Malta Mostly Used Corporate Tax Structure

 

A Malta company is considered to be resident and domiciled in Malta and subject to income tax on its worldwide income and on some chargeable capital gains. 

 

The standard rate of tax on income and chargeable gains is 35%.  However upon  receipt of a dividend from a trading/ operating company, shareholders of a Malta company may claim a refund of all or part of the Malta tax paid at the level of the company. There is no withholding tax on outbound dividends.

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There are a number of fiscal incentives and refund mechanisms used in Malta.  The mostly used one is a refund of 6/7 tax to Shareholders from the originally paid 35% Corporate tax, that is a refund of 30% this resulting in a 5% effective tax rate.

The Tax Refund is guarantied by law and payable from the Tax Department to the Shareholder (this will usually be a Holding company. 

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Other tax efficient corporate structures are available, some also including more than one country, such as Dubai, UK, Mauritius and others.

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Other Reasons for choosing a Malta Corporate Structure

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Apart from the above corporate tax structure and other fiscal incentives and refund mechanisms used in Malta, the country holds a reputation for stability, security and an excellent business environment resulting from its:

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• EU membership since 2004, offering passporting rights for services and companies

• Robust yet flexible EU regulatory framework

• Ideal Location, midway between Europe and North Africa

• Quality of life, continuously rated as one of the best places to work and live in

• English speaking business environment.

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