Corporate tax in Malta - Full Imputation System

• Definition: shareholders receive full credit for any tax paid by the company on profits distributed as dividends, thereby avoiding double taxation.
• Excess imputation tax credits are refundable where the shareholder is liable to tax in Malta on the dividend at a rate which is lower than the company rate of tax (ie. 35%).
• Tax due by company (Advanced Company Income Tax) on the earlier of:

                  -18 months from year end (subject to certain conditions), or
                  -within stipulated time frame following the payment of a dividend.

Full Imputation System - Example

Taxation of Company XYZ Ltd.

Taxation of the shareholder receiving dividend

For further information about how Zammit & Associates – Advocates can help you with your corporate law requirements kindly contact us on tax [at] zammit-law [dot] com