UPDATE: Malta’s first comprehensive transfer pricing rules have been implemented, and will take effect as from the 1st January 2024. Learn more on our article Malta Transfer Pricing Rules Implemented.
The Maltese Commissioner for Revenue has issued on the 20th of December, 2021 a public to receive feedback on a set of draft transfer pricing rules. The government intends to publish the final Malta transfer pricing rules in the last quarter of 2022. They will then come into effect as from 2024.
The Malta Transfer Pricing Rules Consultation
The Malta transfer pricing rules would apply to cross-border arrangements between associated enterprises. Associated enterprises will be those where there is a direct or indirect control through a minimum holding of more than 50% of the voting rights or ordinary share capital or by virtue of any powers conferred by the articles of association or other document regulating the controlled body of persons. Small and medium-sized entities will be excluded, as would taxpayers with an aggregate value of cross-border arrangements below a de minimis threshold, to be determined through further guidelines.
The consultation is open until the 28th of February, 2022.