Tax Services

The standard corporate tax rate in Malta is 35%, which is applied to the company’s income after allowing for any deductible expenses and non-taxable income.

Yes, a company is deemed resident in Malta for tax purposes if it is incorporated in Malta. Companies incorporated outside Malta but are effectively managed and controlled from Malta are also considered tax residents in the country.

Yes, Malta offers various forms of double taxation relief. The most common is the treaty relief, which emanates from Malta’s extensive treaty networks with over 70 countries. The relief is given in credit, whereas the foreign tax suffered is set off against the Maltese tax liability.

Yes, through the refundable tax credit system, whereby non-resident shareholders are allowed to claim a refund of 6/7ths (in certain circumstances 5/7ths or 2/3rds) of the tax paid by the company upon the distribution of a dividend. This reduces the effective tax rate to 5%.

It is a system where the shareholders of a Malta company will be entitled to a tax credit equivalent to the tax paid by the company upon a distribution of profits. The highest tax rate applicable to individual shareholders is 35% (equivalent to the corporate rate of tax). The shareholders will pay no further tax on the distribution of profits by the company.

Under Maltese tax law, a Maltese company is not required to withhold any tax on paying dividends to the shareholder, irrespective of residence, domicile, and nationality.