The demand for tax expertise for such measures has increased dramatically due to increased efforts by companies to relocate business units or entire companies abroad. This is complemented by the growing willingness of people to relocate their place of residence to Malta.

Malta has a very favorable and competitive tax scheme, including attractive features such as a complete credit system, a system of refundable tax credits and a large and expanding network of international tax treaties. This competitive tax ecosystem is not only attractive to corporations, businesses, entrepreneurs and high net worth individuals seeking the best and most suitable tax advice, but also to individuals who have or intend to become tax residents of Malta through a non-investment scheme which is very attractive.

Malta is fast becoming the jurisdiction of choice for many multinational companies to transfer their business interests.

Such companies naturally seek an ideal market within the EU and Malta certainly ticks all the boxes. Malta's competitive tax system is fully compliant with all EU and international standards, can help.

Malta joined the European Union in 2004 and maintains a very attractive tax regime for foreign investors. Foreign-owned Maltese companies are entitled to a tax rebate, which essentially results in a corporate tax rate of 5%, the lowest corporate tax rate in Europe. In addition, foreign holding companies in Malta are entitled to a full 0% corporate income tax exemption. Malta has no withholding or stamp duty, and in some cases 0% tax on dividends.

Other advantages include low set-up and maintenance costs whilst enjoying all the benefits of the EFTA. The island-nation is backed by sensible economic policies that have shielded it from the global economic crisis. Essentially, starting a Maltese company has proven to be not only cost-effective, but a safe investment.

Generally, Malta attracts small and medium-sized enterprises engaged in commercial activities, but it is also a popular center for larger companies engaged in ship and aircraft registration, as well as licensed online businesses such as gaming and online gaming.

It goes without saying that Malta, situated in the heart of the Mediterranean offers a unique business location – whereEnglish is not only widely spoken but an official language. Contextually, many leading European investors are seeking to move their business from other EU member states to the sunny island. In 2018, the government issued new regulations for cryptocurrency companies in Malta.

Malta offers favorable immigration programs for foreign investors looking to relocate, as well as plenty of English language learning opportunities.

Did you know about the 5% corporate tax rate?

Many entrepreneurs set up Malta companies to take advantage of the lowest corporate tax rates in Europe. The official corporate tax rate is 35%, which is quite high. However, there are official schemes (backed by the innovative full-imputation system) for companies whose owners are not tax residents of Malta; wherein the system allows for a 30% recovery of all corporate tax.

Thanks to the 6/7 tax rebate system, the corporate tax rate is 5%, which is the lowest corporate tax rate in the EU and is also very competitive globally.

Registered Malta holding companies can apply for 0% tax on dividends. Any profits of a subsidiary of a registered Malta holding company can be paid to shareholders as dividends. In this case, the income earned is not taxable, the company is completely exempt from corporate income tax, and no 6/7 tax rebate is required.

There are a number of factors that make Malta an excellent choice for non-resident entrepreneurs, including clear accounting requirements, low maintenance fees and a very favorable location. You can read more regarding International Tax advice here.

You may also wish to take note of Malta's Income tax deadlines for the month of August:

15/08/2022

  • VAT form 004 (submission for June 2022 with respect to services and for July 2022 with respect to goods)
  • Monthly VAT recapitulative statement (submission for July 2022)
  • Quarterly VAT return (manual submission for the period April-June 2022) (ext.to 17/08)
  • Quarterly Eco-contribution return (submission for the period April-June 2022)

22/08/2022

  • Quarterly VAT return (electronic submission for the period April-June 2022)

31/08/2022

  • CbC Reports – CbCR Notifications (with financial year ending 30 November 2021)
  • Manual filing of income tax return and self assessment for companies (with financial year ending 30 November 2021)
  • Electronic filing of income tax return and self assessment for companies (with financial year ending 30 September 2021)
  • Payment of settlement tax for companies (with financial year ending 30 November 2021)
  • Payment of provisional tax for companies
  • Payment of provisional tax and social security contributions for individuals
  • FS5 (submission for July 2022)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.