News

Malta Removed from Russian Blacklist of Offshore Jurisdictions

Malta Removed from Russian Blacklist of Offshore Jurisdictions

November 2014

The Russian Finance Minister has, by formal decree, published an updated black-listed offshore jurisdictions. One of the most conspicuous amendments, is the removal of Malta, from the same blacklist, albeit a total of forty-one (41) jurisdictions remain on the blacklist.

The decision, signals a progressively closer relationship between Malta and the Russian Federation, after several decades of lukewarm relations and diplomatic silence. The move to remove Malta from the blacklist, is a natural coronation to the execution and the coming into force of the Double Tax Treaty Provision, entered into and signed by the two countries, in May 2014, following several years of negotiations. This treaty supersedes the Malta – Russian tax treaty (2000) which has been superseded.

The signing of the double tax treaty represents a thawing of the relationship between the two countries, and the endorsement that the Republic of Malta is not a tax-haven, but an onshore jurisdiction which albeit firmly entrenched in the EU acquis communitaire and a full member of the European Union since 2004, enjoys a holistic and unbiased view, towards other non-EU economies.

According to the International Monetary Fund, the Russian Federation is, currently the eighth largest economy in terms of GDP, and a major player in the commodities and energy market.   This economic clout has also been underscored in the recent Memorandum of Understanding signed between the Maltese Chamber of Commerce and the Chamber of Commerce and Industry of the Russian Federation, signed in June 2014.

The double tax treaty with the Russian Federation and the subsequent removal from the blacklist represents another major milestone for the Government of Malta, which has been progressively and steadily increasing its political and geo-economical collaboration with a series of Memoranda of Understanding and Double Tax Treaty Agreements with a number of central and South American Republics.

To start reaping the full benefits of an onshore, low-tax, EU jurisdiction simply contact us by email on enquiries@fbsmalta.com or by calling at +356 2338 1500 for bespoke advice.

New Investment Rules for Loan Funds in Malta

Malta Introduces New Investment Rules for Loan Funds.

The Malta Financial Services Authority (MFSA) has published a series of standard licence conditions applicable to collective investment schemes authorized to invest through loans.

Until recently, collective investment schemes were precluded from investing in schemes through loans, since the financing of loans was deemed to be an activity reserved solely to entities licensed in terms of the Financial Institutions Act or Banking Act.

Following the publication of the rules, it is possible for a loan fund to be established as a Professional Investor Fund or as an Alternative Investment Fund, insofar that the fund is a close-ended scheme and the investment through loans is limited to unlisted companies to the exclusion of financial institutions. A minimum investment of EUR 100,000 per investor is also mandatory.

Contact one of our officers for further information regarding the licence regime applicable to loan funds.

Malta – Mexico Double Tax Treaty Agreement

Malta – Mexico Double Tax Treaty Agreement in force

The double tax treaty entered into and signed between the government of Malta and Mexico has finally come into force.

As of 2014, Mexico is the 14^th largest economy in the world, with considerable clout in the manufacturing and services industry. The finalization of this treaty, represents a consolidation of the shift towards concluding bilateral treaties with Central and Latin American jurisdictions, following the finalization of an agreement with Uruguay.

The most salient features of the double tax treaty agreement, may be summarised as follows:

• 0% withholding taxes on dividend income
• Interest arising in one state and paid to the resident of the other is taxable on in the latter state. If the beneficial owner of the state where the interest arises, the tax charged shall not be in excess of:

(i) 5% of gross amount of the interest from loans granted by a bank;
(ii) 10% of the gross amount of the interest, in all other cases

• Royalties to same rules as interest. Where the beneficial owner of the royalty is a resident of the other contracting state, the tax charge shall not exceed 10% of the gross amount of the royalties.

To see the full list of Malta Double Tax Treaties as well as Summary Tables and Full Text follow this link.

Malta further reduces Personal Income Tax

As part of a series of measures in traduced in the budget measures, the personal income tax rate for individuals has been further reduced from 29% to 25% (for earning up to EUR 60,000 per annum). The said reduction, which applies for all forms of tax computation – simple, married or parent rate, represents the final installment of a progressive reduction in the income tax rate which has been decreased, over the course of three (3) consecutive budgets from 35% to 25%.

Whilst, a series of favourable personal income tax regimes, had already been enacted for high ranking officers within regulated entities, such as insurance, financial services and gaming, this further reduction, is not tied to any specific sector or regulated business. Effectively, all Maltese resident tax payers, can now benefit from the aforesaid revised tax brackets, thereby providing an added incentive for expats to establish their residence in Malta.

To read more about the Malta Tax Advantages follow this link.

For Malta Company Formation essential information and facts follow this link.

For comprehensive information about the Malta Company uses by Individuals or Corporations follow this link.

Record number of Maltese Company Formations in 2013

2013 has been officially recognized as a record year for the Maltese registrar of companies with over 4,500 companies incorporated.  This represents double-digit growth over the previous year and has once again confirmed Malta as one of the most exciting and up-and-coming corporate jurisdictions.  Over the past five years, whilst most of the European neighbours have been mired in recession, Malta has consistently achieved double digit growth. Continue reading “Record number of Maltese Company Formations in 2013”

Changes to Private Exempt Companies

The Registrar of Companies has recently announced that the shareholding of private exempt companies has been extended to include corporate shareholders.  Prior to this amendment, private exempt companies could only have as shareholders, physical persons.  This amendment bodes well with what has been perceived by practitioners as an anachronism, albeit, it must be noted, the exemption to corporate directors, has been retained.

Nevertheless, this is a welcome move in the right director, since the use of corporate shareholders, shall also allow beneficiaries of private exempt companies to have access to fiduciary services and holding structures which may allow access to double tax treaties.

The amendments do not in any manner, hinder the application of Malta’s optimum tax system, where following the application of a tax refund to the shareholders, the ultimate tax leakage suffered by active trading companies can be as low as  5% and in some cases as low as 0% (on the computation of foreign taxation suffered). For full details continue reading Malta Company Tax

Focus Business Services Group opens new office in UAE

The Focus Business Services Group proudly announces further expansion, via its new flagship offices in the United Arab Emirates  (Ras Al Khaimah) and is now able to assist clients with the formation of corporate structures and bank accounts, offshore OR Free Zone companies …in ALL the Free Zones of the UAE .

Continue reading “Focus Business Services Group opens new office in UAE”

Malta extends exemption for royalties deriving from copyright

Malta has reaffirmed its role as a leading role as an international hub for intellectual property tax planning by extending its tax exemption to royalties and similar income derived from copyright, including advances derived from copyright. Continue reading “Malta extends exemption for royalties deriving from copyright”

Participating Holding Given Wider Scope

May 2012

Recent amendments to the Income Tax Act have extended the scope of participation exemption and participating holding.  Currently, a participation exemption is applicable on income or gains derived from a participating holding or upon the transfer of such participating holding.  However, until now the fundamental precept was that the participating holding was only possible where the holding by the Maltese company was held in a body of persons constituted, incorporated or registered similar to a partnership en commandite the capital of which is not divided into shares – more reading on our website – https://www.fbsmalta.com/malta-tax-structures-2/tax-treatment-of-the-malta-company/ Continue reading “Participating Holding Given Wider Scope”

Malta reiterates its competitive low-tax status

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.

Continue reading “Malta reiterates its competitive low-tax status”

Maltese Gaming Authority signs MoU with its Danish Counterpart

The Lotteries and Gaming Authority has intensified its collaboration with a number of gaming authorities.  The last such collaboration has been with the Danish Gambling Authority (DGA), culminating in the execution of a Memorandum of Understanding (MoU) on bilateral cooperation, between the two countries. The Memorandum of Understanding was signed by Mr Reuben Portanier, CEO of the Lotteries and Gaming Authority and Ms Birgitte Sand, Director of the Danish Gambling Authority.

Continue reading “Maltese Gaming Authority signs MoU with its Danish Counterpart”

Registering a Malta Company @ €345- new FBS Malta pricelist

The incorporation of a Malta Company has never been more affordable than now.  In its drive to reduce barriers to business, Focus Business Services , one of the largest and most reputable corporate service providers in Malta, is now offering the formation of a Maltese Company at just €345 – which price includes:- Continue reading “Registering a Malta Company @ €345- new FBS Malta pricelist”

Malta Signs Double Tax Treaty with Israel

A double taxation avoidance agreement between Israel and Malta has been signed in Jerusalem in August, for the prevention of double taxation between the two countries.  The agreement was signed by Finance Minister Avigdor Lieberman for  Israel and Malta’s Deputy Prime Minister and Foreign Minister Tonio Borg. Continue reading “Malta Signs Double Tax Treaty with Israel”

Malta is largest European Shipping Registry

Malta has cemented its pivotal role in the maritime industry, by becoming the largest shipping registry in Europe (in terms of tonnage) and the seventh (7th) largest in the world overall.  Types of vessels registered include cruise liners, oil rigs and even superyachts.
Continue reading “Malta is largest European Shipping Registry”

Malta PIFs (Professional Investor Funds) registers strong growth

Malta has ranked an impressive 15th place in a study commissioned by the World Economic Forum in terms of the level of development of the financial services sectors, achieving the same benchmark level  as more seasoned jurisdictions such as Switzerland and Luxembourg. Continue reading “Malta PIFs (Professional Investor Funds) registers strong growth”

Cyprus Yacht Leasing Scheme paves ways for easier EU VAT Paid Certificate

Following the introduction of the Cyprus Yacht Leasing Scheme in March 2012, yacht owners now have a wider choice as to the jurisdictions with allow yacht leasing schemes – specific guidelines that blend a low VAT rate, whilst ensuring the issuance of the much coveted – EU VAT-paid certificate. Continue reading “Cyprus Yacht Leasing Scheme paves ways for easier EU VAT Paid Certificate”

Malta ratifies Double Tax Treaty with Bahrain

Malta has ratified the double tax treaty agreement with Bahrain, which has now entered into force as of 28 February 2012. Double tax treaty between Malta and Bahrain had been signed in April 2010, which agreement has been ratified by Bahrain in December 2011. Continue reading “Malta ratifies Double Tax Treaty with Bahrain”

Malta issues High Net Worth Individuals Rules

The long-awaited High Net Worth Individuals Rules (“the Rules”) have been finally issued by the Ministry of Finance, with effect as of Continue reading “Malta issues High Net Worth Individuals Rules”

New Video Conferencing System Launched by Focus Business Services

In a constant strive to offer clients an ever-better service, Focus Business Services has launched its new state-of-the-art video conferencing  system designed to enable clients to participate in meetings and seminars with all our partners from all across the globe. Continue reading “New Video Conferencing System Launched by Focus Business Services”

UCITS IV – Towards the next instalment

The transposition of Directive 2009/65/EC of 13th July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS IV Directive) shall be transposed by Malta as of Continue reading “UCITS IV – Towards the next instalment”

Malta signs Double Tax Treaty with Turkey

Malta and Turkey have, on the 14 July 2011, signed an agreement in Istanbul to prevent double taxation between the two countries.  The agreement was signed by Finance Minister Mehmet Şimşek for Turkey and Malta’s Deputy Prime Minister and Foreign Minister Tonio Borg. Continue reading “Malta signs Double Tax Treaty with Turkey”

Approved Jurisdictions for Aviation Registration

The Aviation Registration Act, Chapter 503 of the Laws of Malta, allowed for the registration of aircrafts by “qualified persons”.  Such persons included persons established in an “approved jurisdiction” Continue reading “Approved Jurisdictions for Aviation Registration”