CbCR notification letter penalties for late submission

Article 48 of the Cooperation with Other Jurisdictions on Tax Matter S.L. 123.127 (the “Regulations”) has been recently amended by virtue of Legal Notice 213/2021, which has been broadened by including penalties for failure to submit a notification letter in accordance with the rules as set out within the Regulations and implementing Country-by-Country Reporting in Malta.

Such penalties are of two hundred euro (€200); and fifty euro (€50) for every day during which the default existed (up to a maximum of €5,000 in total) where:

• A Maltese Constituent Entity that is neither the Ultimate Parent Entity nor the Surrogate Parent Entity nor the Constituent Entity referred to in point 1 of Section II of Annex III of the Regulations, fails to notify the Commissioner for Revenue of the identity and tax residence of the Reporting Entity obliged to file a country-by-country report with respect to a Reporting Fiscal year by not later than the last day for filing of a tax return of that Maltese Constituent Entity for the preceding fiscal year.
• A Constituent Entity of a MNE Group that is resident for tax purposes in Malta, fails to notify the Commissioner for Revenue of whether it is the Ultimate Parent Entity or the Surrogate Parent Entity or the Constituent entity referred to in point 1 of Section II of Annex III of the Regulations.