The Maltese Commissioner for Revenue has issued three sets of guidelines on transactions involving DLT, which includes the income tax treatment guideline.
The objective of DLT is to provide a new way of handling digital assets, such as recordkeeping, storing and transferring. In relation to the tax treatment, the guideline categorizes DLT as follows:
Generally, the tax treatment of any type of DLT asset will not necessarily be determined by its categorisation but will depend on the purpose and context in which it is used.
In order to determine the tax treatment for the transaction involving DLT, each transaction needs to be analyzed in the same way as any other transaction, i.e., by reference to the nature of the activities, the status of the parties and the specific facts and circumstances of the particular case. In particular, the guideline provides the following examples of applying the general tax principles to the transaction involving DLT asset:
Similar to other types of transaction, the income tax treatment of transaction involving DLT, including the mentioning examples, is also regulated within the Income Tax Act.
Source: Maltese Government
One of TPA’s technology partners Cygnet Infotech has developed a comprehensive VAT solution named R7VAT MTD, which is amongst others recently approved by HMRC for use by companies in the UK to automate and manage their VAT returns filing process but can also be used broadly within the EU.
7:00 AM - 8:00 AM Mexico, USA and Canada (MDT/CDT)
9:00 AM - 10:00 AM Brazil (BRT)
1:00 PM - 2:00 PM London (GMT)
2:00 PM – 3:00 PM Amsterdam (CET)
8:00 PM - 9:00 PM Beijin (CST)