Malta further Extends Tax Amnesty

MEDIA ROOM

On the 5th December, the Maltese government announced an extension to its Reduction in Tax Penalties Scheme, one which allows taxpayers with outstanding tax balances for previous tax years to regularise their tax positions, as well as benefit from reduced penalties.

Payment of arrears of tax

The previous deadline was set at 30th November 2011. However according to the Ministry of Finance there has been “considerable demand” shown in the past few days. The closing date for the scheme with regard to the payment of arrears of tax and social security contributions is being extended further by “a few weeks”.

Those wishing to participate in this scheme – as stated by the Maltese Ministry of Finance – must ensure that they deliver any missing returns to the Inland Revenue Department by the 10th of January 2012 and deliver the payment and signed agreement to the Department by January 31, 2012.

Outstanding tax

This scheme applies to years of assessment 1999-2010, taxpayers can benefit from an 85% reduction in penalties and interest if they settle to the entire amount of outstanding tax due.

The scheme’s aim 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 and applies to individuals, companies and employers who are not up-to-date with their tax documents and payments.

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.