Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Malta
New tax reform: No specific information
New tax treaties: No specific information
Local tax advisors
No specific information on the local tax advisors.
There is no particular definition of the concept of Permanent Establishment in the domestic tax law.
Resident companies are taxed on their worldwide income.
Entities are considered to be resident for tax purposes in Malta if their place of residence or their place of domicile is in Malta.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 35%.
Non-taxable income includes the following:
- No specific information…
Non-deductible expenses includes the following:
- No specific information…
Carry forward: Yes, but some restrictions may apply
Carry back: No
Companies should submit the tax return annually.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Malta are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 0%.
The general rate of WHT on interest is 0%.
The general rate of WHT on Royalties is 0%.
The general rate of WHT on management fees is 0%.
The general rate of WHT on technical services is 0%.
Capital gains are taxed as general income under the regular CIT. However capital gains derived from the sale of real property are taxed with a separate tax rate.
Standard VAT tax rate is 18%
Reduced tax rates are:
- 7% (among others, certain Travel and tourism services,…)
- 5% (among others, electricity, medical accessories, museums,…)
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
- intra-Community supplies of goods;
- Vessels and Aircraft engaged in commercial international traffic;
- Supply and Services related to zero-rated vessels and Aircraft;
- transport of goods and services directly related to import and export of goods;
- Passenger transportation.
Exempt supplies include, subject to certain conditions:
- Certain financial services (except for financial lease);
- Insurance services ;
- Training and education ;
- Postal services ;
Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.
EU taxable companies may claim a VAT refund to their own tax authorities through on the basis of the 13th EU Directive.
Certain non-resident companies (which are not required to register and incur Malta VAT in the course of their business activities in Malta) may apply for a refund.
Refunds are subject to the reciprocity principle, which means that Malta only refunds VAT to foreign companies in countries that offer similar refunds to Malta companies.
No other specific information of VAT in Malta.
The general statute of limitation is 5 years starting at the end of the year in which the tax return had to be filed.
There is no foreign exchange control in Malta. Income and capital can be freely repatriated.
There are no thin capitalization rules in Malta.
Do not hesitate to share your experience in Malta with us in the comments below. Any comments are welcome !