Malta Companies and Taxation

Tax refunds
The tax refunds vary depending on the source of income out of which dividend is distributed. The most common refund is 6/7ths of Malta tax, which reduces the effective tax paid in Malta to 5% (approx.). Other tax refund rates are 5/7ths, 2/3rds and also 100% (full refund).

Corporate tax rate
Maltese companies pay tax at 35% on chargeable income computed in accordance with Maltese Law. However, following a payment of dividend the shareholder is entitled to claim tax refunds at the applicable rate.

Share capital
Minimum authorised and issued share capital requirement is €1,200 which must be at least 20% paid up at incorporation. The share capital may be in any currency.

Who?
There are no restrictions on the nationality of the shareholders or the directors of a Maltese company, however it is better to have Maltese directors to enforce further that the place of actual management is in Malta and avoid any tax issues that may arise afterwards.

Accounting and audit
Maltese companies are required to keep their accounts in accordance with the Companies Act and with International Financial Reporting Standards (IFRS) and have them audited every financial year.

Registry costs
Based on the minimum share capital, registration costs amount to €395.- upon incorporation and €165.- annually thereafter.

Why having a Maltese company?
• Low share capital requirements
• No restriction on nationalities
• No exchange control regulations
• Member of the EU and a well regulated onshore regime with high reputation
• An extensive double tax treaty network with over 40 countries
• Low net effective tax rates after refunds
• No Witholding Taxes on Maltese Dividends

Our staff speaks English, Maltese, German and all Scandinavian languages.