20th December | Luana Farrugia

Recent Tax Updates

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20th December | Luana Farrugia

Recent Tax Updates

  • On 11 December 2018, the provisions of the European Union Anti-Tax Avoidance Directive (ATAD) were transposed into Maltese tax law. The key components of ATAD are:
    • Interest deduction limitation rules
    • General anti-abuse rule (GAAR)
    • Controlled foreign company (CFC) rules
    • Exit tax

The first three rules are effective on 1 January 2019, whereas exit taxes will come into force on 1 January 2020.

  • Applications for VAT Grouping are now being accepted by the VAT Department. VAT Grouping is a tool used to prevent having irrecoverable VAT on charges on intra-group transactions. Through VAT Grouping, two or more legal persons established in Malta for VAT purposes apply to be registered as a single taxable person.

 

  • The reduced rate of duty of 1.5% has been extended to 31 December 2019. This rate applies to donations of securities and immovable property to family members.

 

  • The partial exemption on the acquisition of the second immovable property to be used as a sole residence has been extended to 31 December 2019.

 

Get in touch with Nicky Gouder or Luana Farrugia for more information.

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