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.

MFSA guides financial entities to ensure customers make informed investment decisions

December 5, 2023
by BN Writer

Package expected to bring 'significant changes' to the rules for many financial products and services

New expedited application process for highly skilled foreign workers to be introduced in January 2024

December 5, 2023
by Fabrizio Tabone

Changes to the existing Key Employee Initiative scheme were also announced

‘We don’t make the law – we just apply it’ – Housing Ministry on six-tenant limit

December 5, 2023
by Robert Fenech

Six-tenant limit was introduced in 2014, update of rent law simply a way to enforce it