About
Services
Why Malta
Insights
Careers
Contact us

Our Services

Direct Tax Services

We have a passion for tax. Through our specialized team of tax advisors we assist clients in their tax compliance requirements as well as providing creative and innovative fiscal advice to help our clients take full advantage of new opportunities.

At ACT we provide clients seeking tax advice with efficient, creative, comprehensive and current advice. We advise and assist private individuals seeking tax advice on cross border tax implications on employment income, business profits, passive income, capital gains and other income. We also provide tax advice to corporations and other entities on cross border transactions and on how they can take advantage of tax incentives afforded by tax law to mitigate their tax liability.

What we do

At ACT we offer a complete tax solution by liaising with our clients’ tax advisors in their country of residence or incorporation. Our advice in this area is personalized since we focus on the particular needs of the client.

Our services include

  • Preparation and submission to the Maltese tax authorities of private and corporate income tax returns;
  • Liaison with the Maltese tax authorities on various tax issues;
  • Provision of written tax advice on various complex tax issues;
  • Advice on the most tax-efficient tax structures to set up taking into account the particular facts and circumstances of our clients;
  • Tax computations on business profits, capital gains, and other income;
  • Advice on allowable deductions, exemptions, cross border tax issues, double taxation treaty considerations and tax planning opportunities.

FAQ

Questions clients ask us

Corporate taxation

All questions and answers
I would like to set up a company in Malta, what is the standard corporate tax rate?

The standard corporate tax rate in Malta is 35%, which is applied on the income of the company after allowing for any deductible expenses and non-taxable income.

For more information about taxation of companies in Malta, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on ecamilleriact.com.mt.

If I set up a company in Malta, is it automatically deemed to be tax resident in Malta?

Yes, a company is deemed to be resident in Malta for tax purposes if it is incorporated in Malta. Companies which are incorporated outside Malta but are effectively managed and controlled from Malta are also considered to be tax resident in Malta.

For more information about how a company’s management and control can be effectively exercised in Malta, do not hesitate to contact Elaine Camilleri, the firm’s tax partner, on ecamilleriact.com.mt.

If my Maltese company receives foreign income that is subject to tax outside Malta, will it be entitled to claim relief for foreign tax?

Yes, Malta offers various forms of double taxation relief. The most common being the treaty relief which emanates from the extensive treaty network which Malta has with over 70 countries. The relief is given in the form of a credit whereas the foreign tax suffered is set-off against the Maltese tax liability.

For more information on the various forms of double taxation relief, kindly visit our factsheet on Taxation of Malta Companies by clicking here.

Is there a possibility for this corporate tax rate to be reduced?

Yes, by means of the refundable tax credit system which Malta has to offer, whereby non-resident shareholders are allowed to claim a refund of 6/7ths (in certain circumstances 5/7ths or 2/3rds) of the tax paid by the company upon the distribution of a dividend. This reduces the effective tax rate to 5%.

For more information about the refundable tax credit system, kindly visit our factsheet on Taxation of Malta Companies by clicking here.

Insights

Latest on this subject