Malta’s Fiscal Environment
Local-source income and foreign-source income are also treated separately within the computation; Maltese companies with foreign income maintain a foreign income account for this purpose. Non-resident Maltese companies pay income tax on locally-sourced income including capital gains, and on income remitted to Malta (excluding capital gains). Non-resident foreign companies on the other hand are liable to income tax on locally-sourced income only (not including capital gains). Local interest and royalty income would normally be tax exempt.
The benefits of Malta’s corporate tax system include:
- An attractive personal and corporate tax regime;
- A full imputation system of corporate tax enabling shareholders to benefit from a 6/7ths tax refund on dividends;
- An outstanding holding regime;
- Value added tax exemptions for lessors and operators; and
- An extensive network of double taxation treaties.
Malta is a member of the European Union and is consequently wholly compliant with the safety and supervisory standards of the European Aviation Safety Agency. It is centrally located, enjoys a strong legal framework and benefits from stable economic conditions. Importantly Malta’s Aviation Authority is both pragmatic and flexible