Taxes in Malta, Taxation in Malta, Taxes system in Malta
In Malta, the tax on individuals is a progressive tax, and the rates range from 15 to 35% (15, 20, 25, 30, 35%). Tax-free amount is approximately € 8,000.00. Advances collected each month.
Malta applies a tax on income for individuals and businesses. The basic tax rate for companies is equal to 35%, but much of the tax paid by the company shall be refunded after payment of dividends, thus avoiding the double taxation of profits. Advances are paid three times a year.
Maltese companies that are tax resident can register as an international trading companies, holding companies or international companies.
Then enjoy a special tax credit and the real tax rate is 4.17% for them, and even 0%.
Maltese tax law (as opposed to Polish law) states that if a taxpayer in a given fiscal year showed a loss of tax remains the possibility of settlement indefinitely.
The Maltese Government also uses a large number of tax incentives. Thus, companies operating in the privileged (biotechnology, electronics, water purification) can count on the tax reduction to 5-10% in the first few measures. They may also benefit from tax credits (50-65% of the cost of investment in equipment or in case of job creation).
In Malta, the basic VAT rate is 18%. It contains also two preferential rate. Rate of 5% apply, inter alia, tourism services and parts for transport services, while for exports applies a zero rate.
The obligation incumbent on the business registration within 30 days after the first operation, which is subject to taxation (registration may also be made via the internet).
For small companies, if the annual turnover does not exceed € 36,000.00 (Shopping facilities), or € 24,000.00 (betting services), there is no requirement to register.
In Malta, the VAT returns are submitted on a quarterly basis (except for certain groups of traders, who may submit monthly statements in the system (exporters) or annual (small taxpayers).