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Company Taxation & EU Regulatory Policy Bulletin 78

G7 Reach Agreement on Global Minimum Company Taxation Level On 1 July 2021, in an historic agreement, 130 countries approved a statement providing a framework for reform of the international tax rules. These countries are members of the OECD/G20 Inclusive Framework on BEPS (“IF”), comprising 139 countries.  IF members that have not joined in the statement are: […]

Business Taxation, Malta, EU Tax & Compliance Bulletin 77

EU Business Taxation for the 21st Century The European Commission has adopted a Communication on Business Taxation for the 21st century to promote a robust, efficient and fair business tax system in the European Union. The Communication sets out both a long-term and short-term vision to support Europe’s recovery from the COVID-19 pandemic and to ensure adequate […]

Transfer Pricing, Malta, EU Tax & Compliance Bulletin 76

Malta Transfer Pricing Enabling Provision The Budget Measures Implementation Act has introduced an enabling provision in the Income Tax Act which empowers the Minister of Finance to enact rules in relation to transfer pricing. The new article 51 of the Income Tax Act states that such rules may provide for the determination of the arm’s length […]

Roadmap: EU Company Tax, Malta-EU Tax News Bulletin 75

EU Commission Publishes Roadmap on Business Taxation for the 21st Century The EU Commission has published a Roadmap concerning its upcoming Communication on Business Taxation for the 21st Century, which will present the Commission’s plan for reforming EU corporate taxation to be “fit for the realities of the modern global economy”. The Roadmap identifies issues such as adapting […]

Double Taxation Relief & EU Tax Policy News Bulletin 74

Malta-Poland Double Taxation Treaty Revised The Double Taxation Relief on Taxes on Income in the double taxation treaty between Malta and the Republic of Poland Order has been revised pursuant to LN 64 of 2021. A Protocol has been agreed between the two countries for the prevention of double taxation and the prevention of fiscal evasion with respect […]

European Union Commission Tax & Compliance Bulletin 73

European Union Commission Proposes to Extend Temporary State Aid Framework The EU Commission has launched a consultation with Member States on extending the duration and scope of the Temporary State Aid Framework, adopted in March to assist Member States in dealing with the economic impact of the COVID-19 outbreak and prolonged in October 2020 to […]

EU Green Deal and Malta & EU Compliance Bulletin 72

EU Council Conclusions on Tax Challenges and the EU Green Deal Recovery The Council of the EU has adopted the conclusions reached on fair and effective taxation in times of recovery, on tax challenges linked to digitalisation and on tax good governance in the EU and beyond. The conclusions emphasise the importance of fair and efficient […]

VAT (Value Added Tax) Tax & Compliance EU Bulletin 71

The EU Commission has published a Roadmap concerning VAT (Value Added Tax) rules for financial and insurance services, noting that the existing rules have been criticised for being complex and difficult to apply, leading to uncertainty, high compliance costs and lack of VAT (Value Added Tax) neutrality.

Malta Budget, European Union Tax & Compliance Bulletin 70

A Malta Budget measure has proposed the introduction of a new proviso in terms of which the exemption from tax of income derived from a qualifying participating holding shall not apply to a dividend derived from a participating holding in a body of persons resident for tax purposes in a jurisdiction that is included in the EU list of noncooperative jurisdictions

EU Carbon Emissions, Compliance and Tax Bulletin 69

European Commission President Von der Leyen State of the Union address. Taxation was central to many of the issues focussed on during the address, in particular in relation to the goal announced to reduce EU emissions by 55% by 2030, up from the planned 40% decrease. The Carbon Border Adjustment Mechanism will be central to this plan, with Von der Leyen stating, “Carbon must have its price – because nature cannot pay the price anymore.”

EU Commission Tax & Compliance Bulletin 68

EU Commission Publishes ATAD Implementation Report: The EU Commission published a Report to the European Parliament and Council on the implementation of ATAD and ATAD2, the EU Anti-Tax Avoidance Directive, a factual document outlining the status of the implementation of the directive in Member states pursuant to Article 10 of the Directive.

EU Council, Tax & Compliance Bulletin 67

Calls for Increased Transparency in EU Council Code of Conduct Business Taxation Group: The EU Council’s Code of Conduct Group is facing increasing criticism in the wake of the Apple judgment to increase transparency concerning its operations, and information on the application of its standards in the listing process for the EU tax “Blacklist”.

EU Tax Package Tax & Compliance Bulletin 66

European Commission Unveils New Tax Package – The European Commission has now published its Tax Package for “fair and simple taxation”, designed to address issues experienced in EU taxation arising in the course of “a ‘taxpayer’s journey’: from registering your business, to reporting, payment, verification, dealing with disputes.”

EU – UK Tax & Compliance Bulletin 65

BREXIT – The Government of the United Kingdom has announced changes in the VAT treatment of goods imported from oversees and sold to UK customers and a new set of rules which will enter into force on 1 January 2021, at the end of the Brexit transition period.

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.