Financial Services Taxation

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Malta is continuing to diversify its economy and such is manifested by its continuing commitment towards offering a favourable and highly competitive tax regime in relation to financial services. Thus, a number of measures and fiscal incentives have been put in place in relation to various spheres of this area including investment services, funds/collective investment schemes, banking and finance, insurance law as well as retirement funds and schemes.

Such measures and incentives include:

  • Advance rulings by the Commissioner of Inland Revenue with an aim to provide clarity on international tax issues;
  • A law regulating collective investment schemes and investment services in general;
  • Ensuring that income derived overseas is not subjected to double taxation even if there is no double taxation treaty in place through the possibility of companies availing themselves from various other kinds of relief which form part of the Maltese fiscal regime;
  • Money laundering regulations;
  • Ratification of the Hague Convention on recognition of Trusts and incentives for the management of unit trusts from Malta whilst still allowing for such trusts to be governed by the applicable foreign trust law;
  • Insider trading rules.