Welcome to Fides Corporate Services - Malta
Fides Corporate Services (Fides) is a Malta company formation provider which offers a variety of Malta Corporate, Advisory &Tax Solutions in Malta with a focus on international business. We pride ourselves in offering a complete and timely turnkey solution to clients wishing to set-up their company in Malta or relocate their company or business to Malta. Contact us to discuss your Business needs in Malta.
Fides aims at going beyond clients‘ expectations and in being instrumental to their success, through our ongoing commitment to offer sterling service in a quick and timely manner. We look forward to establishing a long lasting trustworthy relationship and to assist you in maximising Malta‘s potential.
A company in Malta is registered with the Registry of Companies (which is regulated by the MFSA - Malta Financial Services Authority). We may incorporate your Malta company in 48 hours should all due diligence and requested documentation be supplied. Malta is by far an interesting European state as it offers tax efficient companies for both holding companies (participation exemption) and also trading companies. The cost to set up a Malta company are relatively low and governmental fees vary according to the share capital of the Malta company, making Malta an valid alternative for both large corporation and small and medium sized entrepreneurs wishing to locate their business to Malta.
We may assist our clients with all aspects during the incorporation process of a Malta company but we pride ourselves to also guide our clients during the post Malta company registration and offer a variety of services.
Our core Malta company services comprise:
Our specialised Malta company services include:
Our services and assistance to clients wishing to set up a company in Malta is not limited to the above but we may assist our clients on any further needs they may have here in Malta. We are here to help you establish your business from Malta.
Fides Fiduciary Limited is authorised by the Malta Financial Services Authority (MFSA) to receive property under Trusts and to act as a Trustee or Co-Trustee, and is owned by the same shareholders as Fides Corporate Services Limited.
Malta Company Information
A Malta limited liability company may be incorporated in Malta for the purpose of carrying on any activities in Malta or internationally, and whether such activities are of a ‘trading‘ and/or ‘holding‘ nature.
Such Malta limited liability companies can therefore trade in any sector and may hold assets whether tangible or intangible, and whether movable or immovable.
In terms of Maltese law, a company which is incorporated in Malta is deemed to be ‘ordinarily resident and domiciled‘ in Malta for tax purposes and would be taxable on its income and chargeable gains in Malta on a worldwide basis, irrespective of where its management and control is situated.
A company incorporated outside of Malta may still be considered tax resident in Malta (albeit not ordinarily resident and domiciled in Malta), where it is managed and controlled in or from Malta. In such a situation, the company‘s liability to tax would be limited to chargeable income or gains earned in, derived from or realized in Malta. Foreign source gains would not be taxable in Malta.
Shareholders in Maltese companies are entitled to claim a tax refund on the advanced corporate income tax paid by the distributing company. The tax refund may be claimed as soon as the Maltese company distributes a dividend to its shareholders.
The type of Malta tax refunds which may be claimed by the shareholders of a Maltese company are the following:
- Full Malta Tax refund
- 6/7ths Malta tax refund
- 2/3rds Malta tax refund
Tax refunds are not subject to any further tax in Malta.
The operation of the Maltese tax refund system reduces the effective tax rate suffered in Malta from 0% to 5%. This assumes the Maltese company does not receive passive interest and royalties, in which case the maximum effective tax rate would amount to 6.25%.
Taxation of dividends paid to shareholders of a Malta company
- dividends paid to non-resident shareholders are not subject to any further taxes or withholding tax in Malta.
- dividends are subject to tax in the hands of the shareholder however, shareholders are entitled to receive a full imputation credit for the tax paid by the company. Since the highest tax rate for individuals is equal to the advanced corporate tax rate in Malta, the full imputation system ensures that resident shareholders are not subject to further tax on dividends distributed from the Maltese Taxed Account and the Foreign Income Account.
Accordingly, similar to non-residents, resident shareholders of Maltese companies are not subject to further tax on the dividends received from such Maltese company.
Taxation of Income received by a Malta Holding Company
Any dividends and capital gains from a holding which constitutes ‘participating holding‘ is subject to a 100% participation exemption and consequently exempted from tax in Malta. A participation held by a Maltese company would constitute a ‘participating holding‘ if at least one of the following conditions is fulfilled:
- The Malta incorporated company owns 10% of the equity shares in the non-resident company
- The investment held by the Malta company in a non-resident entity amounts to EUR 1,164,700 or more, subject to a time duration test of 183 days
- The Malta company has the option to acquire the remaining balance of the equity shares in the non-resident company
- The Malta company is entitled to first refusal in the event of the proposed disposal, redemption or cancellation of the remaining balance of the equity shares in the non- company
- The Malta company is entitled to sit on the Board of the non-resident company
- The Malta company holds the shares in the non-resident entity for the furtherance of the business of the Maltese company provided further that the shares are not held for trading purposes
Participations by Maltese incorporated companies in certain types of partnerships may also be deemed to be a ‘participating holding‘.
Income from a Maltese ‘participating holding‘ will not be subject to a participation exemption unless the participation is held in a body corporate which satisfies at least one of the following conditions:
(1) It is resident or incorporated in a country or territory which forms part of the European Union;
(2) It is subject to any foreign tax of at least fifteen per cent (15%);
(3) It does not have more than fifty per cent (50%) of its income derived from passive interest or royalties.
When the participation in the non-resident company does not constitute a ‘participating holding‘, income is subject to tax at the normal corporate income tax rate of 35%. Tax leakage is significantly reduced in Malta since the payment of a dividend by the holding company entitles the shareholder to claim one of the following refunds of tax:
- 6/7ths of the Malta tax; OR
- 2/3rds of the tax paid in Malta
Similarly any other trading income derived by a holding company qualifies for a 6/7th or 2/3rds tax refund. The operation of the tax refund system reduces the effective tax rate suffered in Malta from 0% to 5%.