On 8 October 2021, the Organisation for Economic Co-Operation and Development (OECD) announced that a landmark reform in the international taxation sphere was agreed between 136 countries, including Malta, out of the 140 members of the OECD/G20 Inclusive Framework on BEPs. Effective from 2023, certain Multinational Enterprises (MNEs) with revenue exceeding €750 million will be subject to a minimum tax rate of 15%. The proposed approach does not seek to eliminate tax competition but rather addresses the tax challenges arising from digitalisation ensuring that the largest MNEs pay a fair share of tax to the countries in which they operate and generate profits.
A multilateral convention is expected to be signed during 2022 to be effectively implemented in 2023.