Malta Tax Refund System
Shareholders of Maltese companies are entitled to claim refunds of tax paid in Malta by the company on income allocated to the FIA and MTA, when such income is distributed as a dividend.
6/7 Malta Tax refund
Shareholders are normally entitled to claim a refund of 6/7 of the tax charged to the Maltese company, subject to a maximum of the tax actually paid to the Maltese tax authorities.
5/7 Malta Tax refund
Where the income in question is made up of passive interest and royalties, the shareholders may claim a refund of 5/7 of the tax charged to the Maltese company, subject to a maximum of the tax actually paid to the Maltese tax authorities.
Where interest and royalties have been subject to foreign tax at a rate of 5% or more, it will automatically no longer be considered passive, and therefore qualify for the 6/7 refund.
2/3 Malta Tax refund
Where passive income and royalties have been subject to a claim for double taxation relief, including the FRFTC, a refund of 2/3 of the Malta tax charged may be applicable.
100% Malta Tax refund
Where the income in question is made up of income and gains from participating holdings, and the participation exemption is not availed of, the shareholders may qualify for a full refund of Malta tax paid.
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