Tax System Overhaul

Tax System Overhaul

The full imputation system is going to be killed off in one way or another, either from the OECD or at an EU level, which is significant given that Malta's tax revenues from non-resident companies accounts for 200 million euro. The government needs to come out ahead of this and implement a new simplified tax system that will encourage investment in Malta and job creation, not just letterboxes. A fair corporate and personal tax system (10%?) & credits/deductions will target priority areas

Points

While it may be seen as unfair by Maltese resident shareholders, the full imputation system to non-residents is very beneficial to Malta, reason being that Malta gets to tax income which would otherwise not belong to Malta. Simply put, non-residents will be contributing to Malta's coffers without being a burden on the system (they don't use roads or hospitals, don't generate waste etc..). If such a system were removed, Malta will simply lose out on the tax collected from non-resident persons.

I fully agree. Just want to add that Maltese residents operating in same economic sectors feel that they are discriminated against and operate at a disadvantage with foreign residents/shareholders. Therefore any revised system needs to be fair and encouraging/incentive for Maltese entrepreneurs/start ups too.

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