Author: Mel Chamber

The HSBC Malta Foundation has provided financial support for the construction of a new cabin for Dr Klown at Mater Dei Hospital, reinforcing its long-standing commitment to the organisation, which it has been supporting for over a decade.

The new space serves as a dedicated area for Dr Klown volunteers, allowing them to prepare for their visits and store their attire and props. The project embodies Dr Klown’s ethos of bringing joy and laughter to children undergoing medical treatment. The cabin’s design features playful elements and vibrant colours that reflect the spirit of the organisation and its mission to provide comfort through humour.

Dr Klown is a non-profit organisation that has been active in Malta since 2010, offering professional clown doctor visits to children in hospital. Through their work, the volunteers help alleviate anxiety and create a positive environment for young patients and their families.

Eric Muscat, speaking on behalf of Dr Klown, said: “This new cabin is an essential addition to our work at Mater Dei, giving our volunteers a much-needed space to prepare before engaging with children. We are deeply grateful to the HSBC Malta Foundation for their unwavering support over the years and for helping to make this project possible.”

Glenn Bugeja, speaking on behalf of the HSBC Malta Foundation, said: “Dr Klown has been making a meaningful impact on children’s hospital experiences for many years. The HSBC Malta Foundation is proud to have supported this initiative and to continue our decade-long partnership with Dr Klown, ensuring that young patients receive moments of joy even in difficult times.”

The Facts: When analysing whether a taxable person has a Fixed Establishment (“FE”) in a Member State, reference should be made in particular to Article 11 of Council Implementing Regulation (EU) No. 282/2011 (“Implementing Regulation”). However, it is equally important to consider the extensive case law of the Court of Justice of the European Union (“CJEU”) on this subject, as the notion of a fixed establishment remains a complex and evolving concept, with various aspects still subject to interpretation and clarification through CJEU decisions.

According to Article 11(1) and (2) of the Implementing Regulation, a fixed establishment is defined by the cumulative presence of the following three elements:

A sufficient degree of permanence in that Member State.

The presence of a suitable structure in terms of human and technical resources.

These same human and technical resources must enable the establishment to receive and use services for its own needs.

Article 11 explicitly states that VAT registration alone is not sufficient to consider that a taxable person has a fixed establishment. In fact, Article 11(3) of the Implementing Regulation clarifies that:

“The fact of having a VAT identification number shall not in itself be sufficient to consider that a taxable person has a fixed establishment.”

In essence, VAT registration is an administrative obligation and should not be confused with the concept of a fixed establishment for VAT purposes.

 
Conclusion: Holding a VAT number in a Member State does not automatically create a fixed establishment.

Verdict: Statement is false.

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Authors: Brandon Gatt, Partner, Zampa Partners & Valentina Bruno, VAT Associate, Zampa Partners

The latest economic outlook for Malta issued by PwC reveals a robust performance in the face of moderate global growth projections. According to recent data, Malta’s GDP growth rate stood at 6% in 2024, although decelerating somewhat from 6.8%, and is forecasted to dip below the 4% mark by 2026. This growth is driven by sectors such as real estate, construction, financial services, and the public sector. However, traditionally higher value-added sectors such as professional services, ICT, and arts & entertainment (including i-gaming) have slowed down or even contracted slightly. In fact, official statistics for FY24 at a sectoral level suggest a negative correlation between a sector’s growth rate and that same sector’s output per employee in euro terms.

The latest global projections from the PwC Network suggest that global growth will moderate somewhat, at 2.6% in 2025 and 2026, down from 2.8% in 2024. The US economy is expected to grow at just over 2%, while China’s growth is projected to moderate to around 4.5%. Growth in the eurozone is expected to remain slow, at 1.1% in 2025, picking up marginally to 1.3% as the German economy recovers somewhat. Meanwhile, India’s economy remains robust, with growth expected to be over the 6% mark.

Despite the global moderation, Malta’s economic performance remains above its European peers. Expenditure data for FY24 indicate that this growth was driven by expenditure related more to entertainment & leisure and tourism-related activity, rather than more domestic expenditure. Furthermore, economic sentiment indicators such as The Economic Sentiment Indicator (ESI) suggest
decreasing confidence for the first two months of FY25 after a temporary upturn towards the end of 2024. However, Malta’s real GDP growth is projected to remain higher than that of the Euro Area, although the disparity is expected to narrow over time.

To access the full report, visit here.

Disclaimer: The data presented in this Economic Outlook does not reflect the recent tariffs unveiled by the US government.

Bank of Valletta recently hosted a very well-attended seminar for business representatives, focusing on one of today’s most pressing concerns – cybersecurity. This event was designed to equip business leaders with essential knowledge and tools to protect their operations from the growing risks of fraud, scams and digital attacks.

In his opening remarks, BOV CEO Kenneth Farrugia described the event as the first of its kind for Bank of Valletta, underscoring the Bank’s commitment to supporting the business community beyond the provision of financial services. “Cybersecurity is no longer just an IT concern. It is a business risk that demands attention across all sectors,” he said.  “The evolution of technology has changed the way companies operate, but it has also enabled cybercriminals to become more sophisticated, exploiting advancements in artificial intelligence and machine learning.”

Mr Farrugia stressed the role of education and awareness in building a strong first line of defence. “Cybersecurity is one of BOV’s key initiatives. We are committed to safeguarding our systems, our people, and most importantly, our customers.”

Organised by the Bank’s Business Development and Customer Value Unit, the seminar covered real-life examples of cyber incidents – from phishing emails to AI-driven fraud. BOV specialists in Payments, Cards, and Information Security delved into several critical areas. The speakers offered practical strategies to strengthen information security and defend against fraud. Attendees were also given tips on how to identify common scam tactics and implement safeguards to protect outgoing payments.

With the rise in digital transactions, businesses face increasing threats, including bank impersonation scams. These often involve criminals posing as bank employees to deceive victims into disclosing sensitive financial information. The seminar highlighted the importance of recognising red flags, adopting strong security protocols, and fostering a culture of cyber awareness within teams. The event concluded with an interactive Q&A session, giving attendees time to raise real concerns and get expert advice on shielding their businesses from cyber threats.

Bank of Valletta urges anyone who suspects that they may have fallen for a scam to report it by calling +356 2131 2020.

HSBC Bank Malta will once again join other HSBC Group sites worldwide in marking Earth Hour, demonstrating its ongoing commitment to environmental sustainability. Organised by the World Wildlife Fund (WWF), Earth Hour is a global initiative encouraging individuals and organisations to switch off lights as a symbolic act to raise awareness about climate change and energy conservation.

This year, Earth Hour took place on Saturday, 22^nd March 2025, from 20:30 to 21:30. HSBC Malta participated by turning off all external lighting at its landmark offices in Valletta and Qormi in alignment with the global initiative. The Ministry for the Environment, Energy & Public Cleanliness (MEEC) coordinated Malta’s participation, with a central event scheduled at St. George’s Square between 18:00 and 21:45. The event featured informational stalls, entertainment, and the lighting of a large ‘60’ logo with candles which represents the one hour during which lights are switched off to highlight the importance of sustainability.

HSBC Malta has actively supported Earth Hour since its inception in 2009, recognising the importance of fostering long-term environmental awareness. The initiative serves as a reminder that sustainable practices should extend beyond just one hour and become part of daily life.

Glenn Bugeja on behalf of the HSBC Malta, commented: “As a responsible corporate entity, HSBC Malta remains dedicated to promoting sustainability and reducing environmental impact. By taking part in Earth Hour, we reaffirm our commitment to tackling climate change and inspiring positive action within our communities.”

Beyond turning off lights at its buildings, HSBC Malta encouraged its people and the public to participate by switching off non-essential lighting and engaging in activities that contribute to a greener future. Whether it’s reducing energy consumption at home, participating in clean-up initiatives, or adopting more sustainable lifestyle choices, every action counts.

Ms. Adriana Baldacchino has been honored with the BOV Special Prize in Science for her exceptional academic performance throughout the BSc(Hons) program from 2020 to 2024. This prestigious award recognizes her achieving the highest overall mark in her cohort, highlighting her dedication, hard work, and passion for science.

Adriana’s journey through the BSc(Hons) program has been marked by consistent excellence. Her ability to grasp complex scientific concepts and apply them effectively has set her apart from her peers. Her commitment to her studies and her unwavering pursuit of knowledge have earned her this well-deserved accolade.

Ms Baldacchino was presented with her prize by Prof. Emmanuel Sinagra, Dean of the Faculty of Science at the University of Malta and Silvio Cassar, Manager Business Generation at Bank of Valletta.

“Ms Baldacchino has demonstrated exceptional skill and commitment in her studies, consistently achieving top marks across all subjects,” said Prof.  Sinagra. “Her hard work and passion for science have set a remarkable example for her peers and the academic community. We take this opportunity to congratulate her on her well-deserved achievement and will continue to follow her successes in the field of science.”

“The BOV Special Prize in Science is a collaboration between BOV and the University of Malta with the aim of encouraging academic excellence, promoting scientific research while fostering a culture of achievement and celebrating the hard work of top students,” said Mr Cassar. “This prestigious prize highlights academic excellence and dedication and is definitely a prestigious addition to Ms Baldacchino’s resume and will definitely be an asset to motivate her to continue striving for excellence.”