Practice Areas

Financial & Fiscal Services

The business of banking, i.e. the business of accepting deposits, may only be carried out by companies in possession of a licence granted by the Malta Financial Services Authority. Own funds must amount to two million Maltese Liri. Banking Directives are issued from time to time. A branch of an institution licensed overseas may be authorised to open in Malta. A representative office in Malta of a non-Maltese bank "means premises in Malta from which the business of banking of the company is promoted or assisted in any way." The rate of income tax payable by a bank registered in Malta on profits arising from interest receivable from outside Malta amounts to 7.61% of net profits before tax. Upon distribution to the non-resident shareholders, no further tax is payable. Furthermore, the refund provisions ensure that the non-resident shareholders will receive directly from the revenue a refund of two-thirds of the Malta tax paid, i.e. 2/3 of 76.1, equal to 50.7.