The scope of taxation in Malta depends on the person's residence and domicile and various options are availiable for both corporate and private cindividuals.
Maltese companies are subject to income tax at 35%, however due to Malta’s Participation exemption, the application of the imputation system and the use of its extensive double taxation treaty network means that, with proper planning and structuring, investors can achieve considerable fiscal efficiency using Malta as a base. In case of the full imputation system, the shareholders are entitled to receive a credit for the full tax paid by the company on profits distributed to them. The credit given may be utilised by the recipient of such a distribution to offset his income tax liability. Certain type of income is exempt from tax in Malta and the Income Tax Act does exempt specific entities from paying tax in Malta such as retirement funds, Collective Investment Schemes and cooperative societies.
On the other hand, in case of individuals, Malta also offers a number of Programmes which provides the opportunity to the individuals and their families to become tax residents in Malta and to obtain special tax statuses which would generally provide for a flat 15% tax rate upon qualifying income subject to the satisfaction of various conditions.
Our tax practice is actively involved in assisting foreign investors structuring their expansion in Malta and abroad particularly in relation to international tax structuring, corporate tax residency, interpreting double tax treaties and the formation and management of Malta companies.
We also assist private and commercial clients, choosing Malta as their state of residence or as a hub for holding their investment and trading activities.
- International tax structuring;
- Tax and VAT registration;
- Tax and VAT compliance;
- Analysis of Malta’s tax requirements;
- Assistance with claiming tax refund.