News › Weekly Alert Article
Budget for 2011 Focuses on Encouraging Economic Growth
The Minister of Finance of Malta presented the 2011 Budget focusing on the Government's strategy on the creation of jobs, investment in education and health, and to increase Malta's competitiveness. The Budget hints that further action will be taken in order to reduce fraud and tax evasion, especially in respect to the absorption of tax losses within group companies. During 2011, Malta's Gross Domestic Product is expected to increase by 3.4% and the inflation rate is expected to reach 1.4%. Fiscal deficit should also be less than the 3% threshold. Taxand Malta highlights the actions being taken by the Maltese government to achieve economic growth.
This budget looks at a variety of areas such as actions to reduce tax evasion, increasing VAT on accommodation and providing assistance to micro and small and medium enterprises. The budget will have an impact on multinationals based in Malta as they may have to look at the way their financial structures are set up to ensure that they are complying with new legislation, whilst at the same time effectively managing their tax burden.
Your Taxand contact for further queries is:
T. +356 2730 0045