Malta is fast moving to the forefront of Digital innovation in the Blockchain/ Distributed Ledger Technology (DLT) sphere.
Malta has approved specific legislation to encompass the Blockchain legal framework covering all aspects from digital innovation to virtual financial assets. 3 bits of legislation have been passed specifically entitled:
- The Malta Digital Innovation Authority Act;
- The Virtual Financial Asset Act;
- The Innovation Technology Arrangement and Services Act.
Malta Digital Innovation Authority Act
Malta is leading the way by setting up an authority for Digital Innovation. The Authority will promote and develop the innovation technology arrangements, and related services. The Authority will administer the provisions of the various legislation. This will ensure that operations from Malta under the legislation will be carried out with the required regulatory certainty and standard
Virtual Financial Assets Act
The new law will introduce a mandatory licensing regime regulating DLT Assets including Virtual Tokens and Virtual Financial Assets. This will lead to facilitating the operation of Initial Virtual Financial Asset Offerings (ICO’s) as well as DLT Asset Exchanges from Malta.
The Innovation Technology Arrangement and Services Act.
The act is on a voluntary registration and certification of Innovative Technology Arrangements and of Innovative Technology Service Providers.
It has also been developed in a way that it can be flexible so as to encompass new innovations in the Artificial Intelligence and Internet of Things technologies areas.
New regulations and guidelines complementing the legislation are expected to be published in the next few weeks enabling the new sector to fully in place in the next few months.
IMS is embracing this new FINTECH sector. We are available for further information as may be requested.
On 9th May 2018, Maltese Parliament approved the third and final reading of the new Gaming Act, which shall elevate the jurisdictional profile of Malta from a regulatory perspective by strengthening the Malta Gaming Authority’s supervisory role, specifically the compliance and enforcement functions to better achieve the regulatory objectives, in line with concurrent developments relating to anti-money laundering and combating the funding of terrorism.
On 13th April 2018, the Azerbaijan-Malta Tax Treaty entered into force.
Fitch Ratings Agency affirms ‘A+’ credit rating for Malta, stable outlook.
On 1st January 2018, the Ukraine-Malta Tax Treaty entered into force.
Malta and Botswana signed a tax treaty on 2nd October 2017.
Malta and Vietnam signed a tax treaty on 15th July 2016.
Malta and Azerbaijan signed a tax treaty on 29th April 2016.
Malta and Andorra signed a tax treaty on 16th December 2015 in Andorra.
Fitch Ratings Agency affirms Malta’s Long Term foreign and local currency at ‘A’, stable outlook.
On 15th May 2015, the Moldova-Malta Tax Treaty entered into force.
In its winter economic forecast, the European Commission said that dynamic growth and low unemployment were being forecast for the Maltese economy, which maintained a healthy momentum with GDP growth estimated to have reached 3.3 per cent last year.
According to the forecast, GDP growth should moderate somewhat by 2016 but remain strong relative to the rest of the euro area.
The EU said HICP inflation was estimated to have bottomed out last year and should gradually recover in 2016 while the favourable macroeconomic climate should help the budget deficit fall below two per cent of GDP.
According to the forecast, real GDP growth rose in the third quarter last year to reach 3.8 per cent in annual terms, up from 3.4 per cent in the second quarter.
This reflected strong domestic demand, underpinned by dynamic investment in the energy sector and favourable labour market developments, and to a lesser extent exports, which, albeit weak, continued to outpace imports.
Real GDP growth, which was estimated to have reached 3.3 per cent last year, is expected to remain stable this year and moderate somewhat by the end of the forecast horizon, reaching 2.9 per cent in 2016.
Malta and Mauritius signed a tax treaty agreement on 15th October 2014 in New York.
On 9th August 2014, the Mexico – Malta Tax Treaty entered into force.
Malta and Moldova signed a Tax Treaty Agreement on 10th April 2014.
On 1st July 2014, the Liechtenstein – Malta Tax Treaty entered into force.
International Management Services Limited (IMS) is pleased to announce that it has been approved and licensed by Identity Malta Agency (an official agency of the Maltese Government) to be an Accredited Person.
IMS is now authorised to act as a licensed intermediary with the Maltese authorities in respect of applicants for the Citizenship by Investment Programme.
In a report issued on the 14th of March 2014, Firch Ratings Agency affirms Malta’s Long Term foreign and local currency at ‘A’, stable outlook.
The Government of Malta has just launched the Malta Individual Investor Program (IIP). The Malta IIP is aimed at high net worth individuals and families worldwide. Further details about the program can be found on this page.
The ratification process of the Convention for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Malta and Israel, which was signed on 28 July 2011, is now finalised by both countries.
The provisions of the Convention have come into force following the publication of Legal Notice 343 of 2013.
Malta and Curacao signed a Tax Treaty Agreement on 17th October 2013.
Tax Treaty between Turkey and Malta is expected to come into force as from 1st January 2014.
Malta and Ukraine signed a Tax Treaty Agreement on 5th Septemebr 2013 in Ukraine.
On 11th July 2013, the amending protocol and exchange of letters, signed on 30th November 2011 , to the (Luxembourg – Malta Income and Capital Tax Treaty -1994) entered into force. The protocol and exchange of letters generally apply from 1st January 2014.
Malta and Macau signed a Tax Treaty Agreement on 30th of May in Beijing. This treaty is expected to come into force in January 2014.
Branch Profits: The Participation Exemption has been extended to include any income or gains derived by a Malta registered company which are attributable to a permanent establishment (PE) that is situated outside Malta or to the transfer of such PE.
Royalty Exemption: Malta provides a full tax exemption in respect of qualifying royalty income. This exemption has been widened to apply to royalties derived from qualifying trademarks.
Malta is quickly becoming a global hub for the Aviation industry. The Vat Department in Malta issued guidelines related to aircraft leasing known as the VAT mitigation and simplification meaure. The guidelines are based on the Maltese yacht leasing measure. For more information about the VAT Simplification Measure, please contact us.
Another International Credit Rating Agency, Standard & Poor’s has also provided Malta with a positive overview. S&P has denounced comparisons between the banking industry in Malta and Cyprus. The report issued by Standard & Poor is entitled “Small Countries, Big Banking Systems: How Malta And Luxembourg Differ From Cyprus” concluded that “We therefore see limited direct implications from the Cypriot banking failure for Malta and Luxembourg”.
A Double Tax Treaty Agreement was signed on the 24th of April between Malta and Russia. It is to replace the other DTA which was signed by both countries in 2000. It will join the other 60 double tax treaties Malta has with other countries.
Malta signed a Double Tax Treaty Agreement with India, on the 8th of April 2013. This will replace the old treaty signed in 1994.
The ratification of a treaty between Malta and Turkey has been approved and has come into force as of 17th January 2013.
Malta has entered into a Double Tax Treaty Agreement with Saudi Arabia. The Treaty came into force on the 1st December 2012, but was applicable as of 1st January 2013.
The Double Tax Treaty between Norway and Malta, was ratified on the 15th of November 2012 after the Norwegian Government approved the Treaty.
In a special report issued on the 16th of April 2013, Fitch Ratings Agency analysed the Malta financial and banking situation. This lead to the agency issuing a rating for Malta:
‘A+’ rating with a stable outlook.
The report highlighted the fact that the banking system in Malta is no way comparable to Cyprus. The report studied the Maltese banking sector, which is the second largest in Europe after Luxembourg, and determined that is more secure and therefore less vulnerable when compared to Cyprus:
“While both Malta and Cyprus seemingly have large banking sectors that substantially exceed the size of their economies and that rely to some degree on funding from non-resident depositors, a closer examination reveals substantial differences”. As mentioned in the article ‘Fitch: Malta Does Not Face Same Bank System Risks as Cyprus’.