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
Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register
Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.
European Commission publishes tax avoidance disclosure directive
The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.