Company in Malta

Malta is an EU Member State with
an Exceptionally Advantageous Tax Regime

Bookmark This Page

 

Malta company formation package: 345 EURO – arrangement of Malta company formation and bank account (via officially licensed local member / partner firms) including VAT and Tax registration. "FBS KOTSOMITIS", operating since 1998, is a well-known and established international professional services network with officially licensed and regulated local member / partner firms. Contact us to start process by sending an email to enquiries@fbsmalta.com, by using our contact form or by calling at +356 2338 1500.

Corporate Tax Rates, Special Tax Rates and Tax Losses

WP Greet Box icon
Contact our firm’s partners for a free quotation or free and non-committal professional advice. Next steps:
1. Contact our partners by email
2. Contact us via our online information request form

Malta Corporate Tax Rates,  Special Tax Rates and Tax Losses

Corporate Tax Rates

All companies resident in Malta are subject to income tax on company profits at a rate of 35%. However, this is subject to Malta’s full imputation tax system, wherein tax paid by a company in Malta is, on the distribution of a final dividends, imputed to the shareholder as a tax credit against the shareholders’ tax liability. Therefore, a shareholder will, upon a distribution of the dividend, be entitled to a refund in part or in full of any advance tax levied on the distributing company.

The full imputation tax credit thereby renders Maltese companies highly efficient tax vehicles, with a number of applicable refunds to shareholders possible: (6/7ths refund, 5/7ths refund and 2/3rds refund)

Click here for a more detailed illustration of the Malta Full Imputation Tax System.

Special Tax Rates

As a rule of thumb, income and corporate tax rate is at 35%. However, different tax rates apply in accordance to bespoke tax regimes. A concise summary of special tax rates, derogating from the aforesaid bespoke tax rate, is set forth in the table below:

Details Rate %
Returned Migrants:

  • Born in and resident of Malta
  • Returned to Malta on or after 1 January 1988
  • Resided in Malta for an aggregate period of 20 years
  • Recipient of Income of not less than EUR 14,000 outside Malta
15%
Applicants under a Permanent Residence Scheme:

  • Taxable on a remittance basis

15%

(minimum EUR 4,200) p.a

Non-Resident Entertainers

  • For entertainment activities exercised in Malta which do not exceed 15 days a year

10% of gross payments

Collective Investment Schemes

  • Prescribed Fund
15% withholding tax on bank income
10% on any other investment income
  • Non-Prescribed

0%

Shipping Companies

  • Exemptions from income derived from shipping activities;
  • Exemptions from gains arising on the liquidation, redemption, cancellation or any other disposal of shares, securities or any other interest held in any shipping organisation owning, administering and managing a tonnage ship

0%

Foundations

  • Purpose foundations established for non-profit making purposes
0%

Tax Losses

Trading Losses

Losses incurred in any trade, business, profession or vocation during the year preceding the assessment, which may not be set off against capital gains or income, may be carried forward and set off against total income for any subsequent years in succession.

This provision is especially helpful for start-up businesses, thereby allowing them to amortise their losses over subsequent years.

Group Tax Relief

The Malta Income Tax Act permits tax consolidation and sets forth circumstances in which members of a group of companies may surrender trade (but not capital gains) losses to one another.

Read full article for a more thorough understanding of group tax relief.

Contact one of our officers to initiate the incorporation of a Maltese registered company and start reaping the full benefits of an onshore, low-tax, EU jurisdiction. Simply fill in the contact box below or contact us by email on enquiries@fbsmalta.com or by calling at +356 2338 1500

Is your message urgent?
 Yes No

  • Your Name (required)
  • Your Email (required)
  • Your Mobile
  • Subject
  • Your Message
  • Input this code           captcha


Skype Me™!