An advance revenue ruling may be obtained from the Commissioner of Inland Revenue in Malta to confirm whether the participation qualifies as a ‘participating holding‘. In addition, one can obtain an advance revenue ruling on the following:
- The tax treatment of any transaction which involves international business
- The tax treatment of any transaction which concerns any financial instrument
- Whether a particular transaction falls within the scope of the anti-avoidance provisions of the Income Tax Act
The Inland Revenue department usually issues advanced revenue rulings by not later than 30 days from application and are binding for 5 years. Rulings may be renewed for another period of 5 years at the option of the applicant and remain valid for 2 years from the time of any relevant changes in the Income Tax Act.