Reference is made to the Transitory Period allowed in terms of Article 62 of the Virtual Financial Assets (“VFA”) Act (“the Act”), which came to an end on 31 October 2019, wherein entities were allowed to provide VFA services. Following the expiry of the transitory period, entities operating under the transitory provisions had the below options:

1. If they wished to continue providing VFA services, they were required to submit to the Malta Financial Services Authority (“MFSA”) a Letter of Intent to initiate the application process for a VFA Services Licence; or

2. If they did not want to continue providing VFA services, they were required to submit a cessation of activities notification to the MFSA in terms of Section 3 of the Circular to Virtual Financial Asset Service Providers.

Following the expiry of the transitory period, the MFSA is aware of a number of entities which have availed themselves of the transitory provisions, thus were providing VFA services, but have failed to submit either the Letter of Intent to initiate the application process for a VFA Services Licence or a cessation of activities notification.

The Authority would like to inform the public in Malta and abroad, that the entities listed below are NOT licensed NOR authorised by the MFSA to provide any VFA services or other financial services nor have they initiated the application process to obtain a VFA services licence:

A Bit More Limited
Babylon Services Limited             
Basetrade Limited
Bayleaf Limited 
Billions X Trading Limited
BitRoyal Limited
Bitstraq Exchange Limited           
Botwallet Limited
BKX Exchange Limited    
BKX Vault Limited
Blockchain Exchange Limited      
BTSE Limited                     
Cbanx Limited
Chain Partners (Malta) Co. Ltd.  
Coin Temple Trading Limited      
Consensus Technology Malta Limited     
Crypto2Finance Ltd        
DAX Malta Ltd   
DES CT Exchange Limited
Digital Terminal Limited
DQR-OTC Limited            
DQR-X Limited  
Etelaranta (Malta) Limited           
Eunex M Ltd.     
Exscudo OU       
Foresight Technology Limited
GL4 Financial Technologies Limited         
Graviex Limited W
GSOC Limited
HPX Limited
Hybrid Trade Limited
Hyperwallet Limited
Jikji Capital Limited
Krypital Group (Malta) Limited
Kyon Limited
Laser Capital Limited
Mandala Exchange Limited
Manticore Ventures Limited
Muse Service Limited
Odin Capital Limited
OK.NET Limited
OneZero Binary Limited
OTC Desk Limited
Palladium Exchange
SP Outsourcing Sp. Z o. o.
S-Project
SRG Crypto Exchange Limited
Thex Trade Company Ltd
TimeX Limited
Trendntrade TNT Limited
Tsalgood Limited
VBX Limited
Venture Miles (Malta) Limited
WeX Blockchain Limited
Won Limited
Zipmex Global Pte. Ltd.

The Commissioner for Revenue (‘CfR’) has notified the publication of the Guidelines on the Mandatory Automatic Exchange of Information in relation to Cross-Border Arrangements (‘Guidelines’). The Guidelines are issued in terms of Article 96(2) of the Income Tax Act (Chapter 123 of the Laws of Malta) and are to be read in conjunction with the Cooperation with Other Jurisdictions on Tax Matters Regulations (Subsidiary Legislation 123.127). Upon any review, the revised version of the Guidelines will also be published on the CfR website. Please click here to access the Guidelines.

The objective of DAC6 is to provide Member States’ tax authorities with additional information in order to assist them to ensure compliance with tax legislation and the eradication of harmful tax practices. Taxpayers and intermediaries entering into or advising on cross border arrangements involving EU jurisdictions must monitor where reporting is required and disclose accordingly. DAC6 was transposed into Maltese law by Legal Notice 342 of 2019 but the first DAC6 reporting deadlines were extended due to the COVID-19 pandemic by six months by virtue of Legal Notice 315 of 2020.

It has been brought to our attention by the Malta Foreign Direct Investment Screening Office that, as from the 11th January 2021, the MBR will not be forwarding to the said before Office the M&As of companies any longer. It will then be up to the Investors/Directors/CSP to inform the said Office when screening is required. Also, please take note of the attached circular received from the NFDISO.

The FIAU has published sector-specific Implementing Procedures applicable to Company Service Providers (CSPs). These Implementing Procedures provide binding guidance on the application of the customer due diligence obligations arising from the Prevention of Money Laundering and Funding of Terrorism Regulations. All persons and entities providing such services are expected to read this document, together with the Implementing Procedures Part I, in order to understand what is expected of them.

Implementing Procedures Part II for CSPs

The Malta Financial Services Authority (MFSA) has become aware of an entity operating under the name of FxTrade Gains which has an internet presence at https://www.fxtradegains.com/ . The entity claims that “it holds a Category 3 Investment Services Licence …issued by the Malta Financial Services Authority (The MFSA)”.

This website is making unauthorised use and reference to the licence number, registered address, and other company details of a Maltese licensed company.

The MFSA wishes to alert the public that FxTrade Gains is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any forex trading services or other financial services which are required to be licensed or otherwise authorised under Maltese law. Furthermore, information available to the MFSA suggests that FxTrade Gains is likely to be a scheme of dubious nature with a high risk of loss of money. The public should therefore refrain from undertaking any business or transactions with the above-mentioned entity.

For more info, click here.

The Office of the CFR is pleased to inform you that the application relative to requests for electronic tax residence certificates for companies is now available online on the CfR website (Income Tax Services Online).

This online service is open to tax practitioners, (after registering with CfR as a tax representative using the CFR01 form, if not already registered). Further details can be found on the Electronic Communications Guidelines on the CFR website. This service can be found listed under Category ITA1.
This means that if a valid CFR02 application for a company has already been submitted, the relative tax practitioner would automatically be granted access to this service for the company in question. Additional queries relative to access to this service may be addressed to ictservices.cfr@gov.mt.
It is highly encouraged that new applications for tax residence certificates are submitted using this online service. Our offices will continue accepting manual applications by latest 31 December 2020 end of business.

As from 01 January 2021, manual applications will only be accepted by our offices in scenarios where the application cannot be completed electronically. These include requests relative to overseas companies (denoted by an OC number in MBR) and companies forming part of a fiscal unit.
Attached please find a user manual detailing step by step how to complete such applications. It is highly encouraged that before starting to use this service, one familiarises himself/herself with this document, which also include additional notes/FAQs. Additional queries on items not covered in the manual may be directed to ictutaxcertificates.mfin@gov.mt.

An ACT to amend the Company Service Providers Act, Cap. 529 and to provide for matters ancillary or incidental thereto was passed by Parliament as Act No. L of 2020 and published on 13 November 2020.
A Consultation Document focusing on specific new areas of the proposed updated Rules for Company Service Providers was launched on 1 December 2020 by the Malta Financial Services Authority (MFSA), following the amendments made to the Company Service Providers Act.These may be accessed as per the following link.

The Act will be brought into force through a legal notice by the Minister of Finance and Employment in the coming months.

William Spiteri Bailey, former president of the Malta Institute of Accountants is part of the IFAC Small- and Medium-Sized Practices (SMP) Advisory Group (AG). As part of the work carried out within the group, they have issued the following document.

Sole practitioners make up a significant part of the accounting profession, both locally and globally. This document outlines how professional accountancy organisations can help sole practitioners be future ready. This deals with the challenges and opportunities that sole practitioners face and provides links to the documents that have been issued by IFAC SMP AG to support sole practitioners. It goes on to explain how PAOs can help sole practitioners, giving practical examples of what can be done and also detailing specific guidance and advice for sole practitioners to be future ready.