General Administrative Services

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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 corporate profits.
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 Refunds

The 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.

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We offer the below tailor-made services, for both corporate and private clients, which ensure compliance with local statutory requirements.

Personal Tax

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.

Vat

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.

Book keeping / Vat Returns / Income Tax Returns / Payroll

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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:

1. Setting up the accounting system according to the business needs, depending mostly on the size of the organisation, structure and activities involved.
2. 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
3. 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.
4. We can also provide the necessary support to management and other business promoters, to prepare feasibility studies, budgets and projections.
5. Assist clients in preparing VAT returns and other VAT submissions

Payroll

Under 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.