17.09.2024

Taxes are an unavoidable part of our lives and for those doing business. But the financial impact of taxes doesn’t have to be overwhelming. This article will outline taxes in Malta and how professional tax advisory services can assist you and your business. The tax landscape is intricate and ever-changing.  Staying on top of tax regulations and identifying potential tax-saving opportunities can be a daunting task. As tax laws and regulations can change, it is crucial to consult with qualified tax advisors for personalised advice on any specific circumstances.

Personal Income Tax

In Malta, the tax system is based on a progressive income tax structure, meaning the higher your income, the higher your tax rate. Tax rates range from 0% to 35% and taxable income includes income from employment, business, investments, and property, among other sources. Certain deductions and allowances may be available to reduce taxable income.  Tax is collected through the Provisional Tax system (for self-employed individuals), the Final Settlement System (FSS) for employees, and Self-Assessment.  

Corporate Tax

Corporate tax holds a flat rate of 35% applies to companies’ profits. However, foreign shareholdings are entitled to claim tax credits which can potentially result in an effective tax rate between 0% and 10%.

Our Tax Services

Our comprehensive range of tax services is designed to alleviate the burdens of tax compliance and optimisation.  We assist individuals with the preparation and filing of self-assessment tax returns, ensuring accuracy and meeting deadlines.  For businesses, we offer expert guidance on all aspects of taxation, helping them understand their obligations and uncover potential tax-saving opportunities. We develop tailored tax strategies to minimise liabilities while adhering to legal requirements and provide support with provisional and final tax payments to facilitate effective cash flow management.  Additionally, we compile company tax computations in accordance with income tax regulations and assist with shareholder registration for tax refund purposes, maximising benefits and ensuring a seamless process.

With the right tax strategies and support, your business can thrive despite the challenges of taxation. Contact our team today today to learn how we can help you optimise your tax position and achieve your financial goals. With the right strategies and guidance, businesses can minimise their tax burden and optimise their financial position. If you would like to set up a tax advisory meeting, please email us on: info@fairwindsmanagement.net.

Fairwinds Management Limited is a MFSA licensed firm offering Business Solutions in Malta. As part of our services, we offer Accounting, Administration, Corporate and Legal solutions.  Fairwinds Management also manages the brand Accounting Services. More information about us and our key services please visit our website. You may reach Fairwinds Management on +356 2704 0903 or info@fairwindsmanagement.net.

Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.