Why form a company in Malta?
Malta holds a very sound reputation and is a strong and safe jurisdiction. Due to the fact that Malta forms part of the European Union, it has a strong and clean legal system and has favourable tax benefits, it makes it your ideal location to open a Malta company.
The island offers a favourable tax regime which is surely one of Malta’s strengths and assets as a financial centre. The Maltese tax system is approved by international institutions and offers the lowest implicit tax rate on labour in Europe. In addition, Malta prides itself on having a wide network of double taxation agreements.
Malta operates a full imputation system under which companies are taxed at a rate of 35%; however, they are entitled to claim tax credits which can potentially result in an effective tax rate of 5%.