At Be.Legal, our team of dedicated lawyers are available to assist you with your tax planning requirements. Through the use of various corporate structures available under the Maltese regulatory system, we endeavour to offer you tailor-made alternatives that will maximise the advantages of Malta’s tax system.
Main features of Malta’s tax system
- Malta operates a full imputation system – this relieves all economic double taxation, meaning that shareholders do not pay additional tax when receiving a dividend.
- Even though companies pay 35% corporate tax, the effective tax rate is typically substantially reduced by refunds which the shareholder can claim over the tax the company has paid upon receiving a dividend. The shareholder may generally claim the 6/7th refund on trading income. Other refunds are available for other types of income.
- Malta offers a variety of juridical double taxation relief though its extensive and expanding double tax treaty network, in addition to Unilateral Relief, and Foreign Flat Rate Tax Credit (FRFTC) – which is unique to Malta and offers a notional tax credit on tax suffered on foreign income even when there was no actual tax suffered abroad.
- The Participation Exemption, whereby dividends received from a subsidiary anywhere in the world are exempt from further tax in Malta, upon satisfaction by the subsidiary of a qualifying ‘participating holding’.
- No Malta tax is levied or otherwise withheld on dividends distributed by a Malta company.
- No Malta tax is levied or otherwise withheld on outbound payments of interest or royalties.
- Malta does not levy wealth or capital taxes.
How can we assist you?
Our firm provides advice and consultancy in connection with the following:
- corporate tax;
- personal taxation;
- Value Added Tax;
- Fiscal matters relating to trusts and foundations.