The Malta Institute of Accountants
MIA
The Malta Institute of Accountants (‘the Institute’/’MIA’) is the recognised approved accountancy body for accountants in Malta, in terms of Article 9 of the Accountancy Profession Act (Cap.
ID: 833776942438-09
Lobbying Activity
Meeting with Thomas Bajada (Member of the European Parliament)
27 Feb 2025 · Sustainable finance
Response to Evaluation of the Anti-Avoidance Tax Directive (ATAD)
11 Sept 2024
Recommend the Introduction of Thresholds instead of a One-Size Fits All The Directive takes an outright one-size fits all approach with respect to its requirements. We do not consider this a fair measure from an industry, economy and/or business size and recommend the implementing of thresholds as is the case with other Directives. Interest Limitation Rule The interest limitation rule needs to be revisited to take into consideration the specificities of industries. High-value asset industries have no control over third party financing and are nonetheless being limited by a capping on the deductible interest cost as an anti-tax avoidance measure. We recommend the introduction of thresholds or exceptions specific to certain industries, such as aviation and shipping. Deferral of Tax Companies willing to re-domicile across member states are being hindered from doing so due to the triggering of exit tax upon re-domiciliation. In order to promote a single market and guarantee free movement within the EU, we recommend a deferral of tax to when an asset is realised across all member states. Pillar 2 / EU Minimum Tax Directive On effectivity of Pillar 2 / EU Minimum Tax Directive, extracts of ATAD will be superseded by the aforementioned.
Read full responseResponse to Public country-by-country on corporate - template and electronic format
29 Aug 2024
To Whom It May Concern, Kindly see below feedback from the Malta Institute of Accountants with regards to the template and electronic format for country-by-country reports: 1. General comments on the application of the rules to non-EU headquartered multinational groups With regard to non-EU headquartered multinationals, in principle, each and every medium/large sized EU subsidiary or branch should publish and make accessible a report on income tax information concerning the ultimate parent undertaking, unless a report is prepared by such non-EU parent undertaking. In the latter case, the report is understood to have been prepared by the non-EU ultimate parent entity and subsequently provided to the EU subsidiaries or branches for local filing and publication. The EU subsidiary or branch would only be required to prepare the public CBC report to the extent that such report is not provided by its ultimate parent entity. The proposed changes to the Directive are not clear with respect to the manner in which non-EU headquartered multinationals should apply the rules. It is of fundamental importance to the taxpayers that the public country-by-country report does not result in an administrative burden and cost which would be disproportionate. On this basis, further clarification on the manner in which the rules would apply to non-EU headquartered multinationals would be welcomed. 2. Comments on the format of reports The formats set out in the proposed regulation are XHTML and XBRL, which are different than the format used for filing non-public CBC reports, i.e. the XML schema. The draft regulations require EU headquartered groups falling within the scope of the regulations to use an XBRL taxonomy for their public country-by-country report. The OECD requires the use of an XML schema, which has been used for a number of years and is already established amongst multinational groups. Adopting a common format across public and non-public CBC would be more administratively convenient for MNEs and tax administrations. We recommend that the Commission considers allowing EU-headquartered groups to use XML schema for their report so as to avoid duplication and minimise compliance burdens placed thereon. With regard to non-EU headquartered multinationals, if the non-EU ultimate parent entity does not provide all relevant information to the EU subsidiary/branch, the latter should prepare a report and a statement that the information was not made available and such reports need not be prepared by using the common template and electronic reporting set out in the proposed regulations. If the current template were to be used, there are some inconsistencies between the fields in the template and the XBRL tags. Preamble notes 10 and 11 states that Public CBC reports to be published and made accessible by an EU medium-sized/large subsidiary undertaking or branch that are controlled by a non-EU/EEA ultimate parent undertaking should not be covered by the obligation to use the common template and electronic reporting format. Further clarification on the reason for this exception are necessary. We also recommend that the regulation provides guidance on what format can be used in such cases so as to reduce uncertainty. Kind Regards The Malta Institute of Accountants
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