Success in the "backyard" - Starting a Business in Malta with 5% tax on your profit

Since the European Court in a series of judgments noticed that the domestic market has legal force to legal entities, a business within the European Union's founders choose from the various GmbH counterpart of the individual EU Member States:
March 13, 2021 - PRLog -- As well as England, Malta knows "Private" and "Public" Limited Companies. The majority of companies or private limited companies are simply "Limited Companies". The legal form of the Malta International Trading Company (ITC) was abolished by the legislature in late 2010.

The Maltese legal system is accessible and transparent: At the free-access online database you can find laws, regulations and current bills. The "Civil Forms" offers the possibility of numerous application forms to compleat online. The law is not only written down in law books with online access, it is also modern.

The formalities to form a Malta Limited are very extensive, so some founding statements. But Malta has an active economic development and fetches innovative companies to Malta. The authorities are very service-oriented, business-friendly and helpfully in most cases quickly and easily.

Many entrepreneurs choose Malta, which is of course the real reason: Malta has a very attractive tax system. Companies with foreign shareholders only pay 5% tax.

a) the regular corporate tax rate is 35%. This is due to the profits of your company.

b) As a foreign partner of a Malta company will be reimbursed 80%, thus resulting in an effective tax rate of 5%.

c) the refund is made within 14 days after filing the tax return and a refund application. This time limit is prescribed by law.

d) the tax refund may not occur at the Malta Society.

e) Sales tax (VAT). The default rate is 18%. Just as in England, the sales tax return in Malta has to be filed every three months.

The 5% rule applies to all Maltese companies, except to the acquisition of property in Malta and as the operation of a hotel. Corporate tax is concerned 9 months after the end of the fiscal year.

Tax refund: - Refund of 6/7 of paid tax (with the exception of gains from the sale of real estate and from profits of inferior sources).

- Repayment of 5/7 of the paid taxes are passive gains (interest and royalties).

- Repayment in the amount of 2/3 of the paid tax on profits for the relief claimed by double taxation agreements.

- Repayment of 100% of the paid tax on profits of a foreign subsidiary.

No withholding taxes, stamp duties or exchange controls apply to the distribution of profits from a Maltese company to non-resident shareholders which can be expatriated without restriction.

For more information see Malta Company Formation
Tags:Malta Company
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