Millions in taxable income declared by 81 companies with no employees

Eighty-one companies with no employees declared taxable income exceeding €10 million each in Malta, according to figures provided by Finance Minister Clyde Caruana in Parliamentary replies.

The information was disclosed in response to questions by Opposition MP Adrian Delia about multinational corporate structures and Malta’s tax system.

Mr Caruana said the analysis identified 81 companies that reported no employees but declared taxable income in Malta of more than €10 million each. He noted that employee numbers alone do not establish a company’s functions, activities or tax position.

In separate parliamentary replies, the minister outlined Malta’s participation in assessments by the European Union’s Code of Conduct on Business Taxation and OECD peer reviews covering international transparency and anti-tax avoidance standards.

These assessments form part of Malta’s obligations as a member of the European Union and international organisations.

Asked about measures to prevent the use of letterbox companies or entities without genuine economic activity, Minister Caruana referred to measures including beneficial ownership requirements, reporting obligations and compliance rules arising from EU directives and OECD standards.

He said the Government continues to monitor international developments and will update legislation where necessary, while seeking to balance fiscal integrity with economic competitiveness.

Mr Caruana also confirmed that the Finance Ministry had not conducted a study or analysis of the reputational risks to Malta as a financial centre arising from tax arrangements available to multinational companies.

Tax Declared by US Multinational Groups Rises to €118 Million

In a separate disclosure, Mr Caruana said tax liabilities declared in Malta by local entities belonging to major US multinational groups rose from €24.7 million in 2020 to €118 million in 2024.

The amount declared in 2024 was almost double the previous year’s figure and nearly five times the amount recorded in 2020.

The figures relate to Maltese entities identified through DAC4 notifications, the European Union’s country-by-country reporting framework for large multinational groups.

Minister Caruana said the tax liabilities were due under Maltese fiscal law and reflected the activities and economic substance of the respective entities operating in Malta.

For the purposes of the parliamentary question, American multinational companies were defined as groups whose ultimate parent entity is resident in the United States and which fall within DAC4 reporting requirements.

These requirements apply to multinational groups with annual consolidated revenues of at least €750 million.