Company formation — How to get the 6/7 tax refund in Malta?

If an entre­pre­neur wants to estab­lish a lim­it­ed com­pa­ny in Mal­ta the rea­son is usu­al­ly to save tax­es. How­ev­er, not every­one can just sim­ply estab­lish a com­pa­ny on the island and then save tax­es; there are oth­er fac­tors that need to be tak­en into con­sid­er­a­tion when the com­pa­ny is found­ed. First of all, a lim­it­ed com­pa­ny in Mal­ta is sub­ject to a 35% cor­po­rate tax. This is among the high­est cor­po­rate tax rates in the whole of the Euro­pean Union.

In order to qual­i­fy for the 6/7 tax refund in Mal­ta and to effec­tive­ly pay only 5% cor­po­rate tax, the lim­it­ed com­pa­ny needs to be in pos­ses­sion of a for­eign share­hold­er, or a hold­ing com­pa­ny, that is based either in Mal­ta or any oth­er off­shore coun­try. This is a per­fect­ly legal con­struct, and offers a good oppor­tu­ni­ty for entre­pre­neurs or com­pa­nies to move their busi­ness oper­a­tions to Mal­ta. How­ev­er, this means that Mal­ta is not a tax haven for every­one, the require­ments for the refund are strict, and it is impor­tant to not make any mis­takes when apply­ing for the refund. It is also impor­tant to con­sid­er the nec­es­sary require­ments before the lim­it­ed com­pa­ny in Mal­ta is being estab­lished.

The office of Dr. Wern­er & Part­ner has helped many clients to estab­lish a com­pa­ny in Mal­ta and to suc­cess­ful­ly claim the 6/7 tax refund. We are spe­cialised in com­pa­ny incor­po­ra­tion, admin­is­tra­tion and tax rebates, among oth­er ser­vices, with an empha­sis on Mal­tese and inter­na­tion­al tax struc­tures. We can also act as a legal rep­re­sen­ta­tive for our clients who can expect that we will always meet their require­ments.

The attrac­tive tax­a­tion struc­ture in Mal­ta has already drawn many com­pa­nies to set­tle on the island. Sub­se­quent­ly they have cre­at­ed many jobs and oppor­tu­ni­ties in Mal­ta, and con­tributed great­ly to the eco­nom­ic growth of the coun­try. Mal­ta is cur­rent­ly one of the ris­ing stars in Europe, and offers a sta­ble econ­o­my and great prospects for the future.

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

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