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Tax Advisory Services

1995
Stephen Balzan, the firm’s tax partner, has been active in taxation since
8+
languages spoken by our staff, from Maltese and English to Chinese and Ukrainian

ACT is a well-known and respected boutique tax advisory firm providing high-quality tax advice to Multinational Enterprises, Small and Medium Sized Enterprises including family owned and other owner-manged companies, family offices, trusts, foundations, employees and high net worth individuals. Our tax team is experienced in an extensive list of tax issues and is able to provide tax advisory services on highly sensitive tax issues.

The firm as well as members of the tax team are members of a number of local and foreign institutions such as the Malta Institute of Accountants, The Institute of Financial Services Practitioners, STEP, The International Fiscal Association, The Malta Institute of Taxation and Finance Malta amongst others. Stephen Balzan, who is the firm’s tax partner has been actively involved in taxation since 1995, advising clients on various local and cross-border tax issues. He delivered a number of seminars on various tax issues as well as represented ACT in various international events. He has also in the past delivered a number of lectures on taxation to students studying for their ACCA qualification and their Advanced Diploma in International Taxation.

The firm’s staff are multi-lingual and can speak various languages including Maltese, English, Italian, Swedish, Greek, Chinese, Russian and Ukrainian amongst others.

The firm is in a position to provide tax advisory services on a number of different tax aspects, including:

  • Employment income including fringe benefits such as share option schemes
  • Tax deductions
  • Tax exemptions
  • Capital gains on the transfer of immovable property, securities and other assets including intellectual property
  • Transfer pricing issues
  • Notional interest deductions
  • Malta’s Double Taxation Treaty Network and other forms of relief from double taxation
  • Re-organisations including mergers and divisions
  • Tax consolidations
  • Remittance rules of taxation for both individuals and body corporates
  • Fiscal and other incentives granted by Malta Enterprise

For further information please contact the firm’s tax partner Stephen Balzan on sbalzanact.com.mt

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.

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