Malta Will Take Steps To Eliminate Double Taxation

by Robert Lee, Tax-News.com, London

19 May 2003

Malta's Finance Minister John Dalli told a tax seminar last week that further reforms in the company tax sphere are likely as the country progresses towards full EU membership.

In particular, Dalli spoke of measures to eradicate double taxation and prevent tax evasion during a seminar at the Malta Institute of Taxation. The minister also acknowledged that many tax reforms will be the sole responsibility of the state, rather than the EU, as Malta aims to bring itself into line with the principles of the single market.

In the area of tax collection, Dalli noted that many improvements had been made to the tax collection system, such as the work of the Tax Compliance Unit, though suggested that the government would likely introduce fresh measures to stamp out tax evasion.

This, however, would not be done at the cost of Malta's competitiveness said Dalli, and the government would continue to introduce incentives aimed at promoting growth.

"We shall take care, however, that whatever changes we make will not place Malta at a competitive disadvantage with systems existing in other countries and that are considered to satisfy internationally accepted norms," Dalli told the Tax Institute.

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