Malta is lobbying for a two-year extension on the introduction of a new minimum corporate tax rate which, if introduced, would seriously reduce the island’s attractiveness to foreign investors Government sources said that talks were also being held with foreign investors in Malta to see what could be done to keep them on the island once its tax regime is amended. Described as one of the main concerns on the government’s agenda by political insiders, the new global 15 per cent minimum tax rate is being imposed by the Organisation of Economic Cooperation and Development (OECD). The new rates are an OECD bid to clamp down on countries like Malta competing to offer the lowest rates to attract foreign direct investment. They could sound the death knell for lucrative economic sectors on the island. Five per cent 'tax rate' On paper, Malta has one of the highest statutory corporate tax rates in the world, taxing 35 per cent of end-year company profits. However, the country attracts foreign investment by offering overseas companies a series of rebates and benefits that allow them to bring their corporate tax rate down to an effective five per cent. While Malta has agreed to the OECD...