On 18 May 2021, Malta has issued Regulations (L.N. 213 of 2021) named ‘Cooperation with Other Jurisdictions on Tax Matters’. The Regulation has introduced penalties for non-compliance with Maltese country-by-country reporting (CbCr) reporting rules.
The Regulation states where a Maltese Constituent Entity that is neither the Ultimate Parent Entity nor the Surrogate Parent Entity nor the Constituent Entity referred to in point 1 of Section II of Annex III, fails to notify the Commissioner of the identity and tax residence of the Reporting Entity obliged to file a country-by-country report with respect to a Reporting Fiscal year by not later than the last day for filing of a tax return of that Constituent Entity for the preceding fiscal year, it shall be liable to a penalty of:
- two hundred euro (€200); and
- fifty euro (€50) for every day during which the default existed:
- Provided that this penalty shall not exceed in total five thousand euro (€5,000).
