Summary of benefits of registering a Company
in Malta:
1. Possible efund of Malta Corporate tax to the non resident shareholder
of a Malta company (Trading).
2. Full tax refund of a Malta company holding
a participating interest in another non resident
Company.
3. No withholding taxes, stamp duties or exchange
control restrictions apply on distribution of
profits from the Maltese Company to non resident
shareholders.
4. Low Company Formation costs.
Example of a Trading Company registered
in Malta
‘Malta Company Ltd (A Maltese Company)
makes €1,000 profit on trading activities.
Malta Company Ltd pays 35% Tax on that profit.
Malta Company Ltd then distributes its profit
to a non resident Shareholder. The non-resident
shareholder is entitled to get a refund of 6/7ths of the tax
paid by Malta Company Ltd.
Effective Tax Payable for a Trading Company
The effective rate of tax payable for shareholders of trading
Companies in Malta (on trading activites) is therefore 5% due to the
6/7ths refund available to non-resident shareholders
of the company registered in Malta.
Participating Holding
A holding by a Maltese Company in a non resident
company qualifies as a participating holding
if any of the following is satisfied;
• The holding is 10% or more of equity
share capital
• The Malta company has an investment
of minimum €1.16million held for at least
183 Days
• The Malta company is entitled to appoint
a director in the non-resident company
• Where the holding is a furtherance of
the Maltese companies Business.
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, in which the Malta Company has invested in, 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 to the Malta Company:
• 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
No withholding taxes, stamp duties or exchange
control restrictions apply on distribution of
profits from the Maltese Company to non resident
shareholders, and these dividends can be expatriated
without any res
By setting up a company in Malta, this would
not affect business as usual of current trading
activities. The only amendments required are:
1. Change of Trading name (If a different company
name is chosen) to that of the Maltese Company.
2. Change of head office address to the Maltese
registered office on all Company correspondence.
3. Setting up of a Business bank account in
Malta.
Contact us for more information as well as for
a quote. We will happily guide you through the
company formation process and also advise you
on the solutions that would best suite your
needs!. info@CompanyinMalta.com.
Or call +356 2010 3020
The content on this website is for information purposes only and should not be taken as tax, legal or any other professional advice.
