The taxman cometh for Malta’s 20 largest employers, many of which located there expressly for the nation’s lenient tax structure. Many of those large companies are centered on gaming.
Malta’s reputation as a tax haven helped it grow a formidable gaming industry. But under pressure from the Organization of Economic Cooperation and Development (OECD), by January 2023 Malta must adhere to a global corporate tax of up to 15 percent, three times its current rate of 5 percent. The tax will apply to companies that generate more than €750 million ($848.5 million) in revenue.
In October, 136 countries agreed to implement the tax. In Malta, it will effect up to 20 international companies employing thousands of people.
First the government must finish writing and implementing its own version of the international tax into the nation’s tax code. In addition, it is already planning to shift its focus toward attracting companies that don’t top the €750 million threshold.
