European Parliament President Roberta Metsola has issued a warning about Malta’s corporate tax rate, advising Malta to “look harder at what really makes it attractive”.
Speaking at the Institute of Financial Services Practitioners’ annual conference, Metsola said Malta should be one of the main countries to spark discussions on a global tax rate.
Malta’s tax relief to foreign businesses will be a leg we can only stand on for a little longer, she warned.
Malta has one of the highest statutory corporate tax rates in the world, taxing 35% of company profits at year-end.
However, the country attracts foreign investment by offering foreign companies a series of discounts and advantages that allow them to reduce their corporate tax rate to an effective 5%.
Malta’s ability to offer competitive tax rates is, however, in doubt as the country is expected to be forced to adopt an overall minimum tax rate imposed by the Organization for Economic Co-operation and Development.
Addressing finance professionals on Thursday, Metsola stressed the need for Malta to shed negative stereotypes attributed to low tax jurisdictions in order to lend credibility to the financial sector and ensure efficiency and transparency. efficiency of the judicial system.
Metsola also stressed the need for long-term investments following what she described as short-termism over the past decade. The Labor Party has been in power for nine years.
“It was economic, political and security myopia to create a sphere of economic activity based on the sale of passports,” she said.
Metsola said the controversial passport scheme amounted to selling the family’s silverware and brought Malta into direct confrontation with Europe.
She also spoke about the challenges facing Europe. Fresh out of the ravages of the pandemic, Europeans are facing the consequences of the Russian invasion of Ukraine.
She said economic sanctions meant to hurt Russian President Vladimir Putin will also hurt all of Europe. She called on every member state to prepare and not wait for the storm to hit.
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