
Malta
Companies Taxation
Overview
Malta offers a highly competitive corporate tax framework that supports international business structuring and shareholder-friendly distributions. While the nominal corporate tax rate stands at 35%, Malta’s full imputation system and refund mechanism can reduce the effective tax rate to as low as 5% in many cases.
With extensive treaty coverage and favorable EU alignment, Malta is a strategic location for holding and trading companies.

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).


How Charfort can help you?
- 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.
Frequently asked questions
Everything you need to know about the process.
Contact us today
Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
