Taxing matters: Malta

As a fully independent republic, Malta’s economy is dependent on tourism, foreign trade, manufacturing (particularly electronics) and information and communication technology. One of its strengths lies in its destination, providing a gateway to European, Middle Eastern and North African markets.

The main forms of business entity in Malta are limited liability companies, partnerships, sole traderships and branches of a foreign company.

Maltese companies pay tax on profits at a flat rate of 35 per cent, which on the face of it may seem high, but in certain instances some or all of that tax may be claimed back by shareholders when the profits are repatriated by way of dividends using an ‘imputation system.’