Malta has one of the most attractive tax regimes within the European Union and is considered to be one of the fastest growing financial services centres in the world. Investors are shifting their business to Malta to take advantage of the following:
- Participation exemption applying to dividends and capital gains from qualifying holdings;
- The full imputation system of taxation, allowing shareholders in receipt of dividends to claim a credit for tax paid at source on such profits. Through the versatility of the full imputation system, Malta is able to provide several tax refund mechanisms, allowing shareholders of a Maltese company to claim refunds of part of the tax paid by the company, significantly reducing the effective tax rate paid in Malta. In respect of trading profits, a 6/7ths refund is available, resulting in an effective tax rate in Malta of only 5%.
- An extensive double taxation treaty network with over fifty double tax treaties;
- Exemption from tax and duties on transfers of shares held by non-residents (except for shares in companies owning real estate in Malta) and other exemptions.
The RSM Malta team of tax practitioners can help you in the setting up of the most tax efficient structure possible, tailor made to suit your specific requirements. Naturally, we can assist in the tax administration of the company covering all aspects of direct and indirect tax compliance issues.