Malta operates a full imputation tax system, which allows shareholders of Malta-registered companies to benefit from tax refunds on distributed profits, subject to specific conditions. Fairwinds Management assists shareholders and companies in navigating the Maltese tax refund mechanism efficiently and in full compliance with local regulations.
Malta companies operate under a full imputation system and are generally subject to corporate tax at a rate of 35% on chargeable income. However, upon the distribution of dividends, non-resident shareholders may be entitled to claim a refund of part of the tax paid at company level. Depending on the nature of the income and structure involved, shareholders may qualify for a 6/7ths tax refund. This system can result in a significantly reduced effective tax rate, provided the structure is properly maintained and compliant.
We assist clients with:
Our tax professionals ensure that dividend distributions and refund claims are processed accurately and efficiently, giving shareholders clarity and peace of mind. Proper planning and administration are essential to benefit from Malta’s tax refund system. At Fairwinds Management, we ensure that the entire process, from accounting to dividend declaration to refund claim, is handled seamlessly under one roof.
