Malta is a Presidential Republic, member of the European Union since 2004, politically stable country with a multi-party democracy.
Malta is an independent Republic since 1964, population – 445, 500.
The legal system of Malta is based on English Common Law.
Private limited company (LTD) incorporated under the Companies Act, 1995
| Tax | Rate | Notes |
|---|---|---|
| Income (Corporate) tax | 35 % , 0-10%* | tax refund system |
| Paid dividends | 0 % | no withhold tax |
| Capital gains tax | 0 % | |
| Royalties paid | 0 % | |
| Interest paid | 0 % | |
| Royalty income | see tax table | |
| Interest received (trading) | see tax table | |
| Interest received (passive) | see tax table | |
| Received dividends | see tax table | |
| VAT | 18% |
*the rate of corporate income tax can be significantly reduced
Shareholders upon a distribution of dividends by the Maltese company are entitled to claim a tax refund, see below tax table:
| Refund | Full refund | Refund of 6/7ths | Using DTR | Refund of 5/7ths |
|---|---|---|---|---|
| Tax | 0% | 5% | 2,5%-6,25% | 10% |
| Type of incomes | Participating holding, information see below about PHLTD | Trading | - | Passive interest/royalty income, not derived from trade business, and interest/royalties have suffered foreign tax of less than 5% |
| Notes | - | No claim for double tax relief (DTR) is made | 1.Claim for double tax relief 2.Unilateral relief, proof of tax suffered abroad is requested 3.Flat rate foreign tax credit relief, no proof of tax suffered abroad is required | No claim for double tax relief (DTR)is made |
Participating holdings – in order to be a participating holding PHLTD:
- holding of minimum 10% of the equity shares
- give an entitlement to call for and enquire the entire balance of the equity shares
- give the right of first refusal in the event of the proposed disposal, redemption or cancellation of all the equity shares
- entitle to sit or appoint a person to sit on the Board of directors
- investment of a minimum of 1 154 000 EUR that is held for an uninterrupted period of not less than 183 days; or
- are held for the furtherance of its own business and the share-holding is not held as trading stock for the purpose of trade
The 100% refund is conditional on the company in which the PHLTD is held satisfying any of the following conditions:
- is a resident or incorporated in the EU
- is subject to any foreign tax at a rate of at least 15%, or
- less than 50%of its income is derived from passive interest or royalties
Alternatively 100% tax refund can be claimed where the equity shares constituting the PHLTD:
- do not represented a portfolio investments, and
- the company in wich PHLTD is held or its passive interest or royalties have been subject to tax a rate that is not less than 5$
If LTD that derived income in the form of dividends but not satisfy any of above PHLTD requirement, may claim a 5/7ths tax refund. In such case effective tax rate is 10%.
There are alternative to the 5/7ths refund in Malta. It is the flat rate foreign tax credit of 6,25%.This is credit granted unilaterally by Malta for tax that is deemed to have been suffered overseas.
Tax paid should by law be refunded within 14 days from the end of the month in which the application is submitted.
Double tax treaties – with 57 countries
Advantages
- EU country
- Tax refunding system makes this jurisdiction with lowest corporate tax for non-resident Malta shareholders
- LTD can be used for holding company, international trade, assets protection, investment company, etc
Disadvantages
- Annually required to file with Register and Inland Revenue audited Financial Statement
- Required together with tax return prepare tax refund that is paid in time of 14th days
| Name | Must end with the word “private limited company” or “Limited” or “Ltd”, special requirements for private investments company |
| Share capital | The minimum authorized share capital is EUR 1 165, required to be paid 20% before a company formation Stamp duty is payable, calculated on the basis of the value of nominal capital |
| Shareholders | A minimum of one Shareholder, corporate Shareholders are allowed |
| Director | A minimum of one Director, corporate Directors are allowed, can be resident or not-resident in Malta |
| Secretary | Required, natural person, can be resident or not- resident in Malta |
| Registered Address | Required |
| Annual reporting | Annual reporting to the Registrar Annual audited Financial Statements to the Registrar and tax return to the Inland Revenue |
Company formation package Request package price
Timeframe
| Incorporation of a new company | 5 business days |
| Preparation of apostilled documents | 15 business days |
Annual support (beginning with the second year) Request price
Required information from the client
Incorporation process is possible after Due Diligence procedure is completed.
Please completed and send us Order form, we are going to send you information about required Due diligence documents.
1. Consult to determine the order. To choose a jurisdiction for a company we offer a consulting services:
- via telephone +(371) 67280645
- via e-mail: consult@bbp-net.com
- via online question form found in the header Ask an expert
- Navigation through our web site will help you to determine: benefits, prices and requirements in respective jurisdiction
2. Complete an application form. After you have made your decision, please complete one of the online application forms:
- Application for the incorporation of a new company
- Application for the acquirement of a ready-made company
3. Issue of invoice and settlement of order. Within one business day of filling in the online application form, you will receive an invoice via e-mail. You can pay the invoice using money transfer to the BBP bank account provided in the invoice or via Internet, using PayPal. We suggest using PayPal only in case the amount is less than 200 EUR.
ATTENTION! The invoice number should be written in the details of payment!
A payment acknowledgement will be sent to you as soon as we will receive the payment.
4. After we receive the required Due Diligence documents from you, we shall commence the incorporation or the preparation of the documents required in order to carry out the acquirement of a ready-made company.
5. Document delivery to the client. Documents are sent via international courier mail.
6. Further supporting services. We guarantee to inform, assist and provide you with all the necessary services for further support of the company.
Get acquainted with jurisdiction legislation free of charge!
Select one* legislative act that you would like to receive free of charge:
*Please note that we shall only provide one document for free. If you would like to receive more information please contact us!