During the first quarter of 2016, the Maltese economy increased by 5.2%. In nominal terms, the economy of Malta is forecast to have risen by 7.6%.
In June 2016, our tax team participated in the Nexia International survey on Base Erosion and Profit Shifting (BEPS).
On 5th April, 2016 the VAT Department published a revised version of the guidelines. Whilst the existing conditions for applying VAT on the lease remained the same, the table which establishes the percentage of deemed use of the aircraft within EU airspace has been amended to be based on the flight range of the aircraft as shown below, rather than as originally provided depending on the aircraft model, maximum take-off mass and fuel capacity, fuel burn, optimal altitude in feet and optimum cruising speed in knots.