Malta to implement 15% minimum tax for multi-national companies

Multinational companies based in Malta will see their effective tax rate increase to 15% from 5%, Robert Abela announced on Sunday.

The prime minister said the decision approved by Cabinet last week would impact around 10 companies that have a global turnover exceeding €750 million annually.

The government expects to collect substantially more revenue through this measure, which is in line with the global minimum tax for large multinational companies agreed at EU level.

“This decision we took in Cabinet this week will ensure that these companies pay their full tax liability in Malta rather than having it collected by other countries. This means Malta will collect substantial new revenue that we can reinvest in our social programmes and infrastructure,” Abela said when interviewed on ONE TV.

The introduction of the new measure, which will be announced in the budget, reverses the government’s previous decision to postpone its introduction by six years.

The legal notice transposing the EU minimum taxation directive was published in February 2024. However, Malta had asked, as was its right, to postpone the implementation.