Malta, based within the EU is an ideal jurisdiction to set up a company either as a holding company or as a trading operation as it offers a number of tax planning opportunities. We can assist you make the most of these opportunities ensuring tax efficiency for your business or investment, whether that be for a single operation or more complex international structure.
The Malta tax system outlines that companies incorporated or managed and controlled in Malta are subject to a corporate tax rate of 35% on a worldwide basis.
Malta Tax Refund System
The Malta tax refund system enables shareholders of Maltese companies to claim refunds of tax paid in Malta by the company on qualifying income allocated within the Malta Tax accounts, when such income is distributed as a dividend.
Malta Participation Exemption
Should the company qualify for Malta Participation Exemption, then all income and capital gains received by a Maltese company from a participating holding, would qualify for a full refund of the Maltese paid by the company when distributions are made to the shareholders.
As an EU Member State Malta has adopted the EU’s Parent Subsidiary Directive and the Interest and Royalties Directive. Malta also has an extensive number of double taxation agreements with countries from within the EU and the rest of the world.
Other Malta tax benefits include no withholding taxes or stamp duty on distribution of dividends or profits to the shareholders. Malta also has no transfer pricing rules, no capital duties or wealth taxes and no thin cap rules.
For more information on the Malta tax system and relevant areas please go to: