The Maltese fiscal regime has successfully undergone the scrutiny of several EU bodies including the EU Code of Conduct Group for Business Taxation and the EU competition authorities. The process was certainly not an easy one with the business taxation group having argued since 2003 that Malta's tax system was harmful in certain areas. However, any doubts on Malta’s tax system have now been dispelled when the Commission’s approval was sanctioned by the Council of Ministers gathered for the Ecofin meeting in Brussels in November 2006.
The green light effectively means that Malta's unique tax imputation system (which has been in use since 1948) remains intact.
As a result, Malta’s status as a developed and reputable financial centre of choice that offers an attractive and competitive environment for international business and investment has been confirmed by the EU. In fact, Malta now offers a favourable tax system coupled with excellent infrastructure, state of the art telecommunications, an extensive double taxation treaty (DTT) network, highly qualified professionals and an English speaking and business friendly atmosphere.