Malta Extends Tax AmnestyMEDIA ROOM
The Malta Inland Revenue Department has just announced an extension to the Reduction in Penalties and Interest Scheme.
Regularising tax affairs
This is to be done for one last time, the aim of which is to allow any remaining taxpayers with outstanding tax debts or unfiled returns to benefit from reduced penalties and interest when regularising their tax affairs.
This is a scheme that applies to individuals, companies and employers who are not up-to-date with their tax documents and payments. In July 2010 the Maltese government updated the terms of its tax amnesty scheme to offer it to both individuals and companies, as well as offering lower penalty rates and offering new payment methods.
Under the new system that applies to years of assessment 1999-2010, taxpayers opting to use the scheme will benefit from an 85% reduction in additional tax and interest – this if they pay the remaining 15% of the penalties and the whole amount of tax due.
Eligibility for amnesty
For one to be eligible for amnesty, taxpayers must:
- Have submitted outstanding tax returns not later than September 30, 2011;
- Request an updated agreement no later than October 31, 2011; and
- Make any payments due and submit the signed agreement by November 30, 2011.