Corporate Taxation
The standard corporate tax rate applicable to companies
registered in Malta is 35% and there are no thresholds for reduced
rates of taxation applicable. There are no controlled foreign
company, thin capitalisation or transfer pricing rules applicable
under Maltese legislation.
Following amendments implemented to the Maltese Income Tax Acts
in 2007, in line with an agreement reached with the EU, a revamped
system of corporate tax refunds is now available. The agreement
that Malta has reached with the EU includes the retention of the
full imputation tax system wherein tax paid by a company in Malta
is imputed to the shareholder. The refund system was extended to
all income derived from Malta and to all shareholders irrespective
of their residence among other amendments. A company that is
registered and taxable in Malta allocates its income to one of the
five tax accounts depending on the nature of the income
concerned.
