VALLETTA (MALTA) (ITALPRESS/MNA) – Finance Minister Clyde Caruana has urged caution as global efforts to implement a 15% minimum corporate tax appear to be losing momentum.
“What started as a global movement is now being fractured,” Caruana warned, noting that doubts are also surfacing within Europe.
He was responding to questions before the Public Accounts Committee about the proposed global tax, designed to ensure multinational firms with revenues above €750 million pay at least 15% tax wherever they operate. The measure aimed to curb profit shifting to low-tax jurisdictions.
Caruana said Malta hosts around 700 companies of that size but declined to comment on the potential impact if the reform stalls.
He recalled that the proposal had strong backing from both the United States and the European Union when first introduced. However, he noted, the U.S. stance shifted after Republicans regained influence, and from December, American firms will benefit from a “safe harbour” clause exempting them from the rules.
“The U.S. was the cheerleader,” Caruana said, warning that its withdrawal could prompt countries like India and China to follow suit.
“We should be careful before rushing to change things,” Caruana reiterated.
He predicted that the EU will clarify its position by mid-2026 and warned that further delays could worsen Europe’s competitiveness challenges.
“When you negotiate, you need to get what’s best for the country,” he added, saying informal talks among finance ministers have already begun.
-Photo DOI-
(ITALPRESS).
