Malta · Accounting records, annual accounts, reports and distributions

Report payments to governments or publish the report on income tax information

the Companies Act, Chapter 386 · article 213A with Fourth Schedule, Part I, articles 213B and 213C with Fourth Schedule, Part II, paragraphs 3 to 6, Fourth Schedule, Part II, paragraphs 7 and 8, and Fourth Schedule, Part II, paragraphs 10 to 15

These are two separate reports with two separate triggers, and a company can owe one without owing the other. The report on payments to governments turns on activity in the extractive or logging industries, while the report on income tax information turns on revenue and on whether you are an ultimate parent undertaking, a standalone undertaking, a subsidiary or a branch.

The second trap is omission. Specific items of information may be omitted only in the case Fourth Schedule, Part II, paragraph 8(1) allows, the omission must be made good later as paragraph 8(2) requires, and it is not available at all for the tax jurisdictions listed in the Annexes referred to in paragraph 8(3).

Large undertakings as defined in the Third Schedule and all public-interest entities active in the extractive industry or the logging of primary forests must prepare the report described in article 213A(1), and all undertakings which qualify to make that report are subject to article 213A(3). The report must disclose the information in Fourth Schedule, Part I, paragraph 2(2), and payments in kind must be reported as paragraph 2 requires. Any large undertaking or public-interest entity active in the extractive industry is subject to Fourth Schedule, Part I, paragraph 3(1). The report and the consolidated report must be dealt with under Fourth Schedule, Part I, paragraph 4(1), the directors having the responsibility in paragraph 4(2), and paragraph 5 applies to the undertakings it names.

Ultimate parent undertakings governed by the laws of Malta are subject to article 213B(1), standalone undertakings governed by the laws of Malta where the revenue meets the test in article 213B(2) to that provision, medium-sized and large subsidiary undertakings to article 213B(5), and branches opened in Malta by undertakings not governed by the law of a member state to article 213B(6). Subsidiary undertakings or branches not subject to those provisions are dealt with under article 213B(8). Directors of the ultimate parent or standalone undertakings have the duty in article 213C(1), directors of the subsidiary undertakings that in article 213C(2), and any director or person referred to must notify as article 213C(3) requires.

The report on income tax information must include the matters required by Fourth Schedule, Part II, paragraph 3, the information consisting of the items listed in paragraph 4. The information must be reported on the basis described in paragraph 5 and presented using the form and machine-readable format required by paragraph 6.

The report must present the information separately as Fourth Schedule, Part II, paragraph 7(1) requires, and also as paragraphs 7(2) and 7(3) require. Information is attributed to each relevant tax jurisdiction on the basis in paragraph 7(4), with the treatment of affiliated undertakings in paragraph 7(5), and information on any particular activity may not be attributed simultaneously as paragraph 7(6) provides. One or more specific items may be omitted only in the case allowed by paragraph 8(1), all omitted information must be made public as paragraph 8(2) requires, and paragraph 8(3) excludes the omission for the tax jurisdictions it names.

The currency used in the report is determined by Fourth Schedule, Part II, paragraph 10(1), with the case in paragraph 10 applying where that proviso is engaged. The report must specify the basis on which it was prepared under paragraph 11. The report and the statement must be published as paragraph 12 requires and remain accessible as paragraph 13 requires. Undertakings must deliver the report and the statement as paragraph 14 requires, and paragraph 15 applies to the report referred to in article 213B(1), (2), (5) and (6).

Files 47 to 50 of the MT-COMPANY pack separate the two reports so that neither is prepared by accident. File 47 asks whether the undertaking is active in the extractive industry or the logging of primary forests and whether it is a large undertaking or a public-interest entity, then builds the report on payments to governments against Fourth Schedule, Part I. Files 48, 49 and 50 ask for the revenue figure and for your position in the group, then place you in article 213B as an ultimate parent, a standalone undertaking, a subsidiary or a branch, take the report content and the presentation by tax jurisdiction, test any temporary omission against Fourth Schedule, Part II, paragraph 8, and check the currency, the publication, the accessibility period and the delivery.

This situation is covered by these files from the pack MT-COMPANY

• File 47 · The report on payments to governments by the extractive and logging industries
• File 48 · The report on income tax information: who must report and what it contains
• File 49 · The report on income tax information: presentation by tax jurisdiction and temporary omission
• File 50 · The report on income tax information: currency, publication, accessibility and delivery

ComplianceSME tracks the Companies Act and issues update files through the membership, so that you are never working from a superseded version. Membership

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