The Office of the Prime Minister has issued a clarification following media reports suggesting that Malta has reversed its position and begun implementing the European Union’s Global Minimum Tax Directive, which sets a 15% minimum tax on large multinational corporations.
In a statement released on Monday, the government stressed that Malta has not changed its decision to defer the implementation of the key provisions of the directive.
The country, like other EU member states with fewer than 12 in-scope multinational parent entities, has elected to make use of a derogation allowing it to postpone the measures.
The clarification comes after Prime Minister Robert Abela announced on Sunday that Malta would introduce a 15% tax rate on certain multinational companies.
According to the Prime Minister’s Office, the new measure is a domestic initiative designed to simplify the taxation system by providing an alternative to the full imputation system, reducing administrative burdens for both companies and shareholders. The government emphasised that the measure ensures tax revenue remains stable or increases, but it does not amount to the introduction of a Qualified Domestic Minimum Top-Up Tax (QDMTT) as defined under the OECD’s Pillar Two framework.
“This measure does not constitute the implementation of the EU Directive ahead of schedule and does not represent a broader shift in Malta’s corporate tax policy,” the statement read.
The government said it will continue engaging with businesses and stakeholders to provide clarity as it introduces the new regime, which is expected to be formally announced in the upcoming budget.
The legal notice transposing the EU directive into Maltese law was published in February 2024, but Malta requested and secured a six-year delay in applying its main provisions.