S.L. 123.207 entitled "Transfer Pricing Rules (the 'Rules')" has been amended by Legal Notice 9 of 2024 Transfer Pricing (Amendment) Rules, 2024 which was published on 19th January 2024.
The Rules apply in relation to any arrangement entered into on or after 1st January 2024 and for those arrangements entered into before that date which were materially altered on or after the said date.
L.N. 9 of 2024 amends sub-rule (2) of Rule 1 of the Rules to provide that as from 1st January 2027 these rules shall apply in relation to any arrangements entered into before 1st January 2024 which were not materially altered on or after that date.
Malta published subsidiary legislation implementing Transfer Pricing Rules into Malta's tax system in November 2022. The Transfer Pricing Rules will apply when determining the tax base of a company derived from "cross-border arrangement" between "associated enterprises" having directly or indirectly more than 75% in the participating rights. With respect to constituent entities of a MNE group the percentage participation shall be 50%. SMEs as defined in the State Aid Rules fall outside the scope of these rules.
Further information on Transfer Pricing Rules can be found here.
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.
