The Institute of Financial Services Practitioners (IFSP), in a recent release, sets out its understanding of the tax treatment of remuneration derived by non-Maltese resident members of an Investment Committee (‘IC’) of a Maltese licensed Collective Investment Scheme (‘CIS’). The release is based on discussions held with the Inland Revenue Department.
Maltese law provides for various types of retail and non-retail funds, all of which must be licensed by the Malta Financial Services Authority and must comply with ongoing regulation and supervision requirements based on the category of investors the fund is targeting.
In terms of the Standard Licence Conditions in the Investment Services Rules for Professional Investors Funds issued by the Malta Financial Services Authority (MFSA), a self-managed CIS must establish an in-house IC in lieu of an investment fund manager. Furthermore, the majority of the IC’s meetings must be physically held in Malta.
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