Malta: Transfer pricing guidelines
Malta Tax and Customs Administration published guidelines
February 6, 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