The design possibilities of a Maltese company
The tax law in Malta is quite complex. Active companies in Malta are taxed at a rate of 35%, but there are a number of exceptions, with considerably less tax to be paid.
Income from patents or licenses is not taxed at all.
By means of a Malta holding company, the income tax burden of active companies can be reduced to 4.25%.
A holding company holds investments in foreign companies.
Pure investment income is not taxed – a consequence of the Maltese holding company privilege.
Malteser International Holding Company operates with a foreign account. This makes income from foreign sources possible.
Profits are normally taxed at 35%.
With one of the following methods, however, you have a good chance of reducing taxes:
Malta has a double tax treaty with 45 countries: Albania, Agypt, Australia, Austria, Barbados, Belgium, Bulgaria, Canadian, Cyprus, Czech Republic, Finland, France, Germany, India, Iceland, Italy, Korea, Kuwait, Lebanon, Libya, Lithuania, Luxembourg, Malaysia, Netherlands, Norway, Pakistan, Poland, Portugal, Romania, Singapore, Slovakia, Sweden, Switzerland, South Africa, Thailand, Tunisia, Turkey, Turkey, USA, United Arab Emirates, United Kingdom.
- Commonwealth Liberation
Uniliteral exemption (if there is no agreement, there is a similar exception in Malta)
Flat rate – foreign tax credit: If there is no documentation, there is no agreement or one of the three points, Malta will issue a 25% tax credit.
The following points must be observed for a Malta Holding company:
- Subsidiaries must be commercially active (reservation of activity), active income is subject to regular taxation.
- Subsidiaries must be subject to a minimum tax rate of 15%.
- infection regulations
ITC (international trading companies) are taxed at only 5%. It applies to the following business areas:
- Financing from foreign companies
- Income from commission payments
- licensed investment companies
- in compliance with the 15% rule: the processing of goods (imported and exported from abroad)
In such cases, however, transactions may only be carried out outside Malta.
The ITC must pay the normal tax rate of 35%. However, a request for reimbursement may be made if non-resident shareholders are involved. In such cases, ITC only pays 27.5% of dividends from an international trading company.
At the same time, non-resident shareholders are entitled to receive a tax refund for the entire 2/3 of the total amount. Thus, the total refund amounts to 30.83%. This means that the effective tax rate is 4.17%.
As the tax authorities in Malta work fast, the refund usually does not take longer than 14 days.
Incorporations in Malta are very attractive due to the exceptions mentioned here, and for many entrepreneurs they are also extremely interesting in terms of tax optimisation.
Legal basis for a Malta company
Fiscal recognition is important for the establishment of a company abroad. This means that the company must comply with the legal requirements of the country in which the actual registered office is located. It is not enough simply to register your company’s registered office abroad while the actual business activity takes place in Austria or Germany.
A director, who has been proven to be active as the local director of the company in Malta, is essential for the company to have its registered office in Malta. So-called “letterbox companies” are not possible. The Malta firm must be active and these activities must be verifiable.
It is also part of our service to provide you with a director on request. We are also happy to offer you professional office services.
Malta Company foundation
The company formation in Malta takes about 10 – 14 days.
You can choose the company name yourself.
The Malta-firma.com team always strives for a quick and easy way to set up your business.
The Malta company formation through Malta-firma.com includes the following services:
- Examination of the desired company name
- application for incorporation
- Filing in the commercial register
- Payment of company formation fees
- certificate of incorporation
- share certificates
- document folder
- account opening
- office leasing
- general power of attorney
- authority communication
- Shareholder and Director Register
- optional: office service
- optional: accounting, tax consultancy
- optional: corporate lawyer, legal advice
- optional: residence
Contact us without obligation!
We will find the ideal solution for your company foundation.
Company Malta – Offshore Banking – Foreign firm – Anonymous bank account – Offshore bank account – Establish holding company – Form a company