Transfer Pricing In Malta

The tax environment has experienced significant changes the past years, in view of the international consensus to combat harmful tax practices. Countries around the world are collaborating to improve the coherence of international tax rules and ensure a more fair tax environment, through the OECD recommendations.

Malta has adopted a number of such recommendations, and won the "tax compliant jurisdiction" position as announced by the OECD in 2017.

One of the most important initiatives of the OECD is the introduction of Transfer Pricing ("TP") Guidelines, which was proposed through Action 8-10 of the BEPS project. However, Malta has not yet adopted this recommendation.

Nevertheless, the current international practice in combination with the current developments, suggest that it is only a matter of time that TP rules will be introduced in the Maltese tax laws.