In 2020, the Government of Malta had by means of Legal Notice 218 of 2020 issued new rules granting a reduced rate of tax of 5% on chargeable income derived by persons during the calendar years 2020 to 2023 and 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 reduced rate of tax should during the calendar years 2020, 2021, 2022 or 2023, provide such qualifying services at a fee not exceeding twelve euro (€12) per tonne.
By means of Legal Notice 301 of 2023, the reduced rate of tax of 5% is also now applicable in respect of chargeable income derived by such persons during the calendar year 2024. By means of the new LN, it has been clarified that the amount of €12 per tonne referred to above is the fee which is exclusive of value added tax.
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.