Issue link: https://maltatoday.uberflip.com/i/1515804
4 maltatoday | SUNDAY • 11 FEBRUARY 2024 NEWS MATTHEW VELLA mvella@mediatoday.com.mt CAREER OPPORTUNITIES Submit your application ICT & BUSINESS ANALYST Aġenzija għas-Servizzi tal-Qrati Prospective candidates must be in possession of a recognised qualification at MQF Level 5 (subject to a minimum of 60 ECTS/ECVET credits or equivalent) in Computing and/or ICT, or a comparable professional qualification at MQF Level 5, plus two (2) years relevant work experience in a formal and mature ICT environment. Candidates must also be proficient in the Maltese and English languages (Level C1/C2 of the Common European Framework of Reference for Languages), both verbally and written, and be of conduct which is appropriate to the post. This post is pegged to the Court Services Agency Grade 3. At 2024 rates, this is equivalent to €26,028 per annum, rising by annual increments of €584 up to a maximum of €31,284. The post of ICT & Business Analyst attracts also an allowance of €1500 per annum and a Performance Incentive Scheme ranging from 0% to 10% of the basic salary. This post is on a full- time indefinite basis and is subject to a probationary period of one year. Candidates are to submit their letter of application, their qualifications and experience in a Europass Curriculum Vitae Format, a copy of their relevant scanned certificates and a valid Police Conduct Certificate by e-mail on recruitment.courts@courtservices.mt. Further information and a comprehensive description of duties can be obtained by contacting the Court Services Agency on recruitment.courts@courtservices.mt. Applications will be received till Friday 23rd February 2024 at 13:00 hrs. Eligibility JobsPlus Permit No. 891/2023 Over €13 billion paid in tax refunds to foreign shareholders since 2008 MALTA has refunded over €13 billion in income tax to corporate shareholders in the last 14 years under its refundable tax credit system. The data was published in the House of Representatives in a response to a PQ from Nation- alist MP Bernice Bonello, who requested the number of foreign companies which pay just 5% af- ter a six-sevenths refund on their full 35% tax rate on income. Malta has no specific corporate rate for businesses, which get taxed at the highest 35% rate on income. But dividends that are remitted to foreign subsidiary companies or shareholders from companies tax-registered in Mal- ta, can benefit from a substantial six-sevenths refund on the tax paid. Ultimately this results in a 5% tax on dividends received from Malta, which are then possible li- able to further income tax in the country of receipt. Every year since 2008, Malta has refunded an average of 14.2% from the tax owing from these el- igible companies. Currently there are 8,012 com- panies actively registering for tax refunds under the refundable tax credit system. The number of companies ben- efiting from the refund has grown exponentially since 2008, when over €276 million in tax owing was whittled down to €39 mil- lion; to 2022, when a sheer €1.5 billion was whittled down to €216 million after refunds. The highest volume of taxation ever registered was in the pan- demic year of 2021, with €1.8 billion, of which the taxman re- tained some €260 million. In total between 2008 and 2022, the tax owing by these companies registered in Malta was of €15.4 billion, with €13.2 billion refund- ed and leaving a total of €2.2 bil- lion in the Maltese coffers. To put this amount in perspec- tive, Malta's annual government budget alone costs over €5 billion. But with over 43,000 tax-regis- tered companies in total, direct taxation on income accounts for over €470 million in government revenues. The additional €260 million in 5%-taxaxble compa- nies is a welcome boon to nation- al resources. Malta's financial services lobby has defended the tax refund sys- tem, arguing that large multina- tionals that set up tax-registered companies in Malta are a source of business and jobs, as well as of resultant tax revenues from busi- ness conducted outside of Malta. A fundamental pillar of Mal- ta's tax system, shareholders in receipt of dividends are entitled to a tax credit equal to the tax borne on the profits out of which the dividends are paid. Since the tax rate of 35% applicable to companies is also the highest tax rate in Malta, shareholders do not suffer any additional tax on the receipt of dividends. Share- holders therefore get a refund if they include their dividend in their tax return. Critics of the system believe the tax leakage punishes those coun- tries in which these businesses conduct their trade. The refund system has long angered other EU countries, who feel it unfair- ly drains taxes that should have been paid in the home country, where the real economic activity takes place, rather than in Malta. In 2023, finance minister Clyde Caruana said Malta would not be immediately introducing a new minimum tax rate for com- panies as agreed in the OECD. EU countries can delay the in- troduction of the new 15% mini- mum tax by up to six years. The rules apply to companies that have a global income of more than €750 million. This would impact around 660 multinational companies that have a base in Malta, which how- ever employ some 20,000 people. Finance minister Clyde Caruana