The well-being of Malta is directly related to the development of trade and the creation of conditions for the functioning of foreign investors in the country. At the moment, businessmen who are trying to avoid taxation of their capital are striving to open a company in Malta. The current legislation of the region fully complies with the requirements of EU laws. However, the investment climate in the country, flexible tax policy, the current monetary regime - all this contributes to the prosperity of business structures within this jurisdiction.
Offshore in Malta - features of the tax regime
Until 2006, the registration of International Trading Companies was allowed in the country, which received tax benefits if their founder is a resident of another country. This approach turned Malta into a clean offshore zone with double taxation. However, after 2007 the country became a full member of the EU, which necessitated amendments to the legislation. At the moment, companies in Malta are not divided into residents and non-residents. All of them have the status of Malta Companies, which allows them to have various sources of income, including through passive investment income.
The tax regime in the country is characterized by the use of differentiated fiscal rates. For example, an offshore company in Malta is exempt from taxation (operates at a rate of 0%) if its income is generated through participation in holding activities. Simply put, the main condition for applying the zero rate is that the parent company owns at least 15% of the shares of the branch or invests in a Maltese company in the amount of at least 1.5 million euros per year.
In addition, the registration of a company in Malta provides for exemption from the tax burden on capital gains.
The main nature of taxation in the region stems from the entity's obligation to pay 5% tax on dividend payments, 5% on trading profits and 10% on interest or royalty income.
Offshore zone in Malta - a unique way of doing business around the world
The key benefits of doing business in this country are as follows:
- Companies in Malta receive the status of European holdings, which allows their owners to conduct business in prestigious jurisdictions around the world.
- The need to submit annual tax returns to the fiscal authorities of the country, the systematic audit of financial documentation are the key characteristics, on the basis of which it can be concluded that the jurisdiction of Malta does not function as a territory with the possibility of tax evasion.
- Democratic income tax rates that allow you to conduct business with the use of a preferential regime for the payment of contributions.
- The possibility of using the nominee director service, as well as the confidentiality of the beneficial owners of companies in Malta.
- Flexible financial system, stable currency, as well as the absence of taxation of income received from the distribution of dividends.
- It will take no more than 2 days for the representatives of Positive Invest to register a company in this jurisdiction.