Corporate Tax | KPMG | Malta

Corporate Tax

Corporate Tax

Malta's tax system is based on UK principles, and enjoys the approval of the EU Commission and Code of Conduct Group following Malta's EU accession.

Malta's tax system enjoys the approval of the EU Commission and Code of Conduct Group.

Malta's tax system is based on UK principles, and enjoys the approval of the EU Commission and Code of Conduct Group following Malta's EU accession. Through the application of its imputation tax system and tax refund system, Malta offers the lowest effective tax rate in the European Union. This has resulted in numerous multinationals setting up operations in Malta to enjoy a tax and cost efficient onshore jurisdiction. The application of the refund system is buttressed by a flexible participation exemption that ensures that dividends derived from a qualifying entities (companies, limited partnerships and collective investment vehicles satisfying the necessary conditions) will be exempt in Malta.

Malta's tax system allows for peace of mind, given that there are no withholding taxes on dividend distributions to non-residents (as well as on interest and royalty payments), no exit taxes, no transfer pricing rules, no controlled foreign company regulations and no thin capitalisation. Over and above this, Malta enjoys a wide treaty and favourable network.

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