Malta

OUR SERVICES
  • Company incorporation
  • Registration of overseas companies’ “branch office” in Malta
  • Company management: Directorship and company secretarial services
  • Tax treaties and planning
  • Back office management and support: Office and secretarial services
  • Opening and administration of bank accounts
  • Accounting and payroll
Malta Corporate Taxation
Malta’s EU membership has made the country a competitive jurisdiction for tax planning and corporate structures. Income Tax in Malta is charged on income from all sources and capital gains on the transfer of immovable property, securities and certain intangible assets. Companies are taxed at a flat rate of 35% which is also the maximum rate for individuals. Other taxes include VAT, stamp duty and customs and excise duty. Malta is the only EU member state with a full imputation system of taxation in force.
One of the key advantages of the Maltese income tax system is the full imputation system that applies to the taxation of dividends. Shareholders are entitled to a credit for the company tax paid on distributed profits and will qualify for a refund when the tax credit exceeds their tax liability.
Under Malta’s full imputation system the shareholder will, upon distribution of dividends, be entitled to a refund of in part or in full of any advance tax levied on the distributing company. A resident shareholder will be taxable in Malta on the dividend income, including the refund, at personal rates.
  • International Trading Companies – effective Tax rate 5%. The amount of the tax refund is set at 6/7ths of the advance corporation tax paid by the company and 5/7ths in the case of passive interest and royalties.
  • The refund is reduced to 2/3rds where the distributing company claims double taxation relief.
  • Holding Companies – effective Tax rate 0%. With respect to participating holdings a full 100% refund applies. A participating holding “arises where a company holds at least 10% of the equity shares of a non-resident company”, or meets certain other criteria set out in the law.
Malta Company
A major perceived advantage introduced by the recent tax amendments is that there is no longer the need to establish two separate companies for the purposes of carrying out from Malta trading activities on the one hand and holding activities on the other. It is now possible for a Malta company to carry out both types of activities, with a distinction between the two activities being made in the respective tax accounts for each income stream. In the past, ITCs were unable to operate a foreign income account which created the requirement to set up a separate entity operating the foreign income account in cases where the activities of that company was simply to generate passive income. Having said this, it may still be advantageous to have a two-tier structure.

General Information

Company Law Companies Act 1995
Type of Company Private Limited Liability Company
Language of Legislation and Corporate Documents English
Exchange Control No
Length of Time to Incorporate 3 to 5 working days
Government Registration Fee Euro 349.41 for authorised share capital up to Euro 4,658.75

Capital and Shareholders

Minimum Number of Shareholders 2 (there are exceptional circumstances where one member is permitted)
Corporate Shareholders Permitted Yes
Local Shareholders required No
Disclosure of Shareholders Yes (Anonymity can be retained through a licensed Fiduciary or Trustee)
Minimum Authorised Shares to be Issued Euro 1,164.69 (one thousand one hundred and sixty four Euro & sixty nine cents)
Bearer Shares Permitted No
Registered Shares Permitted Yes
Number Par Value Shares Permitted No

Directors and Company Secretary

Minimum Number of Directors 1
Minimum Number of Company Secretaries 1
Corporate Directors Permitted Yes
Disclosure of Shareholders Yes (Anonymity can be retained through a licensed Fiduciary or Trustee)
Corporate Company Secretary Permitted No
Local Directors / Company Secretary Required No
Disclosure of Directors / Company Secretary Yes
Appointment of Subsequent Directors / Officers Yes
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