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Commerce is increasingly digital. Yet, the global tax system is still geared to the needs of a traditional ‘bricks and mortar’ economy. The OECD’s Base Erosion and Profit Sharing (BEPS) Action Plan recognises the need for modernisation and has achieved quite a lot since the issue of its reports in October 2015. However, specific recommendations on digital taxation have been limited and the OECD’s calls for an international consensus on the way forward have so far been unheeded.

Cryptocurrency is digital or ‘virtual’ money, which uses cryptography to secure its transactions, to control the creation of additional currency units, and to verify the transfer of assets. Cryptography itself describes the process by which codes are written or generated to allow information to be kept secret.

Despite Malta’s size and limited resources, Malta has been determined to be at the forefront of the blockchain technology, providing a regulated and tech-friendly framework for the blockchain and fintech industry. This has ensured a constant and ever-growing interest by international businesses and start-ups who are looking at investing in this sector, including the likes of Binance, OKex, Tron and BigOne.

Global business concerns over a shortage of skilled workers hit a record high in the second quarter of 2018, according to research from Grant Thornton’s International Business Report (IBR). Some of the world’s largest economies, drivers of global trade, report significantly higher fears. Business leaders struggling to recruit skilled staff should consider automating processes where skilled worker problems are most acute.

The dip in optimism suggests that the global economic cycle may have peaked. Business leaders should therefore consider using increased revenue to structurally invest at this stage of the cycle to ensure long-term prosperity.

Looking at the Maltese scenario, in 2017 only 18% of respondents sold their products online and of these, the majority said that total online sales accounted to less than 10% of their total sales. Yet for the 19% of those who sell online, online sales accounted for more than 50% of their sales, which is a remarkable percentage.

The first of their kind in the world, three bills have come into force in Malta governing cryptocurrencies, blockchain and distributed ledger technology (DLT). The bills include the Malta Digital Innovation Authority Act which will bring about the establishment of the Malta Digital Innovation Authority as a driving regulator of the industry, as well as the Innovative Technological Arrangement and Services Act and the Virtual Financial Asset Act.

Grant Thornton is pleased to announce that it has been appointed as Corporate Advisors for Luxury Living Finance p.l.c. in respect of an issue of €8,000,000 5% Unsecured Bonds 2028.

The Malta Financial Services Authority (MFSA) has released a Consultation Paper on the proposed introduction of a Financial instrument Test relating to its ongoing cryptocurrency regulation. The new consultation paper describes the introduction of a 'Financial Instrument Test' that would legally define virtual tokens.

How about €30,000 to finance your great business idea? The PowerUp! competition offers a €30,000 cash prize to European startups with a focus on energy, mobility, cleantech & cybersecurity projects.

Grant Thornton is committed to giving back to the local community by supporting organisations whose shared goal is to improve the lives of individuals from all walks of life. As part of their ongoing Corporate Social Responsibility efforts, Grant Thornton Malta’s team has recently collected €1,000 which is going towards efforts of the local Down Syndrome Association in its mission to promote awareness about Down Syndrome.

The percentage of businesses around the world with at least one women in senior management has increased significantly, rising from 66% in 2017 to 75% in 2018. However, at the same time the proportion of senior roles held by woman has marginally declined.

Malta’s rating has been raised to A3 positive from A3 stable by credit rating agency Moody’s – the highest it has ever been - following an audit published last Summer. DBRS also improves Malta's credit rating to high.

Malta government has launched a consultation paper covering the framework relating to distributed ledger technology, ICOs and cryptocurrency exchanges and wallet providers dealing in such assets.

The introduced Family Business Act in 2017 saw the introduction of an incentive scheme for family businesses, whereby donations of marketable securities and business property used in a family business would be subject to a reduced duty rate of 1.5%, from the standard 2% or 5%.

The AST Group p.l.c. €1.835 million 5.5% 2028 Prospects MTF bond was admitted to Prospects MTF, a market regulated as an MTF and operated by the Malta Stock Exchange. The Group will use the proceeds of the bond to finance the acquisition of a multipurpose vessel.