is a resident of the other Contracting State, the tax charged shall not exceed:

5% of the gross amount of the interest from loans granted by a bank;
10% of the gross amount of the interest in all other cases.

Royalties – the same rules apply as for interest, however if the beneficial owner of the interest is a resident of the other Contracting State, the tax charged shall not exceed: 10% gross of the royalties.

The Malta – Mexico double tax treaty with Mexico, following the Malta – Uruguay double tax treaty, signals Malta’s intention to strengthen economic relations with Latin American Countries, with the aim of concluding other similar agreements with countries of the same region.

About Acumum – Legal & Advisory

07Nov

Changes To Malta’s Remittance Tax System – Long Term Residents

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Changes to Malta’s Remittance Basis of Taxation

Malta Permanent & Long Term Residents now Taxed on a World-Wide Basis

Pursuant to Malta’s Income Tax Act, any person that is considered to be ordinarily resident and domiciled in Malta is subject to Malta tax on a worldwide basis – on any income or gains whether arising in Malta or not.

Persons that are either resident or domiciled in Malta are subject to Malta tax on income and gains arising in Malta and on income arising outside Malta (excluding capital gains) that is remitted to or received in Malta.

What are the changes?

Due to changes to the Global Residence Scheme and the newly enacted Retirement Residency Programme laws of 2014, Malta Permanent Residents and Long Term Residents will be taxed on a world-wide basis on income and gains.

Notwithstanding the changes, Malta’s Global Residence Scheme and Malta’s Retirement Residence Programmestill allow non-permanent residents who are EEA or Swiss nationals to enjoy favourable rates of income tax on foreign-source income received in Malta, subject meeting certain conditions.

“Permanent Resident” is defined as:

a person who has right of permanent residence in terms of article 6 and is in possession of a permanent residence certificate issued in terms of article 7 of the Free Movement of European Union Nationals and their Family Members Order; or
a person who applies for right of permanent residence in terms of article 6 of the Free Movement of European Union Nationals and their Family Members Order.

“Long-Term Resident” is defined as:

a person who has long-term resident status in terms of the Status of Long-term Residents (Third Country Nationals) Regulations; or
a person who applies for long-term resident status under the Status of Long-term Residents (Third Country Nationals) Regulations.

Effect of Malta’s Remittance Amendments

Whilst Malta’s remittance system has been amended in respect of Permanent and Long Term Residents, Malta’s remittance system remains the same and applicable for both individuals – not seeking long term residence in Malta – and companies.

Acumum – Legal & Advisory – Malta’s International Law Firm

07Nov

Acumum Attends Women’s International Shipping & Trading Association (WISTA)

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Acumum Attends

Women’s International Shipping & Trading Association (WISTA) in Cyprus

The Women’s International Shipping & Trading Association (WISTA) is holding its 40th International AGM and Conference in Limassol, Cyprus, between the 8 & 10 October 2014.

WISTA International’s first such AGM and Conference took place in 1981 in Hamburg.

WISTA Malta is the Malta branch (WISTA Malta) of WISTA International, both being non-profit organisations. WISTA Malta was established in September 2014 by a number of female professionals in shipping. The aims of WISTA Malta include the promotion of active participation within WISTA International and to support the involvement of females in the maritime industry.

WISTA Malta members will be attending the WISTA conference to network and exchange ideas and information with other members of the worldwide organisation.

Dr. Geraldine Spiteri, one of the founding members of WISTA Malta, has been appointed as the first treasurer of WISTA Malta. Geraldine Spiteri will also be attending on behalf of Acumum – Legal & Advisory and will be spreading the word about the incentives which the Maltese flag holds for the shipping industry, which include:

favourable tonnage tax
reputable jurisdiction, enjoying favour with international ports
compliance with all major international conventions
an open register
straightforward company registration and vessel registration procedures
the possibility to register bareboat charters and vessels under construction
a mortgage registration system
for those opting to register yachts in Malta a favourable VAT rate

Malta has a very long-standing maritime tradition. Furthermore, the strategic location of Malta, its deep natural harbours and the wide range of services available make Malta an excellent choice to register vessels.

Dr Geraldine Spiteri may be contacted on +356 2778 1700 Ext 102, Cell +356 9985 8000 or at [email protected] should you like to meet her at the conference or discuss Malta yacht or maritime solutions.

07Nov

Switzerland To End Corporate Tax Breaks

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Swiss Cabinet Presents Plans for Swiss Corporate Tax Reform

The Swiss government has made plans to abolish certain Swiss corporate tax privileges for international firms and introduce a royalty box and an interest-adjusted profit tax.

Notional Interest Deduction on Equity
Reduction of Headline Corporate Tax Rate
Royalty Box Schemes Under Attack by OECD
$1.8 Billion Estimated Swiss Revenue Shortfall

Swiss Finance Minister Eveline Widmer-Schlumpf said the aim of the reform is to adapt the fiscal policy to international standards, boost Switzerland’s competitive edge as an attractive business location and encourage companies to continue to make an important contribution to funding the tasks of the government, cantons and local authorities.

Switzerland has been under pressure from the Organisation for Economic Co-operation and Development (OECD) and the European Union for the past ten years to review its preferential corporate tax policy.

Switzerland has three levels of taxation: federal, cantonal and municipal. Under ordinary circumstances, Swiss tax rates historically ranged from 11.5 percent -24 percent, depending upon the canton. Pursuant to certain beneficial federal and cantonal tax regimes, however, the effective tax rate (ETR) for a foreign multinational could be as low as 0 percent – 10 percent.

About 25,000 firms – holding companies, mixed companies and management companies – are granted special tax breaks by Switzerland’s 26 cantons. The firms are either exempt from tax or subject to lower rates for the activities they engage in outside the country.

Royalty Box

A key pillar of the reform is the introduction of so-called royalty boxes – a method of preferential tax treatment for certain types of profits, notably royalties from a patent.

The OECD is due to define the legality of royalty boxes by the end of next year amid calls to abolish their use.

But Widmer-Schlumpf is confident that the practice will not be scrapped as Britain, Luxembourg and Belgium are defending their corporate fiscal regimes.

“The question is not whether royalty boxes will continue to exist or not. The question is how they will be defined. Switzerland might have to adapt its law accordingly,” she said.

Adrian Hug of the Federal Tax Authorities hinted that Switzerland could maintain its corporate tax system for a while if the international community needs more time to find a consensus.

Widmer-Schlumpf maintained that Switzerland has to act now to give investors the necessary legal security.

“Many international companies would leave Switzerland,” she warned.

The planned reform is expected to lead to a shortfall in revenue to the tune of CHF1.7 billion ($1.8 billion) annually for the federal authorities. The finance ministry plans to offset the costs without spending cuts but by introducing a capital gains tax on securities. It also suggests increasing the number of federal tax inspectors from about 300 to about 370.

The overhaul of corporate taxes also has a major impact on the fiscal rates of the country’s largely autonomous 26 cantons and on the system of financial payments between rich and less affluent cantons.

Summary of Present Swiss Tax Regimes and Likely Fate as a Result of Swiss Tax Reform
Model	Authority	General Description	Current Tax Features	EU Commission View	OECD View	Likely Effect of Swiss Tax Reform
Holding Company	Cantonal	Company or Swiss branch of a foreign company engaged in long term holding and administration of certain qualifying participations; no Swiss business activities	Federal participation exemption on certain dividends and capital gains income; cantonal tax exemption; ETR ~0% for income from qualifying investments and 7.8% on other activities	Alleged to constitute unlawful state aid because income from certain activities is taxed solely at the federal level	Pursuant to BEPS Action 5 – “Counter Harmful Tax Practices,” identified as potentially harmful	To be abolished
Domiciliary Company	Cantonal	Company limited to the performance of administrative functions in Switzerland	Beneficial tax rates on qualifying participations and certain foreign source income; ETR ranges from 0%-10% depending upon type of income	Criticized because it may result in unequal treatment of domestic versus foreign sourced income	Pursuant to BEPS Action 5, identified as potentially harmful	To be abolished
Mixed Company	Cantonal	Corporations primary business is abroad (i.e., 80% or more of income foreign source / 80% or more expenses are paid outside Switzerland)	Beneficial tax rates on qualifying participations and certain foreign income and partial tax relief based on cantonal benefits; ETR 0%-11% depending upon type of income	Concern that home country profits are shifted to Switzerland	Pursuant to BEPS Action 5, identified as potentially harmful	To be abolished
Nidwalden IP Box	Nidwalden Canton only	Available to companies resident in the canton and which own IP	Reduced ETR of 8.84% on net royalty income	IP Boxes in general are suspected by EU Commission of unfairly benefiting mobile businesses without creating corresponding research and development activities; the Commission’s general probe of patent box regimes is ongoing.		Assuming that patent boxes are ultimately determined to comply with EU rules this regime may survive
Principal Company	Federal	Available to companies that meet either the Domiciliary or Mixed Company status at cantonal level but that also sell through an affiliated company commissionaire or limited risk distributor	Certain income exempt from tax; ETR can be as low as 0%-9%		Pursuant to BEPS Action 5, identified as potentially harmful	To be abolished
Swiss Finance Branch	Federal	Company acting as internal affiliate group “bank” due to the volume of financing including loans, hedging and cash pooling	Certain beneficial deductions are permitted and the company can also apply for Domiciliary or Mixed Company regimes; ETR 3%-4%	Currently N/A	Certain financial instruments and interest deductions have been identified as problematic in BEPS Action 2 – “Neutralize the effect of hybrid mismatch arrangements” and Action 4 – “Limit Base Erosion via Interest Deductions and Other Financial Payments”	To be abolished

Timing

Timing of implementation and the length of any grandfathering period is not yet certain. The Swiss government anticipates completing the first draft of the legislation, as well as the consultation process, by the end of 2014; entry into force will occur sometime after 2018, following parliamentary debate and the requisite referendums. At present, the grandfathering period is estimated to last from 2018-2020.

07Nov

Meet Acumum – Legal & Advisory At Monaco Yacht Show!

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Meet Acumum – Legal & Advisory in Monaco!

Acumum is attending the Monaco Yacht Show (MYS) in September.

The MYS is the most important yacht show of the year, bringing together hundreds of service providers, yacht owners (both current and prospective), agents, yacht builders and other stakeholders in the industry – it is set up as a networking event for owners and other stakeholders alike. It is held in the beautiful Port Hercule, the home of the largest Superyachts in Monaco – perhaps in the Mediterranean; the boats on display range in size from around 65 feet to over 250 feet – spanning a wide range of High-Net-Worth and Ultra-High-Net-Worth owners. Many yachts berthed in this beautiful port fly the Maltese flag

The current Maltese Government has, upon its election, given a commitment to ensure that Malta becomes a center of service excellence and a Maritime hub – a commitment that shows all the signs of being fruitful, with hundreds of owners opting to register their vessels in Malta.

In addition, with Fitch’s Sept 14 affirmation that Malta has retained its ‘A’ country ratin, Malta’s regulatory stability, as well as the wide spectrum and availability of services have all been conducive to this trend. The fairly simple registration procedure balanced by a serious maritime administration have been a primary driver of this trend; as has the financial stability and regulatory environment been important. Indeed, while being open to owners of any nationality, the Malta Maritime Register is a well respected flag in all major ports around the world and is compliant with all major international conventions.

These four factors have been – and continue to be – an essential feature of Malta becoming an increasingly large Superyacht flag in Europe and around the world. The advantages of registering in Malta are wide and varied – and the tax incentives for non-domiciled owners together with the attractive VAT scheme are among the important factors to be considered. More information about Malta’s attractive yacht registration rules can be accessed here.

Malta’s VAT Scheme Malta’s favourable VAT scheme allows a yacht to be registered under a finance leasing scheme, which can result in the reduction of VAT to as little as 5.4% of the yacht’s value, dependent on her size. Such scheme entails the setting-up of a financial lease of a period of between 1 and 3 years. Taking advantage of this scheme requires adequate structuring and following of the necessary procedures and requirements, but is highly achievable with proper advice. Benefits of the low-VAT leasing scheme for the yachting industry.

To take advantage of the VAT scheme requires the incorporation of a Malta company; this procedure is straightforward and uncomplicated. With the correct advice and having all the required documentation available, incorporation can be achieved within 2-3 days. Yachts are high-value assets that require competence and professionalism in management. Acumum aims to provide the owner with a range of services such as: structuring and incorporation, management, provision of advice (legal, tax and otherwise) and assistance in liaising with maritime, customs and tax authorities. Acumum is a young international law firm and advisory firm located in the tax efficient EU jurisdiction of Malta. Composed of senior lawyers authorised to practice in different jurisdictions, both in Europe and the world, having a wide network of contacts and collaborators enabling a far-reaching service.

The choices available are wide and far-reaching, providing clients with a number of options depending on their own residence as well as the intended region for use of the yacht. Services are varied and suited to provide clients with a single point of contact concerning their yacht: legal advice, accountancy, management and other related services. Such a variety of services is provided irrespective of the yacht’s flag or where she is berthed.

Email us to find out how Acumum can assist with your yacht and shipping needs: [email protected]