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Malta Merchant Shipping Companies

In February of this year (2020) an amendment was enacted to the Merchant Shipping (Shipping Organisations – Private Companies) Regulations, S.L. 234.42 via Legal Notice 31 of 2020, making it mandatory for companies registered under these regulations to prepare and submit audited financial statements the Malta Business Registry (MBR). The shareholders and directors of all companies established under the Merchant Shipping Regulations should take note of this obligation.

EU DAC6, Tax and Compliance Bulletin 64

DAC6: The proposal as agreed by Member States in early June to defer deadlines for exchange of information under the administrative cooperation directive as a result of the coronavirus crisis has now been published in the Official Journal of the European Union and has entered into force.

DAC6 – EU Mandatory Disclosures for Intermediaries

6th Amendment to the EU Directive on Administrative Cooperation:-
DAC6 comes into effect on the 1st July 2020 and imposes reporting obligations on cross border arrangements (CBAs), relating to direct taxation, that contain at least one of the hallmarks listed in the Directive. VAT and other forms of indirect taxation are therefore excluded from the Directive.

EU Digital Tax and Compliance Bulletin 63

The Office of the US Trade Representative has announced the US will be carrying out investigations under Section 301 of its 1974 Trade Act concerning digital services taxes that have either been adopted or are being considered at political level by a number of countries worldwide.

EU Council Tax & Compliance Bulletin 62

Council of EU Approves Conclusions on Future Administrative Cooperation in Taxation: The Council of the European Union has now approved conclusions on the future administrative cooperation in taxation in the EU. The conclusions state that the Council believe that strengthening cooperation is “a very important part of the comprehensive EU effort to curb tax fraud, tax evasion and tax avoidance” and “are particularly relevant in the context of the need for recovery from the crisis caused by the COVID-19 pandemic”.

European Commission Tax & Compliance Bulletin 61

Commission Proposes to Postpone DAC6 Reporting Implementation: The European Commission has published proposals for Council decisions to postpone deadlines imposed by the EU Directive on Administrative Cooperation by 3 months. This follows on from public requests made by financial and professional association organisations, seeking leniency in the enforcement of penalties and deadlines contained within the Directive due to the extraordinary consequences of the COVID-19 outbreak which have resulted in severe disruption across the European economy.

Malta Patent Box regime – a home for your IP

The new Malta Patent box regime were enacted in 2019 and are effective as from the 1 January 2019. These rules apply to Income or Gains derived from Intellectual Property by a Beneficiary. These rules have been designed to attract patented intellectual property related business activity to Malta. Qualifying intellectual property (IP) A patent or […]

EU Tax Administration & Compliance Bulletin 60

A global reference document setting out the measures taken by tax administrations worldwide has been created by the Forum on Tax Administration, containing detail of all taxation and financial measures taken by governments around the world in response to the COVID-19 outbreak.

Malta: Notional Interest Deduction Rules

Companies that are resident in Malta are entitled to a notional deduction for sums that are deemed to be payable by way of Interest on Risk Capital. This deemed deductible expense shall apply only in respect of profits which stand to be allocated to a company’s Foreign Income Tax Account or Malta Taxed Account. This deduction shall be claimed at the option of the company. The company claiming this deduction must obtain the approval of all shareholders with regards to the financial statements of any basis year in respect of which the deduction is claimed.

Malta Anti-Tax Avoidance Hybrid Mismatch Rules

A “hybrid entity” is any entity or arrangement that is regarded as a taxable entity under the laws of one jurisdiction and whose income or expenditure is treated as income or expenditure of one or more other persons under the laws of another jurisdiction.

European Union Tax & Compliance Bulletin 59

The European Commission has published a Roadmap concerning its Action Plan for Taking the Customs Union to the Next Level. The Commission aims to further “IT implementation and optimisation, customs risk analysis and management, integration of operations and cooperation between customs authorities, harnessing innovation and improving efficiency of customs administrations”.

OECD Convention on Taxation Treaties

In April 2018 Malta introduced the OECD Multilateral Convention, regarding the implementation of double taxation treaties related measures to prevent base erosion and profit shifting (BEPS), into local law. The Multilateral Convention has been signed by around 100 countries. project.

OECD BEPS Initiative Explained

Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax. BEPS practices cost countries USD 100-240 billion in lost revenue annually. Working together within OECD/G20 Inclusive Framework on BEPS, over 135 countries and jurisdictions are collaborating on the implementation of 15 measures to tackle tax avoidance.