Insights

The Arm’s Length Principle (ALP) is the foundation of international transfer pricing rules, as set out in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. It ensures that transactions between associated enterprises are priced as if they were conducted between independent entities under comparable circumstances. This principle prevents profit shifting and tax base erosion by aligning taxable profits with economic activity and value cr

In the setup stage, enterprises need cash to invest in the assets (physical, intellectual) and human capital that will eventually generate the profits of the enterprise. Without a well-planned cash strategy that establishes how the business is to be funded and provides for contingencies, few enterprises manage to make it past the first year.   

Bill 155 of 2025, the Budget Act Implementation Bill published on the 28 th  October 2025, introduces the following changes to the Income Tax Act and the VAT Act: Income Tax Act The proposed changes to the Income Tax Act relate only to the changes in the personal tax rates, with a twist . Married tax rates Contrary to what was indicated and understood in the budget speech, the bill suggests that the married rates are being updated to the following (even without any children a

On the 28th October, the Ministry of Finance, Clyde Caruana, delivered his Budget Speech for 2026 including the Malta Government's strategic vision for the upcoming year. This budget introduces a blend of social, environmental and economic measures intended to enhance Malta's economic position.  ​ This Budget saw major policy and fiscal updates aimed at families and parents, introducing new income tax brackets for families with either one or two (or more) children, extensivel

On the 17th October 2025, a new optional fiscal incentive applicable to specific employment income was introduced through legal notice 250 of 2025: the Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules, 2025, providing for a reduced 15% tax rate on certain qualifying employment income. The rules apply with effect from year of assessment 2026 (income derived after 1st January 2025).

Traditional traders and investors in crypto assets aim to derive a return from the crypto world through straightforward acquisition and sale transactions. However, there are persons (individuals but also entities) who aim to derive returns from their crypto assets through more innovative mechanisms, such as providing liquidity in liquidity pools and staking.  

The emergence of cryptocurrencies and digital assets has transformed financial markets, driven by technological advancements and the need for decentralization.

The rapid globalisation and digitalisation of the economy have fundamentally altered how businesses operate, often to the detriment of traditional tax systems. Multinational enterprises (MNEs), leveraging the ability to move capital and profits across borders, have utilised gaps in tax rules to shift profits to low-tax jurisdictions. This practice, known as Base Erosion and Profit Shifting (BEPS), has led to significant tax revenue losses for governments worldwide, particular

The manner in which transactions in crypto assets are brought to tax in different jurisdictions often offers opportunities for individuals and corporates alike, to structure their position to obtain desired tax outcomes. On the other hand, the way tax authorities in different countries treat crypto transactions can be confusing and can lead to a minefield that one needs to navigate to avoid unpleasant tax positions.

Fringe benefits, also referred to as payments-in-kind, encompass any benefit granted or considered to be granted due to an individual's employment or office. The circumstances regarded as fringe benefits, along with the method for valuing such benefits, are governed by the provisions set out in ‘The Fringe Benefits Rules’ under Subsidiary Legislation 123.55 (commonly known as the "FBR").

On the 11th September, AG Kokott delivered its opinion in the Lithuanian case involving the trading of in-game currencies, specifically Runescape gold.

On 11th September 2025, the AG issued its opinion on VAT cases that could have had an impact on how point systems (used a lot by supermarkets) are presently treated for VAT purposes:

In a recent address to Parliament, Finance Minister Clyde Caruana announced a significant crackdown on tax evasion in Malta. Backed by new legislation and enhanced enforcement tools, the government is taking an uncompromising stance on non-compliance, with Caruana warning that the government will come down on tax evaders “like a ton of bricks.”

Understanding the distinction between capital allowances and accounting depreciation is crucial, as it directly impacts tax planning, financial reporting, and decision-making. Whilst depreciation affects company profits, capital allowances impact a company’s tax liability. 

Personal tax return season always serves as a refresher of Lesson 1 in Maltese tax law: The distinction between trading and capital gains. With the increasing number of individuals who venture into the stock and crypto markets, having a sound grasp of how profits and gains are taxed in Malta is an essential part of both traders' and investors' considerations when entering and closing a position. 

Malta, a small Mediterranean island nation, offers a competitive personal tax regime designed to attract both residents and foreign investors. With its strategic location, favourable climate, and English-speaking environment, Malta has become an increasingly popular destination for expatriates and digital nomads. Understanding how the personal tax system works is essential for anyone considering working, living, or investing in the country.

Malta, as a member state of the Partial attribution is a method used by businesses to figure out how much VAT (Value Added Tax) they can get back when they buy things for their company.

Management accounts play a pivotal role in the strategic decision-making process for businesses. These accounts provide vital insights into a company's financial health, helping managers to make informed decisions. However, simply generating management accounts is not enough. Understanding the key factors that influence them and developing strategies that optimise business operations is crucial for maximising profitability and efficiency.

International Financial Reporting Standards (IFRS) are continuously changing providing better insights for how various types of transactions and events should be reported in the financial statements, enabling businesses to compare financial performance and position across borders. The applicability of IFRS will enhance a true and fair view leading to increased confidence among the stakeholders so it is important to keep up with any changes and developments in IFRS.

The Maltese government has announced significant changes to the Value Added Tax (VAT) system for small and medium enterprises (SMEs), set to