In a competitive market place where management teams are as good as the bottom line results they deliver, and where shareholders hold company directors accountable for corporate performance, it is important to know that you’re doing whatever is in your power to do to ensure that shareholder value and dividends are maximised.

One of the aspects that can significantly affect the profits available for distribution is undoubtedly taxation. While it is important for companies and their management to ensure that they are in line with all the applicable laws in the taxation area, it is also important for them to make use of the best legally-compliant options available to them to be able to protect their profits from unnecessary taxation. That is why it is important for taxation to be taken into account in structuring your operations.

Malta offers a very favourable tax environment, which coupled with its strategic geographical location, its high labour productivity, as well as an excellent and highly-resilient telecoms infrastructure, makes it an ideal base of operations.

With corporate taxation standing at 35%, and with foreign-owned subsidiaries receiving 30% back as a rebate to the foreign-owned holding company, Malta offers the lowest effective income tax rate in the whole of the EU, making it a destination of choice for tax structuring purposes.

The Value Added Tax (VAT) rate stands at 18% and as a Member State of the European Union, Malta is compliant with European Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax and all amendments thereto. Malta is on the OECD’s white list when it comes to taxation and it has also ratified the Council of Europe/OECD Convention on Mutual Administrative Assistance in Tax Matters.

Equinox can help you restructure your activities to minimise tax loss on your business activities. More information on the Maltese Tax Regime and our services is available in the presentation below.

For more information about our Tax Consultancy services, please contact us here.