Malta company formation allows you to benefit from an effective and efficient tax jurisdiction. It is not only rewarding for corporate taxation but also facilities individuals with direct and indirect taxation. Malta’s taxation system levies any withholding tax on dividends, royalties, and interest.
Likewise, its tax refund system has a significant role in lowering the effective tax rate. As a result, individuals can enjoy the lowest possible tax rate on the island. Malta does not support any controlled foreign company legislation or transfer pricing rules. A Maltese company can carry out distributions through a liquidator. It winds up to the extent to which they represent the income of the company. This amount will serve as dividends paid to every shareholder out of the revenue.
The Maltese Income Tax act does not have any high capitalization. Malta also does not charge any exit taxes, trade tax, wealth taxes, or any other taxes based on payroll. Overall, forming a Maltese company lets you enjoy many tax benefits that you might not find elsewhere.
The best part of Malta company formation is the low set-up and operational costs associated with the process. They are not only affordable to pay for most entrepreneurs and lower than jurisdictions in other European countries. Malta companies that carry out international activities do not need to pay duty on documents. It means you are exempt from duty associated with share transfers and increased share capital of the company.
Malta agrees with fifty double taxation treaties, including Russia. It means you can endorse trading activities with fifty countries included in double taxation treaties. As a keen entrepreneur, you can attain professional services at considerably lower rates than in most of Europe. These costs entail an efficient-and-lean operating cost structure at the same time as being compliant in every respect.