Malta: The island with a full imputation system and tax refunds

Malta: The island with a full imputation system and tax refunds

By: Fairwinds Management Ltd

Incorporating a company in Malta means that a business will be set up in a country within the European Union that offers an attractive tax system.

This is highly beneficial for the UBO’s (Ultimate Beneficial Owners) of the company since the Maltese islands operate a full imputation system of taxation accompanied by a tax refund mechanism.

This means that although companies are taxed at a rate of 35%, they are entitled to claim tax credits which can potentially result in an effective tax rate between 0% to 10%, and in some cases, it can be even lower.

Together with the benefits related to taxation, the low company formation and maintenance costs make Malta more appealing to foreign investors to set up a company.

Investors who are interested in setting up a Limited (Ltd) Malta company will be requested to prepare documents to initiate the incorporation process. These include the company’s Memorandum and Articles of Association, a bank receipt that confirms the share capital deposit, a confirmation of the company name reservation and passport copies of the shareholders, directors and company secretary.

To make this process as straightforward as can be and without facing unnecessary delays, one can reach out to entities that can offer company incorporation services as well as other services that will be required to manage the day-to-day running of the company.


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