On 8 June 2023, the Maltese Commissioner for Revenue (CFR) notified that the year of assessment 2023 electronic corporate income tax return is now available on online services. The supplemental document in case of a Fiscal Unit will be available for download on our online services in the coming weeks and further notification shall be made accordingly.

For this year of assessment there were the following salient changes to the tax return:

Page 7 – in the ‘Details of Directors’ section, inserting the TIN of country of tax residence is now mandatory where the country of residence is an EU Member State. In addition, the residential address of the director in his or her country of tax residence is now being requested.

TRA 53 – changes made to cater for the reduced final withholding tax rate provided for under Article 5A(5)(i) of the Income Tax Act. The final withholding tax rate applied on the first EUR 200,000 of the transfer value is reduced to 0% or one half the normal rate, as applicable.

TRA 82 – changes made in the ‘Wages and Salaries paid to persons not liable to tax in Malta’ section, whereby the TIN of country of residence is now mandatory where the country of residence is an EU Member State. In addition, the residential address of the individual in his or her country of tax residence is now being requested.

TRA100 and 100A – changes made to TRA100 and TRA100A so that for accounting periods that are longer or shorter than 12 months the notional interest deduction is inflated or reduced in proportion to the number of days in the accounting period, as required by Guideline (xi) of the Guidelines in Relation to the NID Rules Notional Interest Deduction Rules.

TRA111 – changes made to allow the surrender of unused interest capacity brought forward from previous years.

TRA125 – changes made to cater for the extension of the applicability of the Group Deductions (Income Tax) Rules [S.L.123.205] allowing entities to surrender/claim allowable deductions to/from other group entities in basis year 2022, in addition to basis year 2021, subject to the satisfaction of the relevant conditions.

New Tax Return Attachments

TRA 126 – this was introduced to cater for tax credits under the Smart and Sustainable Investment Grant Regulations [S.L.463.45].

TRA 127 – this was introduced to cater for tax credits under the Invest Regulations [S.L.463.46].

TRA 128 – this was introduced to cater for tax credits under the Research and Development Regulations [S.L. 463.35].

TRA 129 – this was introduced to cater for the tax credit under the Tax Credit (Malta International Airport plc) (COVID-19 Damage Compensation) Rules [S.L. 123.206]. TRA35 and TRA61 were updated to include this new TRA and allocate relieved profits to the FTA.