Professional Advisory Services
General Administrative Services
We strive to be the best to provide an efficient service to our clients, who range from private individuals and family owned business to medium sized and multi-national enterprises. We give utmost importance to our clients’ needs and we strive to be as efficient, professional and timely in whatever we do. Our values include trust, competence and integrity
Administration ServicesWe believe that due to the various statutory and fiscal regulations, administration is an integral service in assisting companies and its officers to meet their obligations under such laws and regulations. At Reanda Malta Ltd, we have the necessary expertise and competence to help you keep on track with such obligations.
The administration service consists of:
- Maintaining the entity’s records as required by the Companies Act and any other Regulatory Requirement by Regulated bodies.
- Preparation and filing of annual returns and statutory notices.
- Communicating to the client, any correspondence or notices received at the entity’s registered office in Malta.
- Liaising and communicating with local competent authorities.
- Assisting with all the entity’s administrative requirements as arise from time to time.
In certain cases, it would be more reasonable to relocate an existing company, established outside Malta, to Malta; rather than forming a new company. Our firm offers the service of assisting companies to relocate to Malta and from Malta.
General Administrative Services
Malta adopts the full imputation tax system; therefore any income
tax paid by the company is credited in full to the shareholder upon
distribution of profits, thus eliminating the risk of double taxation of
This system ensures that resident and non-resident shareholders are entitled for a refund of any tax paid by the company which is in excess of the shareholder’s income tax liability.
The Maltese tax regime is based on the domiciliation and residency concept. In this context a person [individual or legal] who is resident, but not domiciled or domiciled but not resident Malta, is taxed only on income arising in Malta and income remitted to Malta. Such a tax payer is also eligible for the tax refund scheme. The income tax rate for companies registered in Malta is a flat rate of 35% on profits
Tax RefundsThe Income Tax Act Chapter 123 of the Laws of Malta, defines five different tax accounts for different sources of income. These consist of the Final Tax Account (FTA), the Immovable Property Account (IPA), the Foreign Income Account (FIA), the Maltese Taxed Account (MTA) and the Untaxed Account (UA).
Profits attributed to the FTA include income that has been subject to a final withholding tax. Such income may include Interest from banks, tax on transfer of immovable property and certain rents. In these cases no further taxes are charged and no refunds are applicable.
Profits attributed to the IPA consists of profits from the rent, accommodation revenue by hotels and similar establishments and any other income related to immovable property [such as electrical and plumbing installations, cable laying, civil works, etc. In this context the term immovable refers to Immovable property situated in Malta. No tax refunds are allowed from this account.
A company’s trading or passive income is usually attributed to the FIA or the MTA depending on the source of such income. A distribution from the FIA or MTA enables the shareholder to apply for a tax refund equivalent to 6/7ths in the case of trading income (effective rate of 5%) and to 5/7ths in the case of certain passive interest and royalties (effective rate of 10%).
Income tax is paid in the same currency as the company’s share capital, which is also the currency in which the company prepares and submits its audited financial statements. The tax refund is also paid in the same currency, thus eliminating any currency exchange risks. In terms of the provisions of the income tax legislation, a tax refund must be paid by the Inland Revenue Department within 14 days from the end of the month in which it falls due.
A tax refund is considered to fall due when the company’s audited financial statements (showing the dividend distribution) and a complete and correct income tax return are submitted to the tax authorities, the tax liability is paid in full and an application for refund on a prescribed form, together with the dividend certificate is submitted by the shareholder or his attorney or representative.
We offer the below tailor-made services, for both corporate and private clients, which ensure compliance with local statutory requirements.
Malta has a very favorable and competitive tax system that comprises of attractive features such as a full imputation system, refundable tax credit system and a large and expanding international tax treaty network. This competitive tax ecosystem is appealing not only to corporations, businesses, entrepreneurs and wealthy individuals who are seeking the best and most suitable tax advice, but also for individuals who already have or are willing to take up tax residence in Malta through a non-investment programme.
Our team can assist you through the VAT registration process, guide you through the different types of VAT registrations possible and compile and submit the necessary VAT related documents to ensure that periodic VAT returns and other required submissions are duly completed and filed appropriately with the relevant authorities in a timely manner. In the case of a VAT inspection, we can also assist our clients by liaising with the VAT authorities and providing the appropriate records as necessary.
Company Formation / Administrative Services
Due to its Geographical location, friendly business environment and a country where English is well spoken,
(together with other languages) Malta is well equipped to attract new Investment.
Furthermore it has an excellent telecommunications infrastructure and direct flight service to various cities in Europe.
Complementing this business environment, Malta has a robust Banking system, a well-regulated Financial and Gaming sectors, as well as a business friendly tax regime.
Malta Joined the European Union in May 2004 and adopted the Euro currency in January 2008.
According to the Wall Street Journal, Malta ranked as the third best country for expatriates to live in. This is due to various characteristics, mainly:
- A favorable weather, with hot summers and mild winters.
- Has very long hours of sunshine throughout the year, with an average sunshine of 8.5 hours per day
- Friendly business environment
- A high standard of education
- Most locals can speak English and other languages
There are mainly 3 types of residence programs:
- IIP (Individual Investor Program)
- MRVP (Malta Residence & Visa Program)
- GRP (Global Residence Program)
Through the IIP, the applicant, if approved, will be issued with a Maltese passport. The other two programs, permit the applicant (again if approved) to reside in Malta and will be issued with a Maltese residency card.
Through these programs applicants would be considered as residents, but not domiciled in Malta, and therefore would be entitled to the following tax benefits:
- Will be taxed only on income remitted to Malta or arising in Malta
- If certain conditions are met, no tax is charged on money transferred to Malta
- There is no wealth tax
- No tax is charged on Capital gains that arise outside Malta.
- Tax on Maltese company profits can effectively vary from 0 to 10%, usually the rate is 5
Book keeping / Vat Returns / Income Tax Returns / Payroll
Today’s business environment is becoming more dynamic and challenging, due to high competition related to pricing, market retention, finding suitable human resources and managing business funds.
This, coupled with the continuous developments in International Financial Reporting Standards (IFR’s) and other compliance and fiscal legislations, keeping proper accounting records and adequate reporting structures is of utmost importance.
Whether you are a small business or a large corporation, our accounting team would be able to help you manage your accounting department. Our services include:
- Setting up the accounting system according to the business needs, depending mostly on the size of the organisation, structure and activities involved.
- Provide book keeping and accounting services to ascertain compliance with International reporting Standards (IFRSs) or General Accounting Principles For Smaller Entities (GAPSME) and compliance with VAT regulations
- Assist in preparing periodic management accounts and other reports for management for effective decision making purposes. [Through these reports we can assist management to identify its organisation’s weaknesses and strengths, in order to take the necessary remedial action.
- We can also provide the necessary support to management and other business promoters, to prepare feasibility studies, budgets and projections.
- Assist clients in preparing VAT returns and other VAT submissions
PayrollUnder the accounting services we also offer payroll services.
This service includes, the preparation of wages/salaries, monthly FSS forms [forms that have to be filed at the Income Tax Department], yearly FSS Forms and advice on employment tax.
We advise the client of the amount of Final Taxes to be paid at year end, including all necessary IRD submissions which will be monitored by us.
Shipping & Yachting
As from ancient times, due to its location, Malta has been an attraction to the maritime industry. Today, the island has the largest shipping register within the EU.
In fact up to the end of August, more than 8,000 ships were registered under the Maltese Flag. Yachts, so first registered in Malta in certain circumstances can carry a VAT charge ranging from 5.4% to 18%.
The corporate tax on income of such Yachts, if leased or chartered, can be effectively taxed at 5%.