MALTA Law and Practice Contributed by: Donald Vella and Kirsten Debono Huskinson, Camilleri Preziosi Advocates
9.13 Approach to Digital Services Taxation The implementation of any of the proposed BEPS actions should be carefully assessed prior to the introduction of any new measures or laws. Once such measure or laws have been introduced, it might not be possible to undo their relative effects and conse - quences, and trying to do so may result in large sunk
tion between tax authorities and tax subjects can help the Maltese tax authorities to more effectively iden - tify and combat abusive structures that may involve Malta. Malta has adopted country-by-country reporting regulations and applies these regulations to com - panies established within the Maltese jurisdiction. A parent company of a multinational entity established in Malta is obliged to file an annual report with the Commissioner for Tax and Customs when the consoli - dated turnover of the group exceeds EUR750 million worldwide. Such a yearly report is compliant with the requirements of the OECD and covers all the jurisdic - tions in which the parent company and each subsidi - ary conducts business activities. 9.12 Digital Economy Businesses In December 2022, EU member states reached an agreement to implement, at the EU level, the minimum tax component (Pillar Two) of the OECD’s global inter - national tax reform initiative. Malta will, however, be deferring the introduction of the 15% minimum top-up tax under Pillar Two past 2024, as permitted under the EU Minimum Tax Directive. For the time being, therefore, there do not seem to be any concrete plans to alter Malta’s current corporate tax system. Accord - ingly, the full imputation system of taxation (see 3.4 Taxation of Individuals on Shares in Closely Held Corporations ) and the tax refund system will continue to apply.
costs for society and businesses. 9.14 Offshore IP Provisions
Malta has not yet introduced provisions dealing with the taxation of offshore IP deployed within its territory.
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