Malta: Transfer pricing guidelines

Malta Tax and Customs Administration published guidelines

Malta Tax and Customs Administration published guidelines

Article Posted date 06 February 2024

The Malta Tax and Customs Administration (MTCA) published guidelines [PDF 712 KB] related to the Maltese transfer pricing rules.

  • The guidelines clarify what may constitute a “material alteration” for the purposes of the grandfathering provision, including a non-exhaustive list of examples of what constitutes, and what does not constitute, a material alteration.
  • The preferred transfer pricing methods to be applied for the purposes of the Maltese transfer pricing rules are those set out in Chapter II of the OECD Transfer Pricing Guidelines; however, other methods may be accepted if they are more appropriate based on the facts and circumstances of the case at hand.
  • The simplified approach to calculate the arm’s length pricing of low value-adding intra-group services in accordance with the OECD Transfer Pricing Guidelines and the EU Joint Transfer Pricing Forum guidelines is also accepted for the purposes of the Maltese transfer pricing rules.
  • The transfer pricing documentation to be retained by taxpayers shall be the Master file and Local file in line with Chapter V of the OECD Transfer Pricing Guidelines and need to be disclosed to the MTCA only upon a specific request by the MTCA.

Read a February 2024 report prepared by the KPMG member firm in Malta

 

 

Print friendly version

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.