Proposed amendment to the participation exemption rule

The Budget measures Implementation Bill [Bill No. 173] has proposed the introduction of a new proviso to article 12(1)(u)(1) of the Income Tax Act (CAP 123) in terms of which the exemption from tax of income derived from a qualifying participating holding shall not apply to...

New exclusion from tax deductions proposed

The Budget measures Implementation Bill [Bill No. 173] is proposing the introduction of a new exclusion from deductions permitted under the Income Tax Act (CAP 123). It is being proposed that the following be added to the list in article 26 of the Act: "(i) any...

Taxation of Royalties on qualifying literary works

Pursuant to the announcement in the Budget for 2021 of a flat rate of 15% on royalties earned by authors (See MIT news 19 October 2020), article 15 of the Budget Measures Implementation Bill sets out the proposed new article 31F of the Income Tax...

Malta Budget 2021 – Social Measures

On 19 October 2020 the Minister for Finance and Financial Services, Prof. Edward Scicluna, delivered the Budget Speech for 2021. The following is an overview of some of the social measures announced: Cost of living increase of €1.75c; An additional day of leave for employees; Children’s...

Malta Budget 2021 – Fiscal measures

Earlier this evening the Minister for Finance and Financial Services, Prof. Edward Scicluna, delivered the Budget Speech for 2021. The following is an overview of some of the fiscal measures announced. Tax Refund In 2021, eligible persons will receive a tax refund in an amount ranging from €45 to...

OECD Report: Taxing Virtual currencies

The OECD has published a report, with the participation of over 50 countries, which analyses the approaches and policy gaps across the main tax types (income, consumption and property taxes) in these countries in connection with virtual currencies. Taxing Virtual Currencies was prepared for presentation to the October 2020 meeting of...

Fiscal Unit Guidelines updated

The guidelines on the Consolidated Group (Income Tax) Rules have been revised, specifically, paragraphs (viii) to (xix) have been added to clarify technical matters in relation to the Rules. The updated guidelines were published on the CfR website earlier today. The updated guidelines are available here.    source: cfr.gov.mt...

DAC 6 – Notification deadline for non-disclosing intermediaries

​The Commissioner for Revenue has announced that due to the deferral of the reporting deadlines as a result of the COVID-19 pandemic, the period allowed for notification by non-disclosing intermediaries is being extended. In the case of cross-border arrangements subject to reporting in the period from...