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Corporate Tax

Last Updated: 15/05/2020​

This Corporate Tax section provides a general overview of tax issues which may be encountered from inception of company to when company is struck off.

Entities which are subject to company tax are those falling under the definition of a company provided for under article 2 of the Income Tax Act.

According to our income tax legislation, Maltese companies are subject to corporate tax at the rate of 35% on their worldwide income and capital gains. Foreign companies, incorporated outside Malta carrying out business activities in Malta are liable to tax on income arising in Malta.

When companies are taxed at the standard rate of 35%, following the distribution of dividends, shareholders are entitled to a refund of part or of all the tax paid by the company. The purpose of this imputation system is to eliminate any double taxation that might arise on the distribution of such dividends. Thus company profits will only be subject to tax at corporate level.