As yet, Malta does not have any Transfer Pricing legislation in force, however, this does not mean that you should not think of such an issue.
The world is globalising, and as an entrepreneur, you will face a number of challenges when expanding your business. With more international activity, your tax obligations toward various foreign governments will also be extended, as the tax authorities in the various countries will all want what their rightful share of your revenues. Higher levels of cross-border transactions therefore require a more extensive – and consistent – registration in your records of the underlying transactions within your group. A good record of the internal transfer prices applicable within your enterprise is indispensible and a key component of your risk management. After all, a lack of good Transfer Pricing documentation may result in time-consuming and costly discussions with various tax authorities and/or in your profits being taxed double.
Baker Tilly Malta supports you in identifying the tax risks in your Transfer Pricing system, in minimising these risks and in spotting opportunities.
This can be achieved in several ways:
- Optimisation of your business model for tax purposes
- Guidance of your organisation with respect to its legal obligations
- Guidance in concluding Advanced Pricing Agreements
- Support in discussions with the Dutch Tax Administration