Paying Taxes in Malta

 1. What is the corporate tax in Malta?

Companies that are registered in Malta are subject to a corporate tax rate of 35%. This percentage applies to the worldwide income.

2. What is the VAT in Malta?

When it comes to the VAT rate, Malta is subject to 18%, with certain exceptions. There is a 7% VAT rate applied for accommodation and a 5% VAT rate for electricity, confectionery or medical devices. An exempt from VAT rate is only for exportation, food, gold, medicine and international services.

3. How can the VAT be refunded in Malta?

In order to obtain a refund of the VAT in Malta, you have to electronically submit a claim through the Malta VAT Department’s electronical portal in term of nine months after the end of the year for which the refund is claimed. The entire procedure is completed online. First of all, you have to register electronically for an e-ID, which is an electronic identity. You then have to submit a VAT refund application and fill in with the information requested.

4. What is the dividend tax in Malta?

If the company registered in Malta distributes dividends from profits, it is subject to a dividend tax rate of 15%.

5. Are there any incentives for foreign investors in Malta?

Malta encourages foreign investments and provides several fiscal incentives in order to attract new investors. This way, the incentives are about investment aid, access to finance or employment and training.

6. Why do I need a local accountant for my business in Malta?

It is requested by law that a Maltese company keeps record of transactions and any financial activity at a registered office in Malta, therefore it would be much easier for a local accountant to keep track of all this paperwork and do the accounting work in a more efficient way due to his or her experience.