Corporate Tax
Get to know the Maltese tax regualtions and its benefits
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An offshore company can be described as an entity registered outside the country where it’s mainly operating in. The term offshore refers to the company not being resident where it is formally incorporated.
Malta is a small Mediterranean island nation known for its warm climate, stunning coastline, and rich cultural heritage. However, it is also a business-friendly destination that attracts entrepreneurs and investors from all over the world. With its stable political and economic environment, advantageous tax system, and strategic location, Malta has become a hub for company formation and international trade. In this article, we will provide a comprehensive guide to company formation in Malta, including the benefits, requirements, and process.
Malta has become a popular choice with investors in recent years, many of whom have chosen to base their businesses on this Mediterranean island since it joined the European Union and the currency changed to the Euro, in 2008. Malta offers corporate tax rates that are advantageous, but in order to get the best out of the system, it is vital to have knowledgeable Malta tax advisors to plan your strategy according to your business requirements.
Due to the fact that Malta reconfigured its corporate taxation framework in 2007, it is important to appreciate how these changes might affect businesses as well as to develop a thorough understanding of the principles associated with common Malta corporate tax issues. The ultimate intention of this article is to provide insight and clarity when referring to Maltese companies and their relationship with the current corporate tax system.
Malta may not exactly be a tax haven, but the very laws that keep things so steady also inform international investors on exactly where they stand. There are also opportunities for those who wish to receive a tax refund in Malta so long as they go about investing in the right way.
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.
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.
