International Tax Planning and Double Taxation
A number of events connected with setting up, operating, transferring and closing a business may have both direct and indirect tax consequences. Furthermore, several events connected with an individual’s affairs, such as moving country, saving for retirement, selling a business or other assets and transfers or transmissions of an estate may also have such tax consequences.
Tax planning includes the analysis of a financial situation or planned transaction/s from a (direct or indirect) tax perspective. The purpose of tax planning is normally to ensure tax efficiency and compliance, so that all the elements in a transaction are working together in a tax efficient manner, reducing the overall tax liability and ensuring that every action taken is compliant with the relevant rules and policies under which the transaction is conducted.
International Tax Planning
Transactions of a cross-border nature are at risk of attracting double taxation, which may make such transactions less efficient and can sometimes limit cross-border trade and other activities. Consequently, it is important to analyse, in advance, the possible tax consequences of such transactions and plan the transactions in a manner that will make such transactions as efficient as possible.
Sustainable International Tax Planning using Malta
Malta can offer sustainable and ethical tax efficient solutions for both corporate and individual clients.
Corporate International Tax Planning using Malta
Maltese companies, both private limited liability companies and public limited liability companies, may be suitable in a variety of circumstances. Malta also offers partnerships, trusts and foundations that may be used in ensuring tax efficiency and compliance.
Mergers and acquisitions, corporate restructuring and divisions, EU inbound and outbound investment, international trading and finance operations, international consolidation and holding activities, igaming activities, shipping operations, headquarter operations, intra-group financing operations, international insurance and captive insurance operations, private investment operations and collective investment fund operations are just some of the examples where Malta can provide excellent sustainable and ethical tax efficient and tax compliant opportunities and solutions.
Malta is a member of the EU and has an extensive network of Double Taxation treaties with around 70 countries around the world. Malta adheres to the highest standards with regard to transparency and anti-money laundering and financing of terrorism.
Click below to see all the double taxation treaties Malta has in force:
Individual International Tax Planning using Malta
Maltese trusts and foundations may be suitable in a variety of circumstances. Moving to Malta and acquiring Maltese residence and even Maltese citizenship are also popular solutions used by individuals who need international tax planning solutions that are both sustainable and tax effective. Malta is a popular place to visit and live, with its mild Mediterranean climate, interesting history and a mix of English and Italian cultural influences.
Private trust companies for looking after family wealth and business interests, estate planning using Maltese trusts and foundations, retirement planning using Maltese retirement fund solutions, private yacht and private plane VAT planning solutions and EU residence or citizenship solutions are just some of the examples where Malta can provide excellent sustainable and ethical tax efficient and tax compliant opportunities and solutions.
Ethical and Sustainable International Tax Planning
In recent times, the words ethical and sustainable have been used as a standard to strive for, in connection with tax planning practices that do or do not pass a “fair” or “moral” test in the eyes of the wider public.
Without going into the details of the wider discussion on these topics, we believe that all our activities and the solutions provided to our clients should be based on the following principles:
- Full disclosure. Plans and solutions that rely on non-disclosure and/or secrecy are unlikely to meet the legality test and are even more unlikely to be considered fair or morally defensible.
- Establishing structures and solutions that are not aligned with commercial or individual facts and reality are legally risky and unlikely to be considered fair or morally defensible.
- No abuse of law. Loophole-shopping and claiming of incentives which may formally be available but if known will be stopped immediately by a legislative change are legally risky and unlikely to be considered fair or morally defensible.
As trusted Malta tax advisors, we aim to provide our clients with both ethical and sustainable solutions that will stand the test of time, even if disclosed to a tax authority (Maltese or otherwise).
Through our companies and directors we are registered with the Malta Financial Services Authority as a company services providers, authorised by the Malta Financial Services Authority to receive and hold property under trust and to act as trustees, act as administrators of private foundations and provide other fiduciary services, registered with the Maltese Inland Revenue Department as an Authorised Registered Mandatory in connection with the Maltese tax residence programmes and licensed by Identity Malta as an Accredited Person in connection with Maltese residence and citizenship programmes.