Malta is an attractive location for holding companies and capital groups. The technology sector and other service industries, however, also enjoy increasing development here. Discover the tax regulations in Malta.
Taxes in Malta
A company is considered a Maltese tax resident if it has its registered office and a resident representative in Malta. A company holding tax residence in Malta is obliged to pay taxes on its income, regardless of the source of that income in Malta.
Companies are subject to income tax at a flat rate of 35%. There is no separate corporate income tax structure.
Still, there is a particular tax credit mechanism which, with an appropriately designed structure, composed of at least two Maltese entities, allows for achieving an effective tax rate as low as 5%.
The base rate of VAT in Malta is 18%.
Taxes in Malta – note the following:
In the Maltese legal system, there exist preferential rules and simplifications for business operations within capital groups and holding companies.
Moving abroad is a highly significant step in life. Tax issues should come as the last matter to be considered. Think about where you would like to live, where your children should go to school and where you want to run a business. Only after honestly answering these questions, can you decide which country will be the most suitable for all your needs.
WHAT FORMALITIES DO I HAVE TO COMPLETE WHEN MOVING OUT OF POLAND?
There are many formalities, and they depend primarily on the current situation. The aim should be to completely sever all ties with Poland.
DO I HAVE TO FILE A TAX RETURN IN POLAND AFTER MOVING AWAY?
Tax returns in Poland are submitted by Polish residents or persons earning income in Poland who are residents of another country. It all depends on whether you have successfully relinquished your Polish residence. And if you have, it also depends on the kind of income you earn in Poland.
WILL I PAY TAX IN POLAND BECAUSE OF RELOCATING THE COMPANY ABROAD?
The question is about the broad subject of exit tax. First of all, you need to verify what moving the company abroad actually means. It can be both the relocation of the registered office of the company and the personal move of the entrepreneur – a natural person. The tax implications of both situations may be significantly different.
CAN I TRANSFER THE COMPANY'S ASSETS TO THE DESTINATION COUNTRY TAX-FREE?
The general limit below which you do not have to pay exit tax in Poland is PLN 4 million. Nevertheless, it is always necessary to check this issue because the transfer of the company’s assets to the destination country will not always mean the same thing.
This website uses so-called „Cookies”. Further use of the website without changing your cookie settings, means consent to their recording or use. Detailed information can be found in the Regulations tab.