31 August 2014

The Maltese Tax Refund System In A Nutshell

TMF Group 29/08/2014: Malta's tax refund system is one of key factors putting Malta amongst the EU's lowest tax jurisdictions. Operating a full imputation system of taxation which avoids the economic double taxation of corporate profits by imputing onto shareholders the underlying corporate tax attaching to dividends, Malta's system allows the shareholder to claim a full credit for any tax paid by the company on profits distributed as dividends.

Basis of Malta taxation

Corporate income tax in Malta is governed by the Income Tax Act (ITA) and the Income Tax Management Act (ITMA) together with their respective subsidiary legislation.
Tax will arise on the two main concepts of residence and domicile. Malta incorporated companies are both resident and domiciled in Malta and are therefore subject to Maltese tax on its worldwide income at the standard rate of 35%; if the company is domiciled outside Malta but the tax resident is in Malta it is taxed on income arising in Malta and on income remitted to...read on.