Malta – A Fiscally Competitive Tax EU Jurisdiction
5% Effective Tax Rate
Cost Effective & Efficient Malta Company Services
Efficient Tax Structuring
Malta’s company law is based upon the UK’s Companies’ Act 1985 and is a complete, established set of regulations – providing further assurance to the international business community.
Malta’s favourable tax regime results in an effective tax rate of only 5%, while enjoying all the benefits of being a full member of the EU and a solid reputation as an onshore, regulated jurisdiction.
Added to which, with Malta’s full imputation and refund system, shareholder’s dividends are taxed at 0%.
Structuring – proactive & experienced, we ensure that the correct corporate form is registered to suit your business objectives, along with minimising any taxation obligations.
The company limited by shares is by far the most popular, tax efficient and flexible type of corporate organisation, not only in Malta but internationally. As in other jurisdictions, any liability of the shareholders is limited to the value of their shares, providing comfort to such shareholders not matter what business venture that may be pursued.
Benefits of a Malta Limited Company
Full imputation system – 5% effective Corporate Tax Rate
0% Shareholders Dividend Tax
|No withholding tax on company dividend, interest or royalties||Share capital in any currency|
|Transfer of shares normally tax exempt for non residents if Malta company owns no immovable property in Malta||No restriction of ownership or transfer of immovable property outside of Malta|
|Low VAT rate & simplified VAT registration||Licensed operations, such as financial & investment services, can offer their services in other EU states|
|Re-domiciliation both in and out of Malta allowed||Indefinite carry forward of trading losses|
|No transfer pricing rules||No thin capitalisation rules|
Generous tax rebates & investment schemes offered by Malta Government and EU
A one person Malta company is allowed, along with a Company Secretary who must be a natural person.
Acumum can provide Company Secretarial services and act as Directors, as well as provide a registered office address.
Low Regulatory Fees
The one – off fee payable to the Registrar of Companies upon incorporation is € 245.
The minimum authorised share capital that must be subscribed is €1,200 of which at least 20% must be paid up, so that €240 need be deposited into a bank account.
For companies subscribed to the minimum share capital, the Annual Return, which must be submitted each year detailing any changes to the companies’ capital structure, shareholders or officials is only €100.
Re –domiciliation of a company to Malta
Subject to certain conditions, you can re-domicile (continue) your company from the jurisdiction in which it is currently incorporated to Malta. Acumum is able to assist you in assessing whether this is the right course of action for you to undertake, as well as assisting you in the process of actually re-domiciliation.
Fiduciary & Nominee
Through our network of reviewed, validated and licensed partners, Acumum can assist you in engaging both fiduciary and nominee services.
As in all jurisdictions, there are certain statutory acts that must be undertaken to ensure that the Malta company is compliant with Maltese company and related tax and accounting laws and which are comparable with the duties set out in UK company law.
As some of these duties involve fiduciary duties – incurring a higher standard of accountability- Acumum will undertake appropriate anti – money laundering and KYC compliance before agreeing to take on these roles.
Our corporate professionals can provide, depending on your needs, various corporate and back office solutions.
A Malta company may consist of only one director and a company secretary. However, there are beneficial tax reasons why a company should wish to have a Malta resident Director and be recognised as having Malta as a tax base.
- A company resident in Malta, by being incorporated in Malta is taxed on a worldwide basis
- Non – Malta domiciled companies resident in Malta, due to it being effectively controlled and managed in Malta – via evidence of Malta resident Directors, its management or Director meetings occurring in Malta or having operations in Malta are only taxed on:
- income arising in Malta and
- income arising outside of Malta but received in Malta
- Non – Malta domiciled companies resident in Malta may apply for relief subject to the conditions of the appropriate double taxation treaty
- Non Malta resident shareholders can also benefit from the appropriate tax refunds.
Except for investment companies, every limited and public company in Malta must have a company secretary who is a natural person – not another company.
Acumum’s corporate professionals can act as the company secretary of your Malta company, ensuring that the following company records are kept and required actions are undertaken:
- draft minutes, resolutions of meetings of the Board of Directors
- ensure adequate and proper notice of meetings are given
- maintain the share register and register of members
and undertake all necessary filings as stipulated by the Malta Registry of Companies.
Opening Bank accounts
Now part of the EU, Malta located banks abide by not only the Malta Banking Act, but also various EU banking laws, added to which Malta banks are known for their efficiency and robustness; providing you with added assurance as to their security and financial strength.
An ‘in formation’ account, located in Malta, is a necessity when incorporating a Malta company. Although there is no requirement for you to have an ongoing Malta located bank account – both Malta companies and non resident individuals may open multiple bank accounts, in any currency, in Malta.
There are many types of banks and accounts available in Malta; ranging from commercial ‘high street banks’ to specialist trade and finance banks – the majority of which offer online, as well as credit and debit cards.
Malta’s tax system exempts the payment of interest on money held in an account by a non – resident.
Whilst being a jurisdiction of repute, Malta’s company and trust laws – shares can be held by nominees or through an authorised fiduciary company – as well as Malta’s professional secrecy laws provides both confidentiality and peace of mind to the private individual and investor alike.
Acumum can help guide you and assist you through the process of opening accounts in accordance with your needs and for company incorporation; contact us for more information.