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Corporate Tax

Corporate Tax

Malta's tax system is based on UK principles, and enjoys the approval of the EU Commission and Code of Conduct Group following Malta's EU accession.

Malta's tax system enjoys the approval of the EU Commission and Code of Conduct Group.

Malta's corporate income tax system is based on old UK principles and jurisprudence. Through the application of its imputation tax system and tax refund system, as well as the notional interest deduction, Malta offers a low effective tax rate that has been reviewed and approved by the EU Commission and the EU Code of Conduct Group. The application of the refund system is buttressed by an optional flexible participation exemption that entitles recipients of dividends derived from qualifying entities (companies, limited partnerships and collective investment vehicles satisfying the necessary conditions), and gains arising upon their disposal, to be exempt in Malta.

Malta's tax system allows for peace of mind; a simple tax system (no withholding taxes on dividend distributions to non-residents and no transfer pricing rules), a wide treaty network generally following the OECD guidance, immediate transposition of EU directives, and enjoyment of all the benefits granted by EU law.