Company registration in Malta

Corporate tax – 35% but when distributes an income the company receives tax credit in favor of shareholders which is equal to the sum paid by the income tax from which the dividends were distributed.

When distributes dividends, received from sources outside Malta, as well as passive income, received in Malta (this includes foreign income and Maltese taxable income), the shareholders will be able to demand to return 6/7 of the paid tax.  Thus, the total effective tax rate will be 5%.

If the business income consists of passive income earned in Malta (this includes foreign and Maltese taxable income), shareholders are entitled to claim 5/7 of the tax paid by the Maltese company on these incomes. This achieves an overall effective tax rate of 10%.

A 2/3 refund of paid tax will be applied if the company has already used the benefits of the double taxation treaty.

Since the refund can only be paid to the account of the shareholder of the operating company, a two-tier structure is often used. The shareholder of the operating Maltese company is the second Maltese company (holding). Thus, funds returned by the state in Malta are subject to 0% taxation. This profit can be reinvested by the shareholder or remain in the account of the holding company in Malta.

In the case of using a two-tier structure, when a second Maltese company (holding) acts as a shareholder of the operating Maltese company, the operating company can pay 5% of the tax immediately, without having to pay 35% and demand a return of 30%.

It is also possible to obtain a certificate of tax residency in Malta.

TAXATION OF MALTESE HOLDING COMPANY

Capital gains – 0%.

The income will be tax free if it has been received from non-resident subsidiary company which:

• is the EU resident;
• pays not less than 15% foreign tax;
• has no more than 50% of passive income and royalty in its whole income;
• pays foreign tax on the rate of 5% and share of equity in subsidiary is not a portfolio investment for the Malta company. 

None.

Malta has laid over 70 years of land for the uniqueness of the undertaking, including from Ukraine.

Malta is a convenient jurisdiction for shipping companies: ships up to 1.000 tons are exempt from income tax; platforms, barges and ships under construction may be registered; no residency required for owner, crew, shareholders and directors; simple registration procedure.

Malta is the only jurisdiction in the EU which gives licenses for on-line casinos. Remote Gaming Regulations provides 4 classes of games that have to be licensed.

Moreover, there are new rules for obtaining residence permit in Malta to attract wealthy people (a person must owns real estate costs from €275 000, live in Malta for not less than 90 days a year – for beneficial owners, annual tax - €15 000, good English or Maltese language skills etc.).