Budget Measures Implementation Act – Changes to the Income Tax acts

The Malta Government has on the 16th April 2021, by means of ACT XVIII of 2021 published and enacted a new Act which will be implementing the budget measures for the year 2021.  The budget measures  were announced by the Minister of Finance in his budget speech in October 2020.   The measures came into force on […]

Written By Stephen Balzan

On May 2, 2021
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The Malta Government has on the 16th April 2021, by means of ACT XVIII of 2021 published and enacted a new Act which will be implementing the budget measures for the year 2021.  The budget measures  were announced by the Minister of Finance in his budget speech in October 2020.   The measures came into force on the 1st January 2021 unless otherwise stated.  The following changes to the Income Tax Act and the Income Tax Management Act came into force.

  • Changes to the exemption from income tax on transfer of one’s own residence
  • Changes to the participation exemption regime
  • Certain payments not to be allowed as a deduction for tax purposes
  • 15% tax rate  on royalty income derived from literary works
  • Transfer pricing
  • Filing of adjustment forms pursuant to a Mutual Agreement Procedure (MAP)
  • Provision of information to the CfR for the purposes of exchanging it with foreign tax authorities
  • Professional secrecy of certain licensed financial services entities

For a more detailed explanation of the changes, you are kindly requested to read our article by clicking here.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].