A recent scandal involving HSBC plc has sparked a new discussion in the EU Commission. The HSBC headquarters in Switzerland are being investigated for money laundering and alleged tax evasion schemes. What kicked off the investigation was a recently published revelation about the bank claiming it turned a blind eye to illegal activities from blood diamond traders and arms dealers, as well as helping rich people to evade paying taxes. This information stemmed from files stolen by Hervé Falciani, a former employee. The information dates back 10 years, and it has now come to light that the bank may have helped their clients to evade hundreds of millions of pounds.
The European Commission now launched an ambitious project to work on a fairer, more transparent taxation system in the EU in order to combat tax evasion and aggressive tax planning. The countries that are currently under investigation are Ireland, Luxembourg, Belgium and the Netherlands, as they allow multinationals a very favourable taxation. The executive commission now said they will propose new rules for taxation in the EU next month, in order to create a system which is fair. The same taxation shall apply to all citizens and businesses.
The EU has now pledged to amend tax rules that favour big companies. A special committee had been established last week to investigate national tax rules that favour big multinationals in Luxembourg. This investigation is based on leaked documents showing better deals for larger companies.
Malta’s taxation system is the same for every company. Every company that is registered in Malta will have to pay 35% corporate tax. However, it is possible to apply for a refund of up to 6/7 if certain criteria are met. This business model is not suitable for every company, and the rules are very clear, as the company operations will have to be based in Malta. However, the same rules apply to all companies, no matter if they are big or small. The taxation in Malta is transparent and in accordance with EU laws.
If you wish to find out more about taxes in Malta you are welcome to contact us at the legal office of Dr. Werner & Partner. We are specialised in company formation, and have helped many clients to establish their international business in Malta.
- WHO regional director praises Malta for health measures - 31. March 2020
- Why Malta is the perfect place to reside in — even in times of ‘Corona’. - 16. March 2020
- Liquidity crisis in times of COVID-19 (Coronavirus) — How to avoid financial constraints - 13. March 2020
- Exit taxation – is free movement blocked and who is affected from this at all? - 18. February 2020
- Initial Coin Offering (ICO) vs. Security Token Offering (STO) in 2019 - 3. April 2019
- Security Token Offerings — STOs - 19. December 2018
- Crypto Exchange Malta — Part 3 - 17. December 2018
- Crypto Currency Exchange — Part 2 — Legal issues in Malta - 14. December 2018
- Crypto currency exchange — Part 1 — Basics - 12. December 2018
- Virtual Financial Asset (VFA) Licences in Malta - 13. October 2018