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Abstract
Towards the end of 2017, Malta's capital gains rules (subsidiary legislation 123.27 to the Income Tax Act, Cap 123 of the laws of Malta) were amended and now include a specific rule relating to the taxation of capital gains derived by an original shareholder from the transfer of shares that have been admitted for trading on an alternative trading platform.In terms of the new rule, the capital gain is to be derived by the original shareholder of the shares, that is, the person who was a shareholder of the company before any of its shares were admitted for trading on an alternative trading platform and is not limited to instances where there was only a sole original shareholder.In computing the capital gains derived by an original shareholder, the chargeable amount on which tax is to be calculated is to be computed as per the normal rules; generally the selling price of the said shares, less the cost of acquisition and relevant deductions.