Where at least one of the trustees is a person resident in Malta, tax shall be payable in Malta, even if the trust asset, settlor, beneficiary, or all, are situated outside Malta. Tax will be payable in Malta on any income attributable to a trust, including capital gains.
There are a number of specific exceptions to this rule, particularly where the income will not be attributable to a trust but, by a fiction, will be deemed to have been derived directly by the beneficiaries and taxed accordingly.
Where there are no resident trustees, the trustees shall be liable for tax on any Malta source income derived from trust assets.
Trusts Treated As Companies
Trustees resident in Malta may, under the Income Tax Act, elect to compute the chargeable income in relation to a trust for as if such income was derived by a company ordinarily resident and domiciled in Malta. The choice is irrevocable.