Malta’s new transfer pricing disclosure requirements

TRA 135: Transfer pricing moves into the corporate tax return

The Malta Tax & Customs Administration (“MTCA”) has introduced TRA 135, a new transfer pricing disclosure attachment forming part of the YA 2026 corporate income tax return.

For the first time, taxpayers within the scope of Malta’s Transfer Pricing Rules [S.L. 123.207] are required to disclose not only the existence of cross-border intercompany arrangements, but also the transfer pricing methodologies applied, the arm’s length outcome, and any corresponding transfer pricing adjustments.

TRA 135 represents a significant development in Malta’s transfer pricing framework and provides the MTCA with structured visibility over taxpayers’ transfer pricing positions directly through the tax return.

The new disclosure framework effectively operationalises transfer pricing within the corporate tax return.

Why is this important?

TRA 135 is more than a tax form.

The information requested effectively presupposes that taxpayers already have a robust and supportable transfer pricing framework in place. The new disclosure requirements effectively require businesses to:

• identify and assess in-scope cross-border arrangements;
• determine whether Malta’s Transfer Pricing Rules [S.L. 123.207] apply;
• evaluate whether existing pricing is arm’s length;
• quantify and disclose transfer pricing adjustments; and
• explain and support the methodology used.

In practice, this means:

• transfer pricing becomes embedded into the tax return process;
• inconsistencies between TP policies, accounts and tax filings become more visible;
• groups may need to reassess historical pricing models, intercompany agreements and documentation readiness; and
• management and finance teams may need greater visibility over intercompany arrangements and year-end pricing adjustments.

What information may now need to be disclosed?

Cross-border arrangements and counterparties

Taxpayers within scope of the TP Rules are required to disclose:

• the associated enterprises involved;
• their jurisdiction and business activity;
• the nature of the arrangement;
• whether the arrangement falls within the scope of the TP Rules; and
• whether an Advance Pricing Agreement (“APA”) is in place.

The operational and transfer pricing model

TRA 135 requires taxpayers to categorise cross-border arrangements, including:

• manufacturing and distribution structures;
• intra-group financing;
• cash pooling and guarantees;
• IP and licensing arrangements;
• shared services and low value-adding services; and
• restructurings and transfers of functions, assets or risks.

Demonstrating arm’s length pricing

The TRA requires taxpayers to reconcile and support:

• amounts reflected in the financial statements;
• arm’s length amounts;
• transfer pricing adjustments; and
• the methodology used to support pricing.

In practice, this may require:

• functional and risk analysis;
• benchmarking studies;
• financial testing;
• review of intercompany agreements; and
• assessment of year-end adjustments and true-ups.

The new disclosure framework may also increase visibility over inconsistencies between intercompany agreements, operational conduct, financial outcomes and tax reporting positions.

How we can help?

Our Transfer Pricing team can support with:

• scope and applicability assessments;
• review of cross-border arrangements;
• transfer pricing policy design and implementation;
• benchmarking analyses and economic support;
• Master File and Local File preparation;
• TRA 135 preparation and review support; and
• review of TP adjustments and tax return disclosures.

Are you ready for TRA 135?

Early assessment of your transfer pricing profile may help reduce compliance risk, identify gaps in existing policies and avoid last-minute issues during the tax return process.

Let's talk

Contact our Transfer Pricing team to discuss how the new disclosure requirements may impact your business.