COMPANY FORMATION IN MALTA
Malta is EU member since 2004. It has been a focus for European business community for decades. Its highly competitive tax regime ensures the lowest effective corporate tax
rate within European Union. Besides tax advantages investors appreciate English as official language, EUR-zone convenience and professional accounting and corporate environment.
Malta company key features
Minimum number of directors is 1 (ideally a local nominee director). However, the company may have foreign directors, including corporate directors.
If Director is a private person, one shareholder is permitted. With Corporate Director the Company must have at least 2 shareholders (nominee services are available).
Company secretary is required.
Share capital is €1,250
Amount of State duty depends on the size of share capital (with share capital up to €1,500 State Duty is €390).
Beneficial Owner is disclosed to the Company Register.
Popular applications with Malta companies
Maltese Company with VAT is favored for general trading purposes due to unique tax regime. When dividends are paid by a trading company
to its non-resident shareholder, this shareholder is entitled to claim refunds of the 35% tax rate paid by the company.
6/7ths of the tax amount are refunded to the non-resident shareholder. As a result, the total tax rate is reduced to 5%.
The refund is guaranteed and is paid by Inland Revenue Department to shareholders account 14 days after application is submitted.
6/7 refund of the paid corporate tax (at rate 35%) brings down effective tax rate to less than 5%.
Tax Residence Certificates are available provided that management & control is carried in Malta.
EU VAT number registration generally takes 2 weeks.
Malta is in EUR-zone.
Malta company taxation
CORPORATE INCOME TAX (CIT): Resident companies are taxed at 35% rate on worldwide income. The amount of tax refund (up to 100%) depends on Company’s structure
INCOMING DIVIDENDS: 0% if Participation Exemption applies.
CAPITAL GAINS TAX (CGT) 0% if Participation Exemption applies.
VALUE ADDED TAX (VAT). EU VAT regime. Standard rate for inland sales is 18%.
How to register a company in Malta?
- Choose a structure, what is appropriate for your business. Need help? Contact us.
- To find out more, please contact us.