PKF Malta Supports Medical Cannabis Industry
In March 2018, Malta officially legalised the production and use of medicinal cannabis, following in the footsteps of pioneering countries such as Canada. The Maltese Parliament approved ‘The Production of Cannabis for Medicinal Use Act’, which is an all-encompassing Act regulating the entities that are eligible to produce and distribute cannabis under strict supervision.
In light of this, PKF Malta can now offer support to interested parties in order to draw up the necessary documentation for the cannabis licensing process. The firm is joining other PKF member firms in this venture – PKF O’Connor Davies also provides cannabis related services.
The cannabis industry offers huge opportunities: Malta Enterprise has already approved an area measuring 4,000 square metres for the cultivation of cannabis and Prime Minister Joseph Muscat further stated that the approved projects are expected to create local capital expenditure of more than €110 million and 700 full-time jobs. Moreover, Malta’s exports are also projected to reach up to €900 million by 2020.
From growers to dispensaries, companies involved with cannabis struggle with tax planning and filing because so far there is little guidance in identifying which expenses qualify for deduction. To help businesses forecast, manage and meet tax obligations, PKF Malta can leverage its understanding of how these rules have evolved in the past, watch for opinions and rulings, and apply the insights gained from working with other entrepreneurial clients.