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.
Tax Deduction Claims to be taken for the basis year 2023
Deductions in Respect of Intellectual Property and Intellectual Property Rights
On the 28 December the Commissioner for Tax and Customs has announced an accelerated rate of depreciation when it comes to capital expenditure incurred on Intellectual Property or Intellectual Property rights which are used and employed in producing income.
The Nomad Residence Permits (Income Tax) Rules
The Nomad Residence Permits (Income Tax) Rules have been published on 7 December 2023. Through these rules Third Country nationals who are in possession of a valid nomad residence permit shall qualify for a reduced income tax rate of 10% of their chargeable income derived from “authorised work”.
The new CBAM obligations for importers
As from this week (1st October 2023) we have seen the start of the first reporting period of the new obligation for importers under the Carbon Border Adjustment Mechanism (CBAM). This would affect importers of cement, fertilizers, aluminium, iron, steel, hydrogen and electricity.
7.5% Tax Rate for creative practitioners
An optional flat rate of 7.5% is available on the first €50,000 arising from artistic activities conducted on a self-employed basis.
Reporting Obligation for importers of carbon intensive goods – applicable as from 1st October 2023
The EU’s Carbon Border Adjustment Mechanism (CBAM) is an EU regulation entering into force in Malta as from the 1st October 2023 and applicable to importers of goods whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
ESG Grant Scheme
On 5 September 2023 Malta Enterprise launched the ESG Grant Scheme. This grant scheme is in place to facilitate the review of Environmental, Social and Corporate Governance Practices.
VAT refunds through Directive 2008/9/EC
In terms of the Directive 2008/9/EC, a taxable person established in Malta can claim a refund of EU VAT suffered in another Member State under the 8th Directive refund system.
The EU Commission proposes new rules for VAT in the Digital Age
In its 2020 Action Plan for fair and simple taxation supporting the recovery, the EU Commission announced the legislative package ‘VAT rules for the digital age’, which was also included in the 2022 Commission work programme and adopted on the 8th December last year.
Minimum rate of taxation for multinational groups
The European Union has formally adopted the directive on the minimum rate of taxation which will be applicable to multinational groups, after Poland has granted its consent in a formal written procedure on 15 December 2022 and Hungary agreed to the support the proposal on 12 December 2022.