Malta’s Tax Rates
Although in theory, corporate tax is 35%, in Malta there are a multitude of advantages offered to foreign investors in order to create more wealth and to consolidate the country’s economy. Investors in industry are offered:
- 5% tax on trading income instead of the usual 35%.
- Tax credits according to investments made.
- Reduced tax on reinvested profits.
- Attractive and accessible loans and grants.
- Unlimited work permits for shareholders owning over 40% of the company (relevant only to non-EU clients since EU residents enjoy the right to settle and work in any Member State.
VAT in Malta is 18%, with lower rates for some sectors (hotel industry, electricity) and 0% in some cases (including for medication, food, banking and insurance).
Individual income tax is progressive and is taxed at the following rates:
|Personal income (EUR)||Tax rate|
|0 to 8,150||0%|
|8,151 to 14,000||15%|
|14,001 to 19,000||25%|
|19,001 and above||35%|
Accounting Requirements in Malta
In Malta accounting is regulated by the International Accounting Standards. By default the accounting year runs from 1 January to 31 December though companies may elect a different twelve-month period. Annual accounts must be prepared and include a balance sheet, a profit and loss account and appendices. All accounts must be audited.