Malta's Full Imputation Tax System Safe Under EU Proposals
by Jason Gorringe, Lowtax.net, London
20 June, 2016
Speaking at a meeting of European Union Finance Ministers in Luxembourg last week, Malta's Minister for Finance, Edward Scicluna, stated that Malta can accept the latest version of a proposal for a European Union Anti-Tax Avoidance Directive.
The acceptance of the proposal comes after several months of intensive negotiations in which Malta worked to ensure that its general system of taxation and the competitiveness of its financial services sector are safeguarded, the Government said.
Scicluna thanked "the European Commission and the Dutch Presidency of the Council of the European Union, which understood our particular concerns, while at the same time recognising that Malta was fully committed to finding a solution once these were addressed."
Pending any objection being raised during a brief silence procedure, the agreement negotiated by Malta and several other like-minded member states will ensure a minimum set of European Union rules to fight tax avoidance. At the same time, the latest text clearly notes that measures intended to tackle so called "hybrid mismatches" contained within the directive are not intended to affect the general features of the tax system of member states.
"The full imputation tax system is Malta`s general system of taxation, affecting all taxpayers, whether individuals, pensioners or corporate, the design of which has been in place since the very beginning in our country. We have sought and obtained the reassurance we needed in this regard", Scicluna said.
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