Malta

Key factors include a clear political will to make financial services the largest contributor to national GDP, an up-to-date, robust and widely respected jurisdiction in line with EU directives, an extensive double tax treaty network, unique tax system with significant refunds and tax credits available and a single, flexible regulator for financial services with a focus to attract the right kind of business. Coupled with the availability of a highly skilled, English speaking workforce and cost effective establishment costs make Malta an ideal jurisdiction.

How long does Incorporation take?

A Malta Company may be incorporated in as little as 24 hours provided that all the correct documentation is filed with the Registrar of Companies. We will be able to assist you through all the incorporation process and provide professional advice to ensure a smooth company set up.

What Company Tax will apply?

Body corporates are taxed at the Advanced Corporation Rate of 35% on chargeable income however non-resident beneficial owners are eligible for a refund of tax paid on dividends as outlined below. Tax is charged on ‘worldwide income’ in the case of companies incorporated and resident in Malta. A company which is either not incorporated or not resident in Malta, whether or not it operates through a branch in Malta, is brought to charge only on those profits arising in Malta.

What tax refunds are available?

A refund up to 100% of tax paid at corporate level may be available depending on certain conditions. Non-resident shareholders in receipt of dividends paid out from a company incorporated in Malta may be entitled to claim a refund of tax paid on the dividend. Tax refunds are payable directly from the Government of Malta within a maximum 45 day period from distribution of dividends from taxed sources and are paid into any account identified by the shareholder in any part of the world. Tax refunds also apply where a company operates through an overseas branch in Malta.

The tax refunds available are:

  • 6/7ths refund – Due on profits earned from trading activities, resulting in a maximum net tax leakage of 5%.
  • 5/7ths refund – Due on profits derived from passive interest and royalties, resulting in a maximum net tax leakage of 10%.
  • 2/3rds refund – Available in those instances where the company has claimed double taxation relief. The refund depends on the type of double taxation relief availed of and is limited to the tax paid in Malta.
  • 100% refund – Applies where profits are derived from a participating holding.
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