Taxation

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At RGN Malta, we aim to take the best advantage of the local tax system so that our clients can benefit from the different jurisdictions whilst at the same time complying to and fully adhering to the law.  We can offer the best tax advisory services tailored to the client and their own situation.

Property Transfer Taxes

RGN Malta Ltd not only gives you advice on property tax and stamp duty implications, but we can also identify the right property for you and assist you in the whole process of the purchase and transfer of property.

Property Transfer Tax is calculated at the rate of 8% of the transfer value of an immovable property involved in a given transaction.

Exceptions
  • 10% of the transfer value if transferor had acquired property before 2004;
  • >5% of transfer value if transferor is not involved in property trading and property is sold within 5 years of acquisition.
 Exemptions

  • Donations made to relatives or to a philanthropic institution;
  • Transfers of property where property had been owned and occupied by the transferor for a period of 3 consecutive years preceding date of transfer;
  • Assignment of property between spouses consequent to separation or divorce;
  • Assignment of property that formed part of community of acquests between spouses, or was owned in common between them;
  • Transfers of property between companies forming part of same group;
  • >Transfers of property by a company to its shareholder in the course of winding up or distribution of assets, if owning not less than 95% share capital and voting rights of the company, directly or indirectly.

Stamp duty is charged on transfers of immovable property (5% for both residents and non-residents; a reduced rate of 2% in respect of transfers of immovable property situated in Gozo).  Maltese legislation also provides for instances where stamp duty is chargeable at reduced rates and also provides for the possibility of a stamp duty exemption.

Company Tax

Companies are taxed at a flat rate of 35%. Malta adopts the full imputation system of taxation.  One of the key advantages of the full imputation system is that according to this system, dividends distributed by a Maltese company generally carry a credit in favor of recipient shareholder/s (whether resident in Malta or otherwise) which is equal to the amount of underlying tax paid by the Malta company on the profits out of which the dividend was distributed.  This implies that in Malta we do not have economic double taxation.

Dividends paid out of untaxed profits to Maltese individuals and bodies of persons (excluding companies) suffer a withholding tax of 15%.  Dividends paid out of untaxed profits to non-residents are not subject to any withholding tax.

RGN Malta proves corporation tax services to companies of various sizes and different business sectors.  We can aid you in completing and filing the company’s tax return, offer you advice in tax planning, ensure tax compliance and assist you in any investigation or enquiries by the tax authorities.

Personal Tax

Make life easier with your personal tax.  Filling in your personal tax return may be tedious and time consuming.  RGN Malta can help you filling in your personal tax return in a professional way, and also offers you advice of a specialised nature.

In Malta the taxation of an individual’s income is progressive, that is, the higher an individual earns the higher the tax paid.  Below are the tax rates for 2019 based on the status of the individual.

International Tax Planning

Malta has one of the most attractive tax regimes within the EU and is deemed to be one of the fastest growing financial services countries in the world.  Foreign investors are relocating to Malta to take advantage of the following:

  • Participation exemption applying to dividends and capital gains from qualifying holdings;
  • The full imputation system of taxation, allowing shareholders in receipt of dividends to claim a credit for tax paid at source on such profits.  Malta is able to provide several tax refund mechanisms, allowing shareholders of a Maltese company to claim refunds of part of the tax paid by the company, significantly reducing the effective tax rate paid in Malta. In respect of trading profits, a 6/7ths refund is available, resulting in an effective tax rate in Malta of only 5%.
  • Double taxation treaties network with over 70 countries;
  • Exemption from tax and duties on transfers of shares held by non-residents (except for shares in companies owning real estate in Malta) and other exemptions.

And here is where RGN Malta excels.  We can help you set up of the most tax efficient structure possible, tailor made to suit your specific requirements.

Indirect Taxation

Value Added Tax (VAT) is a tax charged on most business to business and business to consumer transactions in all EU countries.  The standard rate in Malta is 18 per cent with reduced rates for some products and services.  Most financial services are not subject to VAT and for clients outside the EU VAT does not apply.

RGN Malta VAT compliance services include:

  • Providing advice and VAT planning;
  • Registration for Malta VAT;
  • Preparing and filing of periodic VAT returns and Recapitulative Statement.
  • Assisting with VAT Department investigations.

Our team will ensure that VAT returns are prepared in a timely manner and submitted to the VAT Departments within deadlines.