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Summary of benefits of registering Malta Companies:
1. 6/7 refund to the non resident shareholder
of Malta companies (Trading).
2. Full tax refund of Malta companies holding
a participating interest in other non resident
companies.
3. No withholding taxes, stamp duties or
exchange control restrictions apply on distribution
of profits from the Maltese companies to
non resident shareholders.
4. Low Company Formation costs.
Tax
on a Malta Companies
The payment of a dividend from Maltese companies
to a non resident shareholder(of the Malta Companies) triggers the right to a refund
of part or all of the tax paid by the Maltese
companies on the profits. The tax paid by
the Maltese companies is refunded to the shareholder
in one of the following forms depending
on the source of the profits.
• Refund on 6/7th of the tax paid
by the Malta companies
• Refund of 5/7th of the tax paid
by the Malta companies on profits that consist
of passive interest or royalties
• Refund of 2/3rd of tax paid by the
Maltese companies on profits that have already
claimed relief for double taxation
• Full refund on profits that are
generated from a ‘participating holding’
Effective Tax Payable for Trading
Malta Companies
The effective rate of tax payable for trading
Malta Companies is therefore 5% due to
the 6/7ths refund available to non-resident
shareholders of the companies registered in
Malta.
Contact us for more information as well
as for a quote. We will happily guide you
through the Malta companies formation process
and also advise you on the solutions that
would best suite your needs!. info@CompanyinMalta.com.
Or call +356 21 378722
Participating Holding rule for
Holding Malta Companies
A holding by Maltese companies in a non
resident companies qualifies as a participating
holding if any of the following is satisfied;
• The holding is 10% or more of equity
share capital
• The Malta Companies has an investment
of minimum €1.16million held for at
least 183 Days
• The Malta Companies are empowered
to appoint a director in the non-resident
companies
• Where the holding is a furtherance
of the business of the Malta Companies.
The Profits by the Maltese Company from
a ‘Participating holding’ is
exempt from tax if one of the following
is satisfied:
• The non-resident Company is resident
in an European Union State; or
• It is subject to foreign tax of
15% or more; or
• It does not have 50% or more of
its income derived from passive interest
and royalties
If none of the above conditions is satisfied,
the both the below conditions need to be
satisfied for the participation exemption
to apply:
• The holding of the Maltese company
is not a portfolio investment. If the non
resident company derived more that 50% if
its income from portfolio investments this
will be deemed as a portfolio investment.
• The non resident company has paid
foreign tax of more than 5%.
Other Taxes on Malta Companies trade
No withholding taxes, stamp duties or exchange
control restrictions apply on distribution
of profits from the Maltese companies to
non resident shareholders, and these dividends
can be expatriated without any restrictions.
Contact us for more information as well
as for a quote. We will happily guide you
through the Malta companies formation process
and also advise you on the solutions that
would best suite your needs!. info@CompanyinMalta.com.
Or call +356 21 378722
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