Figures released by Eurostat on the 21st May have clearly outlined Malta’s competitive edge over other EU Member states in a number of key tax sectors.
Malta had the lowest labour tax rates at 21.7%, compared with a tax rate of 41% for France. In terms of standard VAT rates, Malta has the third lowest rate within the EU, with an applicable rate of 18% (precede by Cyprus at 17% and Luxembourg at 15%). In terms of personal income tax, Malta had a maximum tax bracket of 35% – on par with the Eurozone Member States. With regard to corproate income tax, Malta has a corporate income tax of 35% (although with the credit imputation system, shareholders would be entitled to a tax credit, leaving an ultimate tax leakage of just 5%). At 5% ultimate tax leakage, Malta has the most favourable tax regime within the EU ( followed by Cyprus and Bulgaria at 10% and Ireland at 12.5%)