VALLETTA (MALTA) (ITALPRESS/MNA) – The global push for a 15% minimum tax rate on multinationals may be faltering, Finance Minister Clyde Caruana warned, signalling a potential shift that could reshape Malta’s competitive tax landscape.
Speaking at a Finance Malta conference, Caruana said several EU states are now reconsidering their commitments to the OECD-backed reform, following the United States’ withdrawal from the agreement earlier this year under Donald Trump.
“What was once a global effort is no longer the case,” Caruana said, noting that up to 10 EU countries voiced major concerns during a recent meeting of finance ministers. Many now argue that the rules should be revised given the US’s exit, he added.
The proposed reform—aimed at large companies earning over €750 million annually—was introduced by the European Commission in 2021 to curb so-called “race-to-the-bottom” tax competition. Though initially resistant, Malta agreed to the directive while securing a derogation allowing a delay of up to six years.
Caruana offered no definite indication of Malta’s current stance, instead adopting a cautious approach. “Whether the effort will be scrapped remains to be seen,” he said.
Smaller EU economies, including Hungary, Slovakia and the Baltic states, are reportedly leading efforts to dilute the rules, amid growing fears that the reform may undermine national tax incentives.
For Malta, the outcome could prove decisive. While the official corporate tax rate stands at 35%, refund mechanisms mean some multinationals effectively pay around 5%—a system long seen as a key driver of foreign investment.
– Photo IPA Agency –
(ITALPRESS).
