Malta company formation
5% EFFECTIVE TAX
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Malta is EU member since 2004. It has been a focus for European business community for decades. Its highly competitive tax regime ensures the lowest effective corporate tax rate within European Union. Besides tax advantages investors appreciate English as official language, EUR-zone convenience and professional accounting and corporate environment.
Maltese Company with VAT is favored for general trading purposes due to unique tax regime. When dividends are paid by a trading company to its non-resident shareholder, this shareholder is entitled to claim refunds of the 35% tax rate paid by the company. 6/7ths of the tax amount are refunded to the non-resident shareholder. As a result, the total tax rate is reduced to 5%.
The refund is guaranteed and is paid by Inland Revenue Department to shareholders account 14 days after application is submitted.
Dividend Income is 100% exempt from tax if Maltese company
The foreign subsidiary must comply with one of the following rules: