Tax
Progressive income tax with a full-imputation company system and tax refunds
Individuals pay progressive income tax with computations varying by marital and parental status. Companies pay a flat rate, but Malta's full-imputation system allows shareholders to claim refunds of part of the tax on distributed profits.
Key rules
- Company profits are taxed at a flat rate, with shareholder refunds on distribution under the imputation system.
- There is no separate capital-gains tax; gains are taxed as income, with property transfers taxed at source.
- Malta has no annual property or net-wealth tax.
Governing law
- Income Tax Act (Cap. 123)
- Value Added Tax Act (Cap. 406)
In practice
Refund entitlements depend on correct allocation of profits to the statutory tax accounts, which must be tracked from the outset.