Companies in Malta, whether established by local or foreign business owners must consider the tax responsibilities which come with any type of activity. Malta has a preferential tax structure for companies with establishments in this country and for persons who work here. All employees are levied a tax on their income registered in Malta as residents or foreigners. When applying for tax purposes and social contributions in Malta, company owners must consider the legislation in this sense and the requirements related. Our company formation specialists in Malta are at your disposal for assistance in company incorporation if you are a foreigner who wants to operate in this country.
Taxes for individuals living and working in Malta
In the first place, we mention that foreigners working in Malta will only pay the taxes on the salaries obtained in this country. As for the nationals in this state, the taxation is imposed on the worldwide income. In respect to the tax legislation, wages in Malta represent all incomes gained through varied resources and are levied in accordance. The social security contribution in Malta is set at 20% for each employed individual, and it is paid by companies and employees in equal amount. A 0.3% tax contribution represents the funds for the maternity leave.
As for sole traders in Malta, they must pay the social security contribution in 3 parts representing 15% calculated on the annual net profits. We mention that Malta respects the EU legislation regarding the taxation on incomes obligatory for all country members. Our company formation agents in Malta are at your disposal with support in business incorporation regardless of the chosen entity.
Details about the ordinary residence taxation scheme
The personal income tax for persons with residence permits in Malta are subject to a progressive rate which does not exceed 35%. This is available and imposed on profits obtained in the country or abroad which are registered through a bank account in Malta. With the ordinary residence taxation scheme which offers admission to the remittance-based tax structure, persons do not need to pay income taxes for profits gained outside Malta and registered through a foreign bank account.
If you want more details about how to open a company in Malta and about the tax scheme for salaries, we suggest you contact our Maltese team of company incorporation representatives.