Maltese Rent Laws

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The rent laws in Malta dissect Maltese tenants into two categories: those who contracted their lease prior to 1995 and those who signed their lease covenant after 1995. Contracts entered into after 1995 are regulated by the Civil Code, the commonplace civil law of the land, whereas tenants whose commencement of lease dates back before 1995 are regulated by the 'Special Laws', in this case, part 69 of the Laws of Malta.

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These special laws were primarily promulgated to protect the tenant from eviction and from arbitrary increase of the every year rent. part 69 extends such protection. It practically freezes the every year rent payable by the tenant and limits the landlord's power of negotiation with his tenant and his power to evict.

Chapter 69 of the Laws of Malta applies both to dwelling houses and to shops. It defines a tenant as extending to his or her husband or wife and also to family members residing with the tenant at the occasion of his death if such tenant had no husband or wife.

According to this special law, it is unlawful for the lessor, or the landlord, to refuse to renew a covenant of lease which terminates or expires. This law also states that the lessor, upon such expiration, cannot raise the rent or levy new conditions.

Situations and circumstances consuming these protected leases are generally regulated by the Rent Regulation Board. This Board, which has the mixture and function of a tribunal or a court of law, is empowered to grant permission of eviction or to increase the rent in very specified cases dictated by this special law. However, this power is also quite limited. The Rent Regulation Board can grant increase in rent if definite works to the property must be carried out, or if the rent does not exceed 40% of the fair rent. This fair rent is fixed by means of a valuation of the premises based on the rent at which such premises could have been leased 'at any time prior to the 4th of August 1914'. The fair rent is thus based on what the premises would have leased for more than 80 years ago!

In Malta, many townhouses, found especially in the core of the villages, and which have been leased for over twenty years, are rented for Lm20 Eu46.59) per annum, Lm25 (Eu58.23) per annum and even Lm6 (Eu13.98) per annum! This special law also states that where the proposed increase in rent is to exceed Lm40 (Eu93.17) per annum, the landlord must give observation to the lessee by means of a judicial letter and the tenant has the right to contest it before the tribunal.

The state of many of these leased dwellings is piteous, to say the least. Landlords refuse to carry out and pay for any fantastic or even maintenance works arguing that the rent would not cover a speckle of the cost for the works required. Tenants argue that they are not the owners and that it is not their responsibility to pay for such works.

In what circumstances is a landlord lawfully permitted to evict his tenant?
Chapter 69 of the Laws of Malta states that the Rent Regulation Board may grant permission to the landlord to evict the tenant if the latter fails to pay the rent twice consecutively. However, even if the tenant fails to pay, unless the landlord files a court application wherein he demands cost within 15 days, such failure to pay will not hold any water before the tribunal. Thus, the tenant must fail to pay in two consecutive instances and in both these two instances the landlord must have filed two court applications before the tribunal.

Another instance in which the Board may permit a landlord to evict the tenant is when the tenant requires the property for his own career or that of his ascendants or descendants. In this case, the Board must be satisfied that the tenant has alternative room which is reasonably convenient to the means of the tenant.

The security of these rent laws was halted by means of the obligation of part 158 of the laws of Malta which states that such security will no longer be granted to lease contracts entered into after 1995. However, although the new leases being contracted presently give equal rights to tenants and landlords, the old rent laws still apply to the majority of leases in Malta. The majority of leases in Malta are very old leases, inherited from one generation to the other and thus the effects of such leases are still very much alive and very much felt. As a consequence, definite legacy town houses which could be restored to their old splendour, have been neglected and abandoned for many many years and there does not seem to be any clarification to this qoute unless the rights of both the tenants and the landlords are safeguarded.

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Small business Tax Tips - I Forgot to Send Out 1099's by January 31 - What Do I Do Now?

Wayne Indiana - Small business Tax Tips - I Forgot to Send Out 1099's by January 31 - What Do I Do Now?

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Are you a small enterprise owner who hires independent contractors? If so, you may be required by the Irs to send out a Form 1099-Misc to those people. This narrative will help you determine your compulsion to issue those 1099's.

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The basic rule works like this: Form 1099-Misc is used to narrative total each year payments made to self-employed people who made at least 0 while the old calendar year. This 1099 must be given or mailed to the undertaker of a package deal by January 31 of the following year.

Note: For calendar year 2008, since January 31, 2009 is a Saturday, the deadline has been extended to the next enterprise day (Monday, Feb. 2, 2009).

The key here is either or not the someone who worked for you is self-employed. Obviously, this excludes employees. If you have employees, you give them a Form W-2 by January 31 (or Feb. 2) to narrative their payment (wages, salaries, bonuses, and withholdings). And this also means you don't have to send out a 1099-Misc to corporations who in case,granted services to your business.

The purpose of the 1099-Misc is similar to that of the W-2, but the goal here is to narrative revenue made by non-employees, not employees. And this is why the each year total revenue of self-employed contractors is reported in Box 7 of the 1099, "Nonemployee compensation."

In other words, the Irs is expecting you to contribute a way to help them track the revenue of the self-employed. Does all revenue earned by sole proprietors get reported on 1099's? Of procedure not. Who knows how much is unreported. And self-employed people know that if they don't get a 1099, it's difficult and roughly impossible for the Irs to outline out how much revenue a particular self-employed someone made. And so many self-employed people take advantage of this situation and only narrative revenue if they get a 1099.

And so there are many self-employed people who make fullness of money but receive no 1099's, and narrative no income, even though the law says they are supposed to narrative the revenue either or not they receive a 1099.

But back to you, the enterprise that paid the money to the contractor. Do you indubitably want to be part of the underground economy? If you take a deduction for payments to independent contractors but don't issue the corresponding 1099's, and you get audited, you are asking for trouble. Don't go there. Do the right thing and issue the 1099's.

What if the January 31 (or February 2) deadline has already passed? Go ahead and issue the 1099's anyway. Give the undertaker of a package deal a call right away and tell him you are sending him a 1099 as soon as possible. Why not do the right thing?

For details on how to comply with the 1099 reporting rules, download the Form 1099 instructions from the Irs website or consult with your tax professional. You'll want to send Form 1099-Misc Copy B to the self-employed someone right away and Form 1099-Misc Copy A, along with Form 1096, to the Irs by March 2, 2009.

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