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.
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