Taxation of Fees Received by Non-Resident Investment Committee Members of a Self-Managed Fund

  • By:Corrieri Cilia Legal
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Clarification of taxation of fees received by non-resident investment committee  members of a self-managed fund

On 2 July 2014, the tax authorities provided a clarification on the taxation of non-resident members of the investment committee of a Maltese self-managed fund.

The tax authorities clarified that advisory services performed by non-resident members are exempt from VAT.

Also, the remuneration received for the provision of advice to the fund by non-resident investment committee members should be regarded as consideration for services rendered. The income received by such members is subject to personal income tax, to the extent the income is attributable to the services physically performed in Malta. The calculation of this allocation is the higher of:

a pro rata amount of the total remuneration received, based on the number of days of physical presence in Malta; and
1/12th of the remuneration received.
Posted in: International Taxation