Tax in Malta
Malta’s tax system has been and remains an important factor in securing the country’s steady and significant growth as a reputable financial services centre. The tax system was vetted thoroughly by the European Commission upon Malta’s accession to the European Union and has since been approved as fully compliant with all requirements of EU law.
GVZH Advocates provides a range of local and international clients with consultancy and advisory services addressing any aspects of domestic taxation and the Malta tax treatment of proposed structures or transactions of varying size and complexity. Our tax practice is regularly called upon to assist in high-level tax and estate planning and also to advise on the Malta tax implications of non-tax driven exercises involving corporate, trusts and other arrangements.
Services provided by our tax practice may include advice concerning:
- corporate and tax structuring
- the direct and indirect Malta tax implications of any proposed transaction or set of transactions;
- alternative structures or transactions which may be favourable in a given set of circumstances;
- the Malta fiscal aspects of Trusts and Foundations;
- estate planning;
- the Malta Permanent Residents Scheme and Returned Migrants Scheme;
- Deduction of tax rate for qualifying employment
- Malta VAT.
Features of Malta’s tax system
- A full imputation system and a refundable tax credit system which typically substantially reduces the combined overall Malta effective tax rate otherwise applicable in respect of qualifying income or gains derived by a Malta company.
- An extensive and expanding double tax treaty network (currently comprising 59 double tax treaties in force).
- Access to the benefits of the EC Tax Directives.
- No Malta tax is generally levied or otherwise withheld on dividends distributed by a Malta company.
- No Malta tax is generally levied or otherwise withheld on outbound payments of interest or royalties.
- No Malta tax is generally levied on capital gains realised pursuant to a disposal of shares in a Malta company.
- Malta does not levy wealth or capital taxes.