Malta Tax Guide


Currency: Euro

Foreign Exchange Control: None

Accounting Principles: IAS/IFRS/GAPSE. Financial statements prepared annually.

Business Entities: Principally, public and private limited liability company, partnership en nom collectif, partnership en commandite, trusts and Foundations. Collective investment schemes and securitization vehicles may also be set up.

Corporate Taxation

Residence: If incorporated in Malta or if management and control is exercised in Malta.

Basis: Residents are taxed on worldwide income and chargeable gains. Non-residents are taxed on Malta-source income and chargeable gains.

Rate: 35%

Foreign Tax: A tax credit with pre-country and per-source limitations may apply or a (notional) flat rate foreign tax credit of 25% for companies specifically empowered to receive foreign source income.

Other: Royalties and similar income are exempt from tax. Tax incentives are granted to some companies including manufacturers, ICT, R&D, film and tertiary education.

Tax Year: 31 December. A different year end may be used if consent is granted by the Inland Revenue Department.

Personal Taxation

Residence: If ordinarily resident and domiciled then taxed on worldwide income. If resident or domiciled then taxed on income and chargeable gains arising in Malta and income arising outside of Malta but received in Malta.

Rate: Progressive up to 35%. Flat rate tax of 15% applies to certain persons in industry and certain foreign income.

Capital Gains: Gains on the transfer of capital assets are aggregated with other income and charged to income tax. 12% flat rate charged on some property transfers.

Other: Stamp duty: 5% on property, 2%/5% on securities

Social Security: Generally employees 10% and employers 10% subject to minimum and maximum contributions

VAT: Standard rate 18%

Member Firm: John Zammit & Associates

John Zammit: