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:
The Maltese legal system is accessible and transparent:
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 http://indotinc.com/