Malta has embarked on a path to be a pioneer in providing regulatory clarity in the application of distributed ledger technologies (DLT) such as Blockchain, the technology behind cryptocurrencies of the likes of bitcoin and ether.
To this end, a holistic legal framework was put into place introducing a new class of DLT assets, regulating their offering to public and providing for several licensable activities. On the other hand, the underlying innovative technology, including but not limited to blockchain was subjected to a voluntary regime of certification.
In consideration of the above, Commissioner for Revenue issued guidelines on taxation in relation to DLT assets, complementing the regulatory certainty introduced by the Virtual Financial Assets Act.
The webinar is intended to introduce the audience to the types of DLT assets by reference to the better-known world of crowdfunding and ancillary tax aspects. The milestones of the Maltese DLT and virtual financial assets regime shall be touched upon to lay out how Malta has regulated the emerging sector, under a technical, legal and fiscal prospective.
This will be followed by an overview of matters relating to taxation of virtual financial assets in light of European Union direct and indirect tax principles, taking into consideration approaches by third countries and ancillary jurisprudence.
We will also discuss a brief approach taken by the Maltese Commissioner for Revenue in its guidelines intended to clarify the taxation of DLT Assets under the Income Tax Act, the VAT Act and the Duty and Documents and Transfers Act, and initiatives adopted by other jurisdictions seeking to clarify the tax implications of particular type of DLT assets, as well as possible ways of addressing the volatility in calculating the tax base for reporting purposes.
