Tax law in Malta
In this blog we will explain you about Tax law in Malta
In Malta, starting a business pays off in terms of taxes. The corporate tax rate of 35% is set by Malta's tax laws. However, the following principle enables them to significantly lower the effective tax rate: shareholders are entitled to tax refunds if the company pays all taxes in full.
The type of income received determines the amount of compensation:
6/7 refund on the company's active business income (5% effective tax rate);
Refund on 5/7 for "passive" income, such as royalties (at a 10% effective tax rate);
a payment equal to two-thirds of the company's income from overseas sources, which is exempt from double taxation agreements and will have an effective tax rate of 11.7%;
a refund of 100 percent for the income from a Maltese company's participation in the capital of a subsidiary (the effective tax rate is zero percent).
However, income from Maltese real estate and some other types of income do not qualify for tax refunds. Dividend, interest, and royalty income are exempt from Malta's withholding tax.
Refund on 5/7 for "passive" income, such as royalties (at a 10% effective tax rate);
a payment equal to two-thirds of the company's income from overseas sources, which is exempt from double taxation agreements and will have an effective tax rate of 11.7%;
a refund of 100 percent for the income from a Maltese company's participation in the capital of a subsidiary (the effective tax rate is zero percent).
However, income from Maltese real estate and some other types of income do not qualify for tax refunds. Dividend, interest, and royalty income are exempt from Malta's withholding tax.
How much does starting a business in Malta cost?
The cost of registering a Malta company depends on a number of factors, including whether a nominal director must be found, whether a substance must be formed in Cyprus, and so on. As a result, the cost of incorporating a company in Malta must be determined individually for each case. Additionally, purchasing a company is always an option in Malta.
The cost of registering a Malta company depends on a number of factors, including whether a nominal director must be found, whether a substance must be formed in Cyprus, and so on. As a result, the cost of incorporating a company in Malta must be determined individually for each case. Additionally, purchasing a company is always an option in Malta.
Please get in touch with us, and we'll figure out the cost of registering a Malta company based on your requirements.
How can we assist?
VigoLex has extensive experience providing corporate and financial (company registration, opening bank accounts, connecting to payment systems, tax refunds) and gambling incorporation services in Malta.
VigoLex has extensive experience providing corporate and financial (company registration, opening bank accounts, connecting to payment systems, tax refunds) and gambling incorporation services in Malta.
In particular, the lawyers at VigoLex assisted their clients in acquiring a Maltese online casino license and a complete set of documents as well as a business in Malta. In addition, VigoLex specialists regularly participate in the annual international gambling exhibition, which is traditionally held in Malta, in order to keep abreast of any new products that are currently available on the market.
We are happy to help you with things like getting a tax registration number in Malta, listing your company in the business register in Malta, registering a trademark in the jurisdiction of Malta, etc.
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