MTCA Annual Report 2025

FOREWARD

Message from the Commissioner for Tax and Customs

The Strategic Plan for 2023-2025 That that we launched in April 2023 laid out on the way in which we deliver transformation. The objectives were very clear but at that time, the work needed seemed insurmountable.
Mr. Joseph Caruana
Commissioner for Tax and Customs

Now, here we are three years later, preparing to launch the next plan, and we can already look back at all that has been achieved with a real sense of pride.

One of the most important aspects of the transformation was for the Strategy to guide the MTCA over the coming years and to ensure that objectives were established and achieved in pragmatic and functional ways. It was based on two main approaches: the changes required for better internal operations; and those aimed at improving revenue collection and services.

Both of these were based squarely on our mission and vision, which made the MTCA more aware of its role, helping us to become more customer-centric, more efficient and more effective.

What did this involve? First of all, technology. Bolstered by appropriate financial allocations, the MTCA was able to embark on numerous projects to improve data collection and analytics, using artificial intelligence and software, for example. It also introduced a number of digital tools to help e-services and online processing, with all the advantages that this represents in terms of speed and accuracy. The results were encouraging: as you will see from the Annual Report, in 2025, the MTCA showed marked improvements in collection and compliance, as well as in the use of online services.

The MTCA took its role to assist taxpayers very seriously and sent out nearly 500,000 emails, letters and text messages, all of which helped to improve compliance, whether with regard to filing returns and making payments, or to doing so on time. Of course, this outreach was also used to notify taxpayers of changes to legislation: there is never a dull moment and change is a constant in our world, as you will learn from the chapters dedicated to Legislative and International Affairs, and to Verifications and Audit.

There was also an important metric reached for Customs Operations: 5%. This refers to the reduction in controls at the border, which means using a more risk-based approach to facilitate trade without compromising our role as the public's gatekeepers.

Apart from introducing various social media channels which complemented the MTCA's outreach, the MTCA also worked on step-by-step explainers, as well as launching its new website with its more intuitive site-plan, which will shortly for the first time ever-be available in Maltese.

The MTCA is also focussing on talent acquisition and retention, positioning itself as an employer of choice. It offers a clear career path, with - for example - advantages for those who are working towards an accounting warrant.

Working with the MTCA offers our team the unique opportunity to interact with all types of individual and corporate taxpayers, from the most basic to the most complex. The team has to remain up-to-date with legislative changes locally and with international debates at various forums, from the IMF and the EU, to the OECD.

Apart from using social media to communicate our recruitment messages, we are also reaching out to students at various levels, as well as to their parents, at events like Freshers' Week, to explain what makes the MTCA a better option.

Over the past year, we ensured that our Human Resources Directorate was using best practice, which has resulted in a variety of measures to help career progression and mobility, not the least of which is the introduction of a competency framework.

The bottom line is that each and every one of our 760 talented employees is given support and opportunities. Without them, our strategic objectives and operational customer- centricity would simply not be possible.

However, the MTCA also had to focus on clearing legacy issues, something that involved a number of external factors. It is working on updating the taxpayer register with the help of returned mail and third-party entities, even collecting taxpayer IBANs to be able to dramatically speed up the payment of VAT refunds.

The MTCA followed up on the IMF's recommendations and opened up a Large Taxpayer Office, which is offering its expertise to multiple eligible companies and High Net Worth Individuals. It also carefully analysed the findings of the EU's TADAT self-assessment to identify weaknesses and prioritise how to rectify them. Some of these required minor changes; others were fundamental and require external input. Whichever category they fall into, progress is being monitored and mapped to ensure that the MTCA is moving in line with its self-imposed deadlines.

The MTCA is also committed to financial literacy, working with other stakeholders in a Task Force which is mapping out initiatives to ensure that no sectors or segments are overlooked. It also introduced a Stakeholders' Forum, which will meet national employer and employee associations, as well as trade and professional bodies, twice a year to get feedback about proposals and to listen to their suggestions. The MTCA delegations already meet many of these entities bilaterally on a regular basis but this more formal set up ensures dialogue on a variety of subjects.

Are these changes having an impact? Certainly, public perception and satisfaction improved, and the focus on ensuring clear and accessible information means an impressive decline of 17% in public queries, representing fewer frustrated taxpayers who previously had to contact us because they could not find an answer anywhere else.

There is still much going on in 2026. Major steps have been taken to prepare for the EU's Customs Reform, for VAT in the Digital Age, and for real-time reporting. The ITCAS tender - a system which will fully automate all tax administration processes - is one step away from becoming reality.

In the last Strategic Plan, I wrote "Creating a better future begins by imagining the possibilities that lie ahead!" It seemed like such an uphill struggle but here we are, able to look back at the past three years, and ready to plan for the five years ahead.

As Commissioner, it would be most remiss of me to leave out the important support and dedication of our staff, who handled all this change with such commitment.

This Annual Report will outline all that has been achieved and I can say with confidence that the future looks bright!

Mr. Joseph Caruana
Commissioner for Tax and Customs

To read this Annual Report in full, please click here.

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