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Company Registration

Last Updated: 15/05/2020  

Registration of Companies for Income Tax purposes

A company is required to register for income tax purposes when:

  • A company is incorporated in Malta;
  • A company’s management and control is located in Malta; or
  • A company carries on an activity in Malta.

​Generally, once a company is incorporated or a place of business is registered with the Registrar of Companies, the Income tax number (in the format of a nine-digit number) will then be generated automatically.

In any other case (e.g. where a foreign company has a Maltese source of revenue without having a permanent establishment in Malta) the International and Corporate Tax Unit needs to be contacted directly for registration purposes at itu.mfin@gov.mt.

 

Liquidation and Insolvency of a Company

The Liquidator is the person responsible for the general tax obligations of the company as representative of the company and is regulated by special obligations and responsibilities under Article  7 of the ITMA.

In case of liquidation, the company must:

  • fill up an annual return to the last year of the company’s existence; and
  • not be struck off the Registry of Companies before it obtains a tax clearance.

Once a company has stopped trading and has abided by all the required formalities with the Malta Business Registry and settled all pending balances with the Commissioner for Revenue, the company through its representative can send a letter to the International and Corporate Tax Unit requesting the company to be de-registered for tax purposes.

 

Registration of Companies for VAT purposes

Persons setting up a company must first register the company with the Registrar of Companies (ROC).

One may apply as a company through the single e-form.

 

Companies can be registered under one or more of the three (3) types of Article registrations:

  • Article 10;
  • Article 11;
  •  or Article 12.

 

Registration of a Company – Article 10

Companies that are required to register under Article 10 are those companies which;

  • Supply taxable or exempt with credit goods or services in Malta
  • Export goods outside the EU
  • Make intra- community supplies or provide services taking place in other member states

A company taxable under Article 10 is eligible to claim input tax for purchases made which are attributable to its supplies.

 

Registration of a Company under Article 11

Only companies that qualify as a small undertaking in terms of the provisions of the Part 1, of the 6th schedule, of the VAT Act 1998 can register under Article 11. These companies cannot charge VAT to their customers and neither can they claim Input VAT on their purchases/expenses and are therefore considered as exempt from VAT.

Companies whose turnover does not exceed the turnover indicated in this table, would be eligible to register under ARTICLE 11. Should these companies opt to register under Article 11, they will not charge vat on their supplies, but cannot claim input vat incurred on their purchases.

For companies to be eligible to apply under Article 11, the companies need to fall within a particular threshold as shown in this table.

 

Registration of a Company under Article 12

Companies that are required to register under Article 12 are those companies which are not registered under Article 10 and;

  • who make intra-community acquisitions of goods in Malta whereby the value of such acquisition/s exceeds the value of  €10,000 in a calendar year;
  • And companies who purchase services from suppliers established outside  Malta (both EU and non EU) and whereby the place of taxation of such service is in Malta and where the liability of payment of the tax lies on the customer.
 
 
To register for a VAT number, one would require to fill in the prescribed form online.