Corporate Tax

Companies in Malta (and their non resident shareholders) benefit from a number of fiscal advantages including those available through Participating Holdings, Participation Exemptions and our Tax Imputation System.

Companies registered in Malta pay tax at the rate of 35% on their profits but there are a number of exemptions which enable the rate to be reduced to as low as nil in cases for example where the income consists of dividends received through participating holdings.

Additionally, non resident shareholders are entitled to recover 6/7th of any tax paid by a company so that the nett tax payable is effectively 5%.

Companies in Malta are formed and registered to order and unlike other jurisdictions are not available to purchase “off the shelf”. The company formation procedure in Malta typically takes 2-3 days and registration of the company will normally be completed within 24 hours after receipt by the Registry of Companies of all documentation required for this purpose.

The Maltese system also allows for companies already in existence to be redomiciled to Malta from other jurisdictions where reciprocal arrangements apply. In such circumstances the company would then benefit from the same advantages as a company originally registered in Malta.

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