Malta is considered one of the top investment destinations in the world. There are so many reasons why a lot of investors and expatriates are finding interest in Malta, most of the credit goes to the pro-foreign investment policies set up by the Maltese government. However, that’s not all!
Setting up a business in Malta can bring great rewards for your investment. Here is a walkthrough on how to start a business in Malta.
The government of Malta has put in place a set of guidelines on the payment of VAT on leased Yachts. The regulations apply when a company registered in Malta buys a Yacht and decides to lease it to a third party. This system was put in place to help the owners of these luxury vessels to pay their VAT. The VAT payable is calculated from the proportion of time the yatch is supposed to navigate in the EU territory. It also enables them to acquire a certificate cleared of VAT arrears at end of the arrangement.
A European Societas (SE) is an organization created in Europe to promote business by giving other companies a chance to function in the region with limited restrictions that could exist in their parent countries. Malta has contributed by providing a regulation that enables a SE to be established in the state. The presence of SE in the state has a positive effect as it amplifies business possibilities and gives a better footing for big business deals. On the other hand, companies in search of a type of incorporation in either of the member states controlled by EU could find it valuable since it is managed on a narrow set of guidelines run by an integrated management system.
Registering for tax in Malta is no different from other countries and it actually comes with a number of benefits. Every business operating in Malta is mandated to register for tax with the Department of Inland Revenue in Malta in order to legally operate on the market. To be recognized as a taxpayer, you should obtain a Maltese PE number, which is also issued out by the department of inland revenue. This will allow you to legally retain and pay taxes for both your company and for your employees.
Malta’s taxation system is closely similar to that of Great Britain but there are some slight variations when it comes to aspects like the dividend tax. The government's strategy on dividend tax affects local companies and foreign businesses differently. Dividend tax is imposed on locals (domicile and tenant) companies — they are obligated to pay their taxes on returns from capital gains and other forms of income.
