TAX Advisors Malta

Malta’s status as a member of the European Union, as well as the adoption of the Euro as Malta’s currency in 2008 have made Malta a jurisdiction of choice with many investors, many of whom decide to locate their businesses in Malta due to the advantageous corporate tax system.

One of the attractive benefits to persons who choose Malta as the jurisdiction where to set up their companies, is the income tax system available to any business in Malta. Malta’s tax legislation provides a number of incentives to shareholders of Malta companies deriving income from their investments and/or trading activities, whether derived from Maltese companies or companies outside Malta. Four forms of relief from double taxation are available including Malta’s far reaching double tax treaty network, so that the Malta company is granted a relief from double taxation in cases where the income of the Malta company would have also suffered tax in a foreign jurisdiction. This ensures that the same income will not be subject to tax twice in two different jurisdictions.

When income received from investments and/or trading activities is distributed by companies by way of dividends, a refund of the tax paid by the companies becomes due. The amount of the tax refund depends on whether the investment constitutes a “participating holding” or otherwise. Tax refunds are also available to shareholders receiving dividends from their foreign companies, distributed out of profits arising in Malta through an overseas branch registered in Malta.

Income derived from a participating holding or from the disposal of such holdings will qualify for a participation exemption, which is intended to exempt from tax dividends and gains derived from such holdings. In the case of income deriving from a participating holding and which thus qualifies for a participation exemption, one may opt to pay the Malta tax due and claim a 100% tax refund.

Upon receipt of a dividend from companies, shareholders will become entitled to a refund of 6/7ths of the total tax paid (i.e. including the overseas tax). The total tax refund will however be limited to the Malta tax paid, so that the total effective tax rate paid in Malta will be 6/7ths of 35% flat rate of income tax which the Malta company is to pay before applying for a refund.


CSL provides a comprehensive range of tax advisory and tax compliance services as well as a variety of specialist corporate services to its extensive array of international clients. AT CSL we can provide you with high quality, tailored advice that helps relieve the pressures associated with making complex tax decisions ensuring that you adhere both to best practice and to tax law. This enables us to deliver practical advice, responsively.

Our tax team is able to deliver an all-encompassing corporate tax advisory, personal tax advisory, property tax advisory, international taxemployee tax, Indirect tax and VAT advisory, trusts and estate planning and tax compliance services.