Taxation of Malta Holding Companies

TAX SYSTEM EU: EU Approved EU: Member of the EU & Eurozone CAPITAL DUTY: None WORKFORCE: Well qualified, multi lingual workforce CAPITAL GAINS EXEMPTION: On certain transfer of shares& immovable property

NO WITHHOLDING TAX: On outbound dividend, interest or royalties 

DOUBLE TAX TREATY: Extensive double tax treaty network

• Our reputation is that of an EU jurisdiction;
• Participation exemption regime;
• No restrictions to holding activities, may also carry out trading activities;
• No withholding tax on outbound dividends;
• Gains on disposal of shares by non-residents are exempt from tax in Malta;

The principles for the taxation of Malta holding companies are derived from the Malta Income Tax Act and the Malta Income Tax Management Act.

The Income Tax Act regulates the tax treatment of income, such as by outlining the manner by which profits or dividends are to be taxed. It also provides for the tax treatment of capital gains, such as gains deriving from the transfer of immovable property situated in Malta. The Malta tax refund system, along with other formalities are
then regulated by the Income Tax Management Act.

• Resident or incorporated in the EU;
• Subject to any foreign tax at a rate  of at least 15%;
• Less than 50% of its income is derived from passive interest or royalties;
• The equity shares held in the non-resident company do not represent a portfolio investment;
• Non-resident company or its passive interest or royalties have been subject to tax at a rate which is not less than 5%;