Amendment to Legal Notice 9 of 2024
An amendment has been made to the Maltese Transfer Pricing Rules
("TP Rules") whereby a sunset clause to
the grandfathering provision has been introduced. Prior to the
amendment, only cross border arrangements that were entered into or
materially altered on or after 1 January 2024, were in scope.
However, as a result of the said amendment all cross-border
arrangements, irrespective of when these are entered into, will be
in scope with effect from 1 January 2027.
Transfer Pricing Guidelines
The guidelines to the TP Rules provide examples of what should
and what should not constitute a "materially altered
arrangement". In summary, the guidelines suggest a
case-by-case analysis which must consider the substance of the
arrangement by reference to the functions performed, assets used,
and risks assumed by each of the parties to the arrangement (not
necessarily the form of the arrangement). Changes to the
consideration, rights/
