A centralized system for the financial systems

The tax system in Malta is favourable and competitive. It includes a number of attractive benefits such as a full imputation system, a refundable tax credit system and an integrated network of international tax conventions. Malta today has established itself as one of the largest European financial services centres, offering the most tax-competitive rates within the European Union.

In addition, Malta’s tax system has been carefully scrutinised by the European Commission and the European Union Code of Conduct, following Malta’s accession to the European Union, has since been certified as fully compatible with EU law.

Features of the Malta tax system

• a full imputation system and a refundable tax credit system;
• a participation exemption regime with additional exemptions for specific income – like income from qualifying patents;
• a vast and expanding network of double taxation treaties (currently encompassing 60 existing double taxation conventions);
• access to EC tax directives benefits;
• zero taxation on outgoing payments for interest, royalties or dividends;
• zero taxation on capital gains arising from the sale of shares in Maltese companies;
• no taxation on capital expenditures.