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.
| Chargeable Income | €100 |
| Tax at 35% | €35 |
| Profit after taxation available for distribution | €65 |
Taxation of the shareholder receiving dividend
| Gross Dividend | €100 |
| Tax deducted by XYZ Ltd. | €35 |
| Net Dividend | €65 |
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
ASSOCIATED GROUP
The Penthouse
Tower Business Centre
Tower Street, Swatar BKR 4013
Malta, Europe
Tel: (+356) 2557 2300
Fax: (+356) 2557 2310
Email: info [at] zammit-law [dot] com
   
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