By means of Legal Notice 205 of 2017, the Government of Malta has amended the rules relating to fringe benefits.
Fringe benefit are benefits provided or deemed to be provided by reason of an employment or office, regardless of whether they are received in cash or in kind and whether they are received in terms of the normal conditions of the contract of service or by way of a special or ex gratia allowance.
One of the most interesting amendments is that which takes into account cross border employment. In terms of the updated legal notice, where a benefit is deemed to arise by reason of an employment or office, the income represented by the value of that benefit shall be deemed to arise in the jurisdiction where the work is wholly or principally performed. If the benefit is deemed to arise by reason of a directorship in a company it shall be deemed to arise in the jurisdiction where that company is managed and controlled.
