Category: Articles and Insights

Voluntary Occupational Pension Scheme Rules

Voluntary Occupational Pension Scheme Rules

Dec 2017

The Voluntary Occupational Pension Scheme Rules, introduces a number of incentive tax measures to encourage an occupation pension system in Malta.

The recently published legal notice 228 of 2017 has introduced these tax incentives for contributions paid to qualifying schemes established under an employment relationship. The scope is to provide retirement benefits.

The rules apply in respect of contributions made to the qualifying scheme(s) by or on behalf of an individual who;

Earns an employment income, and
Is employed by a qualified employer.

This, including […]

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Notional Interest Deduction Rules

Notional Interest Deduction Rules

Nov 2017

The Notional Interest Deduction Rules have been introduced by means of Legal notice NO 262 of 2017, published on 5 October 2017.

The NID brings an equal tax treatment of debt and equity financing by allowing entities to deduct deemed interest on their equity. This provision shall take effect from year of assessment 2018.

However, given that this election is optional, the business entity has full discretion not to opt in.

The NID is computed by multiplying the interest rate to the risk […]

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Budget 2018 Highlights

Budget 2018 Highlights

Dean Micallef - Oct 2017

Overview

Following last Monday’s budget speech, The Minister of Finance, Profs. Edward Scicluna announced that our Real GDP growth was 5.5% in 2016 and 6.3% in the first 6 months of 2017. The country had a budget surplus projection of €88 million for 2017, which is expected to be 0.5% of the GDP, and the national debt is expected to drop to 54.93% in 2017.

As at August, inflation stood at 1.2%, and we have less than 2,500 registered as unemployed (employment […]

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Opening on Sunday

Opening on Sunday

Dean Micallef - Apr 2017

Sunday Shopping

Malta has always been known within the retail community to be generally closed for business on a Sunday, shops traditionally needed to apply for special permission to open on a Sunday and against a payment of €700.

2017 marks a year of change as market pressures and consumer trends have finally prevailed. Earlier this year it was announced that Maltese retail outlets are now permitted to open on a Sunday at no extra cost in exchange for an alternative close day.

The general […]

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Fiscal Implications of the Brexit Vote

Fiscal Implications of the Brexit Vote

Rodrick Muscat - Dec 2016

The EU Parent – Subsidiary Directive

Before The EU Parent – Subsidiary Directive came into force, the tax provisions underlying the relationship between the 28 European countries varied depending on the agreement between one European Country and another. As some of these agreements are more favourable than others, having a parent company in Member State A might be more beneficial than having a parent company in Member State B.

The Subsidiary Directive exempts dividends from any withholding tax where certain criteria are […]

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Budget 2017 – Salient TAX Provisions

Budget 2017 – Salient TAX Provisions

Rodrick Muscat - Oct 2016

The Honourable Minister for Finance, Edward Scicluna presented his speech for Malta’s Government Budget 2017 to parliament on the 17 October 2016.

On a number of occasions the Minister emphasised the Government’s intention to continue supporting Malta’s tax infrastructure and highlighted the importance of maintaining tax sovereignty while at the same time continuing to comply with European Union standards abiding by its principles and laws.

 

The following is a list of the salient provisions raised from the Minister’s Budget speech:

 

Income Tax

Exemption applicable […]

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The 2016 Seed Investment Scheme

The 2016 Seed Investment Scheme

Rodrick Muscat - Sep 2016

Malta is currently witnessing a game-changing wave of start-ups that are invigorating the business landscape. With business incubators such as TAKEOFF and the annual ZEST conference, where like-minded entrepreneurs meet, discuss and mould the future of their businesses, it goes to show that start-ups are indeed an important ingredient in this ever changing economy.

In a collaboration between the Ministry for Finance, Ministry for the Economy and MIMCOL have issued The Seed Investment Scheme that provides start-ups with the support they need for […]

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Malta – A robust tax system that supports business growth

Malta – A robust tax system that supports business growth

Rodrick Muscat - Jun 2016

Setting up an organisation in Malta presents many benefits for both local and international companies seeking to establish a presence in Europe. The island enjoys a stable political, social and economic environment and boasts a highly skilled, adaptable and multilingual workforce. In fact, Malta has attracted numerous corporations in the traditional business sectors as well as those more specialised industries.

Being a European Union member state and located in the middle of the Mediterranean Sea, Malta offers close proximity to mainland […]

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In real estate terms

In real estate terms

Sarah Muscat - Jan 2016

In real estate terms

What makes a property development commercially viable is its capacity to attract investment, Firstbridge’s Sarah Muscat discusses the various aspects of property related investments with The Times of Malta

 

What contribution does the property and construction sector give to the local economy?

Properties impact the general environment at several levels: they influence the city and region, the estate and neighbourhood, and the individual building itself. To a financial analyst, the real estate environment is more than this.

Holistically the property and […]

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