The recently published amendments to the Cooperation with Other Jurisdictions on Tax Matters Regulations introduce penalties for non-compliance with Maltese Country-by-Country reporting (CbCr) obligations. CbCr is a tax compliance obligation that requires MNEs to annually file a comprehensive group tax report to cover every jurisdiction where they have a tax residence. 

All Maltese Constituent Entities (irrespective of whether they fall under the obligation to file CbCr or not) must notify the CfR about the MNE entity who will be filing the CbCr by no later than the last day for filing of a tax return of that Maltese Constituent Entity for the preceding fiscal year. 

Failure of a Maltese Constituent Entity to inform the CfR of the entity who will be filing the CbCr or to inform that such a Constituent Entity falls under the obligation to file the CbCr in its respective capacity, will result in the penalty of €200 and €50 for every day of non-compliance to each stated obligation separately.

The total penalty is capped at €5,000 for non-compliance to each stated obligation separately.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.