Tax & VAT News
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Tax & VAT News
Latest news relating to Tax and VAT in Malta. Click below and contact us if you need any additional information.
The 2025 Update to the OECD Model Tax Convention
The OECD Model Tax Convention on Income and on Capital (the OECD Model) is a flagship publication used by both OECD Members and non-Members as a basis for negotiating, applying and interpreting bilateral tax treaties. It plays a key role in removing tax-related barriers to cross border trade and investment, helping to prevent tax evasion and avoidance, and providing a means to settle on a uniform basis the most common problems that arise in the field of international juridical double taxation.
Review of the VAT treatment of Transfer Pricing Adjustments
Transfer Pricing (TP) sets prices for transactions between related entities within multinational groups. OECD guidelines enforce the Arm’s Length Principle to prevent profit shifting and ensure taxation where value is created. TP adjustments, whether taxpayer-initiated or imposed by tax authorities, must be assessed for VAT when a direct link exists between a supply and consideration. Recent CJEU rulings confirm VAT neutrality, require substance-over-form analysis, and allow proportional documentation requests, making case-by-case evaluation essential.
Tax Deduction for business permits, concessions, and commercial leases
Effective 1 January 2025, under the Budget Implementation Act 2025, any person carrying on a trade, business, profession, or vocation may claim a tax deduction for capital expenditure incurred to acquire a business permit, concession, or commercial lease, provided these are used to generate taxable income.
15% Tax Rate under Article 56(17) of the Maltese Income Tax Act
The Maltese Income Tax Act contains various provisions aimed at ensuring equitable taxation while promoting economic competitiveness. Among these, the provisions of Article 56(17) provide a special regime for employment income earned under contracts requiring duties to be performed wholly or mainly outside Malta.
Final Income Tax Without Imputation – Election Form and Regulatory Overview
The Malta Tax and Customs Administration (MTCA) has announced the availability of the Election Form through which entities may opt to be taxed under the Final Income Tax Without Imputation Regulations, 2025 (“the Regulations”). The deadline for submitting the election form for the Year of Assessment 2025 is 28 November 2025.
Webinar | CBAM: practical insights and future outlook
Latest from the Court of Justice of the EU
Our Senior VAT advisor, Joseph Sammut, analyses the recent judgement by the Court of Justice of the EU, and gives his insight into these conclusions.
The Business Development Scheme
On 19th April 2024, Malta Enterprise published a new incentive called the Business Development Scheme. This schemes aims to facilitate value-added projects, including new business initiatives, start-up, expansions and transformation activities that contribute to the regional development of Malta. It will remain open until 30th September 2030.
The Smart & Sustainable Investment Grant
On 2 April 2024, Malta Enterprise published a new incentive to extend the Smart and Sustainability Investment Grant. The Smart and Sustainable Investment Grant provides business funding to support investments that lead to more sustainable processes which lead to the enhancement of competitiveness of the enterprise through the optimisation of the use of resources in their activities. This scheme will be available until 18th December 2026.
The Green Mobility Scheme
On the 27 March 2024, Malta Enterprise has published a new set of guidelines in relation to the newly launched Green Mobility Scheme.