Tax minimization or planning is the efficient way of taking advantage of a country’s tax system and laws in order to reduce the amounts spent on levies imposed by governmental agencies. Malta is one of the countries offering a great taxation system which allows foreign investors and citizens to use the country’s tax system without appealing to other strategies in order to minimize their taxes. However, a good financial plan conceived together with specialists could turn into a more efficient tax minimization plan.
Our company registration agents in Malta can help foreign investors with efficient tax planning solutions tailored to their needs.
The Maltese taxation system provides immense benefits to foreign investors especially. First of all, the income tax paid by companies is conceived so that 6/7th of it is refunded to the shareholders of the company provided that they meet certain conditions and they supply several financial documents to back their claim. This is perhaps the most efficient tax minimization tool in Malta.
Then, there are the double tax treaties Malta has enforced with a great number of countries. Among these, foreign investors should take into account the ones with the United States of America, Switzerland and the United Arab Emirates which are not EU members. Also, when referring to the EU, Malta as adopted various directives related to taxation, such as the Parent-Subsidiary Directive which provides for certain tax benefits for foreign companies opening subsidiaries in Malta.
Our Maltese agents can offer details with respect to each of the tax planning solutions above.
The video below presents the main tax minimization strategies in Malta:
The holding company is one of the most tax-efficient business form in Malta. The holding company is tailored for those seeking to own shares in Maltese companies. When the shareholders of the holding company will receive dividends from the owned company, they can benefit from tax refunds, deductions or even exemptions.
Those using start-ups as their vehicle of choice for running a business can benefit from important governmental subsidies, which can also be used as efficient tax minimization solutions in Malta.
For assistance in opening a company in Malta and accounting services, including tax minimization, please contact our company formation representatives.