Malta's Fiscal Unit Regime

Malta’s Fiscal Unit (FU) tax regime provides eligible groups with a reduced consolidated tax rate while offering benefits such as improved cash flow management, administrative efficiency, simplified tax management, and enhanced group tax planning. The preparation of consolidated financial statements under this regime differs significantly from statutory consolidation rules, requiring expertise to ensure compliance and optimisation. BDO Malta’s financial advisory and tax teams are ready to support your group at every stage.

What is the Fiscal Unit Regime?

The Fiscal Unit regime in Malta allows eligible groups to consolidate their tax reporting, enabling them to benefit from a reduced flat tax rate of 5% for the group. This innovative approach simplifies group taxation but comes with specific requirements that differ from traditional statutory consolidation:

Eligibility: Groups must consist of entities meeting certain ownership or shareholding thresholds.
Reporting Rules: Financial statements must align with Fiscal Unit regulations rather than statutory or IFRS requirements.
Tax Benefits: The consolidated tax rate offers significant savings for compliant groups.

Why Choose BDO for Fiscal Unit Consolidations?

Our outsourcing team combines accounting and tax expertise to assist eligible groups in preparing consolidated financial statements specifically tailored for the Fiscal Unit tax regime. With a deep understanding of Malta’s regulations and practical experience, we ensure that your group’s compliance and financial objectives are seamlessly aligned.

With years of experience assisting businesses across various sectors, BDO is uniquely positioned to help your group maximise the benefits of Malta’s Fiscal Unit regime. Here’s what makes us stand out:

Dedicated Expertise: Our team is well-versed in both statutory consolidation and Fiscal Unit-specific reporting requirements.
End-to-End Solutions: From initial eligibility assessments to final reporting, we provide comprehensive support tailored to your group’s needs.
Proven Results: We have successfully assisted numerous groups in achieving compliance and tax savings under the Fiscal Unit regime.

How Can BDO Help?

BDO’s outsourcing team provides comprehensive support to eligible groups through every stage of the Fiscal Unit consolidation process:

1. Eligibility Assessment

Evaluate your group’s structure to determine Fiscal Unit applicability.
Provide guidance on meeting ownership and other qualifying criteria.

2. Preparation of Consolidated Financial Statements

Develop financial statements aligned with the specific rules of the Fiscal Unit regime.
Ensure compliance with the distinct requirements that differ from IFRS and GAPSME.

3. Collaboration with Tax Advisors

Work closely with tax advisors to integrate financial and tax considerations.
Assist with the submission of consolidated returns and other compliance obligations.

4. Ongoing Support

Provide regular updates on regulatory changes affecting the Fiscal Unit regime.
Offer year-round assistance for compliance and reporting.

Frequently Asked Questions

What are the key eligibility criteria for the Fiscal Unit regime? Groups must consist of entities with specific ownership thresholds. Our team can evaluate your structure to determine eligibility.
How does the Fiscal Unit consolidation differ from statutory consolidation? Fiscal Unit consolidations align with tax reporting rules and focus on achieving the 5% tax rate, differing from IFRS or GAPSME requirements.
What is the timeline for preparation and compliance? Timelines vary depending on the complexity of the group’s structure. BDO’s experts ensure timely delivery to meet all deadlines.

Malta’s Fiscal Unit Regime: Preparation of Consolidated Financial Statements