Malta: Country-by-country reporting, penalties for non-compliance

Amendments to the regulations concerning cooperation with other jurisdictions on tax matters

Amendments to the regulations concerning cooperation with other jurisdictions

Amendments to the regulations concerning cooperation with other jurisdictions on tax matters introduce a penalty regime for non-compliance with the country-by-country (CbC) reporting rules.

CbC reporting is a tax compliance obligation that requires multinational enterprises (MNEs) to file annually a comprehensive group tax report covering every jurisdiction where the MNEs have a tax residence.

All Maltese constituent entities (whether they are subject to the requirement to file a CbC report or not) must notify the tax administration with information about the MNE entity that will be filing the CbC report, and this notification must be made by a date that is no later than the last day for the filing of a tax return by that Maltese taxpayer for the preceding fiscal year. 

Failure of a Maltese taxpayer to inform the tax administration about the entity that will be filing the CbC report or to advise that the taxpayer as a constituent entity is subject to the obligation to file the CbC report in its own capacity, will be subject to penalties of €200 and €50, respectively, for each day of non-compliance. The total penalty assessment will be capped at €5,000 for non-compliance for each stated obligation separately.

Read a May 2021 report prepared by the KPMG member firm in Malta


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