2026 Update
Income Tax Consolidation has been available in Malta since its introduction through Legal Notice 110 of 2019, being the Consolidated Group (Income Tax) Rules, 2019. The rules came into force with effect from Year of Assessment 2020 in relation to fiscal units having accounting periods commencing in calendar year 2019 and subsequent years.
As at 2026, the fiscal unit regime remains available under the same legislative framework, with official guidance from the Malta Tax and Customs Administration (MTCA) clarifying eligibility, registration, timelines, and certain technical aspects of the rules.
A parent company may elect to form a Fiscal Unit with one or more qualifying subsidiaries, provided that the statutory conditions are met. In particular, the parent company must, in the year prior to the year of assessment in which the election is made, satisfy any two of the following criteria in relation to the subsidiary:
