Persons in possession of a permit to accept construction waste and demolition material in their quarries in Malta can claim a tax credit.
In June 2018, through Legal Notice 209, new tax credits were introduced to persons authorised to accept in their quarry construction waste and demolition material from third parties. Such authorised persons may claim a tax credit equivalent to 25% of the gross fees paid to them. The tax credit cannot exceed the tax chargeable on the
income from such construction waste disposal services.
The tax credit is applicable to those authorised persons who accepted/accept such waste or material during calendar years 2017, 2018 or 2019.
Whilst activity in the construction industry in Malta is at full throttle, such fiscal credits to quarry owners came at a time when operators in the industry have revived their long-standing complaint on the lack of space and/or ways for disposing their waste. Whereas the tax credit could incentivise owners of disused quarries, it may also act as a form of compensation to those who made their quarries available for construction waste since 1st January 2017.
© 2021 KPMG, a Maltese civil partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.