EU and Monaco sign new tax transparency agreement

EU and Monaco sign new tax transparency agreement

Brussels, 12 July 2016

MALTA, the best jurisdiction in EU for Cost, Tax, Transparency, Compliance

MALTA, la migliore giurisdizione per Costi, Tasse, Trasparenza, Compliance

and business & life quality

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Today the EU and Monaco signed a new tax transparency agreement, under which they will automatically exchange information on the financial accounts of each other’s residents from 2018.

This will ensure that both sides are better equipped to detect and pursue tax evaders, who will nolonger be able to hide income and assets in financial institutions abroad.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “Today’s agreement reinforces Monaco’s commitment to international tax transparency standards. The EU and Monaco have today sent a joint clear signal: we are allies when it comes to tax transparency and allies in the fight against international tax avoidance and tax evasion.”

Under the new agreement, Member States will receive the names, addresses, tax identification numbers and dates of birth of their residents with accounts in the Principality, as well as other financial and account balance information. This is fully in line with the new OECD/G20 global standard for the automatic exchange of information.

Today’s agreement marks the latest in a series of international landmark deals the EU has signed with Switzerland, Liechtenstein, San Marinoand Andorra.

For more information, see:

EU all’attacco degli schemi di corporate tax avoidance, le 5 stelle di Malta

EU all’attacco degli schemi di corporate tax avoidance

le vecchie prassi e giurisdizioni di Lussemburgo, Irlanda, UK, Svizzera ecc…sempre più nel mirino

Con MALTAway hai accesso a Malta, la giurisdizione più efficiente a 5 stelle riconosciute nel mondo:

  1. bassa struttura dei costi e bassa tassazione dei redditi e degli asset
  2. 100% compliant con le norme EU e OCSE
  3. modello regolatorio trasparente e alla luce del sole
  4. ideale per il grande afflusso di cervelli e capitali e quindi per l’economia e il business reali
  5. modello anglosassone con veicoli e strutture a protezione dell’individuo e del patrimonio ma molto aggressivo nei confronti della corruzione e del riciclaggio

EU to clamp down on corporate tax avoidance schemes

Multinational companies are facing severe constraints on their ability to avoid taxes on their activities in Europe as regulators seek to close loopholes laid bare by the LuxLeaks scandal.

Pierre Moscovici, the EU’s tax policy chief, will set out plans next week to curb practices such as using debt interest payments to lower tax bills or shifting profits to minor subsidiaries in low-tax nations, according to a copy of the proposals obtained by the Financial Times.

“The schemes targeted by this directive involve situations where taxpayers act against the actual purpose of the law, taking advantage of disparities between national … systems,” the document says. Such techniques mean that “taxpayers may benefit from low tax rates or double deductions or ensure that their income remains untaxed”.

The measures build on international proposals developed by the OECD and are one of the most far-reaching steps yet by the EU to seize the initiative in the wake of LuxLeaks.

The LuxLeaks revelations emerged shortly after Jean-Claude Juncker became commission president in November 2014, and dogged his early days in office. They documented how during his two decades as Luxembourg prime minister, up to 340 multinational companies, ranging from Ikea to Pepsi, funnelled profits through the tiny country to lower their tax bills to as little as 1 per cent.

The scandal was particularly resonant at a time of rising populist anger in Europe and a sense among many citizens that the pain from austerity measures had not been shared equally.

The commission has sought to get on top of the affair by proposing regulatory changes and pursuing competition cases against tax deals governments have struck with multinationals such as Apple, Starbucks and Fiat.

Mr Moscovici’s proposals, which will need unanimous support from the EU’s 28 national governments to become law, include an effort to limit the extent to which a multinational company can cut its tax bill by financing some parts of its business through debt owed to subsidiaries in low-tax countries.

The plans would limit the amount of interest that a company can claim each year as tax-deductible, setting an upper limit measured as a percentage of operating profits. The commission plans to set the ratio at 30 per cent, the upper limit foreseen by the OECD, with the option for individual nations to go further if they wish.

Banks and insurers would be given a carveout from these rules while the EU develops more tailored requirements for the sector, according to the documents.

Companies already warned the UK Treasury this month that the plans to restrict the generous tax treatment of interest costs were unnecessary and potentially damaging.

The Institute of Chartered Accountants in England and Wales said businesses had “major concerns” and warned that changes to the “current, relatively benign, regime for interest deductibility” could have a negative impact on the UK as a desirable business location.

Sven Giegold, a German lawmaker in the European Parliament who has campaigned on corporate tax avoidance issues, said the plans threw down the gauntlet to national governments.

“Member states now face a test on whether they are serious to fight corporate tax avoidance and should adopt this new directive within the year,” Mr Giegold told the FT. “European citizens can no longer understand why their leaders do not deliver on key reforms.”


MALTAway fornisce servizi societari e si fonda su principi semplici e rigorosi: credibilità , integrità , trasparenza e rigore.

Per essere credibili, si deve essere innanzitutto trasparenti e rigorosi, questo è un nostro valore.

MALTAway è una Società di Consulenza e Servizi, per il Consiglio di Amministrazione, per la Governance Societaria, per gli Investimenti.

La nostra attività e quella di consigliare e aiutare i nostri clienti nel migliorare le proprie performances e nella crescita, attraverso un approccio strategico e globale

Con sede legale a Malta, MALTAway ha sviluppato e guidato molteplici progetti in diversi settori di attività e paesi

La Mission di  MALTAway è anche quella di promuovere MALTA e le sue opportunità e capacità di Business, Governance e Globalizzazione.

Un ambiente pro-business e uno stile di vita unico e vincente, sono capaci di attrarre a Malta Professionisti qualificati, Capitali, Aziende, Imprenditori e High Net Worth Individuals ( HNWI ), interessati a trasferirsi in questa giurisdizione per fare Business, Investire, Lavorare


Il Team di MALTAway offre un’ampia capacità, competenze ed esperienze, dai servizi societari e di governance alla consulenza di business e di management, dalle tematiche fiscali a quelle legali e regolamentari, sia societarie sia di protezione del patrimonio.

Investimenti, prodotti e servizi finanziari basati sulle nuove tecnologie e servizi finanziari e bancari tradizionali, strumenti di investimento e di ricerca e analisi finanziaria e quantitativa

Inoltre, abbiamo sviluppato una rete di partner locali accuratamente selezionati, capaci di consigliare e assistere clienti di qualsiasi settore e dimensione insieme a MALTAway a Malta e nel mondo

MALTAway offre i seguenti servizi ai clienti che vanno dalle start-up alle imprese consolidate, dalle imprese familiari alle società globali e ai HNWIs:

  • SERVIZI PER IL CONSIGLIO DI AMMINISTRAZIONE: MALTAway offre risorse senior e qualificate, residenti a Malta, necessarie e adatte a ricoprire il ruolo di Direttore NON-Esecutivo Indipendente, con lo scopo di ampliare la capacità e le competenze del consiglio di amministrazione e di rispettare le leggi fiscali internazionali
  • SERVIZI GOVERNANCE: MALTAway mette a disposizione un personal trainer dedicato per i tuoi Membri del CdA e per il tuo Leadership Team, offrendo supporto e consulenza in materia di governance e investimenti, sia a fronte di problematiche emergenti dovute a variazioni di mercato e/o a specifici piani di crescita.
  • BUSINESS SERVICE: Processi di Relocation, MALTAway opera come connettore del cliente con la comunità di business e di governo, assistendo i nostri clienti che si trasferiscono a Malta, nel massimizzare in poco tempo i benefici reali presenti e nel mettere a frutto le concrete opportunità che questa giurisdizione offre
  • SERVIZI FISCALI: locali, europei, globali, regolamentazioni OCSE, BEPS (base erosion and profit shifting)
  • SERVIZI LEGALI: Corporate, Holding, Fondazione & Trust, Corporate & Fiduciary Services, ridomiciliazione per individui e imprese
  • SERVIZI FINANZIARI: Banking, Treasury, Investment & Merchant Banking, Asset Allocation
  • RELOCATION SERVICES: pacchetti completi di trasferimento per le Società, Dirigenti, Dipendenti e Individui, dal viaggio alla scuola per i figli, alla scelta della casa e degli uffici alle coperture assicurative
  • CORSI INGLESE CORPORATE: pacchetti individuali e collettivi per Executives, Managers, Dipendenti e loro famiglie

 Board, Governance & Investments – New way for Global thinking & Local Actions 





Renaissance in MALTA for the funds industry

Renaissance in MALTA for the funds industry

How did the advent of EU hedge fund regulation called the Alternative Investment Fund Managers Directive (AIFMD) affect the industry?

Quoting a recent survey by Misco, it reveals inter alia how the economy inspires  confidence among respondents, with 85 per cent saying they felt that the economic situation in Malta was good.

Talking to practitioners one acknowledges that following the multi million euro branding gained as a result of the Valletta Summit and CHOGM international events, the perception for attracting new business is positive.

Just consider the meteoric trajectory of the local fund industry, in which in 1995 there were only five Collective Investment Schemes (CIS) that were licensed, yet this rose to more than 750 today.

In addition one hopes that the creation of a new regime for Alternative Investment Funds (AIFs) will be one of the developments to feature boldly in the new year.

So how did the advent of EU hedge fund regulation called the Alternative Investment Fund Managers Directive (AIFMD) affect the industry? More benefits are expected as AIFMD regulations came into effect since now investors are obliged to comply with the EU’s regulatory system.

Starting way back in June 2013, Malta became the first EU Member to complete the transposition of the requirements of the Directive into national law. AIFMD permits only managers headquartered in the EU to market funds within the Single market, excluding funds based in the Caymans or Switzerland, not to mention the US, from raising money in the EU.

The AIFMD directive is broad in scope and regulates managers of all varieties of collective investment undertakings other than UCITS, ranging from securities funds to funds investing in illiquid assets.

Currently, Maltese law requires that Retail CISs and PIFs targeting experienced investors entrust the fund’s assets to a custodian for safekeeping; the custodian is also responsible for monitoring the extent to which the investment manager abides by the investment and borrowing restrictions to which the fund is subject.

Professional Investor Funds (PIFs) targeting Qualifying or Extraordinary Investors would generally be expected to appoint a custodian or prime broker(s) for the safekeeping of the PIF’s assets but may adopt adequate alternative safekeeping arrangements instead, subject to the MFSA’s approval.

Readers may ask:- if you choose to set up an AIF in Malta what are the advantages for the investor? The answer is:- benefits are numerous, such as solid diversification and spread of risk, professional research, and access to timely information – just some of the advantages that can be enjoyed in Malta.

Simply put, the main benefit of professionally managed funds is that they provide access to an investment that offers numerous opportunities that the individual investor would otherwise not have been able to access. Additionally, the increased variety of managed funds available to consumers ensures that the personal requirements of each retail investor can be met.

Whether choosing high risk/high capital growth investments or conversely a  low risk investment, all can provide consistent income over a period of time. Naturally all depends on your risk appetite yet the versatility of managed funds offer solutions for almost every investor.

To start with, the consumer is able to be guided through a broker firm before selecting a managed fund – this means being guided by a range of experts ready to help you select the best portfolio, as guided by the funds’ predetermined mandate.

Continuing on the theme of using Malta as a hub for funds, one can mention more unique selling points such as double tax treaties in force with over 65 countries. These are mostly based on the OECD model, Malta being the only EU member with a full imputation system; operates a tried and tested refundable tax  scheme – triggered when dividends are paid to shareholders from taxed revenues.

It is fully compliant with the EU non-discrimination system and gained approval from the OECD. Furthermore adoption of the euro acts as an effective catalyst for attracting funds, with the added advantage of EU passporting rights for retail UCITS and PIF’s.

As a result, in 2016 more offshore fund managers are expected to move into regulated onshore jurisdictions or base at least part of their operations in the EU.

Another feather in our cap is the competitive taxation regime for collective investment funds (CIS) (including Professional Investor Funds – PIFs and retail UCITS). As stated earlier, the number of funds located in Malta has in fact grown to more than 750, with €10 billion under management. Quoting FinanceMalta we see that the industry is subdivided into four sectors:-

• Total net assets of funds domiciled in Malta (June 2014): €9.7 billion

• Professional Investor Funds (PIF) total net asset value (June 2014): €6.6 billion

• UCITS funds total net asset value (June 2014): €2.42 billion

• Retail Non-UCITS funds total net asset value (2013): €0.7 billion.

It is encouraging to note that since 2010, the number of funds increased almost by 30% and the influx of hedge funds to Malta has been a huge turning point and is slowly feeding into the economy, as do the multiplier effects of legal, audit and accounting fees which the industry generates.

Total income from financial services constituted about 12% of Malta’s gross domestic product of €6.2 billion in 2010 and lobby groups aim to double this mark by 2020.

According to Bloomberg Markets Magazine journalist Jeremy Kahn, “In 2010, nine companies from the British Virgin Islands, seven from the Cayman Islands and six from Luxembourg switched their legal domicile to Malta.. Many of these larger hedge funds, while serviced from Malta, remain legally domiciled elsewhere, so those assets aren’t counted in Malta’s official tally.”

Malta can be classified as a hybrid financial gateway to Europe since its finance industry offers a number of attractions – including a stable economy, liquid markets, skilled workforce, cost efficient business infrastructure, and advanced IT support.

Its work ethic is what fund managers consider to be the secret ingredient encouraging them to transfer their domicile to the island. Ever since the onset of the financial crisis which hit the globe in 2008, sentiment by investors changed – they prefer transparency to secrecy, so Malta’s regulatory scrutiny and accountability have become unique selling points, including adoption of the euro in 2008, which resulted in a boost to the island’s ambitions as a hedge-fund centre by eliminating a layer of foreign exchange costs.

While the custodian of Retail CISs must have an established place of business in Malta and be in possession of a Category 4 Investment Services Licence issued under the Investment Services Act, PIFs may appoint a custodian/prime broker established abroad.

The AIFMD requires that the depositary be established in the following location: for EU AIFs, in the home Member State of the AIF and for non-EU AIFs, in the third country where the AIF is established or in the home Member State of the AIFM managing the AIF or in the Member State of reference of the AIFM managing the AIF.

Thus, under the new regime, a Maltese AIF, authorised under AIFMD, would eventually be required to appoint a custodian who is established (including establishment through a subsidiary or branch) in Malta. In order to develop and sustain the growth that Malta’s financial services anticipates more custodians of the highest repute will set up in the near future.

Certainly no effort is being spared by the MFSA to attract new custodians. In conclusion, the future looks bright and our administrative landscape is expected to evolve even further with the hope of attracting mega fund companies – something that is likely to raise the profile of the jurisdiction and, hopefully, attract more affluence for everyone.