Alteration to the Participation Exemption Regime (Malta)

The Maltese Government envisages an addendum to the current Participation Exemption scheme in its 2021 State Budget.

This amendment proposes that the tax exemption on income derived from a qualifying holding should not apply to dividends derived from a holding in a body of persons resident for tax purposes in a jurisdiction included in the EU list of non-cooperative jurisdictions for a minimum period of 3 months during the year immediately preceding the year of liquidation. This list of jurisdictions includes:

• American Samoa
• Anguilla
• Barbados
• Fiji
• Guam
• Palau
• Panama
• Samoa
• Trinidad and Tobago
• US Virgin Islands
• Vanuatu
• Seychelles

For more information on Holdings in Malta see our guide.