Practice Areas

Financial & Fiscal Services

The Maltese system of taxation is based on a full imputation system, i.e. the tax paid by the company is available as a tax credit against the tax liability of the shareholder. Non-resident shareholders of international companies that pay tax on profits may obtain a refund on the tax paid by the company in which they hold shares, when profits are attributable to the foreign income account. Income arising outside Malta is allocated to the said account. The tax regime is non-discriminatory in that it is available to both. International trading companies, and their non-resident shareholders or holding companies pay tax at the rate of 4.2%, while holding companies receive a full refund of tax paid. Refunds are made with fourteen days.