Malta: Online form, instructions for registration of consolidated tax group

Malta: Registration of consolidated tax group

The online form for registration of a “fiscal unit” (consolidated tax group) is available effective 18 May 2020.

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The deadline is 31 August 2020 for applications for consolidated tax groups with accounting periods in 2019.

Following the issue of the Consolidated Group (Income Tax) Rules (LN 110 of 2019 on 31 May 2019), Malta introduced fiscal unity rules to allow, for the first time, the formation of a consolidated tax group for Maltese income tax purposes. These rules are effective from year of assessment 2020 in relation to tax groups having accounting periods beginning in calendar year 2019 and subsequent years.

These fiscal unity rules are optional, but certain requirements and conditions must be satisfied in order for entities to benefit from the regime.

The main benefit of the consolidated tax group rules is a cash-flow advantage (when compared to the current operation of partial shareholder tax refunds). Under these rules, the consolidated tax group may achieve an identical effective tax rate without “time lapse” between the payment of standard corporate income tax rate of 35% and the receipt of the shareholder refund at the shareholder level because the new rules immediately reduce the amount of tax due by the principal taxpayer to the lower effective tax rate.

The Commissioner for Revenue on 18 May 2020 made available the online application form for consolidated tax groups and also published guidelines [PDF 138 KB] about the registration process. The deadline for such applications in relation to fiscal units having their accounting period from 1 January 2019 to 31 December 2019 is 31 August 2020.


Read a May 2020 report prepared by the KPMG member firm in Malta

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