Incentives for business in Malta

Yacht Registration under the Malta Flag

Tax Refunds and Dividend Taxation in Malta

Since 1994 Malta has allowed shareholders of certain companies an effective tax rate of 4.17%. This was achieved through a series of tax refunds based on the dividends a company distributed to its shareholders and was known as the International Trading Company (ITC) regime. In March 2006, the EU Commission formally requested Malta to abolish the regime. Malta abolished the ITC regime effective as from 1st January 2007 and introduced a new tax refund system.

Property Holding Companies

Property holding companies are legal entities used by net worth individuals or groups of companies to invest in real estate or to hold shares or participations in other companies investing in real estate. A property holding company may be used to invest in a single property or a large number of properties forming part of a large development project. In some cases, a property holding company will be used for each property forming part of large development project.

Register Intellectual Property in Malta

Shipping registration under the Maltese flag

Malta’s old maritime tradition offers the international shipping community a reputable open ship register that is one of the eight largest registers in the world.  The Malta Flag is a flag of confidence and enjoys “white flag” status. Owners and operators have come to recognize the island as a secure and cost–efficient centre for the registration and management of vessels.

Remote Gaming in Malta

Various elements and factors contribute to Malta’s imminent success in the attraction of remote gaming operations. Ranging from low gaming taxes to the high technological advancements in telecommunications and ICT have placed Malta on the map as one the most lucrative EU jurisdictions to locate your gaming operations.

Succession planning in family owned companies

Petroleum market liberalization in Malta

When Malta entered the European Union (EU) the country agreed on the liberalization of the petroleum market. Malta agreed to liberalize importation, stocking and wholesale of petroleum. The Maltese government only began to partially liberalize the Maltese energy market on the 2nd October 2007 with the publication of Legal Notice LN278 / 2007 better known as the “Petroleum for the Inland (Wholesale) Fuel Market Regulations, 2007”, hereafter called the Act. The aim of the liberalization is to provide consumers with higher quality service and better prices. The liberalization of the petroleum market in Malta will also mean more liberties for petrol pump owners who will be able to import their own fuel, thus giving customers greater choice and hopefully more competitive prices.

Triangulation - sales and transportation of goods in EU

Triangulation is a situation that involves a sale of goods, where three different member states in the EU are involved and where there are two sales transactions but one transport transaction. This is best understood by the following definition and illustration.

The remittance system of taxation in Malta

A company incorporated under the laws of Malta is considered ordinarily resident and domiciled in Malta. Companies which are ordinarily resident and domiciled in Malta are subject to tax on their world-wide income. A company which is not incorporated in Malta but is managed and controlled in Malta is subject to tax on a remittance basis on its foreign sourced income.

Re-domiciliation of Foreign Companies to Malta

The continuation of companies regulations (Legal Notice 344 of 2002) allow a body corporate formed and incorporated or registered under the laws of an approved country or jurisdiction other than Malta which is similar in nature to a company as known under the laws of Malta, to request the Registrar of Companies in Malta to be registered as being continued in Malta under the Companies Act. Continuation of companies in Malta is conditional upon law of that country or jurisdiction authorizing it to be continued under the laws of another jurisdiction, and provided it is also authorized to do so by its charter, statutes or memorandum and articles or other instrument constituting or defining the company.

Relief from Double Taxation in Malta

The provisions of the Income Tax Act allows companies which derived income or gains deemed to be sourced outside Malta to claim one of the following types of relief:

Branches of Overseas Companies

The provisions of the Companies Act offer the possibly to companies incorporated or constituted outside Malta to conduct business in or through Malta by using a branch or a place of business in Malta.

Overview of the Corporate Tax System in Malta

Corporate tax in Malta is governed by the Income Tax Act, the Income Tax Management Act, subsidiary legislation in the form of Legal Notices and case law delivered by the Board of Special Commissioners and the Court of Appeal. Whereas The Income Tax Act contains general computational rules, the Income Tax Management Act contains rules on the administration of tax. Detailed computational rules on various aspects of income tax are laid down in subsidiary legislation.

Maltese Holding Company

A holding company is used to hold assets and participations in other companies. Typically, the holding company itself does not trade, but it is used to hold the assets or shares in the trading company itself. Nevertheless, it may be more tax efficient for a group to allow the holding company to carry out trading activities which are related to the assets it holds.

Financing companies efficiently

Every operation needs financing. Financing may be raised in the same country of operation or in a country other than that in which the operation is located. The latter situation may arise in many cases, particularly where the country of operation has limited investors or limited access to efficient capital markets is restricted or the raising of finance is relatively expensive. Regulatory measures and the local banking system might be weak, thus the investor is forced to raise finance in another country. Investors may also be located in country other than the operating country thus using their own funds implies that their funds have to be transferred.

ETC Apprenticeships

The Employment and Training Corporation is giving the facilities of apprenticeship schemes which are an effective medium of vocational education and training in the same time.

Part-time employees’ rights

Legal notice 427 of 2002 as amended by Legal Notice 140 of 2007 regulates discrimination against part-time workers and improves the quality of part-time work. Moreover, its purpose is to facilitate the development of part-time work.

Budget Highlights 2008

The budget highlights for the 2008 budget presented in November 2007.

Budget Highlights 2008 (PDF)