At first glance, Malta’s tax system is not a low rate as it charges 35% … but when one looks deeper, there is an advantageous tax refund system in place to be claimed on income allocated to the Maltese Taxed Account and Foreign Income Account. Such refunds can be claimed by non-residents shareholders.

Malta’s tax system eliminates the double taxation of company profits.

This tax system has been in place since 1948 and it favours Malta and encourages businesses who are seeking to start up a business in an EU country, to relocate in the Maltese islands.

Any company incorporated in Malta is entitled to apply for a tax refund. This means that although companies are taxed at a rate of 35%, they are entitled to claim tax credits. This can potentially result in an effective tax rate between 0 – 10%, and it depends on the the type of income the company generates.

It is to be noted that this system is fully compliant with EU and international standards as it has been approved by the European Union and the Organisation for Economic Co-operation and Development (OECD).

If you think you are eligible to benefit from this tax refund and would like to seek professional assistance, our tax consultants at Fairwinds Management Limited are ready to assist you. One of our Directors, Ms Joceline Caruana M.Acc, MIA, Cert.Tax, CPA is an accountant and tax specialist herself. To gain more information about this or to set up a meeting, you can get in touch directly with her on jcaruana@fairwindsmanagement.net.

Apart from guiding companies on how to benefit from tax refunds, our team can also assist you in other tax-related services such as international tax services, registration of shareholders for the purpose of tax refunds, and compilation of companies’ tax computation as required by the income tax act.