Article 12(1)(u) of the Income Tax Act has been amended to limit the applicability of the participation exemption to income received from a participating holding which is not in a company resident in a country listed in the EU list…

As from 1 January 2021, royalties received by an individual in his capacity as author of a qualifying literary work may be taxed at a final tax rate of 15%.  If an individual opts to have such royalties taxed under…

The tax treaty between Malta and Poland will be amended and the main changes will include: Widening of the definition of dividends in Article 10 to include other forms of income which is similar in nature to dividend income; Reduction…

As from 1 July 2021, a number of amendments to Directive 2006/112/EC (the VAT Directive) will start to apply affecting the VAT rules applicable to cross-border business-to-consumer (B2C) e-commerce activities.   The changes are aimed at addressing challenges arising from…

Malta has established the National Foreign Direct Investment Screening Office as required by the EU.  The purpose of the FDI Screening Office is to screen foreign direct investment into the EU on grounds of security or public order.    Foreign direct…

The Commissioner for Revenue published guidelines on the Mandatory Automatic Exchange of Information in relation to Cross-Border Arrangements to compliment Subsidiary Legislation 123.127,  Cooperation with Other Jurisdictions on Tax Matters Regulations which in return transposed the tax initiatives taken at…

In line with the announcement made during the Budget Speech for 2021, legal notice 463 of 2020 was published to amend the ‘small undertaking’ thresholds in Article 11 of the VAT Act.  Once the legal notice becomes effective, the period to…

By virtue of L.N. 428 of 2020, the Double Taxation Agreement (DTA) with the Russian Federation was amended and entered into force with effect from 1 January 2021.  The changes relate to Article 10  on ‘Dividends’, Article 11 on ‘Interest’,…

The VAT treatment on reimbursements has always presented challenges as to whether reimbursements are subject to VAT or whether these fall outside the scope of VAT since this matter is not directly addressed in the VAT Act. Recently, the Court…

The Malta Business Registry (MBR) issued a guidance document with respect to the Register of Beneficial Owners (RBO) to assist with the identification of the Beneficial Owner/s (BO) or Senior Management Officials (SMO).   Please be informed that any changes…