Taxation of Malta Trading Companies

TAX SYSTEM:EU Approved EU:Member of the EU & Eurozone NO WITHHOLDING TAX:On outbound dividends WORKFORCE:Well qualified, multilingual workforce TAX REFUND SYSTEM:Possible effective tax rate of 5%. REDOMICILATION:Swift procedure DOUBLE TAX TREATIES:Broad network of approx. 70 signedDTTs UNILATERAL RELIEF:Double taxation relief without DTT in
place

• Reputation of an EU jurisdiction
• Broad interpretation of trading activities
• No WHT on outbound dividends
• Gains on disposal of shares by nonresidents are exempt from tax in Malta

The taxation of Malta companies is governed by the Income Tax Act and the Income Tax Management Act. The Income Tax Act contains the laws regulating the taxation of trading income, whilst the Malta tax refund system, along with other formalities, is regulated by the Income Tax Management Act. 

Eligibility of Malta Trading Companies

• MINIMUM SHARE CAPITAL
  • The minimum share capital for the formation of a Malta Trading Company is of €1,250, with 20% paid up or the equivalent in any other currency such as but not limited to: US$, GBP, and SEK.
• APPOINTMENT OF DIRECTOR & COSEC
  • A Malta Company requires the appointment of a local director and company secretary. The Director shall be responsible for the day to day management of the company, whilst the company secretary is responsible of the administrative duties - including the keeping of minutes in general meetings and filing of applications when necessary.
• COMPANY FORMATION DOCUMENTS
  • The documents required for the incorporation of a Malta Trading Company are the Memorandum & Articles of Association, standard due diligence documents and a bank slip confirming payment of initial share capital. APPOINTMENT OF AUDITORS The appointed auditor of a Malta Holding Company must be a Malta registered auditor.