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The ECOFIN Council has updated the list of non-co-operative jurisdictions, adding the BVI, Costa Rica, Marshall Islands and Russia to the list with effect from 14 February 2023. Click here to view the full list of non-cooperative jurisdictions. MIT Members are reminded of some of the key implications of transactions with persons resident in one of the listed jurisdictions: Reporting of links/transactions: a Malta company is required to disclose any links / transactions with a jurisdiction on the EU list of non-cooperative jurisdictions in the TRA110 schedule to its tax return. Implications under DAC 6: Deductible cross-border payments between two or more associated enterprises where the recipient is resident in a jurisdiction listed in the EU List of non-cooperative jurisdictions fall under Hallmark C(1)(b)(ii). In accordance with the CfR Guidelines on the Mandatory Exchange of Information, the assessment as to whether a jurisdiction meets the condition of this hallmark should be made on the date that the reporting trigger point arises. Participation Exemption exclusion: pursuant to article 12(1)(u) of the Income Tax Act (CAP 123), the participation exemption does not apply to income derived from a participating holding in a body of persons resident for tax purposes in a jurisdiction that is included in the EU list of non-cooperative jurisdictions for a minimum period of 3 months during the year immediately preceding the year of assessment, unless it is proved to the satisfaction of the Commissioner for Revenue that the said body of persons maintains sufficient significant people functions in that jurisdiction as is commensurate with the type and extent of the activity carried on in that jurisdiction and the income earned therefrom.
All information and updates for MIT Members are posted on MITAX
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