A Global Minimum Tax Rate

Malta has two EFFECTIVE tax rates, 35% for Maltese companies and a 6% for International Trading Companies, vessels for large organisations to park their profits in Malta.

A couple of weeks after Malta let out a big sigh of relief after the anti-money laundering regime passed from its Council of Europe’s expert committee, MoneyVal - the Financial Action Task Force are enforcing a number of reforms and improvements that the country still needs to enact in its fight against financial crime. And if this was not enough to keep the Maltese minister of finance awake at night, his counterparts from the most powerful economies in the world, the G7, meeting in London over the weekend, have agreed in principle to battle tax avoidance by making companies pay more, in direct taxation, in the countries where they are actually doing business, and not the company’s jurisdiction. They also agreed in principle to a global minimum corporate tax rate of 15% thus avoiding countries undercutting each other.

What is the Maltese position in all of this?

Professor Edward Scicluna, former Minister of Finance for Malta reported by Matthew Agius, Malta Today, 21st May 2017

What is tax avoidance and how do corporates manipulate the system?

Faisal Islam, Economics editor BBC News, Thursday 10th June, 2021

So, what are the G7 ministers of finance howling about?

Read More Click Here

How does it work?

What will happen if the G20 Heads of State and Government adopt the 15% minimum corporate tax principle during the July Summit?

Building fairer societies through global tax co-operation : OECD

What is causing such a backlash on small sometimes poor nations that have little opportunities to participate in international trade?

The Prime Minister of Malta, Dr Robert Abela announcing the economic vision for the next decade for Malta, The Times of Malta, 10th June 2021, Claire Farrugia

ACT NOW!

Remember that any decision you will take now will affect your future for years to come.
Saint Martin’s Institute of Higher Education is licensed by the Malta Further & Higher Education Authority (MFHEA) and a Registered Teaching Centre for the University of London ●New Building, 116, Joe Sciberras Street, Hamrun HMR 1557, Malta ● +356 2123 5451 ● infodesk@stmartins.edu

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Saint Martin's Institute of Higher Education

Saint Martin's Institute of Higher Education

67 Followers

@stmartinsedu Maltese a licensed (№196) private, tertiary-level institution, offering University of London qualifications. #StartMyInspiration