Tax in Malta

The system of tax in Malta has been and remains an important factor in securing the country’s steady and significant growth as a reputable financial services centre. The tax system was vetted thoroughly by the European Commission upon Malta’s accession to the European Union and has since been approved as fully compliant with all requirements of EU law.

GVZH Advocates provides a range of local and international clients with consultancy and advisory services addressing any aspects of domestic taxation and the treatment of tax in Malta, of proposed structures or transactions of varying size and complexity. Our tax practice is regularly called upon to assist in high-level tax and estate planning and also to advise on the Malta tax implications of non-tax driven exercises involving corporate, trusts and other arrangements.

Services provided by our tax practice may include advice concerning:

• corporate and tax structuring
• Real estate transactions
• the direct and indirect implications of tax in Malta of any proposed transaction or set of transactions;
• alternative structures or transactions which may be favourable in a given set of circumstances;
• taxation of collective investment schemes
• the Malta fiscal aspects of Trusts and Foundations;
• estate planning;
• the Malta Permanent Residents Scheme and Returned Migrants Scheme;
• Deduction of tax rate for qualifying employment
• Malta VAT.

Features of Malta’s tax system

• A full imputation system and a refundable tax credit system which typically substantially reduces the combined overall Malta effective tax rate otherwise applicable in respect of qualifying income or gains derived by a Malta company.
• An extensive and expanding double tax treaty network (currently comprising 59 double tax treaties in force).
• Access to the benefits of the EC Tax Directives.
• No Malta tax is generally levied or otherwise withheld on dividends distributed by a Malta company.
• No tax is generally levied or otherwise withheld on outbound payments of interest or royalties in Malta.
• No Malta tax is generally levied on capital gains realised pursuant to a disposal of shares in a Malta company.
• Malta does not levy wealth or capital taxes.

For further information about how GVZH Advocates can help you with your Malta tax legal requirements, enquiry kindly contact us on tax@gvzh.mt.