Malta
Companies Taxation

Overview

Maltese Tax System for Companies

  • Standard corporate income tax (CIT) rate: 35%.
  • Full imputation system avoids double taxation at shareholder level.
  • Tax refund system enables up to 6/7 reimbursement, reducing effective tax to ~5%.
  • No withholding tax on dividends, interest, or royalties to non-residents.
  • Capital gains taxed as ordinary income (no separate CGT).
  • No wealth, inheritance, or capital duty taxes on companies.
  • Special regimes for shipping (tonnage tax) and petroleum extraction.
  • EU-compliant participation exemption for qualifying dividends and capital gains.
  • Extensive network of 70+ double tax treaties.
  • Advance tax rulings and fiscal certainty options available.

Requirements and Procedures

  • Register company with Malta Business Registry and obtain Tax Identification Number.
  • Maintain proper books and records for minimum 7 years.
  • File annual corporate income tax return (Form 101) within 9 months after financial year-end.
  • Year-end between January and June: deadline is March 31 of following year.
  • Provisional tax payments due in April, August, and December.
  • VAT registration required if annual turnover exceeds EUR 35,000 (goods/services in Malta).
  • Submit audited financial statements annually.
  • Comply with Economic Substance Regulations where applicable.
  • Withholding tax filings not generally required for cross-border payments.
  • Late payments incur interest (currently 0.33% monthly).

  • Tax-efficient structuring and incorporation of Maltese entities.
  • Advice on applying Malta’s tax refund mechanism for shareholders.
  • Full corporate tax compliance, including CIT and VAT returns.
  • Coordination with auditors for timely preparation of financial statements.
  • Representation before the Malta Tax Commissioner.
  • Cross-border tax planning using Malta’s double tax treaties.
  • Implementation of participation exemption and group structuring.
  • Application for advance tax rulings where needed.
  • Support with Economic Substance compliance.
  • Advisory for shipping and petroleum tax regimes.

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