LA VALLETTA (MALTA) (ITALPRESS/MNA) – The European Union’s latest taxation report for 2023 said that corporate income tax remains one of Maltàs most significant sources of revenue at almost 15% of its total tax income. Malta ranked third in the EU, after Cyprus (18.1%) and Ireland (21.5%) where corporate income tax forms a significant proportion of its state revenues. Malta still has the highest top statutory tax rates on business profits at 35%, followed by Portugal (31.5%) and Germany (29.9%), while the lowest can be found in Bulgaria (10%) and Hungary (9%). However, Maltàs statutory income tax rate masks the rebates that lead to an effective tax rate of 5% for companies that are owned by non-residents, or by residents without domicile in Malta. Malta has refunded over 13 billion in income tax to corporate shareholders in the last 14 years under its refundable tax credit system. Every year since 2008, Malta refunded an average of 14.2% from the tax owing from these eligible companies. Currently there are 8,012 companies actively registering for tax refunds under the refundable tax credit system. In 2023, finance minister Clyde Caruana said Malta would not be immediately introducing a new minimum tax rate for companies as agreed in the OECD. EU countries can delay the introduction of the new 15% minimum tax by up to six years. The rules apply to companies that have a global income of more than 750 million. This would impact around 660 multinational companies that have a base in Malta, which however employ some 20,000 people.
– Photo Agenzia Fotogramma –
(ITALPRESS).
