Malta Corporate Tax

Malta’s corporate tax rate is enshrined in a highly attractive, investor friendly legal framework which, has been approved by the EU in 2007 under State Aid and Code of Conduct. Malta was one of the select groups of jurisdictions to be placed immediately (following the G20 meeting held in London in April 2009) on the OECD’s ‘white list’ of countries and territories that had both embraced and substantially implemented the tax standards. These tax benefits (which are practically unmatched by any other European jurisdiction), coupled to the extensive network of double tax treaties which Malta has concluded with more than 50 jurisdictions makes Malta a very attractive domicile for investors.

A company registered in Malta (and thus automatically deemed to be resident and domiciled in Malta for tax purposes) is subject to Maltese tax on its chargeable income at the standard corporate tax rate of 35%. However on payment of tax by the company and the distribution of its income by way of dividends to its non-resident shareholders (who would themselves not be subject to withholding or other tax in Malta on the dividend itself) , the latter would be entitled to claim and receive, a refund of six-sevenths of the tax paid in Malta by the company,leaving a tax leakage in Malta of just of 5% and in some cases as low as 0% (if the Malta company suffered foreign taxation). For full details continue reading Malta Company Tax treatment page