Tax

We are specialised in Corporate & Personal Taxation

Overview

Zampa Debattista provides its clients with a wide array of corporate and direct taxation services, ensuring efficiency and adherence to the local legislation.

Our specialised corporate and direct tax team is composed of a number of professionals who have vast experience in both domestic and cross-border tax-related matters.

01 Offerings

Our Tax Services

Corporate Taxation

  • Setting up of businesses in Malta, according to the latest legal requirements
  • Corporate tax compliance, including annual tax returns and related forms
  • Preparation of Malta tax refund application forms, dividend warrants, directors’ and shareholders’ resolutions
  • Registration of shareholders for the purposes of tax refunds
  • Group restructuring including mergers, acquisitions, division of companies and cross-border transactions
  • Tax planning, including choosing the best business structure to maximise tax efficiency and maximising tax relief available under Maltese legislation
  • General tax advisory services in line with Maltese taxation, including intra-group transfers, DAC 6, transfer of business, transfer of immovable property, stamp duty and capital gain matters, cross-border related issues and much more
  • Obtaining tax rulings from the Commissioner for Revenue in relation to complex tax structures
  • Liaison with the Maltese tax authorities on various tax issues
  • Analysing and interpreting Malta’s international tax treaties to eliminate double taxation, both on a corporate and individual level to deal with cross-border related issues
  • Analysing the eligibility of fiscal incentives offered under the Maltese Enterprise Act

Personal Taxation

  • Tailored comprehensive assistance to meet individual’s needs
  • Registration of individuals with the tax authorties and preparation of tax returns
  • Assistance with settlement of Social Security Contributions and Provisional Taxes
  • Liaising with tax authorities for an on behalf of the individuals
  • Assistance with relocation to Malta
02 F.A.Q.

Malta Tax

What is the corporate tax rate if I register a company in Malta?

Companies registered in Malta which are effectively managed and controlled therein are considered to be resident and domiciled in Malta and thus are subject to income tax in Malta on a worldwide basis at the standard corporate tax rate of 35%.

Malta operates a full imputation system of taxation where, upon a dividend distribution, the immediate shareholders receive a full credit of the tax paid on the distributable profits at the level of the distributing company.

The full imputation system mentioned above, is accompanied by the tax refund mechanism, in respect of which following a distribution of profits in favour of the shareholders, the same they are entitled to claim a refund of the Malta tax which was paid at the level of the distributing company. The nature and source of the income should be taken into consideration to determine the amount of refund which the shareholder can claim. The tax refund system can reduce the effective tax rate from 35% to 5%, in some cases even lower.

The different types of refunds are highlighted hereunder:

  • 100% tax refund on dividend income derived from an investment which qualifies as a participating holding provided that the anti-abuse provisions are met and/or from the disposal of such holding;
  • 5/7ths tax refund if the income received is passive interest or royalties or income and/or capital gains derived from a participating holding which does not qualify for the participation exemption;
  • 2/3rds tax refund if double taxation relief has been claimed;
  • 6/7ths tax refund in all other cases.

Read more: Company Formation

How can I calculate my taxes as an individual resident in Malta?

Malta claims taxing rights on individuals based on their residence, domicile and source of income. Individuals who are ordinarily resident and domiciled in Malta are taxed on their worldwide income being on all income and capital gains arising in Malta or not. On the other hand, individuals who are resident but not domiciled in Malta are taxable on their income and capital gains arising in Malta and on any foreign income arising outside of Malta that is remitted to Malta.

Thus, any foreign capital gains derived by individuals resident but not domiciled in Malta will not be subject to income tax in Malta even if such capital gains are received in or remitted to Malta. In the case of an individual who is neither resident nor domiciled in Malta, the person will only be taxable on income arising in Malta.

In accordance with article 56 of the Income Tax Act (ITA), individuals resident but not domiciled in Malta have their income taxed in Malta on the basis of progressive rates, which rates vary from zero percent (0%) to a maximum of thirty five percent (35%), depending on their chargeable income and whether the individual is eligible to apply the single, parent or married rates (Refer to Annex 1). Moreover, since Malta has over seventy double tax treaties in force, individuals who take up residence in Malta will retain the right to request a claim for relief of double taxation in line with article 74 of the ITA.

Read more: Malta Personal Taxation

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04 Get in Touch

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Matthew Zampa

Founding Partner

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