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The Maltese Company is a top mark European Jurisdiction Company that has specialized in offering numerous tax and investment gains for different beneficial tax planning structures.
Specifically, the company takes pride in:
Malta Company Formation and Its Advantages
Despite the fact that Malta has a 35% corporate tax, it offers shareholder tax credits, a strategy that results in 5% and below corporate tax rate.This has helped a great deal in Malta receiving accreditation by Forbes as one of the best tax friendly states allover the world.
Non-resident shareholder tax benefits are affected through the Inland Revenue system that grants the benefits after corporate tax settlement.
This system is complemented in its efficiency by the exclusive Full-Imputation Tax Credit System. It is under this system that taxation of company taxes is done only once (at the company level) and the shareholder exempted from any taxation. Basically, dividends are exempted from the imposition of withholding taxes.
In summary, tax refund is:
Available tax refunds in the current Maltese tax regime:
6/7 (six-sevenths): Refund of corporate tax (35%) paid by the Maltese Company. The refund is available to Trading Company shareholders;
5/7 (five-sevenths): Refund of corporate tax (35%) paid by the Maltese Company. This refund is available to shareholders of companies that derive their income from Royalties and Passive Interest;
2/3 (two-thirds): Refund of corporate tax (35%) paid by the Maltese Company. The refund is available to shareholders of companies that have placed their double taxation relief claim.
The Maltese Trading Company takes pride in the provision of the best and most reputable tax scheme within the European Union. Further, the company provides a very effective platform and avenue for global imports and exports.
Components featured in the structure:
A two-tier trading structure is achieved through the combination of a Maltese Holding Company and a Maltese Trading Company. This combination is done for the generation of tax liability risk on total refund received by a shareholder. The generation is done at the shareholder’s level. The combination is also done so as to confidentiality maintenance as foreign shareholders are not subject to registration from Malta’s Tax Authorities.
Components of the structure:
Other than the outstanding taxation scheme on trading companies, Malta also offers a very economically viable environment for the thriving of holding companies. In general, a Maltese Holding Company stands to benefit a great deal from total corporate tax exemption based on the criteria outlined below.
Malta goes a step further by ensuring that there are no tax withholds on dividends distributed to shareholders of the company in context. Additionally, the introduction of Parent-Subsidiary Directives and their consequent use coupled with the extensive double tax treaties network has helped in attracting more holding companies in Malta.
A Maltese Holding Company is provided with two unique choices: Full-refund or total tax exemption. Under the full refund option, shareholders get 100% of the total tax paid by the company. On the other hand, tax exemption mainly revolves around no tax payment on capital gains and or dividend income. These choices are only applicable if the company in context qualifies to be a participating holding.
Qualification standards for participating holding status for a Maltese Company in respect to foreigner’s entity include:
– The company should be based in Malta or has received incorporation in the EU ; or
– The company should be subject to not less than a 15% foreign tax ; or
– The company does not get more than 50% of its total income using passive interests and royalties among other avenues (the company needs to be a trading entity).
In the event that none of the above conditions is met, then it is required that both conditions outlined below need to met. The conditions are:
The structure below clearly outlines the exceedingly great benefits got from a Maltese Holding Company.
The Maltese Holding Company is widely used for holding overseas investments mainly due to the highly advantageous tax regime as well as EU Parent-Subsidiary Directive application.
Features of the Structure are as:
Minimum paid up share capital on incorporation: 20%
Minimum number of Shareholders required: One shareholder (if the company director is a natural person) or two shareholders (if the director is corporate). (At least one non-resident shareholder). Nominee Shareholders are permitted.
At least one General Meeting each year, in addition to any other company meetings.
Minimum number of directors is one. In certain cases the director of the Company may also act as the Secretary. Corporate directors permitted. There is no requirement to fold board meetings in Malta.
A Secretary needs to be appointed.
Yes. Registered office services are provided.
No exchange control regulations – may conduct business in any currency.
Disclosure of beneficial owner to Company Registrar: No (when using nominees)
Government register of directors: Yes
Government register of shareholders: Yes
Annual return: Yes
Submission of accounts: Yes
Malta Companies shareholder’s identity is not concealed (identity public) at the Register of Companies .However, the confidentiality of shares of the shareholders is upheld by both our trust and fiduciary company.
Confidentiality standards in Malta are supported by the exclusive Professional Secrecy Act .The act has helped in the establishment of high standard confidentiality that covers professional practitioners. Those found in violation of the professional secrecy may be legally prosecuted under the Criminal Code, Section 27.
All disclosures of confidential details are only ordered by the Court and can only be accessed by the parties in context and the court.