Malta is a member of the European Union and has adopted the Euro as its currency as from 01 January 2008. Malta’s recent amendments to its tax legislation (which have been approved by the European Union) now make the island an even more attractive jurisdiction for investors who want to use Malta as a base for their activities.
Malta offers very attractive benefits to persons who choose the island as the jurisdiction within which to incorporate their companies, including comparatively low running costs, a skilled multi-lingual workforce and tax incentives. The salient features of the Maltese tax system include:
- an imputation system of tax (where corporate tax is imputed against the shareholders’ tax liability upon distribution of a dividend, to ensure that no further tax is paid by the shareholder);
- a very efficient system of relief from double taxation; and
- refunds to shareholders of tax paid by their companies, upon the distribution of a dividend.
Profits derived by Maltese companies are subject to tax at the rate of 35%. When income received from investments and/or trading activities is distributed by Malta companies by way of dividends, the shareholders may claim a refund of tax.
For more detailed information, kindly refer to our fact sheet Malta Companies & Taxation
EMD Advocates’ vast experience and expertise in local and international tax law has been instrumental in assisting its corporate clients with their business and tax requirements and with giving clients the right advice on the manner in which their affairs are to be structured. We can also assist with ad hoc consultancy and compliance issues through our in-house team of lawyers, accountants and tax advisors.