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Expenses allowable for tax deduction purposes will highly depend on presentation of valid VAT invoices.

Expenses allowable for tax deduction purposes will highly depend on presentation of valid VAT invoices. The 2016 Budget Measures Bill proposes that from year of assessment 2017, all expenses will be considered allowable for tax deduction, only if the invoice/fiscal receipt presented is valid for VAT purposes. Should the new provision be enacted, it will…

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GAPSME and related changes to the Maltese Companies Act

General Accounting Principles for Small and Medium-Sized Entities (GAPSME) The E.U. Single Accounting Directive 2013/34/EU has brought about a new set of financial requirements which repeal the 4th and 7th Accounting Derivatives on individual and consolidated accounts.  The aim for this new change is to simplify the preparation of the statutory financial statements for those…

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Exemption on Royalties Derived from Patents (Amendment)

Exemption on Royalties Derived from Patents (Amendment) Rules, 2016 (L.N. 4 of 2016) Article 12(1)(v) of the Income Tax Act provides for a tax exemption in relation to income received from royalties, advances and similar income derived from patents in respect of inventions, copyright and trademarks as may be prescribed. This exemption was only being…

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Claim for Deduction of School Transport Fees

Parents of children who are under 16 years of age and who attend a church school or private school are allowed for a deduction against their income in relation to school transport fees paid. Such deduction is available as from 1st January 2015 and is limited to a maximum of €150 per child per annum….

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Recent criminal case in Malta reinforces requirement of clear harassment policies and education at the workplace.

Employees’ behaviour in the work place Certain ambiguous behaviour such as over-familiarization between employees may result in serious problems for both the employees and employers.  This was stated by Magistrate Hon. Dr. Joseph Mifsud on the 11th January 2016 in a criminal case decision (Police vs Owen Calleja) wherein an employee was accused of sexual…

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Donations (Community Chest Fund) (Amendment)

Donations (Community Chest Fund) (Amendment) Rules, 2016 (L.N. 2 of 2016) Tax deductions relating to donations made to the Malta Community Chest Fund are regulated by Subsidiary Legislation 123.162, ‘Donations (Community Chest Fund) Rules’. The rules currently refer to donations made between 1st January and 31st December 2014 but will now be amended to apply…

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Double Taxation Relief (Taxes on Income) (The Kingdom of the Netherlands, in respect of Curacao)

Double Taxation Relief (Taxes on Income) (The Kingdom of the Netherlands, in respect of Curacao) Order, 2016 The double tax treaty between Malta and Curacao has been signed but is not yet in force. The treaty has been modelled based on the OECD model convention. Taxes covered include income tax levied in Malta and income…

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Fiscal Representatives (Financial Services Undertakings Exercising a European Right)

Fiscal Representatives (Financial Services Undertakings Exercising a European Right) (Revocation) Regulations 2016 – L.N. 3 of 2016 The Fiscal Representatives (Financial Services Undertakings Exercising a European Right) Regulations issued during year 2004 state that any European credit institution, European insurance undertaking or European investment firm which seeks to provide services in Malta without being resident…

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