Investing in Malta: Corporate Tax
The corporate income tax regime in Malta is built on long standing British standards and law. Utilising its imputation tax system and tax refund method, as well as notional interest deduction, Malta offers a low effective tax rate that has been assessed and endorsed by both the EU Commission and the EU Code of Conduct Group.
Participating Exemption for Malta Companies
Malta companies may avail themselves of the participating exemption that exempts tax liability on the receipt of both dividends and gains arising on the disposal of such holdings in qualifying investments. These include companies, limited partnerships and collective investment vehicles that satisfy qualifying conditions.
Malta Tax System – Foreign Investors
Malta’s tax system provides the foreign investor with certainty, operational companies benefit from a low effective tax rate, holding companies are tax neutral in many circumstances with no withholding taxes on dividend distributions to non-residents and over 70 treaties to avoid double taxation that broadly follow OECD guidance. As a full EU member state, EU directives are implemented immediately and companies in Malta enjoy all the benefits and protections afforded by EU law.
Our Malta Corporate Tax Services
The tax landscape is evolving faster than ever before both on a domestic and at a global level. The international community, the EU and the OECD are introducing policies and standards that involve greater financial and fiscal transparency, with the aim of preventing tax avoidance and ensuring that real connections exist in the jurisdictions where a taxpayer is paying tax. In this light, it has become of critical importance to be aware of international tax developments and to understand the impact that these will have on your business. Our tax advisory team keep informed and contribute to industry consultation in relation to all developments, so we are in the best position to advise you, our client.
We take a holistic view, and do not limit ourselves to your specific query but understand the wider context of how this fits in with your other activities and objectives. We are also able to assist with personal tax matters, which permits us to consider your broader circumstances and offer advice that makes sense for you.
We pride ourselves on providing an excellent, personalised service and clear, pragmatic advice as we guide you through the maze of complex cross-border issues, optimise structures for your business and personal investments, identify tax efficient options for new ventures or re-structuring and identify exit or repatriation strategies, all the while ensuring compliance with local and international laws, commitments and directives