Malta could lose more than half its corporate tax base if EU has its way

Malta’s economy and particularly its thriving financial services sector will suffer a big blow should the EU get its way on the introduction of new corporate tax rules, a new study shows. Compiled by senior economists for UK-based NGO Tax Justice Network, the findings show that Malta will see its income from tax arrangements deriving from subsidiaries of multinationals registered here decline by more than half, and in some cases even slashed by two thirds. The study, based on current proposals by the European Commission, known as Common Consolidated Corporate Tax Base (CCCTB), also show that big economies such as Germany, Spain and Italy are expected to benefit most from the proposals while Malta, Slovenia and Estonia will suffer the largest haemorrhage in income from corporate taxes. “A diverse group of small countries (including the Czech Republic, Portugal and Sweden) might expect their corporate tax bases to shrink by around one third, with the tax base of Malta, Slovenia and Estonia declining more than half in terms of their loss-consolidated tax base due to formulary apportionment in the CCCTB scenario,” the study concludes. OPINION: Malta's tax debacle “With the exception...