ARTICLE · 11 SEPTEMBER 2025

Malta Introduces Final Income Tax Without Imputation Regime

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On 2 September 2025, the Maltese Government enacted Legal Notice 188 of 2025, establishing the Final Income Tax Without Imputation Regulations (FITWI), 2025, under the Income Tax Act (Cap. 123).

MaltaTax

Chris Armstrong

On 2 September 2025, the Maltese Government enacted Legal Notice 188 of 2025, establishing the Final Income Tax Without Imputation Regulations (FITWI), 2025, under the Income Tax Act (Cap. 123). This legislation introduces a new, optional tax regime that offers companies and certain other entities the ability to apply a 15% flat rate of tax on their chargeable income, with such tax treated as final.

The regime, commonly referred to as FITWI, represents a strategic reform aimed at simplifying Malta's corporate tax system, while remaining consistent with international tax developments and compliance standards.

Key Features of the FITWI Regime

The FITWI regime allows eligible entities to opt for a flat 15% income tax on their taxable profits. This tax is considered final, meaning:

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