
The
dividend tax in Malta is applied to
companies with domiciliation and residency in the country. In other words, enterprises which are domiciled and resident in
Malta are subject to the
income tax on the global profit and also capital gains. For a better understanding of the requirements related to the
dividend tax in Malta, we suggest you address your questions to our
Maltese team of company formation agents.
Foreign companies and dividend tax in Malta
Dividends in Malta are levied with a 35% rate which is the same with the
corporate tax. One should know that under the participation exemption policies, the
dividend profits resulting from a foreign participating holding can be exempted from
taxation in Malta, and additionally, the stockholder is entitled to request a credit for the
tax paid by the enterprise on the allocated revenue.
Withholding tax on dividends
Under the full imputation
tax system in Malta, the levies imposed on profits of
companies in the country (resident and domiciled) which are allocated as dividends are entirely credited against the
Maltese tax liability of the stockholder. The good part is that there is no withholding tax on
dividends in Malta distributed to stockholders who are non-residents.
The
taxation system in Malta has similarities with the one established in the United Kingdom, but for a better understanding of the ways in which
dividends are taxed, we strongly recommend you talk to our
specialists in company formation in Malta. The same team can also help local and foreign investors
register companies in Malta.
Stockholders of companies in Malta and tax refunds
The reimbursement of
taxes applied to dividends in Malta can be solicited by foreigners who are shareholders in a
Maltese enterprise under certain conditions. For instance, tax refunds can be demanded by all
companies which have been registered in compliance with the
Companies Law in Malta, or by enterprises incorporated in the country but controlled from overseas.
If you want
tax advice and more details about the
dividend tax in Malta, please feel free to
contact our
team of local company incorporation advisors in Malta.