General Information about taxation

A company that is registered in Malta and also resident in Malta for tax purposes is chargeable to tax in Malta on its worldwide income namely on all income and gains whether arising in or outside Malta and irrespective of whether remitted to Malta or otherwise. Any tax that is suffered outside Malta on any such income is generally taken as a credit against Malta tax liability and therefore reduces the Malta tax liability of that company.

The income of a Malta company is allocated to one of five taxed accounts depending on the nature of the income in order to determine the chargeable income of the Malta company. A number of different refunds are available to be claimed by the shareholder of a Malta company and the extent of the refund available depends on the taxed account to which the said income is allocated.

The main categories of income streams are:

  1. Dividends and capital gains
  2. Trading income
  3. Passive interest and royalties