ARTICLE · 29 AUGUST 2014

The Maltese Tax Refund System In A Nutshell

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For this third in our series going more in-depth on Malta, our local Head of Accounting explains the Maltese tax refund system.

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Elaine Scicluna Lewis

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For this third in our series going more in-depth on Malta, our local Head of Accounting explains the Maltese tax refund system

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.

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