Malta intends to keep its taxes low, Prime Minister Robert Abela has told businesses at a conference held to discuss Malta’s economic vision for the next ten years.
“Our economy has reached a level where we must work forcefully to take the next quality leap,” Abela told the meeting.
“We’ll work on removing unnecessary burdens for investors and employers, creating incentives for people to open businesses, keeping taxes low – and that is where we intend to stay – and offering support to businesses where and when it is needed.”
Abela’s remark was his first public defence of Malta’s taxation system since the G7 nations and the EU announced plans last week to set a global minimum corporate tax rate of at least 15% and ensure companies pay more in the countries where they operate.
While Malta has a corporate tax rate of 35%, its full imputation system allows foreign businesses to benefit from significant rebates on dividends. In February, Finance Minister Clyde Caruana admitted that Malta was left with only three EU allies – Ireland, Cyprus and Luxembourg – in its resistance to EU-wide minimum taxation levels.
Abela today also said Malta must fully embrace digitalisation, foster a culture of continuous education and re-skilling, and ensure the environment and the economy work in tandem.