Malta 5% scheme structure formation

[ghouldog]

fshore said:
What are the trouble with declaring dividends? Any specific requirements?
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yes, there is a declaration form CT2 that needs to be filed. Does not look so bad, to be honest. Wondering if I should just push back on the accountant.

 

[CyprusLawyer101]

ghouldog said:
Does anybody have any experience using a non-domiciled resident company in Malta? I.e. an operating company set up in another jurisdiction but resident in Malta for tax purposes. The reason I am asking is because setting up a Malta company seems like a huge and expensive hassle.
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Yes, this option exists. And passive income earned by this company should be exempte from taxation.

 

[Marzio]

CyprusLawyer101 said:
passive income earned by this company should be exempte from taxation.
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Why? If over 75k will be a CFC

 

[CyprusLawyer101]

marzio said:
Why? If over 75k will be a CFC
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CFC rules dont come into play here. The company would be deemed Maltese tax resident but non-domiciled in Malta. No tax is payable on foreign income which is not received in Malta and on capital gains arising outside Malta. At least this has been my understanding when having dealt with this jurisdiction.

 

[Marzio]

You are most likely correct, the offshore company is not a CFC since it's already tax resident in Malta.