Earlier on this year, the Government of Malta had by means of Legal Notice 179 of 2020 issued new rules granting a tax credit to authorized persons who are in possession of a permit issued by the Environment and Resources Authority for the acceptance in their quarry of construction and demolition material from third parties. Such authorized persons benefitting from such a tax credit should during the calendar years 2020, 2021, 2022 or 2023, provide such qualifying services at a fee not exceeding twelve euro (€12) per tonne. Such persons could claim a tax credit equivalent to five per cent (5%) of the gross fees paid to them for the provision of their services. The tax credit could not exceed the tax chargeable on the income derived by the authorised person during that year from the provision of those services. Please refer to our website on our news section here.
The Government has now amended the said rules by means of Legal Notice 218 of 2020. The tax incentive has now been changed and such persons will not benefit from the above-mentioned tax credits. Instead, the chargeable income derived by such persons providing qualifying services shall benefit from a reduced rate of income tax of 5%.
The applicability of the rate of tax in accordance with these rules shall be subject to the production of such documents or other evidence as the Commissioner may require.
