International Business Company

International business company or Malta Corporation

The abbreviation IBC stands for either International Business Company or International Business Corporation. It is a company that is registered to carry out a variety of global investment and business-related activities while at the same time enjoying many favourable tax exemptions. An International Business Company is usually set up in traditional offshore centres.

As Malta is a small island and detached from the rest of its European Union neighbours, it is often mistakenly referred to as an offshore jurisdiction and a tax haven. Whilst it is true the effective rate of tax on certain trading organisations can be lowered to an effective tax rate of 5%. This coming from Malta’s choice to use the full imputation tax system of tax, which was approved by the European Union rather than the classical method of taxation adopted by most countries including many of its European neighbours.

When choosing a jurisdiction, investors for an international business company have a viable alternative to an offshore jurisdiction and as a result Malta has seen its financial services industry grow substantially over the last decade and it now compares favourably to other jurisdictions such as Ireland, Luxembourg and Jersey. It is also worth noting that as a member of the European Union, Malta benefits from the Parent Subsidiary Directive which allows for the movement of dividends tax free between subsidiaries and its parent to two companies situated in two different EU member states.

It should also be noted that Malta is a fully-fledged member of the European Union and is bound by many EU Directives that have been transposed into local law and follows Customer Due Diligence Protocols and Anti Money Laundering Obligations as laid down by the EU. This is regulated by the Malta Financial Services Authority, whom oversee the financial services industry.

As Malta company formation specialists, we may be able to assist you with setting up a company or structure for international business to cater for usual trading activities or for the more complex cross border transactions needed within your organisation. As part of our corporate tax advisory services, we offer a holistic solution to your business operations with an emphasis on professionalism, efficiency and most of all, confidentiality.

To summarise why a Malta Corporation maybe beneficial

• Attractive Malta Tax System;
• Low Rate of VAT at 18%;
• Parent Subsidiary Directive;
• Participation Exemption Regime;
• Regulated and reputable jurisdiction.