On the 24th October 2022, the Minister of Finance introduced the country’s Budget for the year 2023. It is highlighted that the Budget deficit of the country is of €1.142 billion (that is 7.8% GDP) in 2021 and the deficit forecast for 2022 is of €948 billion (that is 5.8% of GDP). Salient features of...

The Minister of Finance introduced the country’s Budget for the year 2022. It is highlighted that the Budget deficit of the country increased to €1.268 billion (that is 9.7% GDP) in 2020 and the deficit forecast for 2021 is of €1.545 billion (that is 11.4% of GDP). Salient features of the measures announced include: Tax...

As of YA 2022, an enrolled voluntary organisation (VO) shall be exempt from tax for any YA in respect of which its turnover for the year immediately preceding that YA does not exceed EUR 50,000 (extended from EUR 10,000 to EUR 50,000 by virtue of Legal Notice 39 of 2021), subject to other conditions being...

The Private Residential Leases (Tax Rebate) Rules, 2020, were published on the 23rd June, 2020, by virtue of Legal Notice 258 of 2020. In terms of the Rules, as from 1st January 2020, any person who in the year immediately preceding the year of assessment derives income from a private residential lease having an original...

The Commissioner for Revenue has introduced a Tax Deferral Scheme intended to improve the liquidity ratios of self-employed persons and companies that have suffered a significant downturn in their turnover as a result of the COVID-19 pandemic. The Scheme is applicable to businesses and self-employed that are obliged to pay the following taxes that fall...

Double taxation may occur in the form of economic double taxation when tax is charged on the same income but on different taxpayers. Economic double taxation is not restricted to double taxation on an international level but may occur in the same jurisdiction. On the other hand, double taxation on the same income in two...

The beginning of the year has brought into effect Regulation 6 (GAAR) by virtue of Subsidiary Legislation 123.187, of the Income Tax Act, Chapter 123 of the Laws of Malta. This legislation has implemented the provisions of Directive (EU) 2016/1164 (ATAD I). This anti-abuse measure is not new to Maltese tax legislation since Regulation 6...

Taxpayer may opt to pay the flat rate of taxation of 15% tax on rental income which applies to both residential and commercial property, but excludes rent from related parties. This 15% tax rate is an option that may be used by both individual taxpayers as well as companies. In the event that a taxpayer...

Malta on the forefront with the enactment of three pieces of legislation; namely: The Malta Digital Innovation Act (the “MDIA Act”), The Innovative Technology Arrangement and Services Act (the “ITAS Act”), and The Virtual Financial Assets Act (the “VFA Act”). The introduction of these three pieces of legislation, which although to date are not yet...

Tax Credits Supporting the Refurbishment of Hotels and Restaurants Regulations 2018 implemented by virtue of Legal Notice 120 of 2018 Malta Enterprise Act (Chapter 463 of the Laws of Malta). Malta Enterprise are still in the process to provide detailed guidelines which are expected in the coming days. This scheme should be available to small and...