Registration under the Consolidated Group (Income Tax) Rules and relevant guidelines
Following the introduction of the Consolidated Group (Income Tax) Rules, published on 1st January 2019, the Commissioner for Revenue announced that the formation of a fiscal unit for the purposes of these Rules has been enabled through the online portal of the principal taxpayer as from the 18th of May, 2020.
Guidelines have also been published with the aim to clarify a number of points in relation to the eligibility criteria to form and terminate a fiscal unit, the registration process, and the representation by a tax practitioner amongst others.
The below are the main points emerging from the Guidelines issued:
- A company joining or forming a fiscal unit should not be defaulting on any requirements in relation to tax, VAT and FSS prior to registering under these Rules.
- The standard deadline to join or form a fiscal unit is 6 months after financial year end.
- Following the formation of the fiscal unit, the principal taxpayer needs to notify CfR of any changes in the structure of the fiscal unit within 6 months from financial year end.
- Companies forming part of a fiscal unit must be registered with the same tax representative as the principal taxpayer.
- Principal taxpayer is required to maintain approval of shareholders which are not owned, directly or indirectly, by the parent company, where such approval is necessary.
- In cases where a non-Maltese resident company forms part of a fiscal unit under these Rules, such company must satisfy the definition of ‘a company registered in Malta’ as per Article 2 of the Income Tax Act. Such company would be required to obtain a Maltese income tax registration number.
Click here to access the full guidelines.
For further information or tax assistance contact [email protected]