European Commission requests the abolition of distortive tax regimes in Malta by the

end of 2010

On 23 March 2006, the European Commission announced that it had formally requested Malta under EC Treaty state aid rules to abolish two offshore regimes, the Maltese Companies with Foreign Income and the International Trading Companies, by the end of 2010 at the latest. The background of the request is summarized below.

Details of the offshore regimes

(a)Maltese Companies with Foreign Income (CFI). Under the Maltese Income Tax Act o…