Government issued Legal Notice 419 of 2021 entitled the Exemption from Tax on Property Transfers (Set-Off of Tax Arrears) Rules, 2021 as a measure of tax arrears collection.
The Malta Developers Association (MDA) disassociates itself from this discriminatory measure. The MDA agrees that government should find a way to collect tax arrears from defaulting tax-payers but there are various ways how this can be done without creating an unlevel playing field.
MDA reiterates that the current measure will create unfair competition as anyone benefitting from such incentive will be in a position to offer his property at a better price to that of the developer. MDA encourages government to consult the Association before issuing such measures as what are meant to be incentives for some, directly and negatively impact the industry. Besides, such measure is also discriminatory against people who are not owners of immovable property.
The MDA insists that this is not an amnesty for developers in any way, shape or form and the impression that is being given that this is so is absolutely unjust and unfounded. This is because developers pay their final withholding tax with every contract signed and therefore, as developers who pay their tax at source they will not be benefitting from such incentive.