Year of Assessment 2019 Tax Returns for Companies

The Commissioner for Revenue notifies that the year of assessment 2019 electronic income tax return for companies is now available on our online services. For this year of assessment there were the following salient changes to the tax return:

Index updated to reflect the addition of new attachments and the removal of attachments no longer applicable.

TRA 05 – changes are consequential to the Amendment to the Deduction for Wear and Tear of Plant and Machinery Rules (LN 322 of 2018). The minimum number of years over which Aircraft airframe, aircraft engines, Aircraft engine or airframe overhaul and Aircraft interiors and other parts is now four years.

TRAs 08 to 14 – the return now includes space to indicate any ‘interest expense’ that is mandatory. The interest expense has to be allocated against the source of income it generates.

TRA 09 – space is provided to indicate any Deemed Interest Income received under the Notional Interest Deduction Rules. The result under the MTA is transcribed to TRA 100.

TRA 100 – layout partially changed from the previous year version and most workings have been transferred to the new TRA 100A (see below). Data entry in this attachment is restricted to four initial questions, the additional 10% reallocation to the Final Tax Account and shareholder details and notional interest deemed received by them. The rest is all calculated.

Page 4 of the Return – three new fields [49d to 49f] introduced but limited for use when NID is claimed and there are trading losses and gains in the different tax accounts.

New Tax Return Attachments

TRA 101A – This new attachment complements TRA 100 and incorporates all workings. It caters for the Direct and Indirect attribution of risk capital according to source, the calculation of the Notional Interest Deduction (NID) and the NID that may be claimed against each source of income. Input is required for NID claimed for the year segregated by source, tax account and Direct /Indirect Attribution. The NID totals are then transcribed to Page 4 of the tax return (fields 68e and 68f). Any excess unabsorbed NID c/fwd is also required.

TRA 107 – introduced to cater for the Amortisation of Capital expenditure on Intellectual Property or Intellectual Property Rights [Income Tax Act Article 14(1)(m)]. The resulting amortisation in this attachment, is transcribed to Page 3 of the return [field 32a]..

TRA 108 – this attachment requires input in the case of Tax credits supporting the refurbishment of Hotels and Restaurants [Malta Enterprise Act – LN 120 of 2018].

TRA 109 – caters for the Tax credits under the Investment Aid for Energy Efficiency Regulations [ME Act - LN 122 of 2018].

Note that TRA 35 is updated with the new tax credits introduced.

TRA 110 – this new attachment sets out three questions (column B) about the Nexus with any of the jurisdictions listed in the EU List of Non-Cooperative Tax Jurisdictions. Depending on the answers given to each question, (column C), the attachment may also require the number of transactions or links that will in turn control the data entries in columns D to I. The use of this attachment is triggered by the response to statement 27 on Page 2 of the return that is in turn also hyperlinked to the CfR web page disclosing the EU List of Non-Cooperative Jurisdictions for Tax Purposes.