MediaToday Newspapers Latest Editions

5 NEWS 21.12.2023 FROM PAGE 1 "e rules are clearer and more realistic and credible because they are easier to apply," she said, add- ing this was "a great agreement, at a timely moment". After weeks of fraught negotia- tions, governments finally agreed to the reformed framework that will set out a slower pace of debt and deficit reduction than had previously been the case. e EU's Stability and Growth Pact stipulates that a country's deficit should not be higher than 3% of GDP and public debt not more than 60% of GDP. ese rules were suspended at the start of the COVID-19 pandemic to al- low government to increase public spending in the wake of the worst recession since World War II. e European Commission pro- posed changing the old rules be- cause of concerns that they were outdated, inflexible and barely en- forceable. e suspension of the rules is set to end next year but several coun- tries, particularly France and Italy, had lobbied for reforms. Deficits are above the 3% limit in nine Eurozone countries, includ- ing Malta, France and Italy. e European Commission is expect- ed to sanction these countries in spring 2024 in what is known as the excessive deficit procedure. e new rules would allow these countries to reduce the deficit over a seven-year timeframe if they so choose. e reforms do not adjust the thresholds for defi- cit and debt. e decision to reform the rules was followed a dinner between the French and German finance ministers in Paris on Tuesday night. Paris and Berlin were at loggerheads on the level of flex- ibility. Wednesday's deal clears the way for the start of negotiations between member countries and the European Parliament in early 2024. EU finance ministers agree on new rules for countries exceeding deficit threshold BUSINESSES need to think innovatively and break conventional boundaries to remain competitive in the face of widespread chang- es, particularly in the field of taxation. is key message echoed through the key speeches and exchanges during the Malta Institute of Ac- countants' Annual Tax Conference. e Conference dissected various tax reforms emanating from both European and national level, including various elements of corporate tax, sustainability reporting disclosures as well as changes in VAT and Customs formalities. e agenda for the Conference was developed by the Institute's Direct and Indirect Taxation Committees. In her welcome speech, MIA Chief Execu- tive Officer Maria Cauchi Delia said that the present fiscal changes sought to lead a global shift towards transparency, simplification and consistency. She detailed the Institute's efforts throughout the past year to engage with stake- holders in Malta and abroad, respond to con- sultation documents related to major reforms and provide training to members. MIA President Mark Bugeja highlighted the stronger collective push towards enhanced compliance and enforcement. He called on ac- countancy professionals and businesses to take the upcoming changes in their stride and seek to transform such challenges into new oppor- tunities for growth. A number of panel discussions delved into detail and provided insights into impending changes related to direct and indirect tax- ation. With regards to indirect taxation, the panel addressed issues related to the Intrastat Declarations, Recap Statements, Budget Im- plementation Bill, Central Electronic System of Payment information (CESOP), and the applicability of the newly introduced 12% VAT Rate. e discussion on direct taxation focused on the Unshell Directive and its requirements, as well as on the Subject to Tax Rule (STTR), this being one of the key components of Pillar 2. A separate discussion addressed the expectations in terms of required documentation and time- lines with regards to Transfer Pricing. MIA tackles major tax changes on horizon IN October 2023, seasonally adjusted production in the construction sector de- creased by 1.0% in the euro area and by 0.6% the EU, compared with September 2023, according to first estimates from Eurostat, the statistical office of the Euro- pean Union. In September 2023, production in con- struction grew by 0.9% in the euro area and by 0.7% in the EU. In October 2023 compared with Octo- ber 2022, production in construction de- creased by 0.7% in the euro area and by 0.4% in the EU. Monthly comparison In the euro area in October 2023, com- pared with September 2023, civil engi- neering decreased by 1.0% and building construction by 0.9%. In the EU, building construction de- creased by 0.6% and civil engineering in- creased by 0.5%. Among Member States for which data are available, the largest monthly decreas- es in production in construction were re- corded in Slovenia (-6.1%), Germany and Slovakia (both -2.2%) and France (-2.0%). e highest increases were observed in Romania and Sweden (both +3.0%), Spain (+1.4%) and Austria (+1.3%). Annual comparison In the euro area in October 2023, com- pared with October 2022, building con- struction decreased by 0.8% and civil en- gineering by 0.2%. In the EU building construction de- creased by 0.8%, while civil engineering increased by 1.8%. Among Member States for which data are available, the largest annual decreases were recorded in Finland (-7.3%), Sweden (-4.6%) and Belgium (-3.5%). e highest increases in production in construction were observed in Romania (+9.2%), Spain (+8.3%) and Poland (+7.5%). Production in construction down by 1.0% in euro area and by 0.6% in EU

• Cover