Accounting requirementsA Maltese company must file its financial statements within 10 months of the end of the accounting year.
The format of the accounts depends on the size of the company. An audit exemption would apply if certain criteria are met by the company.
Companies must also file annual returns each year.
Corporation taxThe corporate tax rate in Malta is 35%. There are certain exemptions however on specific types of income.
Shareholders may be entitled to a tax refund in respect of the distribution of profits from a company so some of the corporation tax paid by the company could be reclaimed by the shareholder.
Capital gains are aggregated with income and subject to the same corporation tax rate.
Annual corporation tax returns must be filed within 9 months of the end of the accounting year.
Value Added Tax (VAT)The standard VAT rate is 18%. However reduced rates of 7%, 5% and 0% may apply to certain products.
The annual turnover threshold where a company is required to register for VAT ranges from €12,000 to €28,000. The thresholds differ for non-Maltese companies.
Personal taxTaxation in Malta depends on both your residence and domicile status.
Income is taxable at graduated rates ranging from 0% to 35%. Taxable band thresholds depend on an individual’s personal circumstances.