If you're looking to establish a business in Malta, it's important to understand the country's tax system. Taxes in Malta can be complex, with different types of taxes, incentives, and deductions to consider. To help you navigate this maze of tax regulations, we've put together a comprehensive guide for business owners.
The Tax Compliance Unit in Malta (TUC) is a specialised unit within the Ministry of Finance and works towards addressing tax evasion and tax fraud. The unit supports the investigations and enforcement abilities of the Inland Revenue Department, the VAT Department and the Customs Department.
The company is charged capital gains tax in Malta on any gains or profits which comes from immovable property, securities, business goodwill, trademarks, copyright, patents, trade-names, trademarks and beneficial interest from a trust being transferred. In this case, “securities” exclude any preference shares that have a fixed rate of return.
When it comes to income tax Malta has it’s own specific regulations. For starters, annual returns need to be filed either a) within the 9 month period that follows the offical end of the businesses’ fiscal year or b) March 31st (whichever comes first). Tax returns are sent directly to the Commissioner for Revenue in Malta or they can be filed online on their website and you’ll receive a receipt immediately. The Commisioner for Revenue website contains details on the different rights and obligations related to income tax returns in Malta.
The Maltese rates of taxation are amongst some of the most attractive in the European Union. The system adheres to the specific guidelines set by the OECD, is within the jurisdiction of a white listing and has the approval of the European Commission. Due to such generous Tax Refund system and depending on the individual’s circumstance, a company paying a taxation rate of 35%, in effect, is only paying between 5 and 10%. Companies dealing in shipping are actually exempt.
Right in the heart of the Mediterranean, Malta is a small archipelago with a land area of around 316 square kilometres spread over three islands. A parliamentary republic, it is a member of the EU, the OSCE and the Council of Europe. The Malta corporate tax rate is one of the best within the European Union.