Malta offers a practical and convenient tax system for new businesses. Our legal and accounting team provides a holistic Maltese corporate tax service to our clients based in Malta. We can help you set up your business in Malta, ensuring compliance with the relevant tax regulations.    

Maltese Corporate Tax Rate  

The Maltese corporate tax rate is set at 35%. Maltese companies are subject to tax in Malta on their worldwide income and certain capital gains. Malta’s tax system also provides for double taxation relief and streamlines the optimisation of tax benefits.  

Read more: An Insight into Malta Corporate Tax

How Integritas Endevio Can Assist You with Malta Corporate Tax  

Taxation can be a confounding concept, especially for those wanting to establish a company in Malta. Fret not. Integritas Endevio can assist you. 

Let our team of tax advisory and compliance professionals guide you in your Malta corporate tax endeavours. Get in touch with us today.  

Our Malta Corporate Tax Services include: 

Efficiently align your business goals to Malta’s tax system. We provide expert tax advice for your corporate structure and can handle your:  

  • Direct and indirect tax advisory solutions  
  • Tax-efficient structuring solutions  
  • Maximum tax treaty benefits     
  • Communication with the Maltese tax departments     
  • Tax confirmations from the tax authorities
  • Tax implications of certain investments
  • Investment holding vehicles
  • Substance requirement
  • Real estate tax planning and indirect tax considerations
  • Advisory services concerning the applicability of the recently introduced tax consolidation rules for companies forming part of the same group 

Let us support your company’s growth in Malta. We will assist you with employment-related matters and ensure that you remain fully compliant. Benefit from our tax expertise on:  

  • Income tax registration upon relocation  
  • Visa requirements and residency permits     
  • Employment or trade permit requirements
  • Cross-border tax planning/treaty analysis
  • Tax planning for senior executives
  • Advice on the introduction of share options and schemes
  • Preparation and submission of annual income tax returns
  • Fringe benefit analysis and advice  

Our team stays up-to-date with direct and indirect tax developments and will guide you based on this. We will keep you posted with the latest and employment-related tax updates through frequent alerts and monthly newsletters.

Frequently Asked Questions

Q1. What is the standard corporate tax rate?

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.

Q2. Is a new company set up in Malta automatically deemed a tax resident?

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.

Q3. Suppose a Maltese Company receives foreign income subject to tax outside Malta. Will it be entitled to claim relief for foreign tax?

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.

Q4. Is there a possibility for the corporate tax rate to be reduced?

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%.

Q5. What is a full imputation system?

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.

Q6. Is a Maltese company required to withhold any tax upon paying dividends as a shareholder?

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.