EUROPEAN TAX CONFERENCE IN MALTA

“Malta provides stability and an efficient tax system that has always been attractive to foreign investors. Our local clients were growing and the growth in the interest in Malta’s financial services coupled with our expertise made our entry into the Nexia International network a very positive move,” states Mr Cini.

“Being a member of Nexia International has provided our firm not only with a network of contacts who are experts in their respective jurisdictions, but also enhanced the array of services that we can offer to our local clients, serving as a platform for attracting inward investment to our shores, whilst still enabling us to maintain our own identity within the group through the sharing of resources, knowledge and contacts.”

He also explains that joining the EU was a major step forward for financial services in Malta. “We have moved away from offshore regime back in 1994 and with the restructuring of our tax system and its approval by the EU we are now regarded as a genuine onshore jurisdiction. This has undoubtedly contributed to attracting new clients.” A strong indicator of this success is the increasing number of registered companies owned by foreign residents, collective investment scheme licenses issued, credit and financial institutions being set up and insurance managers that have chosen Malta as a base for their operations.

Nexia BT has just organized one of Nexia’s European tax conferences in Malta. This year the subject covered was the taxation of e-commerce. “This has been a difficult topic to tackle because such business often straddles multiple jurisdictions. You might have your head office in one country, your servers in another and your warehouse that dispatches the goods in a third,” Mr Cini explains.

Over 45 tax professionals from all over Europe have attended the meeting. Topics in relation to the taxation of e-commerce were discussed with actual cases of cross border work presented to highlight the practical issues of this complex area.

E-commerce is showing marked growth and according to recent Eurostat figures, Malta had the highest e-commerce turnover among the EU member states when it comes to transactions with countries outside the Union. The proportion of Maltese enterprises with broadband connection in January 2009 was 93 per cent.

“Despite regulation on e-commerce per se, the field of taxation is not catered for in the same act leaving the taxation of such market to be determined by direct and indirect tax regulations, an area which is globally renowned to be complex and subject to interpretation,” Mr Cini says.

Nexia BT also has strong future plans and intends to continue its expansion and specialisation programme within the firm itself and by recruiting talented and sector specific human resources. Nexia BT will continue to strengthen its international connection with Nexia International. “After having organised a training course for young managers for Nexia International last year and the European Tax Meeting this year, we hope to be able to host a world conference in the near future.”

“We have a very exciting year ahead of us,” Mr Cini concludes enthusiastically.