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23.01.2020 2 NEWS THE Malta Stock Exchange (MSE) and Malta Association of Small Shareholders (MASS) today signed a 3 year Memoran- dum of Understanding (MOU) with the aim of strengthening the collaboration between them. Malta Stock Exchange Chairman, Joseph Portelli signed the MOU on behalf of the MSE while MASS President, Alfred Portelli signed it on behalf of the Association. e Malta Stock Exchange also presented the Association with a financial sponsorship to enable them to continue to provide ed- ucational and informative sessions to their members about the capital market and re- lated financial services. During the presentation Malta Stock Ex- change Chairman highlighted that the Ex- change remains committed to address the needs of all the stake holders of the Maltese capital markets and stressed the Exchange's strategy is to continue to develop the Mal- tese capital market for the benefit of the Maltese economy. Portelli said "we are proud to support MASS and their members and appreciate the great work they do representing small shareholders". Malta Stock Exchange signs MOU and sponsors the Malta Association of Small Shareholders MASSIMO COSTA PRIME Minister Robert Abe- la has dismissed reports that he would consider changing Malta's competitive taxation system which affords foreign companies a six-sevenths re- bate. Such a move, he said, would be "suicidal" for the country, he said. Earlier this month, as the Labour leadership campaign was underway, Abela was re- ported as having said that Maltese businesses were right to complain that the tax sys- tem placed them at a disad- vantage compared to their foreign counterparts based on the island. The comments were made during a debate on Xarabank with Deputy Prime Minister Chris Fearne. Abela, however, said on Wednesday that he had been grossly misquoted on the matter in the press, and that he had never called for the foreign companies' tax relief system to be scrapped. "That was the occasion in which I was most misquoted throughout the whole [lead- ership] campaign," Abela said as he was fielding questions from journalists following visits he paid to shops in Val- letta. "I never said on Xarabank that the 5% – or six-sevenths refund – should be done away with. It would be suicidal for Malta if the 5% system were to be removed. I did not say I would do that, and I am not going to do that," the Prime Minister said. One of the biggest draws for foreign companies to Mal- ta is the six-sevenths rebate on Malta's highest tax rate (35%) from global dividends when those profits have been booked in a Maltese holding company. It effectively allows share- holders of a foreign company to pay 5% tax on the profits generated globally once they get kicked up to a "Maltese" parent company. This system, Abela un- derscored, would remain in place, but there would be ef- forts to help ensure there is a level playing field for Maltese businesses which are being adversely affected by the tax system. "In cases where the local business community is being affected by the system, there should be more dialogue to ensure there is a level playing field for Maltese companies," he said. Pressed on what could con- cretely be done to address the matter, Abela said that the government was in dialogue with stakeholders, including the Malta Chamber of SMEs, on the issue, and that, where possible, solutions would be found. 'We won't wait for businesses to come to us - we'll go to them' Abela said his visits to sev- eral business along Republic Street showed that the gov- ernment would not wait for businesses to come to it, but would approach them itself. "Today's experience high- lights the pro-market stance we are putting into practice," he said, "We plan for these sort of visits to continue [...] It's an effective way of doing politics." Economy Minister Silvio Schembri, who was accom- panying Abela, said the visits meant to transmit a clear sig- nal of continuity. "Continuity doesn't mean we won't improve on what was done wrongly, but I think the Prime Minister gave a strong signal that there will be con- tinuity in terms of the econ- omy. The economy was doing well, and it will keep doing so," Schembri said. He said that shop owners and local and foreign shop- pers had spoken to them about "a sense of peace of mind" following the change in the country's leadership. "This is encouraging," he said. Six-sevenths tax rebate system for foreign companies to stay Prime Minister Robert Abela (right) greeting Chemimart owner Reginald Fava

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