Introduction of transfer pricing rules to promote fairness in taxation

The reform provides for the adoption of a new law introducing transfer pricing rules in Malta’s corporate tax as of January 2024. 

The new rules will prevent multinational companies based in Malta from manipulating prices and shifting profits to low or zero-tax jurisdictions to avoid paying taxes and reducing budget revenue. 

The rules will also help to level the playing field between local and foreign businesses. On 18 November 2022, the Minister for Finance and Employment issued Legal Notice 284 of 2022 which provides for the formal introduction of specific transfer pricing rules in Malta as of 1 January 2024.