Overview Fact Sheet of using Malta, a legitimate low tax EU jurisdiction.
5% effective corporate tax rate, no withholding, capital gains or entry or exit taxes. No inheritance or wealth taxes.
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Malta - A Legitimate Low Tax EU Jurisdiction; Benefits For You & Your Clients
1. Malta’s International Legal & Advisory
Boutique
Malta - The Benefits Malta’s Credit Ratings
Fitch - A+
Individuals Companies Moodys - A3
Standard & Poors - BBB+
Low Taxation Asset Holding & Structuring
Maltese, UK
100% EU & OECD Compliant—A Legitimate Low Tax EU Country
& International Lawyers
0 - 5% effective corporate tax rate
& Accountants
Why Malta? Newsflash
“Malta’s business legislation and tax systems are considered amongst the most fa- Do your clients use offshore
vourable in Europe and this is supported by its strategic location straddling the busiest ship- payroll structures?
ping lanes in the Mediterranean. Malta has a strong financial services sector, and a thriving We can provide alternative, le-
on-line gaming industry. Ongoing strategies include specific targeting of knowledge econ- gitimate corporate structures,
omy sectors including financial services, information technology companies, research and with substance; as well as payroll
development, and high end manufacturing.” UK’s Foreign & Commonwealth Office; 2012 services and add-ons
With an effective corporate tax rate of 0 to 5% - for trading companies and 100% tax ex- NO!!
emptions or additional low rates for passive income & royalties, Malta has one of the lowest
tax regimes in the EU. As an ex British colony, Malta’s commercial laws are modelled on Wealth or Inheritance taxes
English law - providing comfort and peace of mind to the client and adviser alike.
Property taxes
A full member of the EU since 2004, Malta uses the Euro as its currency and English is an
official language. Capital Gains
Benefits for Commercial Clients Outbound withholding tax
Malta is one of few countries left in the world that still has a full imputation system. Mean- on dividends, interest or
ing, with an effective corporate tax rate of 5%, following application of tax refunds, royalties (inbound withholding
shareholders are 0% taxed on any dividends that they receive. may be reduced via treaty net-
work)
Effective post refund tax MaltaHoldCo / Duty on international share
burden of 5% Foreign Co/ or Refund = 30
MaltaOpCo pays 35% tax Non Resident Indi- issues or transfers
vidual Shareholders
Malta HoldCo receives Transfer Pricing Rules or
Maltese Revenue
6/7ths refund of Malta thin capitalization
Dividend 35%
tax paid by Malta OpCo 65 MaltaOpCo
on distributed profits Controlled foreign company
Dividend of 65 laws
Trading Profits
= 100 Entry or exit taxes
No further Malta tax on
transfer of profit
Over 62 double taxation treaties worldwide
Tax payment and refund
can be planned to occur Tax refunds are legally guaranteed and paid within 2-3 weeks of application
within 2 -4 weeks Use of IFRS functional convertible currency – for statutory capital, financials, tax and tax refund
purposes
Revenue rulings are binding for 5 years or 2 years following a change in legislation
4. Malta’s Credit Ratings
Malta’s International Legal &
Fitch - A+
Moodys - A3 Advisory Boutique
Standard & Poors - BBB+
- a viable alternative for clients with
assets located in Cyprus
Benefits for Private Clients
As a foreign resident of Malta you only pay tax on income received or remitted to Malta – 0% tax payable on worldwide in-
come; 15% if you enjoy permanent residence; or 35% tax if ordinarily resident and then only on income remitted or arising in
Malta.
With 0% capital gains tax on income outside of Malta, 0% wealth tax, 0% inheritance tax, Malta is a popular place to retire or
live.
Essentially a civil law system, Malta has modelled its commercial law – tax, company, trusts and financial services – on UK law
and is fully compliant with EU law.
Highly Qualified Rules - 15% Flat Income Tax Rate
Malta wants to attract the gaming, aviation and financial sectors. As such new income tax rules mean that certain individuals
earning €83,000 can enjoy a 15% flat rate income tax rate, fixed for 4 years for EU citizens
Wealth Management & Estate Planning
Through effective estate planning, a client’s personal affairs and wealth can be maintained and preserved. One of the most
effective tools is that of the
will and the trust. Obviously, Any law may govern a Malta trust Trusts are ‘looked through’ for tax purposes
difficult questions and prob-
lems may arise in international Benefits of UK modeled trust law Low service provider rates
asset and property structuring.
Upon settlor’s death or insolvency - ac- Can be treated as companies in order to
Fiscal benefits of using counts are not frozen enjoy Malta tax treaties
Malta trustees and
administrators May be re-domiciled to Malta Licensed and insured trustees
About Acumum Legal Group
Unique in Malta, we are Maltese, UK & international lawyers & accountants, managed by a UK barrister; registered in Malta –
all with extensive on location onshore & offshore experience, providing legal & advisory services to individuals, companies,
family offices and other institutions.
We also provide advocacy services through an associated international Barristers Chambers, representing law firms and clients
– individuals, corporations, institutions & Governments before UK, EU and International Courts & Tribunals in most Common-
wealth countries.
Our Lawyers & Accountants are highly knowledgeable specialists in their fields – committed to providing cost effec-
tive, excellent client service. Utilising a multi-disciplinary & multi – jurisdictional approach, we are engaged by both private indi-
Tax Private Client Financial Services
Corporate Formation & Services Trusts & Estate Planning Gaming
Aviation Maritime Malta, UK, Alderney, Caribbean,
USA
Intellectual Property - IP Holding Compa- Public & Private Law
nies & Royalty Routing Industry Support
Acumum Legal Group: Maltese, UK & International Lawyers & Accountants
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office +356 2778 1700 | Local Rate Numbers - UK 44 (0)20 7060 4277 & USA 1646 569 9003