Malta blacklisted as an ‘offshorè country by the Russian government
LA VALLETTA (MALTA) (ITALPRESS/MNA) – Malta was included in a draft blacklist of ‘offshorè countries by the Russian government. This move from the Russian Ministry of Finance will deny support to some of Russiàs largest companies as from next year unless the companies send back money invested abroad.
In recent years, the Russian government took tough decisions on Russian companies registered in low-tax jurisdictions abroad as President Vladimir Putin attempts to control tax avoidance schemes.
A large number of prominent Russian businessmen and politicians acquired Maltese citizenship through the cash-for-passport scheme, and allowed them to move billions of rubles out of Russia.
Malta was included on the blacklist together with 56 other countries including Cyprus, Ireland, Switzerland, and US states of Delaware and Wyoming.
The Russian Finance Ministry said that Russian firms in which offshore entities have a stake of at least 25% will not be eligible for emergency coronavirus relief or low-interest government-backed loans from 1 January 2023.
Companies based in Malta pay the lowest tax on profits of any country in the EU. Local businesses pay a 35% tax on profits, but foreign corporations pay as little as 5% due to a complex tax system. Last year, the Maltese government agreed to the global tax rate but declared its reservations when it comes to companies which register 750 million or more in profit and operating in certain sectors.