Topic
Corporate & income tax
Income tax rules, returns and deadlines, deductions, guidelines and rulings.
352 news items and articles, newest first
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New Double Tax Treaty with Kosovo
By means of Legal Notice 168 of 2019, the Government of Malta has published the new treaty for the avoidance of double taxation with the Republic of Kosovo. With respect to dividends and interest, the two States agreed…
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New Philanthropic Organisations Exempt from Income Tax
By means of LN 167 of 2019, the Government of Malta has named five new organisations as being engaged in philanthropic work, and thus exempt from income tax in terms of Article 12(1)(e) of the Income Tax Act. The…
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Changes to Malta’s Participation Exemption Regime
The third proviso to Article 12(1)(u)(1) of the Income Tax Act, has been amended so that gains or profits derived by a company registered in Malta (the transferor company), arising on the transfer of a participating…
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30th June 2019 – Three Important Deadlines
The 30th of June is fast approaching and this is the last day for filing of one’s own income tax return in respect of year of assessment 2019. It is also the deadline for one to declare any income from part time…
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Consolidated Group (Income Tax) Rules 2019
Consolidated Group (Income Tax) Rules 2019 Malta has on the 31st May 2019, by means of Legal Notice 110 of 2019, introduced rules by virtue of which a parent company and its subsidiaries may elect to form one fiscal…
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Consolidated Group (Income Tax) Rules 2019
Malta has on the 31st May 2019, by means of Legal Notice 110 of 2019, introduced rules by virtue of which a parent company and its subsidiaries may elect to form one fiscal unit. The Rules shall enter into force as from…
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Minimum Tax for Res non-Dom individuals
The Maltese tax authorities have recently issued guidelines on the remittance basis of taxation which are applicable to persons who are ordinarily residents but not domiciled in Malta. The guidelines have also provided…
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Malta Tax Rates & Dates 2019
Malta Income Tax Rates (year of assessment 2020) Company rate of tax35% Resident married couples opting for joint computation1 Taxable income (€)Rate (%)Deduct (€)0 – 12,70000 12,701 – 21,200151,90521,201 –…
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Income Tax Treatment of Transactions or Arrangements Involving Distributed Ledger Technology (DLT) Assets
he Commissioner for Revenue has on the 1st November 2018 issued guidelines to clarify its position on the income tax treatment of transactions involving the use of DLT assets. The type of DLT assets covered by the said…
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New Tax credits for hotels and restaurants
Malta Enterprise has announced a new scheme which is aimed at incentivising businesses to invest in the refurbishment of hotels and restaurants. The incentive consists of tax credits which are calculated on the…
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EU Commission – Moving to Qualified Majority Voting in Taxation Matters?
The EC has invited public feedback concerning a roadmap that proposes decision making on tax matters that could take place by way of qualified majority voting, rather than by unanimous agreement. The Commission’s…
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Accelerated tax depreciation for aircrafts
By means of Legal Notice 322 of 2018, the Government of Malta has announced that the number of years over which the following assets may be depreciated has been reduced from 6 years to 4 years. Aircraft airframes,…
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Malta’s NID rules approved by the EU Code of Conduct Group
Malta’s Notional Interest Deduction (NID) Rules enable undertakings to apply a deduction of notional interest against chargeable income, which notional interest is determined by reference to the undertakings risk…
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Tax deductions in respect of donations made to the Community Chest Fund
By means of Legal Notice 321 of 2018, the Government of Malta has announced that the rules applicable to tax deductions in respect of donations made to the Community Chest Fund have been extended to donations made up to…
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Tax agreement with Botswana enters into force
By means of Legal Notice 433 of 2018, the Government of Malta has announced that the Agreement between Malta and the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with…
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Malta implements the EU Anti-Tax Avoidance Directive (ATAD)
By means of LN 411 of 2018 Malta implements the ATAD which contains four measures in relation to interest limitation, exit taxation, GAAR and controlled foreign company rules. These rules apply to all companies as well…
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Guidelines in Relation to the Taxation of DLT Assets
The Commissioner for Revenue has on the 1st November issued the following guidelines in relation to the tax treatment of DLT Assets: Income tax treatment of transactions or arrangements involving DLT assetsDuty on…
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OECD’s Multilateral tax treaty instrument enters into force
The OECD’s Multilateral tax treaty instrument (“MLI”) entered into force on 1 July 2018 after the ratification of the said instrument by 5 countries, namely Austria, the Isle of Man, Jersey, Poland and Slovenia. There…
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Tax Credit (Construction Waste Recycling) Rules
New rules were introduced by virtue of which tax credits will be granted to persons who are in possession of a permit issued by the Environment and Resources Authority for the acceptance in their quarries of…
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Taxation of Maltese Retirement Funds and Schemes
Introduction The Maltese tax authorities have issued guidelines with respect to the taxation of Maltese retirement funds and schemes, as well as the taxation of beneficiaries of retirement income from such schemes. The…
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Matters to be Stated in a White Paper
The Government of Malta has on the 22nd May 2018, published three bills entitled “Virtual Financial Assets Act”, “Malta Digital Innovation Authority Act” and the “Innovative Technology Arrangements and Services Act”.…
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Tax Credit (Higher Educational Qualifications) Rules
The Maltese Government has issued new rules to provide for tax credits to individuals who are in possession of qualifications as outlined below, who derive income from full time employment (or full time employment with…
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European Commission Publishes Proposals for the Taxation of the Digital Economy
The EC has published proposals on the taxation of the digital economy in the Single Market and Recommendation on amending Member states’ Double Tax Treaties with Third Countries. A Digital Services Tax (“DST”) proposes…
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Malta adopts the Multilateral Convention to implement Tax Treaty Related Measures to prevent BEPS
By means of LN 142 of 2018 Malta had adopted in its legislation the Multilateral Convention on implementing Tax Treaty related measures to prevent Base Erosion and Profit Shifting (BEPS). The main purpose of this is to…
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New tax incentives for employees in the Maritime sector
By virtue of LN 140 of 2018, Malta has introduced new tax rules which provide tax incentives to employees employed in a qualified employment in maritime activities and in the servicing of offshore oil and gas industry.…
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New Maltese Tonnage Tax Law
After the decision taken by the European Commission in December 2017 to endorse the Maltese tonnage tax system for a period of 10 years, Malta has issued two Legal Notices 127 and 128 of 2018 which have amended the…
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Tax Credits Supporting the Refurbishment of Hotels and Restaurants Regulations
By means of LN 120 of 2018 and in terms of Guidelines issued by Malta Enterprise, eligible undertakings, may receive assistance in accordance with terms and conditions set out in the said Guidelines. Applications for…
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New double taxation agreement with Andorra
By means of LN 118 of 2018, the Government has published a new double taxation agreement with The Principality of Andorra.Of particular interest is that Articles 10, 11 and 12 dealing with dividends, interest and…
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Two new double taxation agreements enter into force
The Government of Malta has notified that the Agreements between the Maltese Government and the Governments of the Republic of Azerbaijan and The Socialist Republic of Viet Nam, for the Avoidance of Double Taxation and…
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Proposed EU Directive on Tax Intermediaries
On 13 March 2018, the Council has reached agreement on a proposal which is aimed at boosting transparency in order to tackle aggressive cross-border tax planning. The draft directive will require intermediaries such as…