Information
TAXATION OF FOREIGN OWNED COMPANIES
The Maltese tax system allows for the possibility of applying for refunds on Malta taxes which can then be paid to a dividend feeder/holding company or to the non-resident shareholders themselves. The various refund mechanisms contemplated under Maltese law reduce the effective tax rate from 35% to 10%, 5% or nil, including an exemption mechanism for participating holdings subject to certain criteria. Applications for refunds are generally granted within a few months with the refunds being paid to the company or shareholder account as may be directed.
AUDIT
All Maltese companies are subject to an annual audit that is carried out in accordance with International Standards on Auditing. Financial statements are prepared in accordance with Maltese company legislation generally requiring adherence General Accounting Principles for Smaller and Medium Entities (GAPSME) for SMEs or to International Standards on Financial Reporting (IFRS) for larger entities.
