Malta has been a European Union Member State since 2004 thereby providing our clients with an EU base for their companies. Malta is an established international financial services center Legislation which was enacted in late 1994 provides a regulatory framework for financial services activities and international business.
In April 2013, Malta received an ‘A+’ rating from Fitch Ratings with a stable outlook. Malta’s robust banking sector and financial services sector are a strong and solid part of the Maltese economy and are supported by the Government.
Malta provides a number of opportunities for establishing tax efficient structures. Some key features include:
- Competitive tax system whereby Malta companies are taxed at 35%, however, through Malta’s full imputation system they can benefit from tax refunds;
- A wide network of Tax Treaties as well as other methods for relieving Double Taxation on cross border transactions;
- As an EU member state, entities have access to the Parent-Subsidiary, Interest & Royalties and Mergers Directives;
- Participation exemption;
- Royalties from Patents and Copyrights are eligible for tax exemptions;
- Tax Exemption for income derived from Collective Investment Schemes;
- A taxation scheme for groups of companies allowing offset losses between group companies;
- No ‘thin-capitalisation’ rules and no anti-controlled legislation for foreign corporation;
- Exchange risk mitigated through the possibility of the company to denominate their share capital and accounts in convertible currency with the chosen currency then being used to pay of tax and tax refunds (where applicable);
- Advanced Revenue rulings by the Maltese Commissioner of Inland Revenue guarantee the tax position for a period of five years and may be renewed for a further five year period for international transactions;
- No capital duty on share issues and exemption from duty on transfers of shares in, by or to companies who hold the majority of their business interest outside Malta
IMS provides services to our clients to set up, manage and maintain a Maltese Company. These services include but are not limited to, registered office facilities, and directorship, as well as accounting and tax consultancy services. Please contact us should you require further information