Malta: Tax measures in 2024 budget enacted

Amendments to various fiscal laws

Amendments to various fiscal laws

The Budget Measures Implementation Act, 2024 introduces amendments to various fiscal laws, including the Income Tax Act, the Income Tax Management Act, the Duty on Documents and Transfers Act, and the Value Added Tax (VAT) Act.

The legislation was introduced in November 2023. Read TaxNewsFlash

Key changes include:

  • Extension of tax exemption/reduction on transfers of property previously leased through certain Housing Authority Schemes
  • Immediate tax deduction of intellectual property costs
  • Removal of school transport fee deductions
  • Extension of 7.5% tax on income to other individuals involved in sports
  • Empowerment to Minister of Finance to lay down rules to exempt companies from an audit requirement
  • Extension of duty exemption/reduction on transfers of property previously leased through certain Housing Authority Schemes
  • Exemption from duty on transfers causa mortis of qualifying agricultural land
  • Transfer causa mortis of a dwelling house which has been subject to litigation
  • Introduction of a general anti-abuse provision (GAAR) in the Maltese VAT Act
  • Removal of the provision in the VAT Act setting out the income tax deductibility of interest levied in terms of the VAT Act
  • Broader access to books, records, and documents in the course of an investigation
  • Record-keeping requirements for taxable persons not registered for VAT
  • Clarification on filing a correction form after a provisional assessment has been issued
  • Changes to the appeals process following decisions of the Tribunal

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


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