Hello, Im new to the forum, but have been reading for a while. Has any one ever requested the tax refund available for Maltese Corporations? 6/7 of paid taxes resulting in a 5% effective tax rate.
Thanks
Thanks
Malta Tax Rebate 6/7
- Thread starter Jay Hastings
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One of our company branch is in Malta. But tax wise as i know they are becoming a lil hard, i think they are also ideal for fintech services.
@Sols @UScorp @Osleak thank you for your replies, I'm trying to move a tech company from a latinamerican country to malta(DTT exist between countries), and charge my customers for the use of the software plus all other expenses related. I have several questions:
1.- I will have 100% accounting profits and no expenses on the NewCo im creating, (dont want any sort of hassle with the tax authorities in Malta) is this worth it?
2.- How do i treat VAT? do i have to pay 18% vat?
3.- Can non-resident shareholders have a salary?
4.- I am aware that i will get my refund in september of the following year, this always gets approved?
5.- After I get the refund︀ can I transfer all my dividends to a jurisdiction like the Isle of Man without︁ Withholding?
6.- Can you recomend a reliable tax accountant or lawyer in malta to consult︂ details?
1.- I will have 100% accounting profits and no expenses on the NewCo im creating, (dont want any sort of hassle with the tax authorities in Malta) is this worth it?
2.- How do i treat VAT? do i have to pay 18% vat?
3.- Can non-resident shareholders have a salary?
4.- I am aware that i will get my refund in september of the following year, this always gets approved?
5.- After I get the refund︀ can I transfer all my dividends to a jurisdiction like the Isle of Man without︁ Withholding?
6.- Can you recomend a reliable tax accountant or lawyer in malta to consult︂ details?
1. I'm not sure I understand what︁ benefits that would bring, but I also don't see any problems with it. Would probably︂ depend on the exact nature of the set up. Something for a lawyer to advice︃ you on.
2. 18% VAT is the VAT rate for most domestic sales within Malta.︄ For sales to other EU/EEA members, you need to (after a threshold is reached) either︅ pay that country's VAT rate to that country or use the aptly named VAT MOSS.︆ If you're new to EU, I'm afraid you have a lot of reading to do︇ about VAT. If you're selling to Latin America, you won't have to charge VAT.
3. Yes, although most people structure it as loans or other forms of payment (such as︈ invoicing as consultants) rather than salary to avoid payroll overheads.
4. It's usually faster than︉ that. The IRD isn't consistent but the rebate is usually paid back within a few︊ days to a few weeks.
5. AFAIK, no problem but always better to discuss these︋ exact details with a lawyer.
6. WH Partners, HBM/E-Management, Chetcucti Cauchi, Calamatta Cuscheri, and CSB︌ are among the most well-known ones. Then there are dozens of more boutique firms.
2. 18% VAT is the VAT rate for most domestic sales within Malta.︄ For sales to other EU/EEA members, you need to (after a threshold is reached) either︅ pay that country's VAT rate to that country or use the aptly named VAT MOSS.︆ If you're new to EU, I'm afraid you have a lot of reading to do︇ about VAT. If you're selling to Latin America, you won't have to charge VAT.
3. Yes, although most people structure it as loans or other forms of payment (such as︈ invoicing as consultants) rather than salary to avoid payroll overheads.
4. It's usually faster than︉ that. The IRD isn't consistent but the rebate is usually paid back within a few︊ days to a few weeks.
5. AFAIK, no problem but always better to discuss these︋ exact details with a lawyer.
6. WH Partners, HBM/E-Management, Chetcucti Cauchi, Calamatta Cuscheri, and CSB︌ are among the most well-known ones. Then there are dozens of more boutique firms.
Which company you have as holding of your Malta Ltd?
Have your holding also bank account where you get the dividend or also your accountant told you that is possible to ger refund directly to your personal account or to the account of Malta ltd trading?
Have your holding also bank account where you get the dividend or also your accountant told you that is possible to ger refund directly to your personal account or to the account of Malta ltd trading?
Been reviewing the Maltese Law, it seems that if i derive income from abroad, i have to pay a 25% flat rate, any one know how to make all of my income qualify as maltese income to be subject to the 35% rate and the refund?
What's the best structure? What are yearly running costs of both companies?
Isn't your UK corp falls under CFC law especially "non-trading income of no more than EUR 75,000" ?
Isn't your UK corp falls under CFC law especially "non-trading income of no more than EUR 75,000" ?
@Osleak What GrumpyMess says goes against the below that you said. I guess your UK holding company never gets dividends of more than 75k right?
Or your Malta accountant just filing zero returns for your UK holding company as you said below in which case no dividends are ever paid from Malta company right?
Or your Malta accountant just filing zero returns for your UK holding company as you said below in which case no dividends are ever paid from Malta company right?
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