Synopsis
Malta is an independent republic, having gained independence from the United Kingdom in 1964, situated in the centre of the Mediterranean Sea about 60 miles south of Italy and 180 miles north of North Africa. Government is exercised by a democratically elected parliament with elections being held every five years. Population is approximately 400,000. English and Maltese are the official languages but Italian is also widely spoken. English is the business language. Malta is a member of the Commonwealth of Nations and a member of the European Union.
The legal system is based on the Napoleonic code but British Law has had a strong influence particularly in fiscal and commercial law. The official currency is the Euro.
Malta has signed tax treaties with Australia, Austria, Belgium, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Egypt, Finland, France, Germany, Greece, Hungary, India, Iceland, Italy, Korea, Kuwait, Lebanon, Latvia, Libya, Lithuania, Malaysia, the Netherlands, Norway, Pakistan, Poland, Portugal, Slovakia, Spain, South Africa, Sweden, Switzerland*, Tunisia, the United Kingdom, and the United States of America* and another 11 are waiting ratification, therefore reaching a total of 55 double tax treaties. (* restricted to shipping and aircraft profits.)
THE MALTA COMPANY
Following an agreement reached with the European Union, Malta’s corporate revised tax system became effective as from 1st January 2007. The tax refund previously available to non-resident shareholders is now available to all, removing completely any distinction between resident and non-resident shareholders, with the exception of profits derived from immovable property situated in Malta. The refund system will apply to all profits both foreign and locally sourced
A Maltese Company is taxed as described below and is designed to take advantage of the extensive tax treaty network signed by Malta. The measures introduced are expected to consolidate Malta’s position as an attractive jurisdiction for foreign investors.
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Last reviewed: Wednesday, July 23, 2008
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