Malta’s Tax Commissioner, Joseph Caruana told the Times of Malta that a growing number of individuals and companies are coming forward to settle overdue taxes going back several years.
He explained that professionals and businesses from all sectors are coming forward to regulate their situation.
However, the tax department is still owed around €800 million in unpaid tax.
During a recent announcement the Minister for Finance and Employment, Clyde Caruana, had unveiled far-reaching reform of Malta’s tax collection system. During the next two years, the Income Tax, Value Added Tax and Customs Department are expected to merge, and become the Malta Tax and Customs Administration.
It will also make use of high-end artificial intelligence software to increase tax compliance.
Mr Caruana said that the tax department sent thousands of ‘nudging’ letters to remind them of their arrears and several demand notices to businesses and individuals who refused to comply following a number of reminders.
“Compliance rate is now up to 85 per cent, thanks to these initiatives that help us move closer to the taxpayer,” said Tax Commissioner Caruana.
Malta’s tax system has increasingly been put under the spotlight in recent months, with the corporate tax expected to undergo radical reform. Minister Caruana said that Malta will be moving away from the tax imputation system which allows foreign companies based in Malta to benefit from a five per cent corporate tax rate.
Furthermore, Malta will be participating in the 15 per cent global minimum corporate tax rate for multinational firms earning over €750 million in revenues.
'Having a clean sheet, having never been subject to a data breach should be considered a major selling point'
The product will be available to consumers in 2024
The €2 million scheme aims to increase SMEs’ cybersecurity capacity