Malta's remote gaming industry and the proposed common consolidated corporate tax base

Abstract

It is a known fact that the single market is the pinnacle of European integration. Brussels is arguing that tax harmonization will further facilitate the movement of goods and services inside the European Union (EU). The 27 Member States (MS) have different company tax regimes; these different taxes delay the process of achieving the complete realization of the single European market. The 2016 Common Consolidated Corporate Tax Base (CCCTB) includes a set of harmonised rules to calculate the taxable profits across the 27 different MSs. The aim of this proposal is to set up a bond between taxation and the place where profits are generated and prevent companies from shifting their profits from high tax jurisdictions to lower tax jurisdictions. The proposals take into consideration anti-tax avoidance cases, however it does not aim to harmonize national corporate tax rates. The MSs would retain their sovereign right to set their own tax rate (Parliament, 2018). Given that the remote gaming industry is a leading sector in Malta’s economy, the aim of this research is to analyse the implications of the Common Consolidated Corporate Tax Base (CCCTB) on the Maltese remote gaming industry hence answering the research question. “What are the potential implications of the introduction of a common consolidated corporate tax base on Malta’s remote gaming industry?” At this point in time, companies have to face 27 different tax regimes hence causing potential cross-border limitations. Throughout the writing of this dissertation a conclusion to whether or not the CCCTB is a step forward to eradicate tax avoidance throughout the EU and build a fairer and easier Europe to make businesses will be reached. Finally it will be concluded if the CCCTB is the final piece to the completion of the Digital Single Market (DSM).