Information

Corporate Taxation in Malta

Maltese companies are subject to tax at the rate of 35% on their world wide income and capital gains.   Malta grants various fiscal incentives to both companies and their shareholders upon distribution of a dividend.  Malta is a member of the EU and therefore has access to EU directives such as the EU Parent Subsidiary Directive, the Merger Directive, the Savings Directive and the Interest and Royalties Directive.

Malta also has a comprehensive tax treaty network and has to date concluded more than 65 double taxation agreements for the avoidance of double taxation.  Malta’s treaties are largely based on the OECD Model Convention and grants relief from double taxation using the credit method.

 

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Malta operates the full imputation system whereby the tax paid by the company is imputed towards the shareholders’ tax liability upon receipt of a dividend, meaning that no further tax is due by the shareholder upon receipt of a dividend. 

No tax is withheld upon the distribution of interest and royalties to non-resident beneficial owners of such income.  No tax is withheld upon the distribution of dividends irrespective of the residence and nationality of the shareholders.

 

Malta does not have rules such as CFC legislation, Thin Capitalisation Rules and Transfer Pricing.

A company registered in Malta may qualify for an exemption in respect of income derived from its holding, known as the Participation Exemption. The exemption may also be claimed in respect of the gains derived from the transfer of such holding. For further information about the Taxation of Maltese Holding Companies download the pdf below. 

For further information please contact the firm’s tax partners Stephen Balzan (sbalzan@act.com.mt) or Elaine Camilleri (ecamilleri@act.com.mt).

Tassazione delle società a Malta

Le società maltesi sono soggette all’applicazione di un’aliquota d’imposta del 35% sul loro reddito complessivo e sui guadagni in conto capitale. Malta concede vari incentivi fiscali alle società e ai loro azionisti sulla distribuzione dei dividendi.

Setting up a Company in Malta

Setting up a company in Malta is a relatively straight forward procedure and can be set up within 2 working days, provided we are in receipt of all the information, funds and due diligence documentation we need.

Taking up Residence in Malta

Warm climate, friendly people, excellent communication infrastructures, low criminality and many other features of the Maltese islands have made Malta an excellent destination for people to take up residence in.

Remote Gaming in Malta

Malta was the first EU Member State to specifically regulate the remote gaming industry in 2004 and has ever since established itself as one of the prime jurisdictions for remote gaming operators. The Malta Gaming Authority (“MGA”) is the regulatory of gaming in Malta.

Payment Institutions in Malta

Malta has become a destination of choice for the setting up of Payment Institutions (also referred to as Payment Services Providers or PSPs). A number of advantages have contributed to this success, e.g. fiscal incentives granted.

Electronic Money Institutions in Malta

Malta has recently seen an increase in the number of Electronic Money Institutions (EMIs) looking to set up their operations in Malta. This has been largely due to the growth in the e-commerce and the i-gaming industries.

Initial Coin Offering (ICO) Services in Malta

Malta has always been on the forefront of technology and innovation. A number of initiatives have been launched, aimed at establishing an innovative and attractive regulatory framework for entities operating in the blockchain industry.

Prospects – Services of a Corporate Advisor in Malta

‘Prospects’ is a new platform set up by the Malta Stock Exchange in line with its commitment to open up new capital market opportunities, create economies of scale and to afford businesses more competitiveness and sustainability.

Assistance to Family Businesses in Malta

Malta has recently introduced legislation to encourage good governance in the management of family businesses, to assist family businesses to operate in an efficient way and to assist in the transfer of business from one generation to the other.