Malta Extends Tax Amnesty

by Lorys Charalambous, Tax-News.com, Cyprus

03 October 2011

Inland Revenue Malta has announced that is to extend the Reduction in Penalties and Interest Scheme for one last time, to allow any remaining taxpayers with outstanding tax debts or unfiled returns to avail themselves of significantly reduced penalties and interest when regularizing their tax affairs.

The scheme applies to individuals, companies and employers who are not up-to-date with their tax documents and payments.

In July 2010 the government updated the terms of its tax amnesty scheme to offer it to both individuals and companies, as well as offering lower penalty rates and offering new payment methods.

Under the new system (applying to years of assessment 1999-2010), taxpayers opting to use the scheme will benefit from an 85% reduction in additional tax and interest if they pay the remaining 15% of the penalties and the whole amount of tax due.

To be eligible for the latest amnesty taxpayers must:

• Have submitted outstanding tax returns not later than September 30, 2011;
• Request an updated agreement no later than October 31, 2011; and
• Make any payments due and submit the signed agreement by November 30, 2011.

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