Offshore Company Formation in Malta

The benefits of Malta as an Offshore Jurisdiction

A full member of the European Union since May 2004, Maltese companies are EU compliant and approved making them excellent vehicles for international business, financial services and investment. English is widely spoken and the workforce is highly educated with an excellent work ethic. With excellent flight connections, sophisticated ICT infrastructure a friendly relationship with the Mediterranean rim and other countries, Malta has a stable political structure with Liberal economic policies which are committed to maintaining an open business environment.

There are two types of Maltese Company that we offer at Amanda J Molyneux & Company Limited, An International Holding Company (IHC) and an International Trading Company (ITC).

The object of the International Holding Company is to hold shares in overseas companies, to own and manage other overseas investments and assets and is often used to distribute income generated by the assets held in a tax-efficient manner. The IHC is therefore an onshore company that pays tax on a worldwide basis at the normal corporate rate of 35% which is reduced to an effective rate of 0% in the hands of non-resident shareholders as a full refund of the Maltese tax paid by the company of gains or profits arising from "participation holdings*" is paid out when profits are distributed.

An International Trading Company is primarily used to receive commission, management, consultancy or operational fees, for group financing, for intellectual property management or Royalty routing, for e-commerce activities, for licensed investment services or for licensed online gaming or betting activities and is also extremely effective for tax-planning vehicles. These companies are taxed at the normal corporate tax rate of 35%, yet shareholders qualify for a 6/7th refund of the Maltese tax paid by the company on profits and gains when the profits are distributed, which effectively means an actual tax rate paid of just 5%.

What is more these refund can be made to any person into any bank account anywhere in the world - it does not need to be refunded into the Shareholder or Nominee Shareholders account.

Malta has double taxation agreements with over 50 countries including the UK, France, Canada, United States, Australia, Germany and Sweden.

*There are a number of stipulations in the Maltese Income Tax Act that must be met in order to qualify for "participating holding", we have reproduced the relevant details here

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