MALTA

Located in the heart of the Mediterranean between mainland Europe and North Africa Malta is the perfect place to conduct business. Malta is a strategic hub due to its location and is easily accessible.

Key benefits:

• Malta has been a full EU member since 2004 and entered the Eurozone in 2008.
• Malta is a highly reputable jurisdiction with laws in line with applicable European Union legislation
• English is used throughout the island and all documents produced are in English
• Corporate income tax is subject to a flat rate which currently stands at 35% however Malta is currently the only member which allows a full imputation system to eliminate the double taxation of company profits, therefore tax charged to the company is imputed to the shareholder upon dividend distribution by the company. 

• Since the tax rate of 35% applicable to companies is also the highest tax rate in Malta, shareholders will not suffer any additional tax on the receipt of dividends. The shareholder may even receive a tax refund if his income falls to be taxed at a lower rate of tax than the 35% tax rate incurred by the company
• A system of tax refunds is in place so that upon dividend distribution, depending on the nature of the taxable profit, a 6/7ths, 5/7ths or 2/3rds tax refund of the corporate tax paid by the company, may be paid to the shareholder. The effective tax rate is therefore reduced to 5%.
• Furthermore, Malta’s tax system grants a full participation exemption with respect to dividend income derived from a participating holding and to capital gains derived from the transfer of said holding; a number of anti-abuse conditions must be satisfied before a company may be classified as a participating holding.
• Malta has a highly professional workforce