Located in the heart of the Mediterranean between mainland Europe and North Africa Malta is the perfect place to conduct business. Malta is a strategic hub due to its location and is easily accessible.
- Malta has been a full EU member since 2004 and entered the Eurozone in 2008.
- Malta is a highly reputable jurisdiction with laws in line with applicable European Union legislation
- English is used throughout the island and all documents produced are in English
- Corporate income tax is subject to a flat rate which currently stands at 35% however Malta is currently the only member which allows a full imputation system to eliminate the double taxation of company profits, therefore tax charged to the company is imputed to the shareholder upon dividend distribution by the company. Since the tax rate of 35% applicable to companies is also the highest tax rate in Malta, shareholders will not suffer any additional tax on the receipt of dividends. The shareholder may even receive a tax refund if his income falls to be taxed at a lower rate of tax than the 35% tax rate incurred by the company
- A system of tax refunds is in place so that upon dividend distribution, depending on the nature of the taxable profit, a 6/7ths, 5/7ths or 2/3rds tax refund of the corporate tax paid by the company, may be paid to the shareholder. The effective tax rate is therefore reduced to 5%.
- Furthermore, Malta’s tax system grants a full participation exemption with respect to dividend income derived from a participating holding and to capital gains derived from the transfer of said holding; a number of anti-abuse conditions must be satisfied before a company may be classified as a participating holding.
- Malta has a highly professional workforce
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).